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Real Estate Properties
 3 Months Ended
Mar. 31, 2015
Real Estate Properties  
Real Estate Properties

Note 7.  Real Estate Properties

 

At March 31, 2015, we owned 292 hotels and owned 184 travel centers which are operated under 11 operating agreements.

 

During the three months ended March 31, 2015, we funded $39,184 for improvements to certain of our properties which, pursuant to the terms of our management and lease agreements with our hotel managers and tenants, resulted in increases in our contractual annual minimum returns and rents of $3,099.  See Notes 10 and 11 for further information about our fundings of improvements to certain of our properties.

 

On March 16, 2015, we acquired a 300 room hotel located in Rosemont, IL for $35,500 excluding related acquisition costs of $154. We accounted for this transaction as a business combination.  The following table summarizes our preliminary allocation of the acquisition cost to the estimated fair value of the assets we acquired.

 

 

 

 

 

 

 

Land

    

$
2,379 

Building and improvements

 

 
31,459 

Furniture, fixtures and equipment

 

 
1,399 

Intangible assets

 

 
263 

 

 

$
35,500 

 

This Holiday Inn and Suites® branded hotel was added to our management agreement with InterContinental Hotels Group, plc, or InterContinental.  See Note 11 for more information regarding this transaction and our InterContinental agreement.

 

In March 2015, we entered an agreement to acquire a 364 room full service hotel located in Denver, CO for $77,250, excluding closing costs.  We plan to add this Crowne Plaza® branded hotel to our management agreement with InterContinental.  See Note 11 for more information regarding our InterContinental agreement. 

 

This pending acquisition is subject to closing conditions, and accordingly, we can provide no assurance that we will acquire this property, that the acquisition will not be delayed or that the terms of this transaction will not change.

 

On April 28, 2015, we acquired a land parcel adjacent to one of our hotels for  $750, excluding closing costs.  See Note 10 for further information regarding this acquisition.

 

At March 31, 2015, our Marriott Courtyard hotel in Norcross, GA with a carrying value of $4,143 was held for sale.  This amount is included in other assets, net, in our condensed consolidated balance sheets.  We can provide no assurance that the sale of this property will occur or that any such sale would realize net proceeds in an amount at least equal to its carrying value.  See Note 11 for further information relating to this hotel.