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Acquisition of Hotel Properties | 12 Months Ended
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Dec. 31, 2016
Business Combinations [Abstract] |
Acquisition of Hotel Properties | Acquisition of Hotel Properties Hotel Purchase Price Allocation No acquisitions were completed in 2016. The allocation of the purchase price of each of the hotels acquired by the Company in 2015, based on the fair value on the date of its acquisition, was (in thousands):
| Gaslamp | Dedham | Ft. Lauderdale | Marina del Rey | Total
Acquisition date | 2/25/2015 |  | 7/17/2015 |  | 8/17/2015 |  | 9/17/2015 |  |
Number of rooms (unaudited) | 240 |  | 81 |  | 104 |  | 134 |  | 559 |
Land | $ | — |  | $ | 4,230 |  | $ | 9,200 |  | $ | — |  | $ | 13,430 |
Building and improvements | 89,040 |  | 17,304 |  | 24,048 |  | 43,210 |  | 173,602 |
Furniture, fixtures and equipment | 960 |  | 466 |  | 252 |  | 1,340 |  | 3,018 |
Cash | 3 |  | 2 |  | 2 |  | 6 |  | 13 |
Restricted cash | — |  | — |  | — |  | 1,755 |  | 1,755 |
Accounts receivable | 81 |  | 47 |  | 32 |  | 30 |  | 190 |
Deferred costs, net | — |  | — |  | — |  | 43 |  | 43 |
Prepaid expenses and other assets | 278 |  | 3 |  | 40 |  | 217 |  | 538 |
Mortgage debt | — |  | — |  | — |  | (22,569 | ) | (22,569 | )
Accounts payable and accrued expenses | (204 | ) | (10 | ) | (279 | ) | (67 | ) | (560 | )
Net assets acquired, net of cash | $ | 90,155 |  | $ | 22,040 |  | $ | 33,293 |  | $ | 23,959 |  | $ | 169,447 |
The value of the assets acquired was primarily based on a sales comparison approach (for land) and a depreciated replacement cost approach (for building and improvements and furniture, fixtures and equipment). The sales comparison approach uses inputs of recent land sales in the respective hotel markets. The depreciated replacement cost approach uses inputs of both direct and indirect replacement costs using a nationally recognized authority on replacement cost information as well as the age, square footage and number of rooms of the respective assets. The Company incurred acquisition costs of $0.5 million, $1.5 million and $10.4 million, respectively, during the years ended December 31, 2016, 2015 and 2014. Property acquisition costs incurred during 2016 related to prior acquisitions for which final amounts were more than previously accrued. The amount of revenue and operating income from the hotels acquired in 2015 from their respective date of acquisition through December 31, 2016 is as follows (in thousands):
| December 31, 2016 |  | December 31, 2015
| Revenue |  | Operating Income |  | Revenue |  | Operating Income
Residence Inn San Diego Gaslamp | $ | 15,018 |  |  | $ | 7,616 |  |  | $ | 12,670 |  |  | $ | 6,850 |
Residence Inn Dedham, MA | 4,026 |  |  | 1,909 |  |  | 1,995 |  |  | 1,043 |
Residence Inn Ft. Lauderdale, FL | 6,564 |  |  | 2,984 |  |  | 2,132 |  |  | 863 |
Hilton Garden Inn Marina del Rey, CA | 10,523 |  |  | 5,216 |  |  | 2,500 |  |  | 1,200 |
Total | $ | 36,131 |  |  | $ | 17,725 |  |  | $ | 19,297 |  |  | $ | 9,956 |
Pro Forma Financial Information (unaudited) The following condensed pro forma financial information presents the unaudited results of operations as if the acquisition of the hotels acquired during the years ended December 31, 2015 or 2014 had taken place on January 1, 2014 and 2013, respectively. There were no hotels acquired in 2016. Since the acquisition of the Cherry Creek hotel was not material, the pro forma numbers presented below do not include the operating results of the Cherry Creek hotel prior to the acquisition date. Supplemental pro forma earnings were adjusted to exclude $0.7 million and $7.2 million, respectively, of acquisition-related costs incurred in the years ended December 31, 2015 and 2014. Supplemental pro forma earnings for the year ended December 2014 were adjusted to include these charges from 2015. The unaudited pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what actual results of operations would have been had the acquisitions taken place on January 1, 2014, nor do they purport to represent the results of operations for future periods (in thousands, except share and per share data).
| For the year ended
| December 31,
| 2015 |  | 2014
Pro forma total revenue | $ | 292,908 |  |  | $ | 271,321 |
Pro forma net income | $ | 32,137 |  |  | $ | 22,013 |
Pro forma income per share: |  |  |
Basic | $ | 0.85 |  |  | $ | 0.58 |
Diluted | $ | 0.84 |  |  | $ | 0.57 |
Weighted average common shares outstanding |  |  |
Basic | 37,917,871 |  |  | 37,917,871 |
Diluted | 38,322,285 |  |  | 38,322,285 |
As a result of the properties being treated as acquired as of January 1, 2013 and 2014, the Company assumed approximately 38,308,937 shares were issued as of January 1, 2014 to fund the acquisition of the properties. Consequently, the weighted average shares outstanding was adjusted to reflect the treatment of these assumed additional shares as issued outstanding as of the beginning of the periods presented.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4934-128472 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 + Details
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