Investment in Unconsolidated Entities

On June 9, 2014, the Company acquired a 10.3% interest in the NewINK JV, a joint venture between affiliates of NorthStar Realty Finance Corp. ("NorthStar") and the Operating Partnership. The Company accounts for this investment under the equity method. NorthStar merged with Colony Capital, Inc. ("Colony") on January 10, 2017 to form a new company, CLNS, which owns a 89.7% interest in the NewINK JV. As of March 31, 2017 and 2016, the Company’s share of partners’ capital in the NewINK JV is approximately $46.6 million and $12.9 million, respectively and the total difference between the carrying amount of investment and the Company’s share of partners’ capital is approximately $52.4 million and $16.6 million (for which the basis difference related to amortizing assets is being recognized over the life of the related assets as a basis difference adjustment). The value of NewINK JV assets and liabilities were adjusted to reflect estimated fair market value at the time Colony merged with NorthStar.

During the three months ended March 31, 2017 and 2016, the Company received cash distributions from the NewINK JV as follows (in thousands):



	For the three months ended
	March 31,
	2017		2016
Cash generated from other activities and excess cash	$	—	$	822
Total	$	—	$	822

On November 17, 2014, the Company acquired a 10.0% interest in the Inland JV, a joint venture between affiliates of NorthStar and the Operating Partnership. The Company accounts for this investment under the equity method. NorthStar merged with Colony Capital, Inc. ("Colony") on January 10, 2017 to form a new company, CLNS, which owns a 90.0% interest in the Inland JV. As of March 31, 2017 and 2016, the Company's share of partners' capital in the Inland JV is approximately $28.2 million and $23.1 million, respectively and the total difference between the carrying amount of the investment and the Company's share of partners' capital is approximately $8.1 million and $0.0 million, respectively (for which the basis difference related to amortizing assets is being recognized over the life of the related assets as a basis difference adjustment). The value of Inland JV assets and liabilities were adjusted to reflect estimated fair market value at the time Colony merged with NorthStar. The Company serves as managing member of the Inland JV. During the three months ended March 31, 2017 and 2016, the Company received no cash distributions from the Inland JV.

The Company’s ownership interests in the JVs are subject to change in the event that either the Company or CLNS calls for additional capital contributions to the respective JVs necessary for the conduct of business, including contributions to fund costs and expenses related to capital expenditures. The Company could be required under its unconditional guaranty to repay portions of the debt of the JVs. The Company manages the JVs and will receive a promote interest in each applicable JV if it meets certain return thresholds for such JV. CLNS may also approve certain actions by the JVs without the Company’s consent, including certain property dispositions conducted at arm’s length, certain actions related to the restructuring of the applicable JV and removal of the Company as managing member in the event the Company fails to fulfill its material obligations under the applicable joint venture agreement.

The Company's investment in the NewINK JV and the Inland JV were $(5.8) million and $20.1 million, respectively, at March 31, 2017 and $(6.0) million and $20.4 million, respectively, at December 31, 2016. The following table sets forth the combined components of net income (loss), including the Company’s share, related to the NewINK JV and Inland JV for the three months ended March 31, 2017 and 2016 (in thousands):



	For the three months ended
	March 31,
	2017			2016
Revenue	$	108,574		$	108,429
Total hotel operating expenses	74,957			74,245
Operating income	$	33,617		$	34,184
Net loss from continuing operations	$	(7,513	)	$	(7,890	)
Net loss	$	(7,513	)	$	(7,890	)

Loss allocable to the Company	$	(760	)	$	(797	)
Basis difference adjustment	675			150
Total loss from unconsolidated real estate entities attributable to the Company	$	(85	)	$	(647	)