Acquisition of Hotel Properties

Hotel Purchase Price Allocation

We acquired the Residence Inn Summerville ("RI Summerville") hotel in Summerville, SC for $20.8 million on August 27, 2018. The allocation of the purchase price, based on the fair value on the date of its acquisition, was (in thousands):



	RI Summerville
Acquisition date	8/27/2018
Number of Rooms	96
Land	$	2,300
Building and improvements	16,954
Furniture, fixtures and equipment	1,440
Accounts payable and accrued expenses	(54		)
Net assets acquired, net of cash	$	20,640

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 amount of revenue and operating income from the hotels acquired in 2018 and 2017 from their respective dates of acquisition through September 30, 2018 is as follows (in thousands):



		For the three months ended September 30,									For the nine months ended September 30,
		2018					2017				2018					2017
	Acquisition Date	Revenue		Operating Income			Revenue		Operating Income		Revenue		Operating Income			Revenue		Operating Income

Hilton Garden Inn Portsmouth, NH	09/20/2017	$	3,075	$	1,174		$	392	$	241	$	6,826	$	1,724		$	392	$	241
Courtyard Summerville, SC	11/15/2017	978		147			—		—		3,079		672			—		—
Embassy Suites Springfield, VA	12/06/2017	3,472		720			—		—		10,803		2,518			—		—
Residence Inn Summerville, SC	08/27/2018	186		(147		)	—		—		186		(182		)	—		—

Total		$	7,711	$	1,894		$	392	$	241	$	20,894	$	4,732		$	392	$	241