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Investment in Hotel Properties, net | 6 Months Ended
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Jun. 30, 2017
Property, Plant and Equipment [Abstract] |
Investments in Hotel Properties, net | Investments in Hotel Properties, net Investments in hotel properties, net consisted of the following (in thousands):
|  | June 30, 2017 |  | December 31, 2016
Land |  | $ | 347,662 |  |  | $ | 210,696 |
Buildings and improvements |  | 1,071,359 |  |  | 972,412 |
Furniture, fixtures and equipment |  | 93,400 |  |  | 70,922 |
Construction in progress |  | 5,865 |  |  | 4,382 |
Total cost |  | 1,518,286 |  |  | 1,258,412 |
Accumulated depreciation |  | (265,807 | ) |  | (243,880 | )
Investments in hotel properties, net |  | $ | 1,252,479 |  |  | $ | 1,014,532 |
Park Hyatt Beaver Creek On March 31, 2017, we acquired a 100% interest in the Park Hyatt Beaver Creek Resort & Spa in Beaver Creek, Colorado for total consideration of $145.5 million. Concurrent with the closing of the acquisition, we completed the financing of a $67.5 million mortgage loan. See note 7. We prepared the purchase price allocation of the assets acquired and liabilities assumed. The final purchase price allocation was completed with the assistance of a third party appraisal firm during the three months ended June 30, 2017. The final purchase price allocation resulted in adjustments to land, buildings and improvements and furniture, fixtures and equipment. These adjustments did not result in any changes to depreciation expense as the acquisition closed on March 31, 2017. This valuation is considered a Level 3 valuation technique. The following table summarizes the preliminary estimated fair value of the assets acquired in the acquisition (in thousands):
| Preliminary Allocations as of March 31, 2017 |  | Adjustments |  | Final Allocations as of June 30, 2017
Land | $ | 92,470 |  |  | $ | (3,353 | ) |  | $ | 89,117 |
Buildings and improvements | 47,724 |  |  | 3,545 |  |  | 51,269 |
Furniture, fixtures and equipment | 5,306 |  |  | (192 | ) |  | 5,114 |
| $ | 145,500 |  |  | $ | — |  |  | $ | 145,500 |
Net other assets (liabilities) | $ | 4,528 |  |  | $ | (721 | ) |  | $ | 3,807 |
The results of operations of the hotel property have been included in our results of operations since the acquisition date. For both the three and six months ended June 30, 2017, we have included total revenue of $4.9 million and net loss of $2.0 million, in our condensed consolidated statements of operations. The unaudited pro forma results of operations as if the acquisition had occurred on January 1, 2016 are included below under “Pro Forma Financial Results.” Hotel Yountville On May 11, 2017, we acquired a 100% interest in the Hotel Yountville in Yountville, California for total consideration of $96.5 million. Concurrent with the closing of the acquisition, we completed the financing of a $51.0 million mortgage loan. See note 7. We have allocated the purchase price to the assets acquired and liabilities assumed on a preliminary basis using estimated fair value information currently available. We are in the process of evaluating the values assigned to investment in hotel property, property level working capital balances and intangibles. This valuation is considered a Level 3 valuation technique. Thus, the balances reflected below are subject to change, and any such changes could result in adjustments to the allocation. Any change to the amounts recorded within the investments in hotel properties or intangibles will also impact depreciation and amortization expense. The following table summarizes the preliminary estimated fair value of the assets acquired in the acquisition (in thousands):
Land | $ | 47,849 |
Buildings and improvements | 41,216 |
Furniture, fixtures and equipment | 7,351 |
| 96,416 |
Inventories | 84 |
| 96,500 |
Net other assets (liabilities) | $ | (2,141 | )
The results of operations of the hotel property have been included in our results of operations as of the acquisition date. For both the three and six months ended June 30, 2017, we have included total revenue of $2.4 million and net income of $297,000, in our condensed consolidated statements of operations. The unaudited pro forma results of operations as if the acquisition had occurred on January 1, 2016 are included below under “Pro Forma Financial Results.” Pro Forma Financial Results The following table reflects the unaudited pro forma results of operations as if the acquisitions had occurred and the applicable indebtedness was incurred on January 1, 2016, and the removal of $2.1 million and $5.0 million of non-recurring transaction costs directly attributable to the acquisitions for the three and six months ended June 30, 2017 (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Total revenue | $ | 117,662 |  |  | $ | 121,418 |  |  | $ | 236,474 |  |  | $ | 242,138 |
Net income (loss) | 1,936 |  |  | 1,352 |  |  | 9,509 |  |  | 6,054 |
Net income (loss) attributable to common stockholders | (1,223 | ) |  | 394 |  |  | 3,921 |  |  | 3,590 |
Pro Forma income per share: |  |  |  |  |  |  |
Basic | $ | (0.04 | ) |  | $ | 0.01 |  |  | $ | 0.12 |  |  | $ | 0.12 |
Diluted | $ | (0.04 | ) |  | $ | 0.01 |  |  | $ | 0.12 |  |  | $ | 0.12 |
Weighted average common shares outstanding (in thousands): |  |  |  |  |  |  |
Basic | 31,469 |  |  | 27,916 |  |  | 29,380 |  |  | 28,121 |
Diluted | 31,469 |  |  | 28,005 |  |  | 29,553 |  |  | 32,812 |

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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