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