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Investment in Hotel Properties, net | 9 Months Ended
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Sep. 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):
|  | September 30, 2017 |  | December 31, 2016
Land |  | $ | 347,662 |  |  | $ | 210,696 |
Buildings and improvements |  | 1,076,366 |  |  | 972,412 |
Furniture, fixtures and equipment |  | 96,845 |  |  | 70,922 |
Construction in progress |  | 8,238 |  |  | 4,382 |
Total cost |  | 1,529,111 |  |  | 1,258,412 |
Accumulated depreciation |  | (297,976 | ) |  | (243,880 | )
Investments in hotel properties, net |  | $ | 1,231,135 |  |  | $ | 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 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 the three and nine months ended September 30, 2017, we have included total revenue of $8.7 million and $13.7 million, net loss of $23,000 and $2.1 million, respectively, 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 prepared a purchase price allocation of the assets acquired and liabilities assumed. The final purchase price allocation was prepared with the assistance of a third-party appraisal firm during the three months ended September 30, 2017.We are in the process of evaluating property level working capital balances, which amounted to a net liability of $2.1 million. This valuation is considered a Level 3 valuation technique. The following table summarizes the estimated fair value of the assets acquired in the acquisition (in thousands):
| Final Allocations as of September 30, 2017
Land | $ | 47,849 |
Buildings and improvements | 41,216 |
Furniture, fixtures and equipment | 7,351 |
| 96,416 |
Inventories | 84 |
| 96,500 |
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 nine months ended September 30, 2017, we have included total revenue of $4.7 million and $7.1 million, net income of $1.2 million and $1.5 million, respectively, 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. 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 $5.3 million of non-recurring transaction costs directly attributable to the acquisitions for the nine months ended September 30, 2017 (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Total revenue | $ | 108,119 |  |  | $ | 113,504 |  |  | $ | 344,593 |  |  | $ | 355,642 |
Net income (loss) | (217 | ) |  | 23,087 |  |  | 9,536 |  |  | 29,141 |
Net income (loss) attributable to common stockholders | (2,707 | ) |  | 17,434 |  |  | 1,458 |  |  | 21,024 |
Pro Forma income per share: |  |  |  |  |  |  |
Basic | $ | (0.09 | ) |  | $ | 0.67 |  |  | $ | 0.03 |  |  | $ | 0.76 |
Diluted | $ | (0.09 | ) |  | $ | 0.60 |  |  | $ | 0.03 |  |  | $ | 0.74 |
Weighted average common shares outstanding (in thousands): |  |  |  |  |  |  |
Basic | 31,483 |  |  | 25,554 |  |  | 30,089 |  |  | 27,261 |
Diluted | 31,483 |  |  | 33,874 |  |  | 30,235 |  |  | 31,887 |
Impairment Charges and Insurance Recoveries In September 2017, the Ritz-Carlton, St. Thomas located in St. Thomas, USVI, Key West Pier House located in Key West, FL and Tampa Renaissance located in Tampa, FL were impacted by the effects of Hurricanes Irma and Maria. The Company holds insurance policies that provide coverage for property damage and business interruption after meeting certain deductibles at all of its hotel properties. During the three and nine months ended September 30, 2017, the Company recognized impairment charges, net of anticipated insurance recoveries of $1.0 million. Additionally, the Company recognized remediation and other costs, net of anticipated insurance recoveries of $3.6 million, included primarily in other hotel operating expenses. As of September 30, 2017, the Company has recorded an insurance receivable of $19.0 million, net of deductibles of $4.6 million, related to the anticipated insurance recoveries. The Company will not record an insurance recovery receivable for business interruption losses associated with lost profits until the amount for such recoveries is known and the amount is realizable.

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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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