Investment in Hotel Properties, net (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of investments in hotel properties

Investments in hotel properties, net consisted of the following (in thousands):



	December 31,
	2018			2017
Land	$	428,567		$	344,937
Buildings and improvements	989,180			962,478
Furniture, fixtures and equipment	103,025			87,796
Construction in progress	42,034			7,899
Total cost	1,562,806			1,403,110
Accumulated depreciation	(262,905		)	(257,268		)
Investments in hotel properties, net	$	1,299,901		$	1,145,842

Preliminary estimated fair value of acquisition

The following table summarizes the estimated fair value of the assets acquired in the acquisition (in thousands):



Land ⁽¹⁾	$	83,630
Buildings and improvements	86,042
Furniture, fixtures and equipment	13,740
Customer relationships	5,682
Refundable membership club deposits ⁽²⁾	(9,960		)
Income guarantee ⁽³⁾	2,000
	$	181,134
Net other assets (liabilities)	$	(3,189	)

________


⁽¹⁾	Amount includes the $9.7 million, 22-acre plot of vacant land.


⁽²⁾	Recorded within “other liabilities” on our consolidated balance sheet.


⁽³⁾	The income guarantee was originally recorded within “other assets” on our consolidated balance sheet. The income guarantee expired at the end of 2018 as a result of the hotel property’s 2018 gross operating profit exceeding the 2017 gross operating profit. As a result we recorded a $2.0 million expense in “property taxes, insurance and other” on our consolidated statement of operations.

Pro Forma Financial Results

The results of operations of the hotel property have been included in our results of operations as of the acquisition date. The table below summarizes the total revenue and net income (loss) in our consolidated statements of operations for the year ended December 31, 2018:



	Year Ended December 31, 2018
Total revenue	42,232
Net income (loss)	(4,619	)

The following table reflects the unaudited pro forma results of operations for the years ended December 31, 2018 and 2017 as if the acquisitions had occurred and the applicable indebtedness was incurred on January 1, 2017, and the removal of $949,000 of non-recurring transaction costs directly attributable to the acquisitions for the year ended December 31, 2018 (in thousands):



	Year Ended December 31,
	2018			2017
Total revenue	$	451,471		$	476,386
Net income (loss)	6,198			28,101
Net income (loss) attributable to common stockholders	(2,677		)	16,018
Pro Forma income (loss) per share:
Basic	$	(0.09	)	$	0.51
Diluted	$	(0.09	)	$	0.51
Weighted average common shares outstanding (in thousands):
Basic	31,944			30,473
Diluted	31,944			34,706