Unconsolidated Joint Venture

12 Months Ended

Dec. 31, 2011

Unconsolidated Joint Venture [Abstract]

11. Unconsolidated Joint Venture

The Company owns a 25% indirect interest in (i) the entity that owns the Crowne Plaza Hollywood Beach Resort; (ii) the entity that leases the hotel and has engaged MHI Hotels Services to operate the hotel under a management contract; (iii) the entity that had an option to purchase a three-acre development site with parking garage adjacent to the hotel and which leased the parking garage for use by the hotel; and (iv) the entity that owned the junior participation in the existing mortgage. Carlyle owns a 75.0% indirect controlling interest in all these entities. The joint venture purchased the property on August 8, 2007 and began operations on September 18, 2007. Summarized financial information for this investment, which is accounted for under the equity method, is as follows:


	*December 31, 2011*		*December 31, 2010*
*ASSETS*
Investment in hotel property, net	$	67,682,291	$	69,678,303
Cash and cash equivalents		2,589,871		1,952,687
Accounts receivable		255,233		271,822
Prepaid expenses, inventory and other assets		2,059,130		2,772,382

*TOTAL ASSETS*	$	72,586,525	$	74,675,194

*LIABILITIES*
Mortgage loan, net	$	33,600,000	$	34,100,000
Accounts payable and other accrued liabilities		2,817,582		2,434,683
Advance deposits		301,952		283,144

*TOTAL LIABILITIES*		36,719,534		36,817,827

*TOTAL MEMBERS' EQUITY*		35,866,991		37,857,367

*TOTAL LIABILITIES AND MEMBERS' EQUITY*	$	72,586,525	$	74,675,194


	Year Ended December 31, 2011			Year Ended December 31, 2010
*Revenue*
Rooms department	$	12,012,048		$	10,957,552
Food and beverage department		2,580,101			2,094,611
Other operating departments		1,107,392			1,085,434

*Total revenue*		*15,699,541*			*14,137,597*
*Expenses*
Hotel operating expenses
Rooms department		2,514,887			2,384,074
Food and beverage department		1,909,535			1,643,261
Other operating departments		581,402			622,769
Indirect		6,191,902			6,427,040

*Total hotel operating expenses*		*11,197,726*			*11,077,144*
Depreciation and amortization		2,196,212			2,184,219
General and administrative		83,040			199,372

*Total operating expenses*		*13,476,978*			*13,460,735*

*Operating income (loss)*		*2,222,563*			*676,862*
Interest expense		(1,780,283	)		(1,134,528	)
Interest income		—			4,883
Loss on expiration of option purchase		(75,000	)		—
Unrealized gain (loss) on hedging activities		(607,656	)		520,505

*Net income (loss)*	$	*(240,376*	)	$	*67,722*

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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