Unconsolidated Joint Venture

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

10. Unconsolidated Joint Venture

We own a 25.0% indirect interest in (i) the entity that owns the Crowne Plaza Hollywood Beach Resort and (ii) the entity that leases the hotel and has engaged Chesapeake Hospitality to operate the hotel under a management contract. 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:


	*March 31, 2015* *(unaudited)*		*December 31, 2014*
*ASSETS*
Investment in hotel property, net	$	62,386,980	$	62,823,142
Cash and cash equivalents		2,864,756		2,153,906
Restricted cash		656,008		874,111
Accounts receivable		312,533		328,755
Prepaid expenses, inventory and other assets		1,489,482		1,489,479

*TOTAL ASSETS*	$	67,709,759	$	67,669,393

*LIABILITIES*
Mortgage loan, net	$	57,000,000	$	57,000,000
Accounts payable and other accrued liabilities		2,747,942		2,195,613
Accounts payable and other accrued liabilities, member		127,774		146,836
Advance deposits		408,398		398,695

*TOTAL LIABILITIES*		60,284,114		59,741,144

*TOTAL MEMBERS’ EQUITY*		7,425,645		7,928,249

*TOTAL LIABILITIES AND MEMBERS’ EQUITY*	$	67,709,759	$	67,669,393


	*Three Months Ended* *March 31, 2015* *(unaudited)*			*Three Months Ended* *March 31, 2014* *(unaudited)*
*Revenue*
Rooms department	$	5,744,329		$	5,207,846
Food and beverage department		871,287			878,212
Other operating departments		426,343			343,246

*Total revenue*		7,041,959			6,429,304
*Expenses*
Hotel operating expenses
Rooms department		952,598			867,823
Food and beverage department		637,728			632,017
Other operating departments		166,908			162,567
Indirect		2,169,747			1,879,085

*Total hotel operating expenses*		3,926,981			3,541,492
Depreciation and amortization		444,576			554,736
General and administrative		127,145			136,711

*Total operating expenses*		4,498,702			4,232,939
*Operating income*		2,543,257			2,196,365
Interest expense		(645,860	)		(646,163	)

*Net income*	$	1,897,397		$	1,550,202

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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