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Acquisition of Hotel Properties
 9 Months Ended
Sep. 30, 2015
Business Combinations [Abstract]  
Acquisition of Hotel Properties

3. Acquisition of Hotel Properties

Georgian Terrace Acquisition. On March 27, 2014, we acquired the 326-room Georgian Terrace in Atlanta, Georgia, for approximately $61.1 million.

Crowne Plaza Hollywood Beach Resort Acquisition. On July 31, 2015, we acquired the controlling interest in the 311-room Crowne Plaza Hollywood Beach Resort in Hollywood Beach, Florida, previously held by the Carlyle Group for approximately $25.5 million.  The purchase price allocation for final valuation of assets acquired is preliminary as of September 30, 2015.

The allocation of the purchase price based on fair values for both properties is as follows:

 

 

 

Georgian Terrace

 

 

Crowne Plaza Hollywood Beach Resort

 

Land and land improvements

 

$

10,127,687

 

 

$

24,008,289

 

Buildings and improvements

 

 

45,385,939

 

 

 

64,854,787

 

Furniture, fixtures and equipment

 

 

5,163,135

 

 

 

2,802,135

 

Investment in hotel properties

 

 

60,676,761

 

 

 

91,665,211

 

Restricted cash

 

 

124,658

 

 

 

1,159,759

 

Accounts receivable

 

 

465,287

 

 

 

140,588

 

Prepaid expenses, inventory and other assets

 

 

430,997

 

 

 

797,505

 

Assumed mortgage

 

 

—

 

 

 

(57,259,159

)

Accounts payable and accrued liabilities

 

 

(591,618

)

 

 

(2,527,633

)

Equity investment

 

 

—

 

 

 

(1,889,560

)

Gain on change in control

 

 

—

 

 

 

(6,560,958

)

Net cash

 

$

61,106,085

 

 

$

25,525,754

 

 

The results of operations of the Georgian Terrace are included in our consolidated financial statements from the date of acquisition. The total revenue and net loss related to the acquisition of the Georgian Terrace, for the period March 27, 2014 to September 30, 2014 are approximately $11.3 million and $2.0 million, respectively and the total revenue and net loss related to the acquisition of the Crowne Plaza Hollywood Beach Resort, for the period from August 1, 2015 to September 30, 2015 are approximately $2.4 million and $0.5 million, respectively. The following pro forma financial information presents the results of operations of the Company and the Operating Partnership for the three and nine months ended September 30, 2015 and 2014, as if the acquisitions of the Georgian Terrace and the Crowne Plaza Hollywood Beach Resort had taken place on January 1, 2014. The pro forma results have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which would have actually occurred had the transaction taken place on January 1, 2014, or of future results of operations:

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2015

 

 

September 30, 2014

 

 

September 30, 2015

 

 

September 30, 2014

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

Pro forma revenues

 

$

35,402,727

 

 

$

35,581,783

 

 

$

115,181,068

 

 

$

112,740,493

 

Pro forma operating expenses

 

 

33,597,191

 

 

 

32,850,638

 

 

 

99,056,441

 

 

 

96,048,017

 

Pro forma operating income

 

$

1,805,536

 

 

$

2,731,145

 

 

$

16,124,627

 

 

$

16,692,476

 

Pro forma net income (loss)

 

$

(1,936,057

)

 

$

(1,378,074

)

 

$

1,487,491

 

 

$

1,735,808

 

Pro forma earnings (loss) per basic and diluted share

 

$

(0.12

)

 

$

(0.08

)

 

$

0.09

 

 

$

0.10

 

Pro forma earnings (loss) per basic and diluted units

 

$

(0.12

)

 

$

(0.08

)

 

$

0.09

 

 

$

0.10

 

Pro forma basic and diluted common shares

 

 

14,247,671

 

 

 

13,788,988

 

 

 

15,319,110

 

 

 

13,746,595

 

Pro forma basic and diluted units

 

 

16,487,524

 

 

 

16,542,413

 

 

 

16,534,316

 

 

 

16,542,413