Acquisition of Hotel Properties

3 Months Ended

Mar. 31, 2018

3. Acquisition of Hotel Properties

Hyatt Centric Arlington. On March 1, 2018, we acquired the Hyatt Centric Arlington hotel, for a total fair value of consideration transferred including inventory and other assets of approximately $80.5 million (after amendment of the initial purchase price of $81.0 million).

Hyde Resort & Residences. On January 30, 2017, we acquired the hotel commercial condominium unit of the Hyde Resort & Residences condominium hotel, for a total fair value of consideration transferred including inventory and other assets of approximately $4.8 million.

The allocations of the respective purchase prices are based on fair values are as follows:

	Hyatt Centric Arlington ⁽¹⁾		Hyde Resort & Residences
Land and land improvements	$	190,237	$	500
Buildings and improvements		68,600,051		4,309,500
Furniture, fixtures and equipment		7,759,666		72,616
Intangible assets		3,043,947		—
Investment in hotel properties		79,593,901		4,382,616
Accrued liabilities and other costs		—		(866,142	)
Prepaid expenses, inventory and other assets		885,236		470,375
Net cash	$	80,479,137	$	3,986,849

(1)

The purchase price allocation for the Hyatt Centric Arlington is estimated.

The results of operations of the hotels are included in our consolidated financial statements from the date of acquisition. The total revenue and net income related to the Hyatt Centric Arlington acquisition for the period March 1, 2018 to March 31, 2018 are approximately $2.1 million and $0.5 million, respectively.

The total revenue and net loss related to the Hyde Resort & Residences acquisition for the period January 1, 2018 to March 31, 2018 are approximately $2.1 million and $0.4 million, respectively.