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Discontinued Operations and Assets Held for Sale
 9 Months Ended
Oct. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations and Assets Held for Sale

12. DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE

 

On August 1, 2015, the Trust finalized and committed to a plan to sell all of its hotel properties. Except for the Yuma, hotel property, the Trust listed each of the properties with a local successful real estate hotel broker and Management believes that the assets are being marketed at a price that is reasonable in relation to its current fair value. The Trust believes that the plan to sell these assets will not likely be withdrawn. On October 14, 2015, the Trust sold its Tucson St Mary’s hotel to an unrelated third party.

 

Except for the Yuma hotel property, the Company has recognized the sale of the Tucson St. Mary’s hotel and the reclassification of three of its hotels into discontinued operations and assets held for sale in accordance with Accounting Standards Codification (ASC) No. 205-20, Discontinued Operations. As such, the historical results of these hotels have been adjusted for comparability purposes and exclude any corporate general and administrative expenses.

 

Discontinued operations in the nine months ended October 31, 2015 and October 31, 2014 primarily consists of all hotels operational revenues and expenses except our Yuma hotel property and does not include the sale proceeds and profit from the sale of our Tucson St Mary’s hotel.

 

The following unaudited financial information presents the aggregate carrying amounts of the classes of assets and liabilities of discontinued operations for the nine months ended October 31, 2015 and the fiscal year ended January 31, 2015 as well as the statements of operations for the nine months and three months ended October 31, 2015 and the nine months and three months ended October 31, 2014.

 

    OCTOBER 31, 2015     JANUARY 31, 2015  
    (UNAUDITED)     (UNAUDITED)  
ASSETS                
Current Assets:                
Cash and Cash Equivalents   $ 1,488,785     $ 360,002  
Accounts Receivable     114,602       354,447  
Prepaid Expenses and Other Current Assets     84,513       121,901  
Total Current Assets of Discontinued Operations and Assets Held for Sale     1,687,900       836,350  
Noncurrent assets of Discontinued Operations and Assets Held for Sale     13,815,269       20,716,731  
TOTAL ASSETS OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE   $ 15,503,169     $ 21,553,081  
                 
LIABILITIES                
                 
LIABILITIES                
Current Liabilities:                
Accounts Payable and Accrued Expenses   $ 1,363,967     $ 1,956,488  
Current Portion of Mortgage Notes Payable     322,598       5,202,978  
Current Portion of Notes Payable to Banks     15,270       658,835  
Line of Credit - Related Party     -       279,051  
Total Current Liabilities of Discontinued Operations and Assets Held for Sale     1,701,835       8,097,352  
Noncurrent Liabilities of Discontinued Operations and Assets Held for Sale     8,461,521       8,701,557  
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE   $ 10,163,356     $ 16,798,909  

 

    FOR THE NINE MONTHS ENDED  
    OCTOBER 31,  
    2015     2014  
    (UNAUDITED)     (UNAUDITED)  
REVENUE                
Room   $ 8,123,053     $ 8,334,730  
Food and Beverage     754,196       728,139  
Management and Trademark Fees     -       -  
Other     69,625       96,923  
TOTAL REVENUE     8,946,874       9,159,792  
                 
OPERATING EXPENSES                
Room     2,846,502       2,302,533  
Food and Beverage     717,061       604,670  
Telecommunications     5,955       6,788  
General and Administrative     1,012,191       1,026,561  
Sales and Marketing     593,836       568,201  
Repairs and Maintenance     787,377       689,151  
Hospitality     609,082       574,222  
Utilities     873,705       867,695  
Hotel Property Depreciation     659,266       956,619  
Real Estate and Personal Property Taxes, Insurance and Ground Rent     558,153       645,476  
Other     25,057       8,810  
TOTAL OPERATING EXPENSES     8,688,185       8,250,726  
OPERATING INCOME     258,689       909,066  
Interest Income on Advances to Affiliates - Related Party     -       2,512  
TOTAL OTHER INCOME     -       2,512  
Interest on Mortgage Notes Payable     410,515       267,006  
Interest on Notes Payable to Banks     78,636       28,402  
TOTAL INTEREST EXPENSE     489,151       295,408  
CONSOLIDATED NET (LOSS) INCOME BEFORE DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE, NET OF NON-CONTROLLING INTEREST   $ (230,462 )   $ 616,170  

 

    FOR THE THREE MONTHS
ENDED OCTOBER 31,		  
    2015     2014  
    (UNAUDITED)     (UNAUDITED)  
REVENUE                
Room     2,171,208       2,405,128  
Food and Beverage     146,578       174,530  
Management and Trademark Fees     -       -  
Other     15,946       27,628  
TOTAL REVENUE     2,333,732       2,607,286  
                 
OPERATING EXPENSES                
Room     1,047,783       739,811  
Food and Beverage     190,607       190,837  
Telecommunications     314       1,988  
General and Administrative     310,618       334,286  
Sales and Marketing     175,875       176,061  
Repairs and Maintenance     233,497       200,401  
Hospitality     178,890       166,496  
Utilities     319,664       301,353  
Hotel Property Depreciation     -       317,604  
Real Estate and Personal Property Taxes, Insurance and Ground Rent     234,536       246,618  
Other     12,933       (1,058 )
TOTAL OPERATING EXPENSES     2,704,717       2,674,397  
OPERATING LOSS     (370,985 )     (67,111 )
Interest Income on Advances to Affiliates - Related Party     -       -  
TOTAL OTHER INCOME     -       -  
Interest on Mortgage Notes Payable     118,074       16,748  
Interest on Notes Payable to Banks     18,948       61,179  
TOTAL INTEREST EXPENSE     137,022       77,927  
CONSOLIDATED NET LOSS BEFORE DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE, NET OF NON-CONTROLLING INTEREST   $ (508,007 )   $ (145,038