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Discontinued Operations and Assets Held for Sale
 3 Months Ended
Apr. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations and Assets Held for Sale

10. 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 The Trust believes that the plan to sell these assets will not likely be withdrawn.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 Suite Hospitality LLC (the “Tucson St. Mary’s entity”) 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 three months ended April 30, 2016 and April 30, 2015 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 financial information presents the balance sheets of the discontinued operations for the three months ended April 30, 2016 and January 31, 2016, as well as the statements of operations for the three months ended April 30, 2016 and 2015.

 

      APRIL 30, 2016     JANUARY 31, 2016  
    (UNAUDITED)        
ASSETS                
Current Assets:                
Cash and Cash Equivalents   $ 58,612     $ 162,021  
Accounts Receivable     249,355       208,807  
Prepaid Expenses and Other Current Assets     64,942       108,279  
Total Current Assets of Discontinued Operations and Assets Held for Sale     372,909       479,107  
Noncurrent assets of Discontinued Operations and Assets Held for Sale     14,814,873       14,382,785  
TOTAL ASSETS OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE   $ 15,187,782     $ 14,861,892  
                 
LIABILITIES                
                 
LIABILITIES                
Current Liabilities:                
Accounts Payable and Accrued Expenses   $ 2,015,290     $ 1,295,228  
Current Portion of Mortgage Notes Payable     361,113       355,951  
Total Current Liabilities of Discontinued Operations and Assets Held for Sale     2,376,403       1,651,179  
Noncurrent Liabilities of Discontinued Operations and Assets Held for Sale     8,253,574       8,343,647  
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE   $ 10,629,977     $ 9,994,826  

 

    THREE MONTHS ENDED  
    APRIL 30,  
    2016     2015  
             
REVENUE                
Room   $ 2,359,096     $ 3,440,254  
Food and Beverage     57,718       400,526  
Other     13,265       26,862  
TOTAL REVENUE     2,430,079       3,867,642  
                 
OPERATING EXPENSES                
Room     678,521       923,461  
Food and Beverage     76,377       284,630  
Telecommunications     636       3,555  
General and Administrative     290,619       358,933  
Sales and Marketing     154,500       252,190  
Repairs and Maintenance     205,141       273,428  
Hospitality     154,218       216,100  
Utilities     157,051       273,149  
Hotel Property Depreciation     -       327,823  
Real Estate and Personal Property Taxes, Insurance and Ground Rent     142,652       152,997  
Other     (12,535 )     8,840  
TOTAL OPERATING EXPENSES     1,847,180       3,075,106  
OPERATING INCOME     582,899       792,536  
Interest on Mortgage Notes Payable     101,579       136,449  
Interest on Notes Payable to Banks     3,029       46,245  
TOTAL INTEREST EXPENSE     104,608       182,694  
DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE, NET OF NON-CONTROLLING INTEREST     478,291       609,842  
CONSOLIDATED NET INCOME FROM DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE   $ 478,290     $ 609,842