XML 26 R16.htm IDEA: XBRL DOCUMENT v3.6.0.2
Discontinued Operations
 9 Months Ended
Oct. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations

10. DISCONTINUED OPERATIONS

 

The Trust has recognized the sale of the Tucson St. Mary’s Suite Hospitality LLC (the “Tucson St. Mary’s entity”) as discontinued operations. After the sale of this asset, the Trust incurred some additional minor expenses which are presented below. Discontinued operations in the nine and three months ended October 31, 2016 and October 31, 2015 primarily consists of the Tucson St. Mary’s hotel operational revenues and expenses and does not include the sale proceeds and profit from the sale of our Tucson St. Mary’s hotel. Historical results of the Tucson St. Mary’s hotel has been adjusted for comparability purposes and exclude any corporate general and administrative expenses.

 

On August 1, 2015, the Trust finalized and committed to a plan to sell all the Hotel properties. As of May 1, 2016, the Trust has listed all the Hotel properties with a local real estate hotel broker, and management believes that each of the assets is 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 The Trust believes that the plan to sell these assets will not be withdrawn. Through the Trust’s Form 10-Q for the quarter ended July 31, 2016 filed with the SEC on September 14, 2016, the Trust classified all the Hotel properties as Assets Held for Sale. As of October 31, 2016, the Trust has decided to reclassify these assets back into operations as many of these assets have been marketed for sale for more than one year. At this time, the Trust is unable to predict when, and if, any of these Hotel properties will be sold and the Trust no longer deems a sale to be probable. The Trust continues to list these properties with local real estate hotel brokers and, we believe, that each of the assets is being marketed at a price that is reasonable in relation to its current fair value. There have been no other material changes to our basis of presentation since January 31, 2016.

  

The following financial information presents the consolidated balance sheets of the discontinued operations and assets held for sale as of October 31, 2016 and January 31, 2016, as well as the consolidated statements of operations for the three and nine months ended October 31, 2016 and 2015.

 

    DISCONTINUED OPERATIONS  
    OCTOBER 31, 2016     JANUARY 31, 2016  
    (UNAUDITED)        
ASSETS                
Current Assets:                
Cash and Cash Equivalents   $ -     $ 2,153  
Accounts Receivable     19,271       12,495  
Total Current Assets of Discontinued Operations     19,271       14,648  
TOTAL ASSETS OF DISCONTINUED OPERATIONS   $ 19,271     $ 14,648  
                 
LIABILITIES                
                 
LIABILITIES                
Current Liabilities:                
Accounts Payable and Accrued Expenses   $ -     $ 27,246  
Total Current Liabilities of Discontinued Operations     -       27,246  
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS   $ -     $ 27,246  

  

    DISCONTINUED OPERATIONS  
    NINE MONTHS ENDED  
    OCTOBER 31,  
    2016     2015  
    (UNAUDITED)     (UNAUDITED)  
REVENUE                
Room   $ -     $ 2,172,153  
Food and Beverage     -       658,881  
Other     -       23,611  
TOTAL REVENUE     -       2,854,645  
                 
OPERATING EXPENSES                
Room     -       963,976  
Food and Beverage     -       545,737  
Telecommunications     -       1,898  
General and Administrative     16,757       264,074  
Sales and Marketing     -       150,893  
Repairs and Maintenance     -       247,691  
Hospitality     -       188,216  
Utilities     -       432,070  
Hotel Property Depreciation     -       232,661  
Real Estate and Personal Property Taxes, Insurance and Ground Rent     -       159,283  
Other     -       12,894  
TOTAL OPERATING EXPENSES     16,757       3,199,393  
OPERATING (LOSS) INCOME     (16,757 )     (344,748 )
Interest on Mortgage Notes Payable     -       116,838  
Interest on Notes Payable to Banks     -       17,222  
TOTAL INTEREST EXPENSE     -       134,060  
CONSOLIDATED NET LOSS BEFORE DISCONTINUED OPERATIONS, NET OF NON-CONTROLLING INTEREST   $ (16,757 )   $ (478,808 )

  

    DISCONTINUED OPERATIONS  
    THREE MONTHS ENDED  
    OCTOBER 31,  
    2016     2015  
    (UNAUDITED)     (UNAUDITED)  
REVENUE                
Room   $ -     $ 415,018  
Food and Beverage     -       122,262  
Other     -       5,789  
TOTAL REVENUE     -       543,069  
                 
OPERATING EXPENSES                
Room     -       421,291  
Food and Beverage     -       133,275  
Telecommunications     -       31  
General and Administrative     85       77,098  
Sales and Marketing     -       38,820  
Repairs and Maintenance     -       74,201  
Hospitality     -       41,883  
Utilities     -       157,643  
Hotel Property Depreciation     -       -  
Real Estate and Personal Property Taxes, Insurance and Ground Rent     -       94,663  
Other     -       11,562  
TOTAL OPERATING EXPENSES     85       1,050,467  
OPERATING LOSS     (85 )     (507,398 )
Interest on Mortgage Notes Payable     -       15,037  
Interest on Notes Payable to Banks     -       12,902  
TOTAL INTEREST EXPENSE     -       27,939  
CONSOLIDATED NET LOSS BEFORE DISCONTINUED OPERATIONS, NET OF NON-CONTROLLING INTEREST   $ (85 )   $ (535,337 )