Hotel Acquistions

9 Months Ended

Sep. 30, 2011

Hotel Acquisition [Abstract]

Business Combination Disclosure [Text Block]

Hotel Acquisitions

In May 2011, we acquired two midtown Manhattan hotels, Royalton and Morgans, with a total of 282 guest rooms. The fair values of the assets acquired and liabilities assumed at the date of acquisition were consistent with the purchase price and were allocated based on third-party appraisals. We expensed acquisition costs (such as, broker, legal and accounting fees) of $1.3 million included in other expenses, which are not included in the fair value estimates of the net assets acquired. The following table summarizes the fair values of assets acquired and liabilities assumed in our acquisition (in thousands):

Assets
Investment in hotels(a)	$	136,035
Restricted cash	2,500
Accounts receivable	635
Other assets	322
Total assets acquired	139,492
Liabilities
Accrued expenses and other liabilities	1,507
Net assets acquired	$	137,985

(a)    Investment in hotels was allocated to land ($48.7 million), building and improvements ($78.3 million) and furniture, fixtures and equipment ($9.0 million).

2. Hotel Acquisitions — (continued)

The following table presents our unaudited pro forma consolidated results of operations for the three and nine months ended September 30, 2011 and 2010 assuming these hotels were acquired on January 1, 2010 (in thousands, except per share/unit data). The pro forma information includes revenues, operating expenses, depreciation and amortization. The unaudited pro forma consolidated results of operations are not necessarily indicative of the results of operations if the acquisition had been completed on the assumed date.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Total revenues	$	245,518		$	231,296		$	736,082		$	679,854
Net loss	$	(23,376	)	$	(89,792	)	$	(98,620	)	$	(131,878	)
Earnings per share/unit - basic and     diluted	$	(0.26	)	$	(1.04	)	$	(1.11	)	$	(2.13	)

For the three and nine months ended September 30, 2011, we have included $7.5 million and $10.9 million of revenues, respectively, and $137,000 and $457,000 of net income, respectively, in our consolidated statements of operations related to the operations of these hotels.