Investment in Unconsolidated Entities

12 Months Ended

Dec. 31, 2011

Investment in Unconsolidated Entities [Abstract]

Investment in Unconsolidated Entities [Text Block]

Investment in Unconsolidated Entities

We owned 50% interests in joint ventures that owned 13 hotels at December 31, 2011 and December 31, 2010.  We also owned a 50% interest in entities that own real estate in Myrtle Beach, South Carolina, and provide condominium management services.  We account for our investments in these unconsolidated entities under the equity method.  We do not have any majority-owned subsidiaries that are not consolidated in our financial statements.  We make adjustments to our equity in income from unconsolidated entities related to the difference between our basis in investment in unconsolidated entities compared to the historical basis of the assets recorded by the joint ventures.

The following table summarizes combined financial information for our unconsolidated entities (in thousands):

	December 31,
	2011		2010
Balance sheet information:
Investment in hotels, net of accumulated depreciation	$	173,310	$	192,584
Total assets	$	199,063	$	209,742
Debt	$	150,388	$	154,590
Total liabilities	$	156,607	$	159,170
Equity	$	42,456	$	50,572

Our unconsolidated entities’ debt at December 31, 2011, consisted entirely of non-recourse mortgage debt.

In April 2010, we contributed $23 million to an unconsolidated joint venture that owned the Sheraton Premier at Tysons Corner.  That contribution, along with a $23 million contribution from our joint venture partner, was used to repay the joint venture's maturing $46 million mortgage. In December 2010, we sold our interest in this joint venture and recorded a $20.5 million gain.

The following table sets forth summarized combined statement of operations information for our unconsolidated entities and a reconciliation of the net loss attributable to FelCor and our equity in income (loss) from unconsolidated entities (in thousands):

	Year Ended December 31,
	2011			2010				2009
Total revenues	$	62,782		$	64,500			$	66,261
Net loss	$	(416	)	$	(5,302	)		$	(4,988	)	(a)
Net loss attributable to FelCor	$	(208	)	$	(2,327	)		$	(2,494	)
Impairment loss	—			—				(476		)	(b)
Gain on joint venture dispositions	—			21,103			(c)	—
Depreciation of cost in excess of book value	(1,860		)	(1,860		)		(1,844		)
Equity in income (loss) from unconsolidated entities	$	(2,068	)	$	16,916			$	(4,814	)

(a) Net loss included impairment charges of $3.2 million for 2009.  These impairments were based on sales contracts (a Level 2 input) for a hotel owned by one of our joint ventures.

(b) As a result of an impairment charge recorded by one of our joint ventures, the net book value of the joint venture’s assets no longer supported the recovery of our investment.  Therefore, we recorded an additional impairment charge to reduce our investment in this joint venture to zero.  

(c) Includes a $20.5 million gain from the sale of our interest in an unconsolidated joint venture and $559,000 in net proceeds in the final liquidation of a joint venture.

8. Investment in Unconsolidated Entities — (continued)

The following table summarizes the components of our investment in unconsolidated entities (in thousands):

	December 31,
	2011		2010
Hotel-related investments	$	12,400	$	15,736
Cost in excess of joint venture book value	48,774		50,634
Land and condominium investments	8,828		9,550
	$	70,002	$	75,920

The following table summarizes the components of our equity in income (loss) from unconsolidated entities (in thousands):

	Year Ended December 31,
	2011			2010			2009
Hotel investments	$	(1,348	)	$	17,509		$	(4,291	)
Other investments	(720		)	(593		)	(523		)
Equity in income (loss) from unconsolidated entities	$	(2,068	)	$	16,916		$	(4,814	)