Investment in Unconsolidated Entities

At June 30, 2014 and December 31, 2013, we owned 50% interests in joint ventures that owned 13 hotels. We also own 50% interests in entities that own real estate in Myrtle Beach, South Carolina and provide condominium management services there. 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 balance sheet information for our unconsolidated entities (in thousands):



	June 30,		December 31,
	2014		2013
Investment in hotels and other properties, net of accumulated depreciation	$	132,773	$	140,145
Total assets	$	152,454	$	155,848
Debt	$	146,722	$	146,358
Total liabilities	$	152,446	$	152,068
Equity	$	8	$	3,780

Our unconsolidated entities’ debt at June 30, 2014 and December 31, 2013 consisted entirely of non-recourse mortgage debt. In March 2014, one of our unconsolidated joint ventures refinanced $128 million of debt and extended the maturity until 2017.


2.	Investment in Unconsolidated Entities — (continued)

The following table sets forth summarized combined statement of operations information for our unconsolidated entities (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Total revenues	$	22,327		$	20,543		$	36,945		$	34,151
Net income	$	6,462		$	4,740		$	8,678		$	5,848

Net income attributable to FelCor	$	3,231		$	2,370		$	4,339		$	2,924
Depreciation of cost in excess of book value	(465		)	(465		)	(930		)	(930		)
Equity in income from unconsolidated entities	$	2,766		$	1,905		$	3,409		$	1,994

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



	June 30,			December 31,
	2014			2013
Hotel-related investments	$	(7,651	)	$	(6,349	)
Cost in excess of book value of hotel investments	44,122			45,053
Land and condominium investments	7,655			8,239
Investment in unconsolidated entities	$	44,126		$	46,943

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



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014			2013
Hotel investments	$	2,722	$	1,883	$	3,993		$	2,591
Other investments	44		22		(584		)	(597		)
Equity in income from unconsolidated entities	$	2,766	$	1,905	$	3,409		$	1,994

On July 25, 2014, we unwound unconsolidated joint ventures, in which we held a 50% interest, that owned 10 hotels. As a consequence, we now own 100% of five of the hotels and affiliates of our joint venture partner now own 100% of the other five hotels. In addition, we received our partner’s 10% interest in a separate venture also resulting in our 100% ownership of an additional hotel. We paid $2.2 million to our joint venture partner to equalize the aggregate value of assets received by us compared to our joint venture partner. We have not yet determined the anticipated gain to be recorded in our consolidated statement of operations for the third quarter from this transaction.

Our joint ventures had a loan secured by eight of these properties. That loan bears interest at one-month LIBOR plus 3%, matures in March 2017 and is freely pre-payable in whole or in part. In connection with unwinding the joint ventures, that loan was bifurcated. We are only liable to repay our share of the bifurcated loan ($64 million), which share is secured by mortgages on four of the hotels we now wholly-own.