Hotel Dispositions

6 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Hotel Dispositions

Hotel Dispositions

Effective January 1, 2014, we have adopted the provisions of Accounting Standards Update No. 2014-08 (the Update), under which the disposal of components of an entity are reported as discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. These new provisions are applied prospectively only and, as such, hotels that were considered discontinued operations for the year ended December 31, 2013 and prior continue to be reported as discontinued operations in all periods presented.

During the six months ended June 30, 2014, we sold four hotels, one of which was previously held for sale at December 31, 2013. Additionally, as of June 30, 2014, we had two hotels held for sale. We designate a hotel as held for sale when the sale is probable within the next twelve months. We consider a sale to be probable when a buyer completes its due diligence review, we have an executed contract for sale, and we have received a substantial non-refundable deposit. Operations for five of the hotels (three hotels sold not previously held for sale and two hotels held for sale as of June 30, 2014) are included in income (loss) from continuing operations as shown in the statements of operations for the three and six months ended June 30, 2014 and 2013, as disposition of these hotels does not represent a strategic shift in our business.

7. Hotel Dispositions— (continued)

The following table includes operations from these five hotels (in thousands):

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2014	2013	2014	2013
Income (loss) from continuing operations	$816	$652	$226	$(370)
Net income (loss) attributable to FelCor	$784	$621	$173	$(413)

The gain on the sale of the three hotels not previously held for sale is reported in the accompanying statement of operations on a separate line item and is not included in continuing operations.

Discontinued operations include the results of operations for five hotels sold in 2013 and one hotel sold in 2014 (which was held for sale as of December 31, 2013). The following table summarizes the condensed financial information for those hotels (in thousands):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2014		2013			2014			2013
Hotel operating revenue	$	—	$	12,858		$	730		$	24,612
Operating expenses	5		(13,796		)	(670		)	(24,501		)
Operating income (loss) from discontinued operations	5		(938		)	60			111
Interest expense, net	—		(198		)	(66		)	(397		)
Debt extinguishment	—		—			(245		)	—
Gain on sale of property, net	—		7,259			391			7,259
Income from discontinued operations	$	5	$	6,123		$	140		$	6,973