Investment in Unconsolidated Entities

9 Months Ended

Sep. 30, 2014

Investment in Unconsolidated Entities [Abstract]

Investment in Unconsolidated Entities

Investment in Unconsolidated Entities

At September 30, 2014 and December 31, 2013, we owned 50% interests in joint ventures that owned three hotels and 13 hotels, respectively. This decrease in hotels owned by our unconsolidated joint ventures reflects unwinding certain of our joint ventures in July 2014 as described in Note 2. 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):

	September 30,		December 31,
	2014		2013
Investment in hotels and other properties, net of accumulated depreciation	$	30,185	$	140,145
Total assets	$	51,409	$	155,848
Debt	$	34,471	$	146,358
Total liabilities	$	37,971	$	152,068
Equity	$	13,438	$	3,780

Our unconsolidated entities’ debt at September 30, 2014 and December 31, 2013 consisted entirely of non-recourse mortgage debt. In September, one of our other unconsolidated joint ventures refinanced its debt with a new $23.5 million loan maturing in October 2024.

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Total revenues	$	15,699		$	21,844		$	52,644		$	55,995
Net income	$	3,121		$	5,131		$	11,800		$	10,980
Net income attributable to FelCor	$	1,561		$	2,565		$	5,900		$	5,490
Depreciation of cost in excess of book value	(214		)	(465		)	(1,144		)	(1,395		)
Equity in income from unconsolidated entities	$	1,347		$	2,100		$	4,756		$	4,095

3.    Investment in Unconsolidated Entities -- (continued)

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

	September 30,			December 31,
	2014			2013
Hotel-related investments	$	(1,254	)	$	(6,349	)
Cost in excess of book value of hotel investments	11,022			45,053
Land and condominium investments	7,973			8,239
Investment in unconsolidated entities	$	17,741		$	46,943

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014			2013
Hotel investments	$	1,029	$	1,632	$	5,022		$	4,223
Other investments	318		468		(266		)	(128		)
Equity in income from unconsolidated entities	$	1,347	$	2,100	$	4,756		$	4,095