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Hotel Dispositions
 9 Months Ended
Sep. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
Hotel Dispositions
Hotel Dispositions
Effective January 1, 2014, we 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 nine months ended September 30, 2014, we sold six hotels, one of which was previously held for sale at December 31, 2013, and disposed of five unconsolidated hotels when we unwound our joint ventures as discussed in Note 2. As of September 30, 2014, we had two hotels held for sale, both of which have subsequently sold. 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. We included operations for 12 of the hotels (five hotels sold not previously held for sale, five hotels disposed when we unwound certain joint ventures, and two hotels held for sale as of September 30, 2014) in income (loss) from continuing operations as shown in the statements of operations for the three and nine months ended September 30, 2014 and 2013, as disposition of these hotels does not represent a strategic shift in our business.

8.
Hotel Dispositions — (continued)

The following table includes condensed financial information from these 12 hotels (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
Hotel operating revenue
$
12,225

 
 
$
32,247

 
 
$
70,092

 
 
$
91,333

Operating expenses (a)
(11,842
)
 
 
(31,505
)
 
 
(68,792
)
 
 
(104,688
)
Operating income (loss)
383

 
 
742

 
 
1,300

 
 
(13,355
)
Interest expense, net
(151
)
 
 
(695
)
 
 
(1,284
)
 
 
(2,122
)
Debt extinguishment
(914
)
 
 
—

 
 
(920
)
 
 
—

Gain on sale of investment in unconsolidated entities, net
30,184

 
 
—

 
 
30,184

 
 
—

Other gains, net
—

 
 
21

 
 
—

 
 
21

Equity in income from unconsolidated entities
334

 
 
884

 
 
1,440

 
 
1,378

Income (loss) from continuing operations
29,836

 
 
952

 
 
30,720

 
 
(14,078
)
Gain on sale of hotels, net(b)
30,440

 
 
—

 
 
51,920

 
 
—

Net income (loss)
60,276

 
 
952

 
 
82,640

 
 
(14,078
)
Net loss (income) attributable to noncontrolling interests in other partnerships
(890
)
 
 
69

 
 
(717
)
 
 
355

Net loss (income) attributable to redeemable noncontrolling interests in FelCor LP
(168
)
 
 
(5
)
 
 
(276
)
 
 
67

Net income (loss) attributable to FelCor
$
59,218

 
 
$
1,016

 
 
$
81,647

 
 
$
(13,656
)
(a)
Operating expenses include impairment charges of $14.3 million for the nine months ended September 30, 2013.
(b)
We recorded a $24.4 million gain from foreign currency translation (which we had previously recorded in accumulated other comprehensive income) when we sold our remaining Canadian hotel in the third quarter of 2014 which substantially liquidated all of our foreign investments.

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

Nine Months Ended
 
September 30,

September 30,
 
2014

2013

2014

2013
Hotel operating revenue
$
—



$
7,172



$
730



$
31,785


Operating expenses (a)
(8
)


(6,901
)


(678
)


(31,403
)

Operating income (loss) from discontinued operations
(8
)
 
 
271

 
 
52

 
 
382

 
Interest expense, net
—

 
 
(199
)
 
 
(66
)
 
 
(597
)
 
Debt extinguishment
—

 
 
—

 
 
(245
)
 
 
—

 
Other gains, net
—

 
 
66

 
 
—

 
 
66

 
Gain on sale of hotels, net
—

 
 
11,809

 
 
391

 
 
19,068

 
Income (loss) from discontinued operations
$
(8
)
 
 
$
11,947

 
 
$
132

 
 
$
18,919

 

(a)
Operating expenses in discontinued operations include impairment charges of $3.3 million for the nine months ended September 30, 2013.