Hotel Dispositions

3 Months Ended

Mar. 31, 2015

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 first quarter 2015, we sold three hotels and had one hotel held for sale at March 31, 2015. In 2014, we sold one hotel not previously held for sale during the three months ended March 31, 2014 and had one hotel held for sale at March 31, 2014. 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 the sold hotels, and those hotels designated as held for sale, in income (loss) from continuing operations as shown in the statements of operations for the three months ended March 31, 2015 and 2014, as disposition of these hotels does not represent a strategic shift in our business.

The following table includes condensed financial information primarily related to 12 of 13 hotels sold in 2014, three hotels sold during the three months ended March 31, 2015, and one hotel held for sale at March 31, 2015 (in thousands):

	Three Months Ended
	March 31,
	2015			2014
Hotel operating revenue	$	7,205		$	40,277
Operating expenses	(5,594		)	(39,817		)
Operating income	1,611			460
Interest expense, net	(160		)	(665		)
Debt extinguishment	(73		)	—
Equity in income (loss) from unconsolidated entities	(15		)	490
Income from continuing operations	1,363			285
Gain on sale of hotels, net	16,887			5,457
Net income	18,250			5,742
Net income attributable to noncontrolling interests in other partnerships	(5,253		)	(129		)
Net income attributable to redeemable noncontrolling interests in FelCor LP	(62		)	(28		)
Net income attributable to FelCor	$	12,935		$	5,585