Investment in Unconsolidated Entities

9 Months Ended

Sep. 30, 2016

Investment in Unconsolidated Entities [Abstract]

At September 30, 2016 and December 31, 2015, we owned 50% interests in joint ventures that owned two hotels. We also own 50% interests in entities that own real estate in Myrtle Beach, South Carolina and provide condominium management services at these locations. We account for our investments in these unconsolidated entities under the equity method. We consolidate all of our majority-owned subsidiaries 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,
	2016		2015
Investment in hotels and other properties, net of accumulated depreciation	$	21,677	$	23,047
Total assets	$	29,574	$	29,033
Debt, net of unamortized debt issuance costs	$	22,190	$	22,563
Total liabilities	$	24,841	$	24,541
Equity	$	4,733	$	4,492

Our unconsolidated entities’ debt at September 30, 2016 and December 31, 2015 consisted entirely of non-recourse mortgage debt.


2.	Investment in Unconsolidated Entities — (continued)

In May 2015, one of our joint ventures sold a hotel, resulting in a $7.1 million gain that we included in our equity in income from unconsolidated entities.

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,
	2016			2015			2016			2015
Total revenues	$	12,214		$	10,642		$	27,891		$	27,622
Net income	$	1,821		$	836		$	3,351		$	22,906
Net income attributable to FelCor	$	911		$	418		$	1,676		$	11,453
Cost in excess of joint venture book value of sold hotel	—			—			—			(3,140		)
Depreciation of cost in excess of book value	(97		)	(97		)	(290		)	(330		)
Equity in income from unconsolidated entities	$	814		$	321		$	1,386		$	7,983

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



	September 30,			December 31,
	2016			2015
Equity basis of hotel joint venture investments	$	(4,076	)	$	(4,216	)
Cost of hotel investments in excess of joint venture book value	7,039			7,329
Equity basis of land and condominium joint venture investments	6,442			6,462
Investment in unconsolidated entities	$	9,405		$	9,575

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,
	2016		2015			2016			2015
Hotel investments	$	378	$	(63	)	$	1,405		$	8,141
Other investments	436		384			(19		)	(158		)
Equity in income from unconsolidated entities	$	814	$	321		$	1,386		$	7,983