Hotel Acquistions

6 Months Ended

Jun. 30, 2011

Hotel Acquisition [Abstract]

Business Combination Disclosure [Text Block]

Hotel Acquisitions

In May 2011, we acquired two midtown Manhattan hotels, Royalton and Morgans, which have a total of 282 guest rooms. The fair values of the assets acquired and liabilities assumed at the date of acquisition were consistent with the purchase price and were allocated based on third-party appraisals. We expensed acquisition costs (such as, broker, legal and accounting fees) of $915,000, which are not included in the fair value estimates of the net assets acquired. The following table summarizes the fair values of assets acquired and liabilities assumed in our acquisition (in thousands):

Assets
Investment in hotels(a)	$	136,035
Restricted cash	2,500
Accounts receivable	635
Other assets	322
Total assets acquired	139,492
Liabilities
Accrued expenses and other liabilities	1,507
Net assets acquired	$	137,985

(a)    Investment in hotels was allocated to land ($48.7 million), building and improvements ($78.3 million) and furniture, fixtures and equipment ($9.0 million).

2. Hotel Acquisitions — (continued)

The following consolidated unaudited pro forma results of operations for FelCor LP for the three and six months ended June 30, 2011 and 2010 assume this acquisition occurred on January 1, 2010. The pro forma information includes revenues, operating expenses, depreciation and amortization. The unaudited pro forma results of operations are not necessarily indicative of the results of operations if the acquisition had been completed on the assumed date. The unaudited pro forma results of operations are as follows (in thousands, except per share data):

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
Total revenues	$	262,141		$	236,729	$	494,430		$	451,972
Net income (loss)	$	(42,142	)	$	22,020	$	(75,321	)	$	(42,087	)
Earnings per unit - basic and diluted	$	(0.42	)	$	0.17	$	(0.86	)	$	(0.94	)

For the three and six months ended June 30, 2011, we have included $3.3 million of revenues and $319,000 of net income in our consolidated statements of operations related to the operations of these hotels.