11.	Acquisitions

Business Combinations

We acquired one hotel during 2013 and recorded $1 million of acquisition related expenses and acquired one hotel during 2012 and recorded $6 million of acquisition-related expenses. Subsequent to year-end, we acquired one hotel and recorded $1 million of acquisition related expenses. For 2013 and 2012, including subsequent events, our business combinations were as follows:

—	On January 21, 2014, we acquired the 151-room Powell Hotel in San Francisco, California, including retail space and the fee simple interest in the land, for approximately $75 million.

—	On May 31, 2013, we acquired the 426-room Hyatt Place Waikiki Beach in Honolulu, Hawaii for approximately $138.5 million, including a $0.5 million FF&E replacement fund.

—	On July 16, 2012, we acquired the 888-room Grand Hyatt Washington for approximately $400 million. In connection with the acquisition, we also paid $17 million, net, for the FF&E replacement fund, working capital and other assets.

Accounting for the acquisition of a hotel property or an entity as a purchase transaction requires an allocation of the purchase price to the assets acquired and the liabilities assumed in the transaction at their respective estimated fair values. The purchase price allocations are estimated based on current available information; however, we still are in the process of obtaining appraisals and finalizing the accounting for the acquisition of the Powell Hotel, which was acquired subsequent to year-end. The estimated fair value of the assets acquired related to this acquisition is $75 million; other assets acquired and liabilities assumed are immaterial.

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed for our 2013 and 2012 hotel acquisitions (in millions):

	As of December 31,
	2013		2012
Property and equipment	$	138	$	409
Restricted cash, FF&E reserves and other assets		1		9
Total assets		139		418
Other liabilities		—		(1	)
Net assets acquired	$	139	$	417

Our summarized unaudited consolidated pro forma results of operations, assuming the 2013 and 2012 hotel acquisitions, including subsequent events, occurred on January 1, 2011 and excluding the acquisition costs discussed above, are as follows (in millions, except per share and per unit amounts):

	Year ended December 31,
	2013		2012
Revenues	$	5,185	$	5,136
Income from continuing operations		214		12
Net income		329		83

Host Inc.:
Net income attributable to Host Inc.	$	321	$	81

Basic earnings per common share:
Continuing operations	$	.27	$	.02
Discontinued operations		.16		.09
Basic earnings per common share	$	.43	$	.11

Diluted earnings per common share:
Continuing operations	$	.28	$	.02
Discontinued operations		.15		.09
Diluted earnings per common share	$	.43	$	.11

Host L.P.:
Net income attributable to Host L.P.	$	325	$	82

Basic earnings per common unit:
Continuing operations	$	.29	$	.01
Discontinued operations		.15		.10
Basic earnings per common unit	$	.44	$	.11

Diluted earnings per common unit:
Continuing operations	$	.29	$	.01
Discontinued operations		.15		.10
Diluted earnings per common unit	$	.44	$	.11

For 2013 and 2012, we have included $109 million and $37 million of revenues, respectively, and $19 million and $6 million of net income, respectively, in our consolidated statements of operations related to the operations of the hotels acquired in 2013 and 2012.

New Development and Other Asset Acquisitions

For 2013 and 2012, our new development and other asset acquisitions were as follows:

—

On December 10, 2013, we made the final incremental payment of $19.9 million for the purchase of the fee simple interest in the land at the New York Marriott Marquis Times Square. In addition, $25 million of the payments made pursuant to the terms of the ground lease have been attributed toward the purchase of the land. The purchase was completed in conjunction with our 2012 lease of the existing retail space to Vornado Realty Trust and its on-going redevelopment.

—	On June 8, 2012, we acquired land and entered into a construction agreement to develop two hotels in Rio de Janeiro, Brazil. We have invested approximately R$94 million ($45 million) as of December 31, 2013. The hotels will be managed by Accor under the ibis and Novotel brands.