Acquisition of Hotel Properties

12 Months Ended

Dec. 31, 2020

Hotel Purchase Price Allocation

We acquired the Residence Inn Summerville ("RI Summerville") hotel in Summerville, SC for $20.8 million on August 27, 2018 and the Dallas Downtown Courtyard ("Dallas DT") hotel in Dallas, TX for $49.0 million on December 5, 2018. The allocation of the purchase price of each of the hotels acquired by the Company, based on the fair value on the date of its acquisition, dollars (in thousands):


	RI Summerville		Dallas DT		Total
Acquisition date	8/27/2018		12/5/2018
Number of rooms (unaudited)	96		167		263
Land	$	2,300	$	2,900	$	5,200
Building and improvements	17,060		42,760		59,820
Furniture, fixtures and equipment	1,234		3,340		4,574
Cash	—		5		5

Accounts receivable	—		8		8

Prepaid expenses and other assets	—		68		68

Accounts payable and accrued expenses	(9)		(33)		(42)


Net assets acquired, net of cash	$	20,585	$	49,043	$	69,628

The value of the assets acquired was primarily based on a sales comparison approach (for land) and a depreciated replacement cost approach (for building and improvements and furniture, fixtures and equipment). The sales comparison approach uses inputs of recent land sales in the respective hotel markets. The depreciated replacement cost approach uses inputs of both direct and indirect replacement costs using a nationally recognized authority on replacement cost information as well as the age, square footage and number of rooms of the respective assets. Property acquisition costs of $0.1 million were capitalized in 2019.

The amount of revenue and operating income from the hotels acquired in 2018 from their respective date of acquisition through December 31, 2020 is as follows (in thousands):


		For the Year Ended December 31, 2020				For the Year Ended December 31, 2019
	Acquisition Date	Revenue		Operating Income		Revenue		Operating Income
Residence Inn Summerville, SC	8/27/18	$	2,968	$	903	$	3,645	$	1,250
Courtyard Dallas Downtown, TX	12/05/18	3,574		838		7,833		2,479



Total		$	6,542	$	1,741	$	11,478	$	3,729

On July 2, 2019, the Company purchased a parcel of land in Silicon Valley, California for $8.1 million.