ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Jun. 30, 2016

ACQUISITIONS AND DISPOSITIONS

ACQUISITIONS AND DISPOSITIONS

3. ACQUISITIONS AND DISPOSITIONS

        The fair value of real estate acquired is recorded to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, and furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, in-place leases and acquired ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate.

        There were no acquisitions during the six months ended June 30, 2016 and 2015.

        On February 2, 2016, we sold a 100% fee-simple interest in the Courtyard Oakland located in Oakland, California to an unrelated third party.

Property	Asset Type	Date of Sale	Rooms		Sales Price		Gain on Sale
					(in thousands)
Courtyard Oakland, Oakland, CA	Hotel	February 2, 2016		162	$	43,800	$	24,739

        In addition, on July 19, 2016, we sold a 100% fee-simple interest in LAX Holiday Inn located in Los Angeles, California to an unrelated third party for $52,500,000 and recognized a gain of approximately $16,382,000. LAX Holiday Inn was held for sale as of June 30, 2016.

        The following is a reconciliation of the carrying amounts of assets and liabilities of LAX Holiday Inn that are classified as held for sale on the consolidated balance sheets as of June 30, 2016:

	(in thousands)
Assets
Investments in real estate, net	$	36,839
Cash and cash equivalents		3,986
Restricted cash		709
Accounts receivable, net		799
Other assets		286
Total assets	$	42,619
Liabilities
Accounts payable and accrued expenses	$	1,152
Other liabilities		40
Total liabilities	$	1,192