Investment in Unconsolidated Entities

9 Months Ended

Sep. 30, 2012

Investment in Unconsolidated Entities [Abstract]

Investment in Unconsolidated Entities

Investment in Unconsolidated Entities

We owned 50% interests in joint ventures that owned 13 hotels at September 30, 2012 and December 31, 2011.  We also own 50% interests in entities that own real estate in Myrtle Beach, South Carolina and provide condominium management services.  We account for our investments in these unconsolidated entities under the equity method.  We do not have any majority-owned subsidiaries that are not consolidated 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,
	2012		2011
Investment in hotels, net of accumulated depreciation	$	160,297	$	173,310
Total assets	$	174,051	$	199,063
Debt	$	148,899	$	150,388
Total liabilities	$	154,103	$	156,607
Equity	$	19,948	$	42,456

Our unconsolidated entities’ debt at September 30, 2012 and December 31, 2011 consisted entirely of non-recourse mortgage debt. In January 2012, one of our unconsolidated joint ventures refinanced $130 million of debt and extended the maturity until 2014.

2. Investment in Unconsolidated Entities — (continued)

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,
	2012			2011			2012			2011
Total revenues	$	21,075		$	19,975		$	54,012		$	49,990
Net income	$	4,002		$	1,428		$	8,138		$	184
Net income attributable to FelCor	$	2,001		$	714		$	4,069		$	92
Depreciation of cost in excess of book value	(465		)	(465		)	(1,395		)	(1,395		)
Equity in income (loss) from unconsolidated entities	$	1,536		$	249		$	2,674		$	(1,303	)

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

	September 30,		December 31,
	2012		2011
Hotel-related investments	$	1,467	$	12,400
Cost in excess of book value of hotel investments	47,378		48,774
Land and condominium investments	8,507		8,828
	$	57,352	$	70,002

The following table summarizes the components of our equity in income (loss) from unconsolidated entities (in thousands):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2012		2011			2012			2011
Hotel investments	$	1,055	$	(199	)	$	2,746		$	(1,127	)
Other investments	481		448			(72		)	(176		)
Equity in income (loss) from unconsolidated entities	$	1,536	$	249		$	2,674		$	(1,303	)