Investment in Unconsolidated Entities

12 Months Ended

Dec. 31, 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 December 31, 2012 and December 31, 2011. We also owned a 50% interest 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 financial information for our unconsolidated entities (in thousands):

	December 31,
	2012		2011
Investment in hotels, net of accumulated depreciation	$	155,888	$	173,310
Total assets	$	170,477	$	199,063
Debt	$	148,395	$	150,388
Total liabilities	$	154,139	$	156,607
Equity	$	16,338	$	42,456

Our unconsolidated entities’ debt at December 31, 2012, consisted entirely of non-recourse mortgage debt.

The following table sets forth summarized combined statement of operations information for our unconsolidated entities and a reconciliation of the net income (loss) attributable to FelCor and our equity in income (loss) from unconsolidated entities (in thousands):

	Year Ended December 31,
	2012			2011			2010
Total revenues	$	67,725		$	62,782		$	64,500
Net income (loss)	$	9,278		$	(416	)	$	(5,302	)
Net income (loss) attributable to FelCor	$	4,639		$	(208	)	$	(2,327	)
Gain on joint venture liquidation	—			—			21,103			(a)
Depreciation of cost in excess of book value	(1,860		)	(1,860		)	(1,860		)
Equity in income (loss) from unconsolidated entities	$	2,779		$	(2,068	)	$	16,916

(a) Includes a $20.5 million gain from the sale of our interest in an unconsolidated joint venture and $559,000 in net proceeds in the final liquidation of a joint venture.

9. Investment in Unconsolidated Entities — (continued)

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

	December 31,
	2012		2011
Hotel-related investments	$	246	$	12,400
Cost in excess of book value of hotel investments	46,913		48,774
Land and condominium investments	7,923		8,828
	$	55,082	$	70,002

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

	Year Ended December 31,
	2012			2011			2010
Hotel investments	$	3,434		$	(1,348	)	$	17,509
Other investments	(655		)	(720		)	(593		)
Equity in income (loss) from unconsolidated entities	$	2,779		$	(2,068	)	$	16,916