Investment in Unconsolidated Entities

6 Months Ended

Jun. 30, 2015

Investment in Unconsolidated Entities [Abstract]

At June 30, 2015 and December 31, 2014, we owned 50% interests in joint ventures that owned two and three hotels, respectively. We also own 50% interests in entities that own real estate in Myrtle Beach, South Carolina and provide condominium management services there. We account for our investments in these unconsolidated entities under the equity method. We consolidate all of our majority-owned subsidiaries 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):



	June 30,		December 31,
	2015		2014
Investment in hotels and other properties, net of accumulated depreciation	$	19,897	$	30,288
Total assets	$	33,760	$	45,374
Debt	$	23,121	$	34,192
Total liabilities	$	26,118	$	36,974
Equity	$	7,642	$	8,400

Our unconsolidated entities’ debt at June 30, 2015 and December 31, 2014 consisted entirely of non-recourse mortgage debt.

In May 2015, one of our joint ventures sold a hotel, resulting in a $7.1 million gain that we include in our equity in income from unconsolidated entities. In connection with selling this hotel, the joint venture repaid the outstanding $10.5 million mortgage loan encumbering this hotel.

2. Investment in Unconsolidated Entities — (continued)

The following table (which, among other things, reflects decreases attributable to the unwinding of our 10-hotel unconsolidated joint ventures in July 2014) sets forth summarized combined statement of operations information for our unconsolidated entities (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Total revenues	$	10,410		$	22,327		$	16,979		$	36,945
Net income	$	21,519		$	6,462		$	22,069		$	8,678
Net income attributable to FelCor	$	10,760		$	3,231		$	11,035		$	4,339
Cost in excess of joint venture book value of sold hotel	(3,140		)	—			(3,140		)	—
Depreciation of cost in excess of book value	(107		)	(465		)	(233		)	(930		)
Equity in income from unconsolidated entities	$	7,513		$	2,766		$	7,662		$	3,409

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



	June 30,			December 31,
	2015			2014
Equity basis of hotel joint venture investments	$	(3,102	)	$	(3,265	)
Cost of hotel investments in excess of joint venture book value	7,522			10,895
Equity basis of land and condominium joint venture investments	6,923			7,465
Investment in unconsolidated entities	$	11,343		$	15,095

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



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015			2014
Hotel investments	$	7,455	$	2,722	$	8,203		$	3,993
Other investments	58		44		(541		)	(584		)
Equity in income from unconsolidated entities	$	7,513	$	2,766	$	7,662		$	3,409