Hotel Dispositions

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Hotel Dispositions

Hotel Dispositions

Effective January 1, 2014, we adopted the provisions of Accounting Standards Update No. 2014-08, under which the disposal of components of an entity are reported as discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. We only apply these new provisions prospectively; consequently, we continue to report hotels that were considered discontinued operations for the year ended December 31, 2013 and prior years as discontinued operations in all periods presented.

During the nine months ended September 30, 2015, we sold eight hotels. In the nine months ended September 30, 2014, we sold six hotels, one of which was previously held for sale at December 31, 2013, and disposed of five unconsolidated hotels when we unwound our joint ventures. We designate a hotel as held for sale when the sale is probable within the next twelve months. Excluding the hotel held for sale at December 31, 2013, we included operations for the sold hotels, and those hotels designated as held for sale, in income (loss) from continuing operations as shown in the statements of operations for the three and nine months ended September 30, 2015 and 2014, as disposition of these hotels does not represent a strategic shift in our business.

9.    Hotel Dispositions — (continued)

The following table includes condensed financial information primarily related to 12 of 13 hotels sold in 2014 (the remaining hotel was held for sale as of December 31, 2013) and eight hotels sold during the nine months ended September 30, 2015 (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Hotel operating revenue	$	2,890		$	32,952		$	32,150		$	135,918
Operating expenses	(2,396		)	(30,633		)	(26,016		)	(130,856		)
Operating income	494			2,319			6,134			5,062
Interest expense, net	—			(575		)	(1,031		)	(1,854		)
Debt extinguishment	—			(914		)	(309		)	(932		)
Gain on sale of investment in unconsolidated entities, net	—			30,184			—			30,184
Equity in income from unconsolidated entities	14			690			7,111			3,209
Income from continuing operations	508			31,704			11,905			35,669
Gain on sale of hotels, net (a)	3,154			29,556			19,491			50,639
Net income	3,662			61,260			31,396			86,308
Net loss (income) attributable to noncontrolling interests in other partnerships	45			(838		)	(5,146		)	(1,333		)
Net income attributable to redeemable noncontrolling interests in FelCor LP	(16		)	(290		)	(110		)	(408		)
Net income attributable to FelCor	$	3,691		$	60,132		$	26,140		$	84,567

(a) We recorded a $24.4 million gain from foreign currency translation (which we had previously recorded in accumulated other comprehensive income) when we sold our remaining Canadian hotel in the third quarter of 2014, which substantially liquidated all of our foreign investments.