Note 7. Real Estate Properties

At September 30, 2015, we owned 302 hotels and 193 travel centers which are operated under 14 operating agreements.

During the nine months ended September 30, 2015, we funded $179,132 for improvements to certain of our properties which, pursuant to the terms of our management and lease agreements with our hotel managers and tenants, resulted in increases in our contractual annual minimum returns and rents of $14,365. See Notes 10 and 11 for further information about our management and lease agreements and our fundings of improvements to certain of our properties.

During the nine months ended September 30, 2015, we acquired 11 hotels, a land parcel adjacent to one of our hotels, 14 travel centers and certain assets at 11 travel centers we lease to TA. Our allocation of the purchase price of these acquisitions based on the estimated fair value of the acquired assets is presented in the table below. The allocations of purchase prices are based on preliminary estimates and may change upon completion of third party appraisals.


Acquisition date	Location		Purchase price (1)		Land		Land improvements		Building and improvements		Furniture, fixtures and equipment		Intangible assets
3/16/2015	Rosemont, IL (2) (4)	$	35,500	$	2,375	$	-	$	31,401	$	1,463	$	261
4/28/2015	Ft. Lauderdale, FL (3) (5)		750		750		-		-		-		-
5/15/2015	Denver, CO (2) (6)		77,250		8,193		-		61,185		7,872		-
6/1/2015	Various (3) (7)		227,877		26,286		67,160		134,389		42		-
7/23/2015	Various (2) (8)		85,000		13,165		-		64,338		7,497		-
9/23/2015	Various (3) (7)		51,506		9,165		21,266		21,075		-		-
		$	477,883	$	59,934	$	88,426	$	312,388	$	16,874	$	261

(1)

Excludes acquisition related costs.

(2)

We accounted for these transactions as business combinations. The pro forma impact of including the results of operations of these acquisitions from the beginning of the year is not material to our condensed consolidated financial statements.

(3)

We accounted for these transactions as asset acquisitions.

(4)

On March 16, 2015, we acquired a 300 room hotel located in Rosemont, IL for $35,500, excluding acquisition related costs. We added this Holiday Inn and Suites® branded hotel to our management agreement with InterContinental Hotels Group, plc, or InterContinental. See Note 11 for further information regarding our InterContinental agreement.

(5)

On April 28, 2015, we acquired a land parcel adjacent to one of our hotels in Fort Lauderdale, FL for $750, excluding acquisition related costs. See Note 10 for further information regarding this acquisition.

(6)

On May 15, 2015, we acquired a 364 room full service hotel located in Denver, CO for $77,250, excluding acquisition related costs. We added this Crowne Plaza® branded hotel to our management agreement with InterContinental. See Note 11 for further information regarding our InterContinental agreement.

(7)

On June 1, 2015, we entered agreements with TA to acquire and leaseback 14 travel centers it owned and certain assets it owned at 11 properties we lease to TA for an aggregate purchase price of approximately $279,383. During June 2015, we acquired 12 of these travel centers and certain assets at 10 properties TA leases from us for an aggregate purchase price of $227,877. On September 23, 2015, we acquired the remaining two travel centers and certain assets at a property TA leases from us for an aggregate purchase price of $51,506. Pursuant to these agreements, we also agreed to acquire from, and leaseback to, TA five travel centers it is developing for purchase prices equal to TA’s development costs, which are estimated to be approximately $118,000. The acquisition of these five travel centers is expected to occur as development of these travel centers is completed before June 30, 2017. See Note 10 for further information regarding this transaction and our TA agreements.

(8)

On July 23, 2015, we acquired a portfolio of nine extended stay hotels with 1,095 suites located in eight states for $85,000, excluding acquisition related costs. We converted these hotels to Sonesta ES Suites® branded hotels and added them to our management agreement with Sonesta International Hotels Corporation, or Sonesta. See Note 10 for further information regarding this transaction and our Sonesta agreement.

On June 9, 2015, we sold five TA branded travel centers to TA for $45,042. As a result of this sale, we recorded an $11,015 gain on sale of real estate in the three months ended June 30, 2015. See Note 10 for further information regarding this transaction and our TA agreements.

On October 27, 2015, we entered an agreement to acquire two extended stay hotels with 262 suites located in Cleveland and Westlake, OH for an aggregate purchase price of $12,000. We plan to convert these hotels to Sonesta ES Suites® and add them to our management agreement with Sonesta. See Note 10 for further information regarding this transaction and our Sonesta agreement.

On October 30, 2015, we acquired the land and certain improvements at a travel center located in Waterloo, NY that we leased from a third party and subleased to TA for $15,000, excluding acquisition related costs.