40
Note 8
Pro Forma Information (Unaudited)
The following unaudited pro forma information for the year ended December 31, 2008, is presented as if the acquisitions of the
21 hotels owned at December 31, 2008 had occurred on the latter of January 1, 2008 or the opening date of the hotel. The pro forma
information does not purport to represent what the Company’s results of operations would actually have been if such transactions, in
fact, had occurred on these applicable dates, nor does it purport to represent the results of operations for future periods. The following
hotels opened during 2008: the Tucson, Arizona Hilton Garden Inn hotel opened in March 2008, the Jackson, Tennessee Courtyard
hotel opened in June 2008, the Beaumont, Texas Residence Inn hotel opened in August 2008, the Hattiesburg, Mississippi Residence
Inn hotel opened in December 2008 and the Frisco, Texas Hilton Garden Inn hotel opened in December 2008. Amounts are in
thousands except per share.
Year Ended
December 31,
2008
Hotel revenues.................................................. $ 70,038
Net income........................................................
10,712
Net income per share - basic and diluted.......... $ 0.37
The pro forma information reflects adjustments for actual revenues and expenses of the 21 hotels acquired in 2008 for the
respective period owned prior to acquisition by the Company. Net income has been adjusted as follows: (1) interest income has been
adjusted to reflect the reduction in cash and cash equivalents required to fund the acquisitions; (2) interest expense related to prior
owner’s debt which was not assumed has been eliminated; and (3) depreciation has been adjusted based on the Company’s basis in the
hotels.
Note 9
Commitments
At of December 31, 2008, the Company had outstanding contracts for the purchase of 19 additional hotels for a total purchase
price of $329 million. Of these 19 hotels, 15 are under construction and should be completed over the next 12 to 18 months. The other
four hotels are expected to close within the next three months. The Company also has one purchase contract for land that is subject to
a feasibility study for the construction of a SpringHill Suites hotel. Although the Company is working towards acquiring these hotels,
there are many conditions to closing that have not yet been satisfied and there can be no assurance that closings will occur under the
outstanding purchase contracts. The following table summarizes the location, brand, number of rooms, refundable contract deposits
paid, and gross purchase price for each of the contracts. All dollar amounts are in thousands.
1...,40,41,42,43,44,45,46,47,48,49 51,52,53,54,55,56,57,58,59,...60