Investment in Hotel Properties (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of investments in hotel properties

The following table sets forth summary information regarding the Company’s investments in hotel properties as of September 30, 2016:

Property Name	Date Acquired	Location	Ownership Interest		Purchase Price⁽¹⁾		Rooms		Mortgage Debt Outstanding⁽²⁾
Woodlands Hotel (Homewood Suites by Hilton)	November 8, 2012	The Woodlands, Texas	100	%	$	12,000,000		91	$	9,300,000

Germantown Hotel (Hyatt Place)	April 9, 2013	Germantown, Tennessee	100	%		11,300,000		127		7,361,309

Charleston Hotel (Hyatt Place)	July 2, 2013	North Charleston, South Carolina	100	%		11,800,000		113		7,447,608

Austin Hotel (Hampton Inn)	December 30, 2013	Austin, Texas	100	%		15,350,000		123		11,086,888

Grapevine Hotel (Residence Inn)	March 31, 2014	Grapevine, Texas	100	%		20,500,000		133		12,809,383

Lyndhurst Hotel (Marriott Courtyard)	September 30, 2014	Lyndhurst, New Jersey	(3	)		33,322,000		227		30,989,447

Austin Arboretum Hotel (Hilton Garden Inn)	November 20, 2014	Austin, Texas	100	%		29,250,000		138		19,000,000

Great Valley Hotel (Hampton Inn)	March 27, 2015	Frazer, Pennsylvania	100	%		11,000,000		125		8,200,000

Nashville Hotel (Embassy Suites)	June 16, 2015	Nashville, Tennessee	100	%		66,300,000		208		43,000,000

Homewood Suites Austin Hotel (Homewood Suites)	August 3, 2015	Austin, Texas	100	%		14,250,000		96		11,000,000

Fort Worth Hotel (TownPlace Suites)	December 18, 2015	Fort Worth, Texas	(4	)		7,301,887		95		7,071,876

Houston Hotel (Hampton Inn)	April 21, 2016	Houston, Texas	100	%		8,000,000		119		4,746,997

Totals					$	240,373,887		1,595	$	172,013,508

(1)

Excludes closing costs.

(2)

As of September 30, 2016.

(3)

The Lyndhurst Hotel is owned by MN Lyndhurst Venture, LLC (the “Lyndhurst Joint Venture”). The OP contributed $100 to the Lyndhurst Joint Venture in exchange for 100% of the Class B membership interests of the Lyndhurst Joint Venture (the “Lyndhurst Class B Interests”). Pursuant to the operating agreement of the Lyndhurst Joint Venture, the OP also agreed to pay up to $5.37 million in costs and fees and capital reserve requirements associated with the transfer of the Lyndhurst Hotel to the Lyndhurst Joint Venture, all of which amounts are deemed to be additional capital contributions by the OP to the Lyndhurst Joint Venture in exchange for additional Lyndhurst Class B Interests. The prior tenant-in-common owners of the Lyndhurst Hotel (the “Lyndhurst TIC Owners”) contributed their tenant-in-common ownership interests in the Lyndhurst Hotel (valued at $1,000 in the aggregate) to the Lyndhurst Joint Venture in exchange for non-voting Class A membership interests of the Lyndhurst Joint Venture (the “Lyndhurst Class A Interests”). The OP serves as the sole manager of the Lyndhurst Joint Venture and manages the business and affairs of the Lyndhurst Joint Venture. Cash available for distribution to the members of the Lyndhurst Joint Venture will be distributed as follows: (1) first, 100% to the OP until it has received cash distributions equal to a 12% annual, cumulative, non-compounded return on its capital contributions to the Lyndhurst Joint Venture and a return of 100% of its unreturned capital contributions to the Lyndhurst Joint Venture, (2) next, 100% to the holders of the Lyndhurst Class A Interests until they have received a return of 100% of their capital contributions to the Lyndhurst Joint Venture (valued at $1,000 in the aggregate), and (3) next, 60% to the OP and 40% to the holders of the Lyndhurst Class A Interests.

(4)

The Fort Worth Hotel is owned by MN Fort Worth Venture, LLC (the “Fort Worth Joint Venture”). The OP contributed $100 to the Fort Worth Joint Venture in exchange for 100% of the Class B membership interests of the Fort Worth Joint Venture (the “Fort Worth Class B Interests”). Pursuant to the operating agreement of the Fort Worth Joint Venture, the OP also agreed to pay up to $3.146 million in costs and fees and capital reserve requirements associated with the transfer of the Fort Worth Hotel to the Fort Worth Joint Venture, all of which amounts are deemed to be additional capital contributions by the OP to the Fort Worth Joint Venture in exchange for additional Fort Worth Class B Interests. The prior tenant-in-common owners of the Fort Worth Hotel (the “Fort Worth TIC Owners”) contributed their tenant-in-common ownership interests in the Fort Worth Hotel (valued at $1,000 in the aggregate) to the Fort Worth Joint Venture in exchange for non-voting Class A membership interests of the Fort Worth Joint Venture (the “Fort Worth Class A Interests”). The OP serves as the sole manager of the Fort Worth Joint Venture and manages the business and affairs of the Fort Worth Joint Venture. Cash available for distribution to the members of the Fort Worth Joint Venture will be distributed as follows: (1) first, 100% to the OP until it has received cash distributions equal to a 12% annual, cumulative, non-compounded return on its capital contributions to the Fort Worth Joint Venture and a return of 100% of its unreturned capital contributions to the Fort Worth Joint Venture, (2) next, 100% to the holders of the Fort Worth Class A Interests until they have received a return of 100% of their capital contributions to the Fort Worth Joint Venture (valued at $1,000 in the aggregate), and (3) next, 50% to the OP and 50% to the holders of the Fort Worth Class A Interests.

Schedule of pro forma consolidated financial information

Investments in hotel properties consisted of the following at September 30, 2016 and December 31, 2015:

	September 30, 2016			December 31, 2015
Land	$	27,923,000		$	26,300,000
Buildings and improvements		207,245,258			199,088,102
Furniture, fixtures and equipment		27,196,749			21,825,902
Total cost		262,365,007			247,214,004
Accumulated depreciation		(22,935,787	)		(14,265,804	)
Investment in hotel properties, net	$	239,429,220		$	232,948,200

Schedule of earning per share

The following unaudited pro forma consolidated financial information for the three and nine months ended September 30, 2016 and 2015 is presented as if the Company acquired the Great Valley Hotel, the Nashville Hotel, the Homewood Suites Austin Hotel, the Fort Worth Hotel and the Houston Hotel as of January 1, 2015 and excludes the operations of and the gain from the sale of a hotel property located in Newark, California sold in 2015. This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisition of the Great Valley Hotel, the Nashville Hotel, the Homewood Suites Austin Hotel, the Fort Worth Hotel and the Houston Hotel as of January 1, 2015, nor does it purport to represent the Company’s future operations:

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
Revenue	$	15,780,570		$	16,095,471		$	48,025,435		$	46,868,785
Net loss		(1,237,594	)		(895,731	)		(2,285,998	)		(4,469,014	)
Net loss attributable to common shareholders		(1,268,319	)		(957,520	)		(2,188,465	)		(4,563,473	)
Net loss per common share - basic and diluted	$	(0.10	)	$	(0.07	)	$	(0.17	)	$	(0.36	)

Moody National REIT I, Inc. 10-Q