moreover , the primary focus of our acquisitions over the past five years was on hotels that we believe presented unique value-add opportunities , such as repositioning through a change in brand or comprehensive renovation or changing the third-party hotel manager to a more efficient operator . for example , we recently completed a $ 140 million capital expenditure program , which included major capital investments at the lexington hotel new york , courtyard manhattan/fifth avenue , courtyard manhattan/midtown east , westin washington , d.c. city center , westin san diego , hilton boston downtown and hilton minneapolis . we evaluate each hotel in our portfolio to assess the optimal branding strategy for the individual hotel and market . we leverage the leading global hotel brands at most of our hotels , which are flagged under a brand owned by marriott , hilton or starwood . we also maintain a small portion of our hotels as independent non-branded hotels . we believe that premier global hotel brands create significant value as a result of each brand 's ability to produce incremental revenue through their strong reservation and rewards systems and sales organizations with the result being that branded hotels are able to generate greater profits than similar unbranded hotels . we are also interested in owning other non-branded hotels located in premier or unique markets where we believe that the returns on such a hotel may be higher than if the hotel were operated under a globally-recognized brand . during 2015 , we expect to evaluate opportunities to acquire hotels located in urban and destination resort markets , with an emphasis on prime markets on the west coast and south florida , as well as other select destination resort markets . despite our conviction that there are several more years of industry growth ahead , we believe that it is prudent to avoid acquisitions that require significant capital investment or deep and lengthy turnarounds . we also prefer to target moderately sized investments of $ 50 - 33 - million to $ 150 million rather than larger acquisition investments . finally , we are highly sensitive to our cost of capital and expect to pursue acquisitions that create value in the near term . we also expect to continue to evaluate the disposition of non-core hotels , as we are currently observing robust demand for such assets . we will continue to evaluate our portfolio for opportunities to take advantage of the robust demand in order to continue to upgrade our portfolio by disposing of non-core hotels . innovative asset management we believe that we can create significant value in our portfolio through innovative asset management strategies such as rebranding , renovating and repositioning and we engage in a process of regular evaluations of our portfolio in order to determine if there are opportunities to employ these value-add strategies . our asset management team is focused on improving hotel profit margins through revenue management strategies and cost control programs . our asset management team also focuses on identifying new and potential value creation opportunities across our portfolio , including implementing resort fees , creating incremental guest rooms , leasing out restaurants to more profitable third-party operators , converting unused space to revenue-generating meeting space and implementing programs to reduce energy consumption . our senior management team has established a broad network of hotel industry contacts and relationships , including relationships with hotel owners , financiers , operators , project managers and contractors and other key industry participants . we use our broad network of hotel industry contacts and relationships to maximize the value of our hotels . under the federal income tax rules governing reits , we are required to engage a hotel manager that is an eligible independent contractor to manage each of our hotels pursuant to a management agreement with one of our subsidiaries . we strive to negotiate management agreements that give us the right to exert influence over the management of our properties , annual budgets and all capital expenditures ( all , to the extent permitted under the reit rules ) , and then to use those rights to continually monitor and improve the performance of our properties . we cooperatively partner with our hotel managers in an attempt to increase operating results and long-term asset values at our hotels . in addition to working directly with the personnel at our hotels , our senior management team also has long-standing professional relationships with our hotel managers ' senior executives , and we work directly with these senior executives to improve the performance of the hotels in our portfolio that they manage . conservative capital structure we believe that a conservative capital structure maximizes investment capacity while reducing enterprise risk . we currently employ a low-risk and straight-forward capital structure with no corporate level debt , preferred equity or convertible bonds . moreover , as of december 31 , 2014 , we have significant balance sheet flexibility with existing corporate cash , no outstanding borrowings under our $ 200 million senior unsecured credit facility , and over half of our hotels are unencumbered by mortgage debt . we believe it is imprudent to increase the inherent risk of highly cyclical lodging fundamentals through the use of a highly leveraged capital structure . we believe that our strategically designed capital structure is a value creation tool that can be used over the entire lodging cycle . specifically , we believe that lower leverage benefits us in the following ways : provides capacity to fund attractive acquisitions ; provides optionality to fund acquisitions with the most efficient funding source ; enhances our ability to maintain a sustainable dividend ; enables us to opportunistically repurchase shares during periods of stock price dislocation ; and provides capacity to fund late-cycle capital needs . our current outstanding debt consists of property-specific mortgage debt , with the majority of our mortgage debt bearing interest at a fixed rate . story_separator_special_tag we recorded the settlement net of a $ 1.2 million contingency fee paid to our legal counsel and $ 1.8 million of legal fees and other costs incurred over the course of the legal proceedings , which were previously recorded as corporate expenses . interest income . interest income decreased $ 3.3 million from $ 6.3 million for the year ended december 31 , 2013 to $ 3.0 million for the year ended december 31 , 2014 . the decrease is primarily due to the prepayment of the allerton loan in may 2014. interest expense . our interest expense was $ 58.3 million and $ 57.3 million for the years ended december 31 , 2014 and december 31 , 2013 , respectively , and is comprised of the following ( in millions ) : replace_table_token_10_th gain on prepayment of note receivable . we received $ 58.5 million from the prepayment of the senior mortgage loan secured by the allerton hotel in may 2014. as a result of the prepayment , we recorded a gain of $ 13.6 million . gain on sale of hotel properties . on april 14 , 2014 , we sold the oak brook hills resort for approximately $ 30.1 million and recognized a gain of $ 1.3 million . on december 18 , 2014 , we sold the los angeles airport marriott for total proceeds of approximately $ 160 million and recognized a gain of $ 49.7 million . gain on hotel property acquisition . we recorded a gain of $ 23.9 million related to our purchase of the hilton garden inn times square central in new york . the gain was a result of the fair value of the hotel increasing from our contractual purchase price at the time we entered into the purchase and sale agreement in 2011 to the fair value at the closing date of august 29 , 2014. story_separator_special_tag of our hotels , as well as attrition and cancellation fees . hotel operating expenses . our operating expenses from continuing operations for the years ended december 31 , 2013 and 2012 , respectively , consist of the following ( in millions ) : - 41 - replace_table_token_13_th our hotel operating expenses increased $ 58.7 million , or 10.9 % , from $ 538.9 million for the year ended december 31 , 2012 to $ 597.6 million for the year ended december 31 , 2013 , which includes $ 37.5 million of hotel operating expenses contributed by the five hotels we acquired in 2012. the remaining increase of $ 21.2 million is primarily due to higher food and beverage costs and support costs , specifically repairs and maintenance and sales and marketing . property taxes at our comparable hotels increased approximately $ 3.0 million , which is primarily due to significant increases in the county property tax rates at the chicago marriott and conrad chicago and a reassessment of the vail marriott mountain resort & spa . incentive management fees increased as a result of higher profits , as well as three additional hotels that earned incentive management fees in 2013. franchise fees increased primarily due to four of the hotels we acquired in 2012 being subject to franchise agreements and , to a lesser extent , as a result of the branding of the lexington hotel new york to marriott 's autograph collection . depreciation and amortization . depreciation and amortization is recorded on our hotel buildings over 40 years for the periods subsequent to acquisition . depreciable lives of hotel furniture , fixtures and equipment are estimated as the time period between the acquisition date and the date that the hotel furniture , fixtures and equipment will be replaced . our depreciation and amortization expense increased $ 6.9 million from the year ended december 31 , 2012 to the year ended december 31 , 2013 due to our 2012 acquisitions and the significant renovations completed under our 2013 capital expenditure program . impairment losses . during the year ended december 31 , 2012 , we recorded an impairment loss of $ 30.4 million related to the oak brook hills resort . we also recorded an impairment loss of $ 0.5 million on the favorable leasehold asset related to our option to develop a hotel on an undeveloped parcel of land adjacent to the westin boston waterfront hotel . no impairment losses were recorded during the year ended december 31 , 2013 . corporate expenses . corporate expenses principally consist of employee-related costs , including base payroll , bonus and restricted stock . corporate expenses also include corporate operating costs , professional fees and directors ' fees . our corporate expenses increased $ 2.0 million , from $ 21.1 million for the year december 31 , 2012 to $ 23.1 million for the year ended december 31 , 2013 . the increase in corporate expenses is due primarily to $ 3.1 million in severance costs incurred in connection with the departure of our president and chief operating officer in 2013 , partially offset by lower legal fees as a result of the settlement of the allerton bankruptcy proceedings and related litigation in january 2013. hotel acquisition costs . hotel acquisition costs incurred during the year ended december 31 , 2012 were related to the five hotels we acquired during 2012. interest income . interest income increased $ 6.0 million from $ 0.3 million for the year ended december 31 , 2012 to $ 6.3 million for the year ended december 31 , 2013 . the increase is substantially due to the restructuring of the allerton loan for which we started to recognize interest income beginning in january 2013. we recorded $ 6.1 million of interest income on the allerton loan for the year ended december 31 , 2013 , of which $ 2.6 million is the amortization of the discount and the remainder is contractual interest income earned . - 42 - interest expense . our interest expense was $ 57.3

loss on early extinguishment of debt . we prepaid the $ 82.6 million mortgage loan previously secured by the los angeles airport marriott in connection with the sale of the hotel in december 2014 and recognized a loss on early extinguishment of debt of approximately $ 1.6 million . in october 2013 , we prepaid the $ 27.3 million mortgage loan previously secured by the salt lake city marriott downtown and recognized a loss on early extinguishment of debt of approximately $ 1.5 million . income taxes . we recorded income tax expense of $ 5.6 million in 2014 and income tax benefit of $ 1.1 million in 2013 . the 2014 income tax expense includes $ 5.3 million of income tax expense incurred on the $ 11.9 million pre-tax income of our taxable reit subsidiary , or trs , and foreign income tax expense of $ 0.3 million incurred on the $ 5.5 million pre-tax income of the trs that owns frenchman 's reef . the 2013 income tax benefit includes a $ 1.5 million income tax benefit incurred on the $ 4.6 million pre-tax loss from continuing operation of our trs , partially offset by foreign income tax expense of $ 0.4 million related to the trs that owns frenchman 's reef . discontinued operations .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```loss on early extinguishment of debt . we prepaid the $ 82.6 million mortgage loan previously secured by the los angeles airport marriott in connection with the sale of the hotel in december 2014 and recognized a loss on early extinguishment of debt of approximately $ 1.6 million . in october 2013 , we prepaid the $ 27.3 million mortgage loan previously secured by the salt lake city marriott downtown and recognized a loss on early extinguishment of debt of approximately $ 1.5 million . income taxes . we recorded income tax expense of $ 5.6 million in 2014 and income tax benefit of $ 1.1 million in 2013 . the 2014 income tax expense includes $ 5.3 million of income tax expense incurred on the $ 11.9 million pre-tax income of our taxable reit subsidiary , or trs , and foreign income tax expense of $ 0.3 million incurred on the $ 5.5 million pre-tax income of the trs that owns frenchman 's reef . the 2013 income tax benefit includes a $ 1.5 million income tax benefit incurred on the $ 4.6 million pre-tax loss from continuing operation of our trs , partially offset by foreign income tax expense of $ 0.4 million related to the trs that owns frenchman 's reef . discontinued operations .
```    
 Suspicious Activity Report : moreover , the primary focus of our acquisitions over the past five years was on hotels that we believe presented unique value-add opportunities , such as repositioning through a change in brand or comprehensive renovation or changing the third-party hotel manager to a more efficient operator . for example , we recently completed a $ 140 million capital expenditure program , which included major capital investments at the lexington hotel new york , courtyard manhattan/fifth avenue , courtyard manhattan/midtown east , westin washington , d.c. city center , westin san diego , hilton boston downtown and hilton minneapolis . we evaluate each hotel in our portfolio to assess the optimal branding strategy for the individual hotel and market . we leverage the leading global hotel brands at most of our hotels , which are flagged under a brand owned by marriott , hilton or starwood . we also maintain a small portion of our hotels as independent non-branded hotels . we believe that premier global hotel brands create significant value as a result of each brand 's ability to produce incremental revenue through their strong reservation and rewards systems and sales organizations with the result being that branded hotels are able to generate greater profits than similar unbranded hotels . we are also interested in owning other non-branded hotels located in premier or unique markets where we believe that the returns on such a hotel may be higher than if the hotel were operated under a globally-recognized brand . during 2015 , we expect to evaluate opportunities to acquire hotels located in urban and destination resort markets , with an emphasis on prime markets on the west coast and south florida , as well as other select destination resort markets . despite our conviction that there are several more years of industry growth ahead , we believe that it is prudent to avoid acquisitions that require significant capital investment or deep and lengthy turnarounds . we also prefer to target moderately sized investments of $ 50 - 33 - million to $ 150 million rather than larger acquisition investments . finally , we are highly sensitive to our cost of capital and expect to pursue acquisitions that create value in the near term . we also expect to continue to evaluate the disposition of non-core hotels , as we are currently observing robust demand for such assets . we will continue to evaluate our portfolio for opportunities to take advantage of the robust demand in order to continue to upgrade our portfolio by disposing of non-core hotels . innovative asset management we believe that we can create significant value in our portfolio through innovative asset management strategies such as rebranding , renovating and repositioning and we engage in a process of regular evaluations of our portfolio in order to determine if there are opportunities to employ these value-add strategies . our asset management team is focused on improving hotel profit margins through revenue management strategies and cost control programs . our asset management team also focuses on identifying new and potential value creation opportunities across our portfolio , including implementing resort fees , creating incremental guest rooms , leasing out restaurants to more profitable third-party operators , converting unused space to revenue-generating meeting space and implementing programs to reduce energy consumption . our senior management team has established a broad network of hotel industry contacts and relationships , including relationships with hotel owners , financiers , operators , project managers and contractors and other key industry participants . we use our broad network of hotel industry contacts and relationships to maximize the value of our hotels . under the federal income tax rules governing reits , we are required to engage a hotel manager that is an eligible independent contractor to manage each of our hotels pursuant to a management agreement with one of our subsidiaries . we strive to negotiate management agreements that give us the right to exert influence over the management of our properties , annual budgets and all capital expenditures ( all , to the extent permitted under the reit rules ) , and then to use those rights to continually monitor and improve the performance of our properties . we cooperatively partner with our hotel managers in an attempt to increase operating results and long-term asset values at our hotels . in addition to working directly with the personnel at our hotels , our senior management team also has long-standing professional relationships with our hotel managers ' senior executives , and we work directly with these senior executives to improve the performance of the hotels in our portfolio that they manage . conservative capital structure we believe that a conservative capital structure maximizes investment capacity while reducing enterprise risk . we currently employ a low-risk and straight-forward capital structure with no corporate level debt , preferred equity or convertible bonds . moreover , as of december 31 , 2014 , we have significant balance sheet flexibility with existing corporate cash , no outstanding borrowings under our $ 200 million senior unsecured credit facility , and over half of our hotels are unencumbered by mortgage debt . we believe it is imprudent to increase the inherent risk of highly cyclical lodging fundamentals through the use of a highly leveraged capital structure . we believe that our strategically designed capital structure is a value creation tool that can be used over the entire lodging cycle . specifically , we believe that lower leverage benefits us in the following ways : provides capacity to fund attractive acquisitions ; provides optionality to fund acquisitions with the most efficient funding source ; enhances our ability to maintain a sustainable dividend ; enables us to opportunistically repurchase shares during periods of stock price dislocation ; and provides capacity to fund late-cycle capital needs . our current outstanding debt consists of property-specific mortgage debt , with the majority of our mortgage debt bearing interest at a fixed rate . story_separator_special_tag we recorded the settlement net of a $ 1.2 million contingency fee paid to our legal counsel and $ 1.8 million of legal fees and other costs incurred over the course of the legal proceedings , which were previously recorded as corporate expenses . interest income . interest income decreased $ 3.3 million from $ 6.3 million for the year ended december 31 , 2013 to $ 3.0 million for the year ended december 31 , 2014 . the decrease is primarily due to the prepayment of the allerton loan in may 2014. interest expense . our interest expense was $ 58.3 million and $ 57.3 million for the years ended december 31 , 2014 and december 31 , 2013 , respectively , and is comprised of the following ( in millions ) : replace_table_token_10_th gain on prepayment of note receivable . we received $ 58.5 million from the prepayment of the senior mortgage loan secured by the allerton hotel in may 2014. as a result of the prepayment , we recorded a gain of $ 13.6 million . gain on sale of hotel properties . on april 14 , 2014 , we sold the oak brook hills resort for approximately $ 30.1 million and recognized a gain of $ 1.3 million . on december 18 , 2014 , we sold the los angeles airport marriott for total proceeds of approximately $ 160 million and recognized a gain of $ 49.7 million . gain on hotel property acquisition . we recorded a gain of $ 23.9 million related to our purchase of the hilton garden inn times square central in new york . the gain was a result of the fair value of the hotel increasing from our contractual purchase price at the time we entered into the purchase and sale agreement in 2011 to the fair value at the closing date of august 29 , 2014. story_separator_special_tag of our hotels , as well as attrition and cancellation fees . hotel operating expenses . our operating expenses from continuing operations for the years ended december 31 , 2013 and 2012 , respectively , consist of the following ( in millions ) : - 41 - replace_table_token_13_th our hotel operating expenses increased $ 58.7 million , or 10.9 % , from $ 538.9 million for the year ended december 31 , 2012 to $ 597.6 million for the year ended december 31 , 2013 , which includes $ 37.5 million of hotel operating expenses contributed by the five hotels we acquired in 2012. the remaining increase of $ 21.2 million is primarily due to higher food and beverage costs and support costs , specifically repairs and maintenance and sales and marketing . property taxes at our comparable hotels increased approximately $ 3.0 million , which is primarily due to significant increases in the county property tax rates at the chicago marriott and conrad chicago and a reassessment of the vail marriott mountain resort & spa . incentive management fees increased as a result of higher profits , as well as three additional hotels that earned incentive management fees in 2013. franchise fees increased primarily due to four of the hotels we acquired in 2012 being subject to franchise agreements and , to a lesser extent , as a result of the branding of the lexington hotel new york to marriott 's autograph collection . depreciation and amortization . depreciation and amortization is recorded on our hotel buildings over 40 years for the periods subsequent to acquisition . depreciable lives of hotel furniture , fixtures and equipment are estimated as the time period between the acquisition date and the date that the hotel furniture , fixtures and equipment will be replaced . our depreciation and amortization expense increased $ 6.9 million from the year ended december 31 , 2012 to the year ended december 31 , 2013 due to our 2012 acquisitions and the significant renovations completed under our 2013 capital expenditure program . impairment losses . during the year ended december 31 , 2012 , we recorded an impairment loss of $ 30.4 million related to the oak brook hills resort . we also recorded an impairment loss of $ 0.5 million on the favorable leasehold asset related to our option to develop a hotel on an undeveloped parcel of land adjacent to the westin boston waterfront hotel . no impairment losses were recorded during the year ended december 31 , 2013 . corporate expenses . corporate expenses principally consist of employee-related costs , including base payroll , bonus and restricted stock . corporate expenses also include corporate operating costs , professional fees and directors ' fees . our corporate expenses increased $ 2.0 million , from $ 21.1 million for the year december 31 , 2012 to $ 23.1 million for the year ended december 31 , 2013 . the increase in corporate expenses is due primarily to $ 3.1 million in severance costs incurred in connection with the departure of our president and chief operating officer in 2013 , partially offset by lower legal fees as a result of the settlement of the allerton bankruptcy proceedings and related litigation in january 2013. hotel acquisition costs . hotel acquisition costs incurred during the year ended december 31 , 2012 were related to the five hotels we acquired during 2012. interest income . interest income increased $ 6.0 million from $ 0.3 million for the year ended december 31 , 2012 to $ 6.3 million for the year ended december 31 , 2013 . the increase is substantially due to the restructuring of the allerton loan for which we started to recognize interest income beginning in january 2013. we recorded $ 6.1 million of interest income on the allerton loan for the year ended december 31 , 2013 , of which $ 2.6 million is the amortization of the discount and the remainder is contractual interest income earned . - 42 - interest expense . our interest expense was $ 57.3

