securities and exchange commission regulations require inclusion of predecessor financial information for the periods prior to mhi hospitality corporation 's commencement of operations . the following table reflects key line items from our consolidated and combined statements of operations for the years ended december 31 , 2005 , 2004 and 2003. replace_table_token_9_th comparison of year ended december 31 , 2005 to year ended december 31 , 2004 revenue . total revenue for the year ended december 31 , 2005 was approximately $ 57.9 million , an increase of approximately $ 31.3 million or 118.1 % from combined total revenue for the year ended december 31 , 2004 of 36 approximately $ 26.5 million for the company and the predecessor . the increase was primarily due to approximately $ 28.9 million of incremental revenues attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. revenues increased due to increases in both room revenue and food and beverage revenues . room revenues at our properties for the year ended december 31 , 2005 increased approximately $ 3.4 million or 8.7 % to approximately $ 38.0 million compared to combined room revenues in 2004. most properties experienced adr growth between 3 % and 7 % . a new mix of business , a strong market , and the completion of room renovations caused a significant increase in adr at our philadelphia property . our efforts to re-position our property in laurel , maryland coupled with the completion of renovations also contributed to the significant increases in adr at that property . food and beverage revenues at our properties for the year ended december 31 , 2005 increased approximately $ 2.3 million or 13.4 % to approximately $ 17.2 million compared to combined food and beverage revenues in 2004. we experienced the largest increase at our laurel property , which was not included in the predecessor group or under the management of mhi hotels services prior to our initial public offering . this increase was due to a greater focus on banqueting and group sales . hotel operating expenses . hotel operating expenses , which consist of room expenses , food and beverage expenses , other direct expenses , indirect expenses , and management fees , increased approximately $ 23.9 million or 112.8 % for the year ended december 31 , 2005 to approximately $ 45.2 million compared to combined hotel operating expenses in 2004 , primarily due to approximately $ 22.2 million of incremental expense attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. rooms expense at our properties for the year ended december 31 , 2005 increased approximately $ 1.0 million or 9.4 % to approximately $ 10.6 million compared to combined rooms expense in 2004. a decrease in costs related to the 2.24 % drop in occupancy was offset by an increase in costs that vary directly to revenue . additional cleaning costs were also incurred related to the renovations at our williamsburg , laurel and philadelphia properties . food and beverage expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.6 million or 4.8 % to approximately $ 12.1 million compared to 2004 due mostly to the increase in food and beverage sales . indirect expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.8 million or 3.7 % to approximately $ 21.7 million compared to 2004. indirect expenses increased as a result of increased energy costs at all the properties and increased repairs and maintenance related to the renovations at our williamsburg , laurel and philadelphia properties . the increases were partially offset by a reduction in management fees negotiated with mhi hotels services as part of the master management agreement executed pursuant to the initial public offering . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2005 increased approximately $ 2.4 million or 128.3 % to approximately $ 4.3 million compared to combined depreciation and amortization expense in 2004. the increase in depreciation and amortization was attributable to the acquisition of three hotel properties and the leasehold interest in the commercial spaces at the shell island resort in december 2004 and one hotel property in the third quarter of 2005. apart from the acquisitions related to the initial public offering and in the third quarter of fiscal 2005 , depreciation and amortization would have remained at approximately $ 1.9 million . corporate general and administrative . corporate general and administrative expenses for the year ended december 31 , 2005 decreased approximately $ 1.7 million or 45.5 % compared to combined corporate general and administrative expense in 2004. prior to the commencement of operations on december 21 , 2004 , there were no 37 corporate expenses . upon formation of the company , start-up costs were recognized as well as costs associated with the amendment and restructuring of the management agreements . in addition , the company recognized expense in 2004 for non-recurring ancillary legal and accounting costs not directly related to the offering . operating income . operating income for the year ended december 31 , 2005 increased approximately $ 6.7 million compared to combined operating income in 2004 as a result of the operating results discussed above . interest expense . interest expense for the year ended december 31 , 2005 increased approximately $ 0.5 million or 22.6 % to approximately $ 2.8 million compared to combined interest expense in 2004 , primarily due to the payoff of the mortgage on the holiday inndowntown williamsburg upon formation of the company , partially offset by interest attributable to the mortgage on the hilton jacksonville riverfront acquired in july 2005. income tax benefit . story_separator_special_tag 123 ( r ) . we do not expect that the adoption of the statement will have a material impact on our consolidated results or financial condition . in may 2005 , fasb issued sfas 154 , accounting changes and error correctionsa replacement of apb opinion no . 20 and fasb statement no . 3 . sfas 154 changes the requirements for the accounting for and reporting of a change in accounting principle , and applies to all voluntary changes in accounting principle . it also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions . this statement requires retrospective application to prior periods ' financial statements of changes in accounting principle , unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change . sfas 154 is effective for accounting changes made in fiscal years beginning after december 15 , 2005. we do not expect that adoption of this statement will have a material impact on our results of operations or financial condition . in february 2005 , the fasb issued emerging issues task force ( eitf ) issue no . 03-13 , applying the conditions of paragraph 42 of fasb statement no . 144 in determining whether to report discontinued operations ( eitf 03-13 ) . eitf 03-13 gives guidance on how to evaluate whether the operations and cash 44 flows of a disposed component have been or will be eliminated from ongoing operations and the types of continuing involvement that constitute significant continuing involvement in the operations of the disposed component . the adoption of eitf 03-13 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 45 ( fin 45 ) , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others , requires that a liability be recorded in the guarantor 's balance sheet upon issuance of a guarantee . in addition , fin 45 requires disclosures about the guarantees that an entity has issued , including a reconciliation of changes in the entity 's product warranty liabilities . the adoption of fin 45 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 46 , consolidation of variable interests entities , an interpretation of accounting research bulletin no . 51 , as amended ( fin 46r ) , requires certain variable interests entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties . the adoption of fin 46r did not have a material impact on the company 's results of operations , financial position or cash flows . statement of financial accounting standards no . 150 ( sfas 150 ) , accounting for certain financial instruments with characteristics of both liabilities and equity , clarifies the accounting for certain financial instruments with characteristics of both liabilities and equity and requires that those instruments be classified as liabilities in statements of financial position . previously many of these financial instruments were classified as equity . sfas 150 is effective for all financial instruments entered into or modified after may 31 , 2003 and is otherwise effective at the beginning of the first interim period after june 15 , 2003. however , in october 2003 , the fasb elected to indefinitely defer implementation of certain provisions of sfas 150 relating to limited-life subsidiaries created before november 5 , 2003. the adoption of sfas 150 did not have a material impact on the company 's results of operations , financial position , or cash flows . in july 2004 , the emerging issues task force ( eitf ) published its consensus on issue no . 03-1 , the meaning of other-than-temporary impairment and its application to certain investments. eitf issue no . 03-1 addresses the meaning of other than temporary impairment and its application to debt and equity securities within the scope of sfas no . 115 , certain debt and equity securities within the scope of sfas no . 124 , and equity securities that are not subject to the scope of sfas no . 115 and accounted for under the equity method . in september 2004 , the fasb issued fasb staff position ( fsp ) eitf issue no . 03-1-1 , which delays the effect date for the recognition and measurement guidance in eitf issue no . 03-1. in addition , the fasb has issued a proposed fsp to consider whether further application guidance is necessary for securities analyzed for impairment under eitf issue no . 03-1. the company continues to assess the potential impact that the adoption of the proposed fsp could have on our financial statements . in march 2004 , the emerging issues task force ( eitf ) reached a consensus on eitf issue no . 03-6 participating securities and the two-class method under fasb statement 128 ,  ( the consensus or eitf 03-6 ) . for purposes of calculating earnings per share , the consensus requires net income to be reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends or other participation payments that are paid or accumulated for the current period . under this consensus , undistributed earnings for the period are allocated to participating securities based on the contractual participation rights of the security to share in those current earnings assuming all earnings for the period are distributed . we have no preferred stock issued and therefore this consensus has no effect on our financial statements . if and when

liquidity and capital resources as of december 31 , 2005 , we had cash and cash equivalents of approximately $ 4.8 million , of which $ 4.3 million was in restricted reserve accounts and real estate tax escrows . coincident with the purchase of the hilton jacksonville riverfront hotel , we placed $ 3.0 million into a capital improvement reserve with mercantile safe deposit and trust company , the mortgagor 's trustee . we anticipate the renovations for the jacksonville hotel to be completed in the first three quarters of fiscal 2006. we expect that the reserve will be sufficient to fund the planned renovations . the company maintains a $ 23.0 million line of credit with bb & t bank , of which $ 3.5 million has been drawn and remains outstanding on december 31 , 2005. the line will be used to fund future acquisitions of new hotel companies and to provide working capital as necessary . we are currently in discussions to increase the availability under the line of credit . operating requirements . the company finances its operations from operating cash flow , which is principally derived from the operations of its hotels . cash flow provided by operating activities for the year ended december 31 , 2005 was approximately $ 6.4 million . we expect that the net cash provided by operations will be adequate to fund the company 's operating requirements , debt service and the payment of dividends in accordance with federal income tax laws which require us make annual distributions to our stockholders of at least 90 % of our reit taxable income , excluding net capital gain . we declared dividends of $ 0.17 per share ( unit ) paid on april 11 , 2005 , july 11 , 2005 and october 11 , 2005 , which we funded out of working capital .


 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.
     ```liquidity and capital resources as of december 31 , 2005 , we had cash and cash equivalents of approximately $ 4.8 million , of which $ 4.3 million was in restricted reserve accounts and real estate tax escrows . coincident with the purchase of the hilton jacksonville riverfront hotel , we placed $ 3.0 million into a capital improvement reserve with mercantile safe deposit and trust company , the mortgagor 's trustee . we anticipate the renovations for the jacksonville hotel to be completed in the first three quarters of fiscal 2006. we expect that the reserve will be sufficient to fund the planned renovations . the company maintains a $ 23.0 million line of credit with bb & t bank , of which $ 3.5 million has been drawn and remains outstanding on december 31 , 2005. the line will be used to fund future acquisitions of new hotel companies and to provide working capital as necessary . we are currently in discussions to increase the availability under the line of credit . operating requirements . the company finances its operations from operating cash flow , which is principally derived from the operations of its hotels . cash flow provided by operating activities for the year ended december 31 , 2005 was approximately $ 6.4 million . we expect that the net cash provided by operations will be adequate to fund the company 's operating requirements , debt service and the payment of dividends in accordance with federal income tax laws which require us make annual distributions to our stockholders of at least 90 % of our reit taxable income , excluding net capital gain . we declared dividends of $ 0.17 per share ( unit ) paid on april 11 , 2005 , july 11 , 2005 and october 11 , 2005 , which we funded out of working capital .
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 Suspicious Activity Report : securities and exchange commission regulations require inclusion of predecessor financial information for the periods prior to mhi hospitality corporation 's commencement of operations . the following table reflects key line items from our consolidated and combined statements of operations for the years ended december 31 , 2005 , 2004 and 2003. replace_table_token_9_th comparison of year ended december 31 , 2005 to year ended december 31 , 2004 revenue . total revenue for the year ended december 31 , 2005 was approximately $ 57.9 million , an increase of approximately $ 31.3 million or 118.1 % from combined total revenue for the year ended december 31 , 2004 of 36 approximately $ 26.5 million for the company and the predecessor . the increase was primarily due to approximately $ 28.9 million of incremental revenues attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. revenues increased due to increases in both room revenue and food and beverage revenues . room revenues at our properties for the year ended december 31 , 2005 increased approximately $ 3.4 million or 8.7 % to approximately $ 38.0 million compared to combined room revenues in 2004. most properties experienced adr growth between 3 % and 7 % . a new mix of business , a strong market , and the completion of room renovations caused a significant increase in adr at our philadelphia property . our efforts to re-position our property in laurel , maryland coupled with the completion of renovations also contributed to the significant increases in adr at that property . food and beverage revenues at our properties for the year ended december 31 , 2005 increased approximately $ 2.3 million or 13.4 % to approximately $ 17.2 million compared to combined food and beverage revenues in 2004. we experienced the largest increase at our laurel property , which was not included in the predecessor group or under the management of mhi hotels services prior to our initial public offering . this increase was due to a greater focus on banqueting and group sales . hotel operating expenses . hotel operating expenses , which consist of room expenses , food and beverage expenses , other direct expenses , indirect expenses , and management fees , increased approximately $ 23.9 million or 112.8 % for the year ended december 31 , 2005 to approximately $ 45.2 million compared to combined hotel operating expenses in 2004 , primarily due to approximately $ 22.2 million of incremental expense attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. rooms expense at our properties for the year ended december 31 , 2005 increased approximately $ 1.0 million or 9.4 % to approximately $ 10.6 million compared to combined rooms expense in 2004. a decrease in costs related to the 2.24 % drop in occupancy was offset by an increase in costs that vary directly to revenue . additional cleaning costs were also incurred related to the renovations at our williamsburg , laurel and philadelphia properties . food and beverage expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.6 million or 4.8 % to approximately $ 12.1 million compared to 2004 due mostly to the increase in food and beverage sales . indirect expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.8 million or 3.7 % to approximately $ 21.7 million compared to 2004. indirect expenses increased as a result of increased energy costs at all the properties and increased repairs and maintenance related to the renovations at our williamsburg , laurel and philadelphia properties . the increases were partially offset by a reduction in management fees negotiated with mhi hotels services as part of the master management agreement executed pursuant to the initial public offering . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2005 increased approximately $ 2.4 million or 128.3 % to approximately $ 4.3 million compared to combined depreciation and amortization expense in 2004. the increase in depreciation and amortization was attributable to the acquisition of three hotel properties and the leasehold interest in the commercial spaces at the shell island resort in december 2004 and one hotel property in the third quarter of 2005. apart from the acquisitions related to the initial public offering and in the third quarter of fiscal 2005 , depreciation and amortization would have remained at approximately $ 1.9 million . corporate general and administrative . corporate general and administrative expenses for the year ended december 31 , 2005 decreased approximately $ 1.7 million or 45.5 % compared to combined corporate general and administrative expense in 2004. prior to the commencement of operations on december 21 , 2004 , there were no 37 corporate expenses . upon formation of the company , start-up costs were recognized as well as costs associated with the amendment and restructuring of the management agreements . in addition , the company recognized expense in 2004 for non-recurring ancillary legal and accounting costs not directly related to the offering . operating income . operating income for the year ended december 31 , 2005 increased approximately $ 6.7 million compared to combined operating income in 2004 as a result of the operating results discussed above . interest expense . interest expense for the year ended december 31 , 2005 increased approximately $ 0.5 million or 22.6 % to approximately $ 2.8 million compared to combined interest expense in 2004 , primarily due to the payoff of the mortgage on the holiday inndowntown williamsburg upon formation of the company , partially offset by interest attributable to the mortgage on the hilton jacksonville riverfront acquired in july 2005. income tax benefit . story_separator_special_tag 123 ( r ) . we do not expect that the adoption of the statement will have a material impact on our consolidated results or financial condition . in may 2005 , fasb issued sfas 154 , accounting changes and error correctionsa replacement of apb opinion no . 20 and fasb statement no . 3 . sfas 154 changes the requirements for the accounting for and reporting of a change in accounting principle , and applies to all voluntary changes in accounting principle . it also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions . this statement requires retrospective application to prior periods ' financial statements of changes in accounting principle , unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change . sfas 154 is effective for accounting changes made in fiscal years beginning after december 15 , 2005. we do not expect that adoption of this statement will have a material impact on our results of operations or financial condition . in february 2005 , the fasb issued emerging issues task force ( eitf ) issue no . 03-13 , applying the conditions of paragraph 42 of fasb statement no . 144 in determining whether to report discontinued operations ( eitf 03-13 ) . eitf 03-13 gives guidance on how to evaluate whether the operations and cash 44 flows of a disposed component have been or will be eliminated from ongoing operations and the types of continuing involvement that constitute significant continuing involvement in the operations of the disposed component . the adoption of eitf 03-13 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 45 ( fin 45 ) , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others , requires that a liability be recorded in the guarantor 's balance sheet upon issuance of a guarantee . in addition , fin 45 requires disclosures about the guarantees that an entity has issued , including a reconciliation of changes in the entity 's product warranty liabilities . the adoption of fin 45 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 46 , consolidation of variable interests entities , an interpretation of accounting research bulletin no . 51 , as amended ( fin 46r ) , requires certain variable interests entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties . the adoption of fin 46r did not have a material impact on the company 's results of operations , financial position or cash flows . statement of financial accounting standards no . 150 ( sfas 150 ) , accounting for certain financial instruments with characteristics of both liabilities and equity , clarifies the accounting for certain financial instruments with characteristics of both liabilities and equity and requires that those instruments be classified as liabilities in statements of financial position . previously many of these financial instruments were classified as equity . sfas 150 is effective for all financial instruments entered into or modified after may 31 , 2003 and is otherwise effective at the beginning of the first interim period after june 15 , 2003. however , in october 2003 , the fasb elected to indefinitely defer implementation of certain provisions of sfas 150 relating to limited-life subsidiaries created before november 5 , 2003. the adoption of sfas 150 did not have a material impact on the company 's results of operations , financial position , or cash flows . in july 2004 , the emerging issues task force ( eitf ) published its consensus on issue no . 03-1 , the meaning of other-than-temporary impairment and its application to certain investments. eitf issue no . 03-1 addresses the meaning of other than temporary impairment and its application to debt and equity securities within the scope of sfas no . 115 , certain debt and equity securities within the scope of sfas no . 124 , and equity securities that are not subject to the scope of sfas no . 115 and accounted for under the equity method . in september 2004 , the fasb issued fasb staff position ( fsp ) eitf issue no . 03-1-1 , which delays the effect date for the recognition and measurement guidance in eitf issue no . 03-1. in addition , the fasb has issued a proposed fsp to consider whether further application guidance is necessary for securities analyzed for impairment under eitf issue no . 03-1. the company continues to assess the potential impact that the adoption of the proposed fsp could have on our financial statements . in march 2004 , the emerging issues task force ( eitf ) reached a consensus on eitf issue no . 03-6 participating securities and the two-class method under fasb statement 128 ,  ( the consensus or eitf 03-6 ) . for purposes of calculating earnings per share , the consensus requires net income to be reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends or other participation payments that are paid or accumulated for the current period . under this consensus , undistributed earnings for the period are allocated to participating securities based on the contractual participation rights of the security to share in those current earnings assuming all earnings for the period are distributed . we have no preferred stock issued and therefore this consensus has no effect on our financial statements . if and when

