Other Assets And Deposits On Hotel Acquisitions

12 Months Ended

Dec. 31, 2019

Other Assets And Deposits On Hotel Acquisitions

OTHER ASSETS AND DEPOSITS ON HOTEL ACQUISITIONS

Other Assets

Other Assets consisted of the following at December 31, 2019 and December 31, 2018:



	December 31, 2019		December 31, 2018

Derivative Asset	$	2,514	$	5,307
Deferred Financing Costs	1,330		1,845
Prepaid Expenses	11,279		10,695
Investment in Statutory Trusts	1,548		1,548
Investment in Non-Hotel Property and Inventories	2,987		3,349
Deposits with Unaffiliated Third Parties	2,577		2,866
Deferred Tax Asset, Net of Valuation Allowance of $497	11,390		11,078
Property Insurance Receivable	1,788		—
Other	2,764		3,317
	$	38,177	$	40,005

Derivative Asset - This category represents the Company’s gross asset fair value of interest rate swaps and interest rate caps. Any swaps and caps resulting in a liability to the Company are accounted for separately within Other Liabilities on the Balance Sheet.

Deferred Financing Costs - This category represents financing costs paid by the Company to establish our Line of Credit. These costs have been capitalized and will amortize to interest expense over the life of the Line of Credit.

Prepaid Expenses - Prepaid expenses include amounts paid for property tax, insurance and other expenditures that will be expensed in the next twelve months.

Investment in Statutory Trusts - We have an investment in the common stock of Hersha Statutory Trust I and Hersha Statutory Trust II. Our investment is accounted for under the equity method.

Investment in Non-Hotel Property and Inventories - This category represents the costs paid and capitalized by the Company for items such as office leasehold improvements, furniture and equipment, and property inventories.

Deposits with Unaffiliated Third Parties - These deposits represent deposits made by the Company with unaffiliated third parties for items such as lease security deposits, utility deposits, and deposits with unaffiliated third party management companies.

Deferred Tax Asset - We have approximately $11,390 of net deferred tax assets as of December 31, 2019. We have considered various factors, including future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies in determining a valuation allowance for our deferred tax assets, and we believe that it is more likely than not that we will be able to realize the $11,390 of net deferred tax assets in the future.

Property Insurance Receivable – This category represents the amount that we expect to receive from our insurance companies for reimbursement of costs incurred as a result of water damage at The Boxer.