OTHER ASSETS

9 Months Ended

Sep. 30, 2020

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

OTHER ASSETS

OTHER ASSETS

Other Assets

Other Assets consisted of the following at September 30, 2020 and December 31, 2019:

	September 30, 2020		December 31, 2019
Derivative Asset	$	—	$	2,514
Deferred Financing Costs	2,625		1,330
Prepaid Expenses	8,727		11,279
Investment in Statutory Trusts	1,548		1,548
Investment in Non-Hotel Property and Inventories	2,643		2,987
Deposits with Unaffiliated Third Parties	2,565		2,577
Deferred Tax Asset, Net of Valuation Allowance of $22,411 and $497, respectively	—		11,390
Property Insurance Receivable	1,038		1,788
Other	3,749		2,764
	$	22,895	$	38,177

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 Sheets.

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.

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 recorded a valuation allowance resulting in net deferred tax assets of $0 as of September 30, 2020. We have considered various factors, including future reversals of existing taxable temporary differences, future taxable income and tax planning strategies in determining the ability to realize the benefits of our deferred tax assets. In Note 1, we also disclosed factors that have given rise to substantial doubt in our ability to continue as a going concern, which is a primary factor in our determination that a full valuation allowance against our net deferred tax asset was appropriate to record during the nine months ended September 30, 2020.

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.