INVESTMENT IN HOTEL PROPERTIES

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Investment in hotel properties consists of the following at December 31, 2021 and December 31, 2020:


	December 31, 2021		December 31, 2020

Land	$	478,412	$	488,463
Buildings and Improvements	1,560,768		1,611,144
Furniture, Fixtures and Equipment	274,802		281,440
Construction in Progress	1,784		987
	2,315,766		2,382,034

Less Accumulated Depreciation	(650,669)		(597,196)

Total Investment in Hotel Properties*	$	1,665,097	$	1,784,838

*The net book value of investment in hotel property at Ritz Coconut Grove, which is a variable interest entity, is $39,577 and $42,487 at December 31, 2021 and December 31, 2020, respectively.

Depreciation expense on hotel properties was $82,668, $96,216 and $95,673 for the years ended December 31, 2021, 2020 and 2019, respectively.

During the years ended December 31, 2021 and December 31, 2020, we acquired no hotel properties.

Property Damage from Natural Disaster

During September 2017, all six of our hotels located in South Florida incurred property damage and an interruption of business operations as a result of Hurricane Irma. During the year ended December 31, 2020, we closed our remaining open claim and recorded a net gain in excess of estimated insurance recoveries of $8,147.

During the year ended December 31, 2021, we received net proceeds of $961 for a business interruption claim as a result of COVID-19.

NOTE 2 – INVESTMENT IN HOTEL PROPERTIES (CONTINUED)

Hotel Dispositions

During the years ended December 31, 2020 and December 31, 2021, we had the following hotel dispositions:


Hotel	Acquisition Date	Disposition Date	Consideration		Gain on Disposition
Courtyard San Diego, CA	5/30/2013	2/19/2021	$	64,500	$	5,032
The Capitol Hill Hotel Washington, DC	4/15/2011	3/9/2021	51,000		12,975
Holiday Inn Express Cambridge, MA	5/3/2006	3/9/2021	32,000		20,280
Residence Inn Miami Coconut Grove, FL	6/12/2013	3/10/2021	31,000		9,996
Duane Street Hotel (1)	1/4/2008	5/13/2021	18,000		—
2021 Total					$	48,283

Sheraton Wilmington South, DE	12/21/2010	12/1/2020	$	19,500	$	1,158
2020 Total					$	1,158

(1) During 2020, the Company determined that the carrying value of the Duane Street hotel exceeded the anticipated net proceeds from sale, resulting in a $1,069 impairment charge recorded during the year ended December 31, 2020. We recorded an additional impairment charge of $147 prior to the disposition of the hotel property during the year ended December 31, 2021.

Assets Held For Sale

We classified the assets of the Duane Street Hotel, the Residence Inn Coconut Grove and the Courtyard San Diego as held for sale as of December 31, 2020. The sales of these hotels closed during the year ended December 31, 2021.

The table below shows the balances for the properties that were classified as assets held for sale as of December 31, 2020:


	December 31, 2020

Land	$	28,015
Buildings and Improvements	93,314
Furniture, Fixtures and Equipment	15,469
	136,798
Less Accumulated Depreciation	(40,578)
Assets Held for Sale	$	96,220