INVESTMENT IN HOTEL PROPERTIES

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Investment in hotel properties consists of the following at June 30, 2022 and December 31, 2021:



	June 30, 2022		December 31, 2021

Land	$	403,611	$	478,412
Buildings and Improvements	1,240,265		1,560,768
Furniture, Fixtures and Equipment	219,901		274,802
Construction in Progress	4,897		1,784
	1,868,674		2,315,766

Less Accumulated Depreciation	(533,195)		(650,669)

Total Investment in Hotel Properties *	$	1,335,479	$	1,665,097

* The net book value of investment in hotel property at Ritz Coconut Grove, which is a variable interest entity, is $38,256 and $39,577 at June 30, 2022 and December 31, 2021, respectively.

Acquisitions

For the six months ended June 30, 2022 and 2021, we acquired no hotel properties.

Hotel Dispositions

For the six months ended June 30, 2022, we had no hotel dispositions. During the six months ended June 30, 2021, we had the following hotel dispositions:


Hotel	Acquisition Date	Disposition Date	Consideration		Gain on Disposition

Courtyard San Diego, CA	05/30/2013	02/19/2021	$	64,500	$	5,032
The Capitol Hill Hotel Washington, DC	04/15/2011	03/09/2021	51,000		12,975
Holiday Inn Express Cambridge, MA	05/03/2006	03/09/2021	32,000		20,280
Residence Inn Miami Coconut Grove, FL	06/12/2013	03/10/2021	31,000		9,996

2021 Total					$	48,283

Assets Held For Sale

On April 27, 2022, we entered into a purchase and sale agreement to sell seven hotel properties: the Courtyard Brookline, the Hampton Inn Washington, DC, Hilton Garden Inn M Street, DC, Hampton Inn - Philadelphia, Courtyard Sunnyvale, TownePlace Suites Sunnyvale and the Courtyard Los Angeles Westside to an unaffiliated buyer for a purchase price of $505,000. We closed on the sale of these properties, except for the Courtyard Sunnyvale on August 4, 2022. The sale of the Courtyard Sunnyvale is expected to close in the fourth quarter of 2022, subject to customary closing conditions. The proceeds from the sale were used to pay off the Junior Notes, payable at a redemption price of 104%, or $164,418, and to pay down borrowings under our credit facility (See Note 5 – Debt).

As of December 31, 2021, there were no assets held for sale. The table below shows the balances for the seven properties noted above that were classified as held for sale as of June 30, 2022:



	June 30, 2022

Land	$	74,801
Right of Use Asset - Land Lease	12,705
Buildings and Improvements	325,566
Furniture, Fixtures and Equipment	59,096
	472,168

Less Accumulated Depreciation	(153,452)

Assets Held for Sale	$	318,716

Liabilities Related to Hotel Assets Held for Sale

Liabilities related to hotel assets held for sale at June 30, 2022 and December 31, 2021 consisted of the following:


	June 30, 2022		December 31, 2021
Mortgage Indebtedness	$	74,522	$	—
Net Unamortized Deferred Financing Costs	(359)		—
Lease Liabilities	5,624		—
Liabilities Related to Hotel Assets Held for Sale	$	79,787	$	—