INVESTMENT IN HOTEL PROPERTIES

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

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



	September 30, 2022		December 31, 2021

Land	$	390,532	$	478,412
Buildings and Improvements	1,092,438		1,560,768
Furniture, Fixtures and Equipment	200,960		274,802
Construction in Progress	5,290		1,784
	1,689,220		2,315,766

Less Accumulated Depreciation	(492,267)		(650,669)

Total Investment in Hotel Properties *	$	1,196,953	$	1,665,097

* The net book value of investment in hotel property at Ritz Coconut Grove, which is a variable interest entity, is $37,815 and $39,577 at September 30, 2022 and December 31, 2021, respectively.

Acquisitions

For the nine months ended September 30, 2022 and 2021, we acquired no hotel properties.

Hotel Dispositions

During the nine months ended September 30, 2022, we had the following hotel dispositions:


Hotel	Acquisition Date	Disposition Date	Consideration		Gain on Disposition
Urban Select Service (6 of 7 hotels)	June 2005 - March 2016	08/04/2022	$	435,900	$	167,791
2022 Total					$	167,791

During the nine months ended September 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

As of September 30, 2022, there were four assets classified as held for sale: the Courtyard Sunnyvale, the Pan Pacific Seattle, the Hotel Milo Santa Barbara and the Gate hotel JFK Airport. On October 12, 2022, we entered into a purchase and sale agreement to sell the Gate hotel JFK Airport for a purchase price of $11,000. During the third quarter of 2022, the Company determined that the carrying value of the Gate hotel JFK Airport exceeded the anticipated net proceeds from sale, resulting in a $10,024 impairment charge recorded during the third quarter of 2022. We expect the sale of the Gate hotel JFK Airport to

close in the fourth quarter of 2022, subject to customary closing conditions. We sold the following hotel properties subsequent to September 30, 2022:


Hotel	Disposition Date	Consideration		Debt Pay down/Assumption by Buyer
Hotel Milo Santa Barbara	October 6, 2022	$	55,000	$	20,696
Pan Pacific Seattle	October 19, 2022	70,000		22,380		*
Courtyard Sunnyvale	October 26, 2022	69,100		39,309

* We used a portion of the proceeds to pay down the term loan by $22,380, as required by the Credit Agreement.

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


	September 30, 2022

Land	$	30,773
Right of Use Asset - Land Lease	11,532
Buildings and Improvements	195,412
Furniture, Fixtures and Equipment	26,485
	264,202

Less Accumulated Depreciation	(67,357)

Assets Held for Sale	$	196,845

Liabilities Related to Hotel Assets Held for Sale

As of December 31, 2021, there were no liabilities related to hotel liabilities held for sale. Liabilities related to hotel liabilities held for sale at September 30, 2022 consisted of the following:


	September 30, 2022
Mortgage Indebtedness	$	60,061
Net Unamortized Deferred Financing Costs	(192)
Lease Liabilities	28,205
Liabilities Related to Hotel Assets Held for Sale	$	88,074