INVESTMENT IN HOTEL PROPERTIES

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

INVESTMENT IN HOTEL PROPERTIES

INVESTMENT IN HOTEL PROPERTIES

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

	December 31, 2022		December 31, 2021
Land	$	390,532	$	478,412
Buildings and Improvements	1,093,575		1,560,768
Furniture, Fixtures and Equipment	203,369		274,802
Construction in Progress	7,105		1,784
	1,694,581		2,315,766
Less Accumulated Depreciation	(505,342)		(650,669)
Total Investment in Hotel Properties*	$	1,189,239	$	1,665,097

*The net book value of investment in hotel property at Ritz Coconut Grove, which is a variable interest entity, is $37,303 and $39,577 at December 31, 2022 and December 31, 2021, respectively.

Depreciation expense on hotel properties was $64,442, $82,668 and $96,216 for the years ended December 31, 2022, 2021 and 2020, respectively.

During the years ended December 31, 2022 and December 31, 2021, 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.

During the year ended December 31, 2022, we received net proceeds of $958 for a business interruption claim as a result fire damage at one of our properties.

NOTE 2 – INVESTMENT IN HOTEL PROPERTIES (CONTINUED)

Hotel Dispositions

During the years ended December 31, 2022, December 31, 2021, and December 31, 2020, we had the following hotel dispositions:

Hotel	Acquisition Date	Disposition Date	Consideration		Gain on Disposition
Non-Core Urban Select Service (7 properties)	June 2005 - October 2016	August 4, 2022, October 26, 2022	$	505,000	$	170,193
Hotel Milo Santa Barbara	2/28/2014	10/6/2022	55,000		25,784
Pan Pacific Seattle	2/21/2017	10/19/2022	70,000		1,532
Gate hotel JFK Airport (2)	6/13/2008	11/2/2022	11,000		—
2022 Total					$	197,509
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.

(2) During 2022, the Company determined that the carrying value of the Gate JFK hotel exceeded the anticipated net proceeds from sale, resulting in a $10,113 impairment charge recorded during the year ended December 31, 2022.

Assets Held For Sale

There were no assets held for sale as of December 31, 2022 and December 31, 2021.