Investments in Hotel Properties

9 Months Ended

Sep. 30, 2011

Investments in Hotel Properties [Abstract]

4. Investments in Hotel Properties

Investments in hotel properties consisted of the following (in thousands):


	September 30,			December 31,
	2011			2010
Land	$	487,184		$	488,901
Buildings and improvements		2,771,327			2,774,822
Furniture, fixtures and equipment		263,468			383,860
Construction in progress		2,798			4,473
Condominium properties		12,640			—

Total cost		3,537,417			3,652,056
Accumulated depreciation		(569,620	)		(628,320	)

Investment in hotel properties, net	$	2,967,797		$	3,023,736

In March 2011, we acquired real estate and certain other rights in connection with the acquisition of the WorldQuest Resort, a condominium hotel project. More specifically, we acquired 96 condominium units, hotel amenities, land and improvements, developable raw land, developer rights and Rental Management Agreements (“RMA’s”) with third party owners of condominium units in the project. Units owned by third parties with RMA’s and 62 of the 96 units we acquired participate in a rental pool program whereby the units are rented to guests similar to a hotel operation. Under the terms of the RMA’s, we share in a percentage of the guest room revenues and are reimbursed for certain costs. The remaining 34 units that we own are currently being finished out and will be added to the rental pool when completed. In third quarter 2011, we sold two of the completed units at a price of $175,000 each and realized a gain of $96,000.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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