Hotel Disposition and Impairment Charges

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Hotel Disposition and Impairment Charges

Hotel Disposition and Impairment ChargesHotel DispositionsOn January 20, 2021, the Company sold the Le Meridien in Minneapolis, Minnesota for approximately $7.9 million in cash. The sale resulted in a loss of approximately $124,000 for the three months ended March 31, 2021, which was included in “gain (loss) on disposition of assets and hotel properties” in the consolidated statement of operations.The results of operations for disposed hotel properties are included in net income (loss) through the date of disposition. See note 2 for a list of fiscal year 2020 hotel property dispositions. The following table includes condensed financial information from hotel property dispositions that occurred in 2020 and 2021 for the three months ended March 31, 2021 and 2020 (in thousands):

	Three Months Ended March 31,
	2021		2020
Total hotel revenue	$	8	$	18,455
Total hotel operating expenses	(165)		(14,028)
Gain (loss) on disposition of assets and hotel properties	(124)		3,623
Property taxes, insurance and other	(44)		(2,542)
Depreciation and amortization	(32)		(5,159)
Impairment charges	—		(27,613)
Operating income (loss)	(357)		(27,264)
Interest income	—		4
Interest expense and amortization of discounts and loan costs	—		(5,900)
Income (loss) before income taxes	(357)		(33,160)
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership	9		5,279
Net income (loss) before income taxes attributable to the Company	$	(348)	$	(27,881)

Impairment ChargesFor the three months ended March 31, 2021, no impairment charges were recorded.For the three months ended March 31, 2020, we recorded an impairment charge of $27.6 million. The impairment charge was comprised of $13.9 million at the Columbus Hampton Inn Easton, $10.0 million at the Canonsburg Homewood Suites Pittsburgh Southpointe and $3.7 million at the Phoenix Hampton Inn Airport North as a result of reduced estimated cash flows resulting from the COVID-19 pandemic and changes to the expected holding periods of these hotel properties. Each impairment charge was based on methodologies which include the development of the discounted cash flow method of the income approach with support based on the market approach, which are considered Level 3 valuation techniques.