Disposals

9 Months Ended

Sep. 30, 2019

Disposal Group, Not Including Discontinued Operations

Disposals

4. Disposals

The Company classified the Courtyard by Marriott Los Angeles as held for sale at September 30, 2019, and subsequently sold the hotel in October 2019 (see Note 13). The sale did not represent a strategic shift that had a major impact on the Company’s business plan or its primary markets; therefore, the hotel did not qualify as a discontinued operation.

The Company classified the assets and liabilities of the Courtyard by Marriott Los Angeles as held for sale at September 30, 2019 as follows (unaudited and in thousands):

	September 30,
	2019
Accounts receivable	$	118
Prepaid expenses and other current assets		126
Investment in hotel properties, net		10,551
Finance lease right-of-use asset		6,605
Other assets		1,081
Assets held for sale, net	$	18,481
Accounts payable and accrued expenses	$	202
Accrued payroll and employee benefits		229
Other current liabilities		409
Finance lease obligation, less current portion (1)		11,606
Liabilities of assets held for sale	$	12,446

(1) The finance lease at the Courtyard by Marriott Los Angeles had a discount rate of 10.25%.