Investment in Hotel Properties

12 Months Ended

Dec. 31, 2015

4. Investment in Hotel Properties

Investment in hotel properties as of December 31, 2015 and 2014 consisted of the following:

	December 31, 2015			December 31, 2014

Land and land improvements	$	59,910,212		$	37,483,400
Buildings and improvements		333,720,421			257,343,516
Furniture, fixtures and equipment		42,245,334			38,762,997
		435,875,967			333,589,913
Less: accumulated depreciation and impairment		(80,912,725	)		(73,397,760	)
	$	354,963,242		$	260,192,153

Our review of possible impairment at one of our hotel properties and a re-evaluation of future revenues based on anticipated market conditions, market penetration and costs necessary to achieve such market penetration revealed an excess of current carrying cost over the estimated undiscounted future cash flows and current fair values during the periods ending December 31, 2015 and 2013, resulting in impairments of approximately $0.5 and $0.6 million, as of December 31, 2015 and 2013, respectively. Our review of possible impairment at the same hotel property for 2014, which was triggered by a combination of a change in anticipated use and future branding of the property; and a re-evaluation of future revenues based on anticipated market conditions, market penetration, costs necessary to achieve such market penetration and the then current fair value, resulted in an impairment of approximately $3.2 million, as of December 31, 2014.