The Company’s investment in real estate consisted of the following (in thousands):


	June 30,			December 31,
	2024			2023
Land	$	846,651		$	828,868
Building and improvements		5,094,381			4,917,105
Furniture, fixtures and equipment		596,693			571,026
Finance ground lease assets		102,084			102,084
Franchise fees		25,653			21,233
		6,665,462			6,440,316
Less accumulated depreciation and amortization		(1,753,584	)		(1,662,942	)
Investment in real estate, net	$	4,911,878		$	4,777,374

As of June 30, 2024, the Company owned 224 hotels with an aggregate of 30,068 guest rooms located in 37 states and the District of Columbia. In May 2023, the Company entered into an operating lease for an initial 15-year term with a third-party hotel operator at its independent boutique hotel in New York, New York for all hotel operations of the hotel’s 210 guest rooms (“non-hotel property”). Lease revenue from this property is recorded in other revenue in the Company’s consolidated statements of operations and comprehensive income. As a result of the lease and transfer of possession to the operator, this property has been excluded from the Company’s hotel and guest room counts since May 2023. The Company has terminated the lease for failure to make lease payments timely, and in April 2024 commenced legal proceedings to remove the operator from possession of the hotel. The Company intends to enforce its rights under the lease and transition management of the hotel to a third-party manager, however, the removal process is still ongoing and the timing of the resolution of this matter and the transition of management operations cannot be predicted at this time.

The Company leases all of its 224 hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements.

The Company acquired two hotels during the six months ended June 30, 2024. The following table sets forth the location, brand, manager, date acquired, number of guest rooms and gross purchase price, excluding transaction costs, for each hotel. All dollar amounts are in thousands.

        City

        State

        Brand

        Manager

        Date
Acquired

        Guest Rooms

        Gross
Purchase
Price

Washington, D.C.

N/A

AC Hotels

HHM

3/25/2024

234

116,804

Madison

WI

Embassy Suites

Raymond

6/20/2024

262

79,516

496

196,320

During the year ended December 31, 2023, the Company acquired six hotels and one free-standing parking garage, including one hotel that was acquired during the six months ended June 30, 2023. The following table sets forth the location, brand, manager, date acquired, number of guest rooms and gross purchase price, excluding transaction costs, for each property. All dollar amounts are in thousands.

        City

        State

        Brand

        Manager

        Date
Acquired

        Guest Rooms

        Gross
Purchase
Price

Cleveland

OH

Courtyard

Concord

6/30/2023

154

31,000

Salt Lake City

UT

Courtyard

North Central

10/11/2023

175

48,110

Salt Lake City

UT

Hyatt House

North Central

10/11/2023

159

34,250

Salt Lake City (1)

UT

N/A

North Central

10/11/2023

N/A

9,140

Renton

WA

Residence Inn

InnVentures

10/18/2023

146

55,500

South Jordan

UT

Embassy Suites

HHM

11/21/2023

192

36,750

Las Vegas

NV

SpringHill Suites

Crescent

12/27/2023

299

75,000

1,125

289,750

(1)

This property is a free-standing parking garage which serves both the Courtyard and Hyatt House hotels in Salt Lake City, Utah and the surrounding area, however, it is not affiliated with any brand.

During the six months ended June 30, 2024, the Company utilized proceeds from the sale of three hotels and borrowings under its Revolving Credit Facility (as defined below) to purchase the Washington, D.C. and Madison, Wisconsin hotels. The Company utilized its available cash on hand, net proceeds from sales of shares under the ATM Program (as defined below) and availability under its Revolving Credit Facility to purchase the properties acquired in 2023. The acquisitions of these properties were accounted for as acquisitions of asset groups, whereby costs incurred to effect the acquisitions (which were not significant) were capitalized as part of the cost of the assets acquired. For the two hotels acquired during the six months ended June 30, 2024, the amount of revenue and operating income included in the Company’s consolidated statement of operations from the date of acquisition through June 30, 2024 was approximately $7.7 million and $2.5 million, respectively.

As of June 30, 2024, the Company had one outstanding contract, which was entered into during May 2023, for the potential purchase of a hotel in Nashville, Tennessee for an expected purchase price of approximately $98.2 million. The hotel is under development and is currently planned to be completed and opened for business in late 2025, as a 260-guest-room Motto. As of June 30, 2024, a $1.1 million contract deposit (refundable if the seller does not meet its obligations under the contract) had been paid. If the closing occurs, the Company plans to utilize its available cash or borrowings, including borrowings under its unsecured credit facilities available at closing, to purchase the hotel under contract. Although the Company is working towards acquiring this hotel, there are a number of conditions to closing that have not yet been satisfied, and there can be no assurance that closing on this hotel will occur under the outstanding purchase contract. If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the purchase contract and acquire this hotel. As this hotel is under development, at this time, the seller has not met all of the conditions to closing.