Net Investments in Hotels

Net investments in hotels are summarized as follows (in thousands):



	March 31, 2016			December 31, 2015
Buildings	$	1,688,982		$	1,629,741
Land	386,512			371,712
Furniture, fixtures and equipment	123,537			121,722
Building and site improvements	64,145			63,456
Construction in progress	38,834			22,310
Hotels, at cost	2,302,010			2,208,941
Less: Accumulated depreciation	(134,844		)	(115,639		)
Net investments in hotels	$	2,167,166		$	2,093,302

2016 Acquisition

During the three months ended March 31, 2016, we acquired one Consolidated Hotel, the Equinox, a Luxury Collection Golf Resort & Spa, or Equinox, which we refer to as our 2016 Acquisition and includes real estate and other hotel assets, net of assumed liabilities, totaling $74.2 million. In connection with this acquisition, we expensed acquisition costs of $4.0 million (of which $3.7 million was expensed during the three months ended March 31, 2016 and $0.3 million was expensed during the year ended December 31, 2015), including acquisition fees of $2.2 million paid to our Advisor. See Note 9 for information about mortgage financing obtained in connection with this acquisition and Note 10 for information about planned renovations on this hotel.

The following tables present a summary of assets acquired and liabilities assumed in this business combination, at the date of acquisition, and revenues and earnings thereon, since date of acquisition through March 31, 2016 (in thousands):



	Equinox ^(a)
Acquisition date	February 17, 2016
Cash consideration	$	74,224
Assets acquired at fair value:
Land	14,800
Building and site improvements	58,396
Furniture, fixtures and equipment	1,100
Accounts receivable	534
Other assets	854
Liabilities assumed at fair value:
Accounts payable, accrued expenses and other liabilities	(1,460		)
Net assets acquired at fair value	$	74,224



	From Acquisition date through March 31, 2016
Revenues	$	1,289
Net loss	$	(115	)

___________

(a)

The purchase price was allocated to the assets acquired and liabilities assumed based upon their preliminary fair values. The information in this table is based on the current best estimates of management. We are in the process of finalizing our assessment of the fair value of the assets acquired and liabilities assumed. Accordingly, the fair value of these assets acquired and liabilities assumed are subject to change.

Construction in Progress

At March 31, 2016 and December 31, 2015, construction in progress, recorded at cost, was $38.8 million and $22.3 million, respectively, and related primarily to renovations at the Sheraton Austin Hotel at the Capitol, the Renaissance Chicago Downtown, the Marriott Kansas City Country Club Plaza and the Hawks Cay Resort at both March 31, 2016 and December 31, 2015 (Note 10). We capitalize interest expense and certain other costs, such as property taxes, property insurance and hotel incremental labor costs, related to hotels undergoing major renovations. We capitalized $0.3 million and $1.0 million of such costs during the three months ended March 31, 2016 and 2015, respectively.

During the three months ended March 31, 2016 and 2015, accrued capital expenditures decreased by $1.1 million and increased by $2.2 million, respectively, representing non-cash investing activity.