Net Investments in Hotels

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



	June 30, 2019			December 31, 2018
Buildings	$	1,550,476		$	1,552,365
Land	355,082			355,082
Building and site improvements	160,142			149,323
Furniture, fixtures and equipment	105,522			108,907
Construction in progress	14,351			10,298
Hotels, at cost	2,185,573			2,175,975
Less: Accumulated depreciation	(297,471		)	(266,323		)
Net investments in hotels	$	1,888,102		$	1,909,652

During the six months ended June 30, 2019 and 2018, we retired fully depreciated furniture, fixtures and equipment aggregating $6.8 million and $15.9 million, respectively.

Depreciation expense was $19.4 million and $18.9 million for the three months ended June 30, 2019 and 2018, respectively, and $38.0 million and $38.2 million for the six months ended June 30, 2019 and 2018, respectively.

Hurricane-Related Disruption

Below is a summary of the items that comprised the gain recognized related to Hurricane Irma (in thousands):



	Three Months Ended June 30,
	2019			2018
Net write-off (write-up) of fixed assets	$	112		$	(198	)
Remediation work performed	—			709
Property damage insurance receivables	(344		)	(1,007		)
Gain on hurricane-related property damage	$	(232	)	$	(496	)



	Six Months Ended June 30,
	2019			2018
Net write-off of fixed assets	$	2,059		$	5,460
Remediation work performed	—			6,506
Property damage insurance receivables	(2,059		)	(13,031		)
Gain on hurricane-related property damage	$	—		$	(1,065	)

As of June 30, 2019, we have received cumulative business interruption insurance proceeds of $21.8 million, of which we recorded $0.3 million and $0.8 million in the consolidated statements of operations as Business interruption income during the three and six months ended June 30, 2019, respectively. During both the three and six months ended June 30, 2018, we recorded $10.5 million as Business interruption income in the consolidated statements of operations related to Hurricane Irma.

As the restoration work continues to be performed, the estimated total cost will change. Any changes to property damage estimates will be recorded in the periods in which they are determined and any additional remediation work will be recorded in the periods in which it is performed.

Property Dispositions

On January 25, 2018, we sold our 100% ownership interest in the Marriott Boca Raton at Boca Center to an unaffiliated third party for a contractual sales price of $76.0 million, with net proceeds after the repayment of the related mortgage loan of approximately $35.4 million, including the release of $1.4 million of restricted cash. We recognized a gain on sale of $12.3 million during the first quarter of 2018 in connection with this transaction.

On February 5, 2018, we sold our 100% ownership interests in the Hampton Inn Memphis Beale Street and Hampton Inn Atlanta Downtown to an unaffiliated third party for a contractual sales price totaling $63.0 million, with net proceeds after the repayment of the related mortgage loans of approximately $31.8 million, including the release of $2.0 million of restricted cash. We recognized a gain on sale totaling $19.6 million during the first quarter of 2018 in connection with this transaction.

Construction in Progress

At June 30, 2019 and December 31, 2018, construction in progress, recorded at cost, was $14.4 million and $10.3 million, respectively, and related primarily to planned renovations at the Ritz-Carlton Fort Lauderdale, the Ritz-Carlton Key Biscayne and the Renaissance Chicago Downtown. At June 30, 2019 and December 31, 2018, construction in progress also related to planned renovations at Hyatt Place Austin and the restoration of the Hawks Cay Resort as a result of the damage caused by Hurricane Irma, respectively. Upon substantial completion of renovation work, costs are reclassified from construction in progress to buildings, building and site improvements and furniture, fixture and equipment, as applicable, and depreciation will commence.

We capitalize qualifying interest expense and certain other costs, such as property taxes, property insurance, utilities expense and hotel incremental labor costs, related to hotels undergoing major renovations. We capitalized $0.2 million and $0.9 million of such costs during the three months ended June 30, 2019 and 2018, respectively, and $0.5 million and $1.5 million during the six months ended June 30, 2019 and 2018, respectively. At June 30, 2019 and December 31, 2018, accrued capital expenditures were $1.2 million and $5.5 million, respectively, representing non-cash investing activity.