Equity Investments in Real Estate (Tables)

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Schedule Equity Method Investments

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values. The carrying values of these ventures are affected by the timing and nature of distributions (dollars in thousands):

Unconsolidated Hotels	State	Number of Rooms	% Owned	Hotel Type	Carrying Value at
					June 30, 2019		December 31, 2018
Ritz-Carlton Bacara, Santa Barbara Venture (a) (b)	CA	358	40%	Resort	$	57,863	$	56,814
Ritz-Carlton Philadelphia Venture (c)	PA	301	60%	Full-service	28,018		29,951
Marriott Sawgrass Golf Resort & Spa Venture (d) (e)	FL	514	50%	Resort	26,777		25,439
Hyatt Centric French Quarter Venture (f)	LA	254	80%	Full-service	473		511
		1,427			$	113,131	$	112,715

___________

(a) This investment represents a tenancy-in-common interest; the remaining 60.0% interest is owned by CWI 2.

(b) We contributed $1.7 million and $3.4 million to this investment during the three and six months ended June 30, 2019, respectively, which included funding for the hotel’s renovation.

(c) We received cash distributions of $0.9 million from this investment during both the three and six months ended June 30, 2019.

(d) We received cash distributions of $1.6 million and $1.8 million from this investment during the three and six months ended June 30, 2019, respectively.

(e) This investment is considered a VIE (Note 2). We do not consolidate this entity because we are not the primary beneficiary and the nature of our involvement in the activities of the entity allows us to exercise significant influence, but does not give us power over decisions that significantly affect the economic performance of the entity.

(f) We received cash distributions of $0.7 million and $1.1 million from this investment during the three and six months ended June 30, 2019, respectively.

The following table sets forth our share of equity in earnings (losses) from our Unconsolidated Hotels, which is based on the HLBV model, as well as certain amortization adjustments related to basis differentials from acquisitions of investments (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
Venture	2019			2018			2019			2018
Hyatt Centric French Quarter Venture	$	675		$	669		$	1,104		$	1,056
Marriott Sawgrass Golf Resort & Spa Venture	648			488			3,140			2,111
Ritz-Carlton Philadelphia Venture	424			693			(1,061		)	(783		)
Ritz-Carlton Bacara, Santa Barbara Venture	(346		)	(889		)	(2,323		)	(2,838		)
Westin Atlanta Venture (a)	—			114			—			505
Total equity in earnings of equity method investments in real estate, net	$	1,401		$	1,075		$	860		$	51

___________

(a) On October 19, 2017, the venture sold the Westin Atlanta Perimeter North to an unaffiliated third party. Our share of equity in earnings during the three and six months ended June 30, 2018 was the result of additional cash distributions received in those periods in connection with the disposition.

Schedule of Weather Related Disruptions

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	)

	Three Months Ended June 30,
	2019			2018
Net write-off of fixed assets	$	543		$	150
Remediation work performed	—			486
(Increase) decrease in property damage insurance receivables	(543		)	265
Loss on hurricane-related property damage (a)	$	—		$	901

	Six Months Ended June 30,
	2019			2018
Net write-off (write-up) of fixed assets	$	3,586		$	(426	)
Remediation work performed	—			110
(Increase) decrease in property damage insurance receivables	(3,596		)	905
(Gain) loss on hurricane-related property damage (a)	$	(10	)	$	589

___________

(a) Includes losses totaling $0.7 million and $1.3 million during the three and six months ended June 30, 2018, respectively, resulting from pre-existing damage (which was discovered as a result of the hurricane and is not covered by insurance).