Intangible Assets

6 Months Ended

Jun. 30, 2019

Intangible Assets [Abstract]

Intangible Assets

5. Intangible Assets

Intangible assets as of June 30, 2019 and December 31, 2018 consisted of the following (in thousands): 

	June 30, 2019			December 31, 2018
Air rights contract(1)	$	36,105		$	36,105
Favorable ground lease(2)	—			3,568
	36,105			39,673
Less: accumulated amortization	(4,827		)	(4,995		)
Intangible assets, net	$	31,278		$	34,678

(1) In conjunction with the acquisition of the Hyatt Regency Boston on March 18, 2010, the Trust acquired an air rights contract which expires in September 2079 and that requires no payments through maturity. The Trust recorded the fair value of the air rights contract of $36.1 million as an intangible asset and is amortizing the value over the term of the contract.

(2)

In conjunction with the acquisition of the Hilton Denver City Center on October 3, 2011, the Trust assumed a lease agreement for a land parcel underlying a portion of the hotel with an initial term ending February 2072 that it concluded had below market terms. The Trust recorded a favorable ground lease asset of $3.6 million associated with this lease agreement at the time. On January 1, 2019, the Trust reclassified the unamortized balance of this favorable ground lease asset to an operating lease right-of-use asset associated with this lease agreement upon the adoption of the new accounting guidance with respect to leases.