Investment in Hotel Properties

12 Months Ended

Dec. 31, 2017

Real Estate [Abstract]

Investment in Hotel Properties

Investment in Hotel Properties

Investment in hotel properties as of December 31, 2017 and December 31, 2016 consisted of the following (in thousands):

	December 31, 2017			December 31, 2016
Land	$	448,401		$	503,571
Buildings and improvements	2,205,315			2,287,104
Furniture, fixtures and equipment	240,842			231,211
Construction in progress	9,514			9,253
Investment in hotel properties	$	2,904,072		$	3,031,139
Less: Accumulated depreciation	(447,622		)	(358,485		)
Investment in hotel properties, net	$	2,456,450		$	2,672,654

As of December 31, 2017 and 2016, buildings and improvements include capital lease asset of $12.2 million and $12.2 million, respectively, and accumulated depreciation includes amounts related to capital lease asset of $1.0 million and $0.7 million, respectively. Depreciation of capital lease asset is included in depreciation and amortization expense in the accompanying consolidated statements of operations and comprehensive income for all periods presented.

On September 10, 2017, Hotel Colonnade Coral Gables, a Tribute Portfolio Hotel (formerly The Westin Colonnade Coral Gables) ("Hotel Colonnade") located in Coral Gables, Florida and LaPlaya Beach Resort and LaPlaya Beach Club ("LaPlaya") located in Naples, Florida were impacted by the effects of Hurricane Irma. Hotel Colonnade did not suffer any material damage and remains open. LaPlaya was closed in anticipation of the storm and re-opened in stages beginning in the fourth quarter of 2017.

The Company’s insurance policies provide coverage for property damage, business interruption, and reimbursement for other costs that were incurred relating to damages sustained during Hurricane Irma. Insurance proceeds are subject to deductibles.  As of December 31, 2017, the Company recognized an impairment for the damage to LaPlaya and a corresponding insurance receivable for the anticipated insurance recovery, which resulted in a net impairment loss of $2.8 million. In addition, the Company recognized a loss of $2.2 million related to other costs resulting from the hurricane. The net impairment loss and other costs are recorded in impairment and other losses in the Company’s consolidated statement of operations. As of December 31, 2017, the Company received $10.0 million in a preliminary advance from the insurance providers and continues to work with the insurance providers on the settlement of the property and business interruption claims.