Acquisition and Disposition of Hotel Properties

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Acquisition and Disposition of Hotel Properties

Acquisition and Disposition of Hotel Properties

There were no acquisitions of hotel properties during the three and six months ended June 30, 2020 and 2019.

The Company will report a disposed or held for sale hotel property or group of hotel properties in discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on its operations and financial results. All other disposed hotel properties will have their operating results reflected within continuing operations on the Company's consolidated statements of operations and comprehensive income for all periods presented.

As of June 30, 2020, the Company had entered into an agreement to sell the Union Station Hotel Nashville, Autograph Collection for $56.0 million. This hotel was designated as held for sale as it met all of the Company's held for sale criteria. Accordingly, the Company classified all of the assets and liabilities related to this hotel as assets and liabilities held for sale in the accompanying consolidated balance sheets and ceased depreciating the assets. On July 29, 2020, the Company completed the sale of the Union Station Hotel Nashville, Autograph Collection.

During the six months ended June 30, 2020, the Company sold two hotel properties in a single transaction for an aggregate sales price of $331.0 million. In connection with this transaction, the Company recorded an aggregate of $117.4 million net gain on sale, which is included in (gain) loss on sale of hotel properties, in the accompanying consolidated statements of operations and comprehensive income. For the three and six months ended June 30, 2020, the accompanying consolidated statements of operations and comprehensive income included operating income (loss) of $0.1 million and $4.4 million, respectively, related to the hotel properties sold. For the three and six months ended June 30, 2019, the accompanying consolidated statements of operations and comprehensive income included operating income (loss) of $13.9 million and $24.2 million, respectively, related to the hotel properties sold.

The following table sets forth information regarding the disposition transactions during the six months ended June 30, 2019 (in thousands):

Hotel Property Name	Location	Sale Date	Sale Price
The Liaison Capitol Hill	Washington, D.C.	February 14, 2019	$	111,000
Hotel Palomar Washington DC	Washington, D.C.	February 22, 2019	141,450
Onyx Hotel	Boston, MA	May 29, 2019	58,255
Total			$	310,705

The Company recognized no gain or loss on these dispositions. The sales of the hotel properties described above did not represent a strategic shift that had a major effect on the Company’s operations and financial results, and therefore, did not qualify as discontinued operations.