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Acquisition and Disposition of Hotel Properties
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition and Disposition of Hotel Properties Acquisition and Disposition of Hotel Properties
Acquisitions
On July 22, 2021, the Company acquired the leasehold interest in the 200-room Jekyll Island Club Resort in Jekyll Island, Georgia for $94.0 million, excluding prorations and transaction costs, using cash on hand.
On September 23, 2021, the Company acquired the leasehold interest in the 369-room Margaritaville Hollywood Beach Resort in Hollywood, Florida for $270.0 million, excluding prorations and transaction costs, using cash on hand and the assumption of a $161.5 million mortgage loan.
On October 20, 2021, the Company acquired the 19-room Avalon Bed & Breakfast and the 12-room Duval Gardens in Key West, Florida for $20.0 million, excluding prorations and transaction costs, using cash on hand. Both properties were consolidated into the Company's Southernmost Beach Resort.
On December 1, 2021, the Company acquired the leasehold interest in the 210-room Estancia La Jolla Hotel & Spa in La Jolla, California for $108.0 million, excluding prorations and transaction costs, using cash on hand and the assumption of a $61.7 million mortgage loan.
On May 11, 2022, the Company acquired the 119-room Inn on Fifth in Naples, Florida for $156.0 million, excluding prorations and transactions costs. This transaction was funded with cash on hand, the issuance of 16,291 common units of limited partnership interest in the Operating Partnership and 3,104,400 preferred units of the Operating Partnership designated as 6.0% Series Z Preferred Units.
On June 23, 2022, the Company acquired the 257-room Newport Harbor Island Resort (formerly Gurney's Newport Resort & Marina) in Newport, Rhode Island for $174.0 million using cash on hand and proceeds from its senior unsecured revolving credit facility.
See Note 5. Debt for additional information about the mortgage loans assumed and Note 11. Commitments and Contingencies for additional information about the leasehold interests acquired.
Dispositions
The following table summarizes disposition transactions during the years ended December 31, 2022 and 2021 (in thousands):
Hotel Property NameLocationSale DateSale Price
The Marker San FranciscoSan Francisco, CAJune 28, 2022$77,000 
Sofitel Philadelphia at Rittenhouse SquarePhiladelphia, PAAugust 2, 202280,000 
Hotel SperoSan Francisco, CAAugust 25, 202271,000 
Hotel Vintage PortlandPortland, ORSeptember 14, 202232,900 
2022 Total$260,900 
Sir Francis DrakeSan Francisco, CAApril 1, 2021$157,625 
The Roger New YorkNew York, NYJune 10, 202119,000 
Villa Florence San Francisco on Union SquareSan Francisco, CASeptember 9, 202187,500 
2021 Total$264,125 
For the years ended December 31, 2022, 2021 and 2020, the accompanying consolidated statements of operations and comprehensive income included operating (loss) of $(2.3) million, $(21.7) million and $(32.4) million, respectively, excluding impairment loss and gain on sale of hotel properties, related to the hotel properties sold.
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.
Held for Sale
As of December 31, 2022, the Company had entered into an agreement to sell The Heathman Hotel for approximately $45.0 million. This hotel was designated as held for sale as it met the held for sale criteria, and as a result, the Company recorded an impairment to reduce the carrying value of the property. In addition, 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. The Company expects to complete the sale in the first quarter of 2023, however, no assurances can be given that the sale will be completed on these terms or at all.