Acquisition and Disposition of Hotel Properties

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Acquisition and Disposition of Hotel Properties

Acquisition and Disposition of Hotel Properties

Acquisitions

There were no acquisitions of hotel properties during the three months ended March 31, 2023 and 2022.

Dispositions

There were no dispositions of hotel properties during the three months ended March 31, 2022. The following table summarizes disposition transactions during the three months ended March 31, 2023 (in thousands):

Hotel Property Name	Location	Sale Date	Sale Price
The Heathman Hotel	Portland, OR	February 22, 2023	$	45,000
Retail at The Westin Michigan Avenue Chicago	Chicago, IL	March 17, 2023	27,300
Hotel Colonnade Coral Gables	Coral Gables, FL	March 28, 2023	63,000
2023 Total			$	135,300

For the three months ended March 31, 2023 and March 31, 2022, the accompanying consolidated statements of operations and comprehensive income included operating income (loss) of $1.1 million and $(3.4) 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 March 31, 2023, the Company had entered into agreements to sell two hotel properties in separate transactions for an aggregate sales price of approximately $97.0 million. These hotels were classified as held for sale and as a result, the Company classified all of the assets and liabilities related to these hotels as assets and liabilities held for sale in the accompanying consolidated balance sheets and ceased depreciating the assets. The Company expects to complete the sales in the second quarter of 2023. However, no assurances can be given that the sales will be completed on these terms or at all.