INVESTMENT IN HOTEL PROPERTIES, NET (Tables)

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Schedule of investment in hotel properties, net

Investment in hotel properties, net at September 30, 2018 and December 31, 2017 is as follows (in thousands):

	September 30, 2018			December 31, 2017
Land	$	290,782		$	272,932
Hotel buildings and improvements	1,899,906			1,868,273
Intangible assets	22,064			22,764
Construction in progress	20,219			12,464
Furniture, fixtures and equipment	189,457			174,126
	2,422,428			2,350,559
Less - accumulated depreciation and amortization	(339,823		)	(291,067		)
	$	2,082,605		$	2,059,492

Schedule of sale of hotels

The agreements were modified on various occasions between 2015 and 2017 such that we sold 23 hotels containing 2,448 guestrooms to HIT in three tranches over that time period for a combined price of approximately $325.1 million (collectively, the “HIT Sale”) as follows (dollars in thousands):

Tranche	Closing Date	Hotels Sold	Sales Price
1	October 2015	10	$	150,000
2	February 2016	6	108,300
3	April 2017	7	66,800
		23	$	325,100

Schedule of hotel property acquisitions

A summary of the hotel properties acquired during the nine months ended September 30, 2018 and 2017 is as follows (in thousands):

Date Acquired	Franchise/Brand	Location	Guestrooms	Purchase Price
For the nine months ended September 30, 2018
September 12, 2018	Residence Inn by Marriott	Boston (Watertown), MA	150	$	71,000
			150	$	71,000	(1)
For the nine months ended September 30, 2017
March 1, 2017	Homewood Suites	Aliso Viejo (Laguna Beach), CA	129	$	38,000
March 30, 2017	Hyatt Place	Phoenix (Mesa), AZ	152	22,200
May 23, 2017	Courtyard by Marriott	Fort Lauderdale, FL	261	85,000
June 9, 2017	Courtyard by Marriott	Charlotte, NC	181	56,250
June 21, 2017	Courtyard by Marriott	Fort Worth, TX	203	40,000
June 21, 2017	Courtyard by Marriott	Kansas City, MO	123	24,500
June 21, 2017	Courtyard by Marriott	Pittsburgh, PA	182	42,000
June 21, 2017	Hampton Inn & Suites	Baltimore, MD	116	18,000
June 21, 2017	Residence Inn by Marriott	Baltimore, MD	188	38,500
July 13, 2017	AC Hotel by Marriott	Atlanta, GA	255	57,500
			1,790	$	421,950	(2)

(1) The net assets acquired totaled $71.0 million due to the purchase at settlement of $0.1 million of net working capital liabilities and capitalized transaction costs of $0.1 million.

(2) The net assets acquired totaled $424.8 million due to the purchase at settlement of $0.6 million of net working capital assets and capitalized transaction costs of $2.2 million.

Schedule of allocation of the aggregate purchase prices to the fair value of assets acquired and liabilities assumed

The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands):

	For the Nine Months Ended September 30,
	2018			2017
Land	$	25,083		$	63,339
Hotel buildings and improvements	42,676			328,395
Intangible assets	—			16,162
Furniture, fixtures and equipment	3,300			16,294
Other assets	185			1,937
Total assets acquired	71,244			426,127
Less - other liabilities assumed	(242		)	(1,354		)
Net assets acquired	$	71,002		$	424,773