FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of disclosures concerning financial instruments measured at fair value

Disclosures concerning financial instruments measured at fair value are as follows (in thousands):

	Fair Value Measurement at December 31, 2019 using
	Level 1		Level 2		Level 3		Total
Assets:
Purchase options related to real estate loans	$	—	$	—	$	8,920	$	8,920
Liabilities:
Interest rate swaps	—		16,177		—		16,177
	Fair Value Measurement at December 31, 2018 using
	Level 1		Level 2		Level 3		Total
Assets:
Interest rate swaps	$	—	$	3,461	$	—	$	3,461
Purchase options related to real estate loans	—		—		6,120		6,120
Liabilities:
Interest rate swaps	—		5,042		—		5,042

Schedule of unobservable inputs for fair values of purchase options

The estimated fair values of the purchase options were based on unobservable inputs for which there is little or no market information available and required us to develop our own assumptions as follows (dollar amounts in thousands):

	Real Estate Loan 1			Real Estate Loan 2			Real Estate Loan 3			Real Estate Loan 4
Exercise price	$	15,143		$	17,377		$	5,503		$	37,800
First option exercise date (1)	12/31/2018			3/31/2019			5/31/2019			8/15/2021
Last option exercise date	11/1/2020			12/5/2020			12/1/2020			8/30/2021
Expected volatility	32.0		%	38.0		%	37.0		%	31.3		%
Risk free rate	1.7		%	1.8		%	1.9		%	1.5		%
Expected annualized equity dividend yield	6.8		%	9.9		%	6.5		%	—		%	(2)

(1) The first option date is the date used for valuing the Purchase Option. The actual option exercise dates are on or after the hotels are fully constructed and open for business. As of December 31, 2019, three of the four hotels were open for business.

(2) The purchase option was valued using the Black-Scholes model which assumes no dividends.