INVESTMENT IN HOTEL PROPERTIES, NET

3 Months Ended

Mar. 31, 2020

Investment in Hotel Properties, net

Investment in hotel properties, net is as follows (in thousands):



	March 31, 2020			December 31, 2019
Hotel buildings and improvements	$	2,050,923		$	2,049,384
Land	319,603			319,603
Furniture, fixtures and equipment	180,868			173,128
Construction in progress	10,229			9,388
Intangible assets	11,231			11,231
Real estate development loan	7,433			5,485
	2,580,287			2,568,219
Less - accumulated depreciation and amortization	(410,973		)	(383,987		)
	$	2,169,314		$	2,184,232

We provided a mezzanine loan to fund up to $28.9 million for a mixed-use development project that includes a hotel property, retail space, and parking. We have classified the mezzanine loan as Investment in hotel properties, net in our Condensed Consolidated Balance Sheets at March 31, 2020 and December 31, 2019. See "Note 4 - Investment in Real Estate Loans" for further information.

Asset Sales

We did not sell any hotel properties during the three months ended March 31, 2020.

On February 12, 2019, we completed the sale of two hotel properties, the Country Inn & Suites - Charleston, WV and the Holiday Inn Express - Charleston, WV, for an aggregate sales price of $11.6 million. The sale of these properties resulted in the realization of an aggregate gain of $4.2 million for the three months ended March 31, 2019.

Hotel Property Acquisitions

We did not acquire any hotel properties during the three months ended March 31, 2020 or 2019. On January 31, 2019, we exercised our option pursuant to a ground lease agreement to purchase the land upon which our Residence Inn by Marriott in Baltimore (Hunt Valley), MD is located for $4.2 million, which resulted in a termination of obligations under the ground lease. As a result, this hotel property is no longer subject to a ground lease.

The results of operations of acquired properties are included in the Condensed Consolidated Statements of Operations beginning on their respective acquisition dates. The following unaudited pro forma information includes operating results for 72 hotels owned as of March 31, 2020 as if all such hotels had been owned by us since January 1, 2019. For hotels acquired by us after January 1, 2019 (the "Acquired Hotels"), we have included in the pro forma information the financial results of each of the Acquired Hotels for the period prior to acquisition by us (the "Pre-acquisition Period"). The financial results for the Pre-Acquisition Period were provided by the third-party owner of such Acquired Hotel prior to purchase by us and such information has not been audited or reviewed by our auditors or adjusted by us. For hotels sold by us between January 1, 2019 and March 31, 2020 (the "Disposed Hotels"), the unaudited pro forma information excludes the financial results, including gains on disposal of assets, of each of the Disposed Hotels for the period of ownership by us from January 1, 2019 through the date that the Disposed Hotels were sold by us. The unaudited pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and is not indicative of what actual results of operations would have been had the hotel acquisitions and dispositions taken place on or before January 1, 2019. The pro forma amounts exclude the gain or loss on the sale of hotel properties during the three months ended March 31, 2020 and 2019. This information does not purport to be indicative of or represent results of operations for future periods.

The unaudited condensed pro forma financial information for the 72 hotel properties owned at March 31, 2020 for the three months ended March 31, 2020 and 2019 is as follows (in thousands, except per share):



	For the Three Months Ended March 31,
	2020			2019
Revenues	$	108,385		$	141,756
Income from hotel operations	$	29,725		$	53,808
Net (loss) income ⁽¹⁾	$	(16,213	)	$	15,603
Net (loss) income attributable to common stockholders, net of amount allocated to participating securities ⁽¹⁾	$	(19,111	)	$	8,814
Basic and diluted net (loss) income per share attributable to common stockholders ⁽¹⁾	$	(0.18	)	$	0.08


(1)	Pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, loss on impairment of assets and other corporate expenses totaling $56.6 million and $47.9 million for the three months ended March 31, 2020 and 2019, respectively.

Assets Held for Sale

Assets held for sale at March 31, 2020 and December 31, 2019 included a land parcel in Flagstaff, AZ with a carrying amount of $0.4 million. The land parcel is currently under contract for sale and is expected to close prior to December 31, 2020.