INVESTMENT IN HOTEL PROPERTIES, NET (Tables)

12 Months Ended

Dec. 31, 2020

Real Estate [Abstract]

Schedule of investment in hotel properties, net

We generally depreciate our hotel properties and related assets using the straight-line method over their estimated useful lives as follows:

Classification	Estimated Useful Lives
Buildings and improvements	6 to 40 years
Furniture, fixtures and equipment	2 to 15 years

Investment in hotel properties, net at December 31, 2020 and 2019 include (in thousands):

	2020		2019
Land	$	319,603	$	319,603
Hotel buildings and improvements	2,066,986		2,049,384
Furniture, fixtures and equipment	173,351		173,128
Construction in progress	8,903		9,388
Intangible assets	11,231		11,231
Real estate development loan	16,508		5,485
	2,596,582		2,568,219
Less - accumulated depreciation	(490,636)		(383,987)
	$	2,105,946	$	2,184,232

Schedule of indefinite-lived intangible assets

ntangible assets included in Investment in hotel properties, net in our Consolidated Balance Sheets include the following (in thousands):

	Weighted Average Amortization Period (in Years)	2020		2019
Intangible assets:
Air rights (1)	n/a	$	10,754	$	10,754
In-place lease agreements	1	397		397
Other	n/a	80		80
		11,231		11,231
Less - accumulated amortization		(310)		(224)
Intangible assets, net		$	10,921	$	11,007

(1)    In conjunction with the acquisition of the Courtyard by Marriott - Charlotte, NC, the Company acquired certain air rights related to the hotel property.

Schedule of finite-lived intangible assets, future amortization expense

Future amortization expense is expected to be as follows (in thousands):

	Finite-Lived Intangible Assets
2021	$	87

Schedule of hotel property acquisitions

Hotel property acquisitions in 2019 were as follows (in thousands):

Date Acquired	Franchise/Brand	Location	Guestrooms	Purchase  Price
Year Ended December 31, 2019
August 6, 2019	Hampton Inn & Suites	Silverthorne, CO	88	$	25,500
October 8, 2019	Portfolio Purchase - four properties(1)	various(1)	710	249,000
			798	$	274,500	(2)

(1)   On October 8, 2019, we acquired a portfolio of four hotels for an aggregate purchase price of $249.0 million. The hotels acquired included the Hilton Garden Inn - San Francisco, CA, the Hilton Garden Inn - San Jose (Milpitas), CA, the Residence Inn by Marriott - Portland (Downtown), OR, and the Residence Inn by Marriott - Portland (Hillsboro), OR.

(2)       The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million, $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million. We own a 51% controlling interest in these hotel properties through a consolidated joint venture.

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

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):

	2019
Land	$	44,868
Hotel buildings and improvements	219,410
Furniture, fixtures and equipment	12,995
Other assets	1,103
Total assets acquired	278,376
Less other liabilities	(79)
Net assets acquired (1)	$	278,297

(1)       The net assets acquired in 2019 were purchased for $274.5 million plus the purchase of adjacent land parcels totaling $2.4 million, $1.0 million of net working capital assets and capitalized transaction costs of $0.4 million.

Schedule of unaudited condensed pro forma financial information

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

	2020		2019
Revenues	$	234,463	$	572,262
Income from hotel operations	$	27,792	$	215,372
Net (loss) income (1)	$	(149,399)	$	57,909
Net (loss) income attributable to common stockholders, net of amount allocated to participating securities and non-controlling interests (2)	$	(158,411)	$	33,671
Basic and diluted net (loss) income per share attributable to common stockholders (2)	$	(1.52)	$	0.32

(1)    Unaudited pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, loss on impairment of assets and corporate general and administrative expenses totaling $214.0 million and $197.1 million for the twelve months ended December 31, 2020 and 2019, respectively.

(2)    Unaudited pro forma amounts include depreciation expense, property tax expense, interest expense, income tax expense, loss on impairment of assets and corporate general and administrative expenses totaling $204.9 million and $193.8 million for the twelve months ended December 31, 2020 and 2019, respectively.

Schedule of sale of hotels

A summary of the dispositions in 2019 is as follows (dollars in thousands):

Disposition Date	Franchise/Brand	Location	Guestrooms	Gross Sales Price		Aggregate Gain, net
Year Ended December 31, 2019
February 12, 2019	Portfolio Sale - two properties(1)	Charleston, WV (1)	130	$	11,600	$	4,163
April 17, 2019	Portfolio Sale - six properties (2)	various (2)	815	135,000		36,626
November 8, 2019	Portfolio Sale - two properties (3)	Birmingham, AL (3)	225	21,800		4,857
Total			1,170	$	168,400	$	45,646

(1)       The portfolio included the Country Inn & Suites and the Holiday Inn Express in Charleston, WV.

(2)       The portfolio included the SpringHill Suites in Minneapolis (Bloomington), MN, the Hampton Inn & Suites in Minneapolis (Bloomington), MN, the Residence Inn in Salt Lake City, UT, the Hyatt Place in Dallas (Arlington), TX, the Hampton Inn in Santa Barbara (Goleta), CA, and the Hampton Inn in Boston (Norwood), MA. The sale resulted in a net gain of $36.6 million based on a gross aggregate sales price of $135.0 million, or a net aggregate sales price of $133.0 million after a buyer credit of $2.0 million.

(3)    The portfolio included the Hilton Garden Inn in Birmingham (Lakeshore), AL and the Hilton Garden Inn in Birmingham (Liberty Park), AL.