SUPPLEMENTAL BALANCE SHEET INFORMATION

12 Months Ended

Dec. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Assets Held for Sale, net

Assets held for sale at December 31, 2021 and 2020 consists of a land parcel in Flagstaff, AZ, which is being marketed for sale.

Restricted Cash

Restricted cash at December 31, 2021 and 2020 was as follows (in thousands):


	2021		2020
FF&E reserves	$	23,587	$	16,094
Property taxes	2,132		1,469

Other	6,740		614
	$	32,459	$	18,177

The Company maintains reserve funds for property taxes, insurance, capital expenditures and replacement or refurbishment of furniture, fixtures and equipment at some of our hotel properties in accordance with management, franchise or mortgage loan agreements. These agreements generally require us to reserve cash ranging from 2% to 5% of the revenues of the individual hotel in restricted cash escrow accounts. Any unused restricted cash balances revert to us upon the termination of the underlying agreement or may be released to us from the restricted cash escrow accounts upon proof of expenditures and approval from the lender or other party requiring the restricted cash reserves.

On April 13, 2020, as a result of the Pandemic, Marriott International, Inc. (“Marriott”) agreed to allow us to use $1.6 million of cash deposited in FF&E Reserve Accounts for seven of our Marriott-branded hotels managed by Marriott affiliates (“Marriott Hotels”) to pay for the working capital needs of the respective hotels. In addition, Marriott released $8.9 million to us from the FF&E Reserve Accounts (“Borrowed Reserve”) of the Marriott Hotels for general corporate purposes. The Borrowed Reserve must be replenished into the respective FF&E Reserve Accounts in ten equal monthly installments beginning on the date that is twelve months prior to the next scheduled renovation date for each of the Marriott Hotels (“Renovation Date”) or in a lump sum payment no later than sixty days prior to each respective Renovation Date. We do not expect to replenish any of the Borrowed Reserve over the next twelve months. During January 2021, we transitioned the management of the Courtyard by Marriott - Fort Worth, TX from Marriott to Aimbridge Hospitality. As such, we are no longer obligated to replenish $0.5 million of the Borrowed Reserve.

Furthermore, Marriott suspended our obligation to fund monthly FF&E reserves for the Marriott Hotels through December 31, 2021.

Prepaid Expenses and Other

Prepaid expenses and other at December 31, 2021 and 2020 included the following (in thousands):


	2021		2020
Deferred acquisition costs(1)	$	6,763	$	—
Prepaid insurance	6,713		4,123
Escrow deposits(1)	6,000		—
Other	3,329		3,018
Prepaid taxes	1,691		2,622
	$	24,496	$	9,763

(1) Prepaid acquisition costs and escrow deposits primarily relate to the NCI Transaction which was completed in January 2022. See Note 3 - Investment in Hotel Properties, net.

Deferred Charges

Deferred charges at December 31, 2021 and 2020 were as follows (in thousands):


	2021		2020
Initial franchise fees	$	7,034	$	6,795
Less - accumulated amortization	(2,687)		(2,366)
	$	4,347	$	4,429

Amortization expense for the years ended December 31, 2021, 2020, and 2019 was $0.5 million, $0.5 million and $0.4 million, respectively.

Other Assets

Other assets at December 31, 2021 and 2020 included the following (in thousands):


	2021		2020
Purchase options related to real estate loans	$	2,800	$	7,161
Other	950		1,013
Deferred tax asset, net	49		2


	$	3,799	$	8,176

Accrued Expenses and Other

Accrued expenses and other at December 31, 2021 and 2020 included the following (in thousands):


	2021		2020
Accrued property, sales and income taxes	$	17,448	$	17,713
Derivative financial instruments	15,723		30,850
Accrued salaries and benefits	13,679		6,632
Other accrued expenses at hotels	11,880		5,922
Other	4,794		2,793
Accrued interest	2,695		1,189

	$	66,219	$	65,099