INVESTMENT IN HOTEL PROPERTIES, NET (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021 and 2020 include (in thousands):

 

	2021		2020
Land	$	323,276	$	319,603
Hotel buildings and improvements	2,127,782		2,066,986
Furniture, fixtures and equipment	167,245		173,351
Construction in progress	18,321		8,903
Intangible assets	10,834		11,231
Real estate development loan	27,595		16,508
	2,675,053		2,596,582
Less - accumulated depreciation	(583,080)		(490,636)
	$	2,091,973	$	2,105,946

Schedule of indefinite-lived intangible assets

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

	Weighted Average Amortization Period (in Years)	2021		2020
Intangible assets:
Air rights (1)	n/a	$	10,754	$	10,754
In-place lease agreements		—		397
Other	n/a	80		80
		10,834		11,231
Less - accumulated amortization		—		(310)
Intangible assets, net		$	10,834	$	10,921

(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 hotel property acquisitions

Hotel property acquisitions in 2021 were as follows (in thousands):

Date Acquired	Franchise/Brand	Location	Guestrooms	Purchase  Price
Year Ended December 31, 2021
July 9, 2021	Residence Inn by Marriott	Steamboat Springs, CO	110	$	33,000
December 21, 2021	Embassy Suites	Tucson, AZ	120	25,500
			230	$	58,500	(1)

  

(1)       The net assets acquired in 2021 were purchased for $58.5 million plus the purchase of $0.2 million of net working capital assets, capitalized transaction costs of $0.4 million, and restricted cash reserves of $5.1 million. Additionally, the Company assumed debt of $13.3 million and paid deferred financing costs totaling $0.2 million. We own a 51% controlling interest in these hotel properties through a consolidated joint venture.

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):

 

	2021
Land	$	3,673
Hotel buildings and improvements	52,226
Furniture, fixtures and equipment	2,946
Restricted cash reserves	5,118
Other assets	405
Total assets acquired	64,368
Debt assumed	(13,267)
Deferred financing costs	236
Other liabilities	(214)
Net assets acquired (1)	$	51,123

(1)       The net assets acquired in 2021 were purchased for $58.5 million plus the purchase of $0.2 million of net working capital assets, capitalized transaction costs of $0.4 million, and restricted cash reserves of $5.1 million. Additionally, the Company assumed debt of $13.3 million and paid deferred financing costs totaling $0.2 million.