INVESTMENT IN HOTEL PROPERTIES, NET (Tables)

3 Months Ended

Mar. 31, 2022

Real Estate [Abstract]

Schedule of investment in hotel properties, net

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

	March 31, 2022		December 31, 2021
Hotel buildings and improvements	$	2,762,269	$	2,127,782
Land	363,727		323,276
Furniture, fixtures and equipment	242,165		167,245
Construction in progress	26,669		18,321
Intangible assets	37,981		10,834
Real estate development loan	29,632		27,595
	3,462,443		2,675,053
Less - accumulated depreciation and amortization	(614,042)		(583,080)
	$	2,848,401	$	2,091,973

Allocation of aggregate purchase price

The allocation of the aggregate purchase price to the fair value of the assets and liabilities acquired for the NCI Transaction is as follows (in thousands):

Assets and Liabilities Acquired			Net Cash Disbursed
Land	$	52,797	Purchase price (1)	$	823,056
Hotel buildings and improvements	676,607		Acquisition costs	3,027
Furniture, fixtures and equipment	76,729		Deferred financing fees	4,625
Incentives and other intangibles	23,670			$	830,708
Other assets (2)	5,318
Total assets acquired	835,121		Cash	$	208,819
Debt assumed	(335,205)		Preferred Operating Partnership Units	50,000
Other liabilities (3)	(9,361)		Common Units (1)	157,513
Net assets acquired	$	490,555	Debt	414,376
				$	830,708

(1) The contractual purchase price for the NCI Transaction was $822.0 million based on the issuance of Common OP Units totaling $160.0 million on the contract date. However, the fair value of the Common OP Units on the closing dates totaled $157.5 million based on the closing prices of our Common Stock on January 13, 2022 and March 23, 2022 of $9.94 and $9.61 per share, respectively. As such, the purchase price has been adjusted to reflect the fair value of the Common Units issued on the closing dates of the NCI Transaction plus additional costs incurred to close the transaction.

(2) Amount includes right-of-use assets related to assumed leases totaling approximately $5.3 million.

(3)    Amount includes assumed key money liabilities of approximately $3.9 million, lease liabilities of approximately $5.1 million, and other liabilities of approximately $0.4 million.

Schedule of asset sales

Assets held for sale were as follows (in thousands):

	March 31,		December 31,
	2022		2021
Hotel buildings and improvements	$	43,078	$	—
Land	12,771		425
Furniture, fixtures and equipment	3,199		—
	59,048		425
Less - accumulated depreciation and amortization	(6,247)		—
	$	52,801	$	425

Schedule of Indefinite-Lived Intangible Assets

Intangible assets, net is as follows (in thousands):

	March 31, 2022		December 31, 2021
Indefinite-lived intangible assets:
Air rights	$	10,754	$	10,754
Other	80		80
	10,834		10,834
Finite-lived intangible assets:
Tax incentives	19,750		—
Key money	7,397		—
	27,147		—
	37,981		10,834
Less - accumulated amortization	(2,015)		—
Intangible assets, net	$	35,966	$	10,834

Schedule of Finite-Lived Intangible Assets

Intangible assets, net is as follows (in thousands):

	March 31, 2022		December 31, 2021
Indefinite-lived intangible assets:
Air rights	$	10,754	$	10,754
Other	80		80
	10,834		10,834
Finite-lived intangible assets:
Tax incentives	19,750		—
Key money	7,397		—
	27,147		—
	37,981		10,834
Less - accumulated amortization	(2,015)		—
Intangible assets, net	$	35,966	$	10,834

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Future amortization expense related to intangible assets is as follows (in thousands):

2022	$	4,290
2023	4,252
2024	3,541
2025	1,546
2025	1,546
Thereafter	9,957
	$	25,132