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INVESTMENT IN HOTEL PROPERTIES, NET (Tables)
 6 Months Ended
Jun. 30, 2022
Real Estate [Abstract]  
Schedule of investment in hotel properties, net
Investment in hotel properties, net is as follows (in thousands):

June 30, 2022December 31, 2021
Hotel buildings and improvements$2,840,004 $2,127,782 
Land378,105 323,276 
Furniture, fixtures and equipment253,936 167,245 
Construction in progress38,444 18,321 
Intangible assets39,954 10,834 
Real estate development loan— 27,595 
3,550,443 2,675,053 
Less accumulated depreciation(651,931)(583,080)
$2,898,512 $2,091,973 
Allocation of aggregate purchase price
Assets and Liabilities AcquiredNet Cash Disbursed
Land$14,378 
Purchase price (1)
$94,522 
Hotel buildings and improvements75,113 Acquisition costs593 
Furniture, fixtures and equipment5,624 $95,115 
Intangible assets1,972 
    Total assets acquired97,087 Cash$8,518 
Debt assumed(47,000)Conversion of mezzanine loan29,875 
Other liabilities(1,972)Initial purchase option2,800 
    Net assets acquired$48,115 Contribution by joint venture partner6,922 
Debt assumed47,000 
$95,115 

(1) The purchase price of the Brickell Transaction was based on the exercise price of the initial purchase option of $89.0 million. The transaction included the assumption of $47.0 million of debt resulting in a net consideration payment requirement of $42.0 million. We paid 90% of the required net consideration with the conversion of our $29.9 million mezzanine loan into equity and a cash payment of $7.9 million. The carrying amount of our Initial Purchase Option of $2.8 million is also included in the total amount allocated to the assets acquired. The Brickell Joint Venture partner’s non-controlling interest represents 10% of the fair value of the net assets on the transaction date of $6.9 million, determined by a third-party valuation expert based on discounted forecasted future cash flows of the net assets acquired. We also incurred $0.6 million of transaction costs. The result is a total amount allocated to the assets acquired of $95.1 million plus an intangible asset totaling $2.0 million related to the assumption of the franchises for the hotel properties and a related key money liability.
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 AcquiredNet Cash Disbursed
Land$52,797 
Purchase price (1)
$823,056 
Hotel buildings and improvements676,607 Acquisition costs3,027 
Furniture, fixtures and equipment76,729 Deferred financing fees4,625 
Incentives and other intangibles23,670 $830,708 
Other assets (2)
5,318 
Total assets acquired835,121 Cash$208,819 
Debt assumed(335,205)Preferred Operating Partnership Units50,000 
Other liabilities (3)
(9,361)
Common Units (1)
157,513 
Net assets acquired$490,555 Debt414,376 
$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 Indefinite-Lived Intangible Assets
Intangible assets, net is as follows (in thousands):
June 30, 2022December 31, 2021
Indefinite-lived Intangible assets:
Air rights$10,754 $10,754 
Other80 80 
10,834 10,834 
Finite-lived intangible assets:
Tax incentives19,750 — 
Key money9,370 — 
29,120 — 
Intangible assets39,954 10,834 
Less accumulated amortization(3,067)— 
Intangible assets, net$36,887 $10,834 
Schedule of Finite-Lived Intangible Assets
Intangible assets, net is as follows (in thousands):
June 30, 2022December 31, 2021
Indefinite-lived Intangible assets:
Air rights$10,754 $10,754 
Other80 80 
10,834 10,834 
Finite-lived intangible assets:
Tax incentives19,750 — 
Key money9,370 — 
29,120 — 
Intangible assets39,954 10,834 
Less accumulated amortization(3,067)— 
Intangible assets, net$36,887 $10,834 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Future amortization expense related to intangible assets is as follows (in thousands):

2022$2,165 
20234,331 
20244,296 
20251,625 
20261,625 
Thereafter12,011 
$26,053