FAIR VALUE MEASUREMENT (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Disclosures Concerning Financial Instruments Measured at Fair Value

Disclosures concerning financial instruments measured at fair value are as follows (in thousands):

 

	Fair Value Measurement at December 31, 2022 using
	Level 1		Level 2		Level 3		Total
Assets:
Interest rate swaps	$	—	$	16,841	$	—	$	16,841
	Fair Value Measurement at December 31, 2021 using
	Level 1		Level 2		Level 3		Total
Assets:
Purchase options related to real estate loans (1)	$	—	$	—	$	2,800	$	2,800
Liabilities:
Interest rate swaps	$	—	$	15,723	$	—	$	15,723

(1)       The original fair value of the Initial Purchase Option was estimated using the Black-Scholes model. The Initial Purchase Option related to the acquisition of the AC/Element Hotel and did not have a readily determinable fair value at December 31, 2021. As such, the Initial Purchase Option was recorded at an amount at inception that was estimated using the Black-Scholes model.

Schedule of Loss on Impairment of Assets

During the year ended December 31, 2021, we recorded a Loss on impairment and write-off of assets of $4.4 million as follows (dollar amounts in thousands):

	Real Estate Loan 1			Real Estate Loan 2			Real Estate Loan 3
Purchase option carrying amount at December 31, 2020	$	1,600		$	2,761		$	2,800
Loss on impairment and write-off of assets	(1,600)		(1)	(2,761)		(1)	—
Purchase option carrying amount at December 31, 2021	$	—		$	—		$	2,800

(1)    Real Estate Loan 1 and 2 were repaid in full during the year ended December 31, 2021 and the Company elected not to exercise its purchase options related to these loans. As such, we recorded a Loss on impairment and write-off of assets of $4.4 million related to the forfeited purchase options during the year ended December 31, 2021.

Schedule of Unobservable Inputs for Fair Values of Purchase Options

The estimated fair values of the Purchase Options were based on unobservable inputs for which there is little or no market information available and required us to develop our own assumptions as follows (dollar amounts in thousands):

	Real Estate Loan 1				Real Estate Loan 2				Real Estate Loan 3
Exercise price	$	15,143			$	17,377			$	37,800
Term	2.59			(1)	2.68			(1)	1.42			(2)
Expected volatility	65.0		%		55.0		%		55.0		%
Risk-free rate	0.3		%		0.3		%		0.2		%
Expected annualized equity dividend yield	6.5		%		7.5		%		—		%

(1) The option term is the period from April 1, 2020 through the fully extended maturity dates of the respective mezzanine loans.

(2) The option term is the period from April 1, 2020 through the date in which the development project is completed and the option becomes exercisable.