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INVESTMENTS IN LODGING PROPERTY, NET (Tables)
 9 Months Ended
Sep. 30, 2023
Real Estate [Abstract]  
Schedule of Investment in Lodging Properties, Net
Investments in lodging property, net is as follows (in thousands):
September 30, 2023December 31, 2022
Lodging buildings and improvements$2,876,499 $2,815,993 
Land383,651 373,106 
Furniture, fixtures and equipment266,212 252,842 
Construction in progress64,810 64,159 
Intangible assets39,954 39,954 
Real estate development loan, net4,042 — 
3,635,168 3,546,054 
Less accumulated depreciation and amortization(803,921)(704,198)
$2,831,247 $2,841,856 
Schedule of Lodging Property Acquisitions
A summary of the lodging properties acquired since January 1, 2022 is as follows (in thousands):

Date AcquiredFranchise/BrandLocationGuestroomsPurchase
Price
2023 Acquisitions:
June 1, 2023Residence Inn by MarriottScottsdale, AZ120$29,000 
June 23, 2023Nordic LodgeSteamboat Springs, CO4713,700 
167 $42,700 
2022 Acquisitions:
January 13, 2022
Portfolio of properties - twenty-six lodging properties and two parking garages (1)
Various3,533$766,000 
March 23, 2022
Canopy Hotel by Hilton (1)
New Orleans, LA17656,000 
June 10, 2022
AC/Element Hotel (2)
Miami, FL26480,100 
October 26, 2022
Onera (3)
Fredericksburg, TX
117,000 
3,984 $909,100 

(1)    On January 13, 2022, we acquired a portfolio of twenty-six lodging properties and two parking garages for an aggregate purchase price of $766.0 million. The lodging properties acquired included 21 hotels and two parking garages in Texas, two hotels in Louisiana and three hotels in Oklahoma under the following brands: Marriott (13), Hilton (7), Hyatt (4), and IHG (2). On March 23, 2022, we acquired the Canopy Hotel by Hilton in New Orleans upon completion of its construction for a purchase price of $56.0 million.

(2)     We acquired a 90% equity interest in the AC/Element Hotel for $80.1 million 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 financing 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 of $6.9 million represents 10% of the fair value of the net assets on the transaction date, 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.
(3)     On October 26, 2022, we completed the acquisition of a 90% equity interest in Onera Joint Venture which owns a high-end glamping property for $5.2 million based on aggregate purchase price of $5.8 million. We paid for our 90% in cash, plus $0.5 million of transaction costs. Additionally, the transaction includes additional contingent consideration (based on performance of the property for the 12-month period ending July 31, 2023) that was paid in September 2023 of $1.8 million, payable to the seller. The Onera Joint Venture has a 100% fee simple interest in real property and improvements consisting of 11 glamping lodging units and a 6.4-acre parcel of undeveloped land that will be developed as phase two of the lodging site in the future.
The allocation of the aggregate purchase prices and contingent consideration to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands):
For the Nine Months Ended September 30,
20232022
Land$12,645 $67,175 
Lodging buildings and improvements30,721 751,720 
Furniture, fixtures and equipment1,448 82,353 
Incentives and other intangibles— 25,642 
Other assets— 5,318 
Total assets acquired (1) (2)
44,814 932,208 
Less debt assumed— (382,205)
Less lease liabilities assumed— (5,441)
Less other liabilities— (5,892)
Net assets acquired$44,814 $538,670 

(1)    Total assets acquired during the nine months ended September 30, 2023 is based on an aggregate purchase price of $42.7 million plus transaction costs of $0.1 million and $2.0 million related to contingent consideration paid to the seller in September 2023. See "Note 9 - Non-controlling Interests and Redeemable Non-controlling Interests" for details related to the Onera Joint Venture.
Total assets acquired during the nine months ended September 30, 2022 is based on an aggregate purchase price of $909.1 million adjusted for the following items:
•NCI Transaction: interest swap breakage fees and debt defeasance costs of $3.5 million, a reduction to the value of the Common Units issued on the closing date of $2.5 million, plus transaction costs of $3.0 million, and intangible assets totaling $9.1 million acquired outside of escrow, and
•Brickell Transaction: Brickell Joint Venture partner’s non-controlling interest of $6.9 million; Brickell Joint Venture partner’s non-controlling interest share of the debt assumed as part of the transaction of $4.7 million, the assumption of intangible assets totaling $2.0 million, the carrying amount of our Initial Purchase Option of $2.9 million, and transactions costs of $0.6 million.
(2) Excludes the acquisition of the 11-unit Onera - Fredericksburg, TX property which was acquired in October 2022.
On May 19, 2023, we completed the sale of four lodging properties (the "Sale Portfolio") for an aggregate gross selling price of $28.1 million as follows:

Franchise/BrandLocationGuestrooms
Hilton Garden InnMinneapolis (Eden Prairie), MN97
Holiday Inn Express & SuitesMinneapolis (Minnetonka), MN93
Hyatt PlaceChicago (Hoffman Estates), IL126
Hyatt PlaceChicago (Lombard/Oak Brook), IL151
467
Schedule of Indefinite-Lived Intangible Assets
Intangible assets, net is as follows (in thousands):

September 30, 2023December 31, 2022
Indefinite-lived intangible assets:
Air rights$10,754 $10,754 
Other80 80 
10,834 10,834 
Finite-lived intangible assets:
Tax incentives19,750 19,750 
Key money9,370 9,370 
29,120 29,120 
Intangible assets39,954 39,954 
Less accumulated amortization(8,220)(5,110)
Intangible assets, net$31,734 $34,844 
Schedule of Finite-Lived Intangible Assets
Intangible assets, net is as follows (in thousands):

September 30, 2023December 31, 2022
Indefinite-lived intangible assets:
Air rights$10,754 $10,754 
Other80 80 
10,834 10,834 
Finite-lived intangible assets:
Tax incentives19,750 19,750 
Key money9,370 9,370 
29,120 29,120 
Intangible assets39,954 39,954 
Less accumulated amortization(8,220)(5,110)
Intangible assets, net$31,734 $34,844 
Schedule of Future Amortization Expenses
Future amortization expense related to intangible assets is as follows (in thousands):

For the Year Ending
December 31,		Amount
2023$1,037 
20244,147 
20251,584 
20261,584 
20271,530 
Thereafter11,018 
$20,900 
Schedule of Asset Held for Sale
Assets Held for Sale at September 30, 2023 included two parcels of undeveloped land and a 123-guestroom hotel property as follows:

Net Carrying Amount
September 30, 2023December 31, 2022
Under Contract for Sale:
  Portfolio of four lodging properties
$— $27,516 
  123-guestroom hotel property
7,513 — 
  Parcel of undeveloped land - San Antonio, TX1,225 1,225 
8,738 28,741 
Marketed for Sale:
  Parcel of undeveloped land - Flagstaff, AZ425 425 
$9,163 $29,166