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INVESTMENTS IN LODGING PROPERTY, NET (Tables)
 12 Months Ended
Dec. 31, 2023
Real Estate [Abstract]  
Schedule of Investments in Lodging Property, net
We generally depreciate our lodging 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
Investments in lodging property, net at December 31, 2023 and 2022 include (in thousands):

 
 20232022
Land$373,039 $373,106 
Lodging buildings and improvements2,786,223 2,815,993 
Intangible assets39,954 39,954 
Construction in progress41,324 64,159 
Furniture, fixtures and equipment268,631 252,842 
Real estate development loan (1)
4,176 — 
 3,513,347 3,546,054 
Less - accumulated depreciation and amortization(784,298)(704,198)
 $2,729,049 $2,841,856 

(1)    In January 2023, we entered into an agreement with affiliates of Onera Opportunity Fund I, LP to provide a mezzanine financing loan to fund up to $4.6 million for the development of a property. The mezzanine loan was classified as Investments in Lodging Property, net in our Consolidated Balance Sheet at December 31, 2023. See "Note 4 - Investment in Real Estate Loans" for further information.
Schedule of Hotel Property Acquisitions
Lodging property acquisitions during the years ended December 31, 2023 and 2022 were as follows (dollar amounts in thousands):

Date AcquiredFranchise/BrandLocationGuestroomsPurchase
Price
2023 Acquisitions:
June 1, 2023Residence Inn by MarriottScottsdale, AZ120$29,000 
June 23, 2023Nordic LodgeSteamboat Springs, CO4713,700 
Total acquisitions 2023167$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 
Total acquisitions 20223,984 $909,100

(1)       In January 2022, we acquired a portfolio of twenty-six hotels and two parking garages for an aggregate purchase price of 766.0 million. The hotels 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). In March 2022, we acquired the Canopy 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 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)       In October 2022, we completed the acquisition of a 90% equity interest in Onera Joint Venture which owns an 11-unit 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. The Onera Joint Venture has a 100% fee simple interest in real property and improvements consisting of 11 lodging units and a 6.4-acre parcel of undeveloped land.


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):
20232022
Land$12,645 $68,426 
Lodging buildings and improvements30,721 756,551 
Furniture, fixtures and equipment1,448 82,730 
Incentives and other intangibles— 25,642 
Other assets— 5,318 
Total assets acquired (1) (2)
44,814 938,667 
Less debt assumed— (382,205)
Less lease liabilities assumed— (5,441)
Less other liabilities— (5,892)
Net assets acquired$44,814 $545,129 

(1)       Total assets acquired during the year ended December 31, 2023 is based on an aggregate purchase price of $42.7 million plus transaction costs of $0.1 million and $1.8 million related to contingent consideration paid to the seller in September 2023. See "Note 10 - Non-controlling Interests and Redeemable Non-controlling Interests" for details related to the Onera Joint Venture.

(2)       Total assets acquired during the year ended December 31, 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.
•Onera Transaction: Onera Joint Venture partner's non-controlling interest of $0.8 million and $0.5 million of transaction costs.
In May 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 Finite-Lived Intangible Assets
Intangible assets included in Investments in Lodging Property, net in our Consolidated Balance Sheets include the following (in thousands):
December 31,
Weighted Average Amortization Period (in Years)20232022
Indefinite-lived Intangible assets:
Air rightsN/A$10,754 $10,754 
OtherN/A80 80 
10,834 10,834 
Finite-lived intangible assets:
Tax incentives(1)
9.219,750 19,750 
Key money(1)
17.89,370 9,370 
29,120 29,120 
Total intangible assets39,954 39,954 
    Less - accumulated amortization(9,251)(5,110)
Intangible assets, net$30,703 $34,844 

(1)    Finite-lived intangible assets were primarily acquired in the NCI Transaction.
Schedule of Indefinite-lived Intangible Assets
Intangible assets included in Investments in Lodging Property, net in our Consolidated Balance Sheets include the following (in thousands):
December 31,
Weighted Average Amortization Period (in Years)20232022
Indefinite-lived Intangible assets:
Air rightsN/A$10,754 $10,754 
OtherN/A80 80 
10,834 10,834 
Finite-lived intangible assets:
Tax incentives(1)
9.219,750 19,750 
Key money(1)
17.89,370 9,370 
29,120 29,120 
Total intangible assets39,954 39,954 
    Less - accumulated amortization(9,251)(5,110)
Intangible assets, net$30,703 $34,844 

(1)    Finite-lived intangible assets were primarily acquired in the NCI Transaction.
Schedule of Future Amortization Expenses
Future amortization expense related to intangible assets is as follows (in thousands):

For the Year Ended
December 31,		Amount
2024$4,126 
20251,564 
20261,564 
20271,511 
20281,016 
Thereafter10,088 
$19,869 
Schedule of Assets Held for Sale
Assets held for sale, net at December 31, 2023 include a parcel of undeveloped land in Flagstaff, AZ and certain properties that are under contract for sale and expected to close during the first half of 2024 as follows (in thousands):

December 31,
20232022
Under Contract for Sale:
Portfolio of four lodging properties$— $27,516 
Hyatt Place - Dallas (Plano), TX
9,940 — 
One individual lodging property and a portfolio of two lodging properties
54,146 — 
Parcel of undeveloped land - San Antonio, TX1,225 1,225 
65,311 28,741 
Marketed for Sale:
One individual lodging property
8,004 — 
Parcel of undeveloped land - Flagstaff, AZ425 425 
$73,740 $29,166