INVESTMENTS IN LODGING PROPERTY, NET

3 Months Ended

Mar. 31, 2024

Investments in Lodging Property, net

Investments in lodging property, net is as follows (in thousands):


	March 31, 2024		December 31, 2023
Lodging buildings and improvements	$	2,793,479	$	2,786,223
Land	373,039		373,039
Furniture, fixtures and equipment	271,533		268,631
Construction in progress	53,628		41,324
Intangible assets	39,954		39,954
Real estate development loan, net	4,309		4,176
	3,535,942		3,513,347
Less accumulated depreciation and amortization	(820,933)		(784,298)
	$	2,715,009	$	2,729,049

Depreciation and amortization expense related to our lodging properties (excluding amortization of franchise fees) was $36.6 million, and $36.8 million for the three months ended March 31, 2024 and 2023, respectively.

Lodging Property Sales

In February 2024, we completed the sale of the 127-guestroom Hyatt Place - Dallas (Plano), TX for $10.3 million. At December 31, 2023, we classified the property as Assets held for sale, net. We recorded a nominal gain on the sale during the three months ended March 31, 2024 upon closing the transaction.

During the first quarter of 2024, we entered into a purchase and sale agreement with a single buyer to sell the 202-guestroom Courtyard by Marriott and the 208-guestroom SpringHill Suites, both located in New Orleans, LA, for an aggregate selling price of $73.0 million. The properties were recorded as Assets held for sale, net at both March 31, 2024 and December 31, 2023. We closed on the sale of these properties on April 17, 2024 in accordance with the expected terms of the transaction, which resulted in a gain of approximately $28.0 million that will be recorded in the second quarter of 2024. The sale will result in the return of approximately $2.6 million of restricted cash to us related to reserves for furniture, fixtures and equipment. Net proceeds from the sale were used to repay the outstanding $55.0 million balance on our $400 Million Revolver (defined in "Note 5 - Debt" below) subsequent to quarter end.

Additionally, during the first quarter of 2024, we entered into a purchase and sale agreement to sell the 119-guestroom Hilton Garden Inn - Bryan (College Station), TX for $11.0 million. The property was recorded as Assets held for sale, net at both March 31, 2024 and December 31, 2023. We closed on the sale of this lodging property on April 25, 2024 in accordance with the expected terms of the transaction. The net selling price of the lodging property was consistent with its net book value on the closing date. Net proceeds from the sale were used to repay $6.0 million of the GIC Joint Venture Term Loan (defined in "Note 5 - Debt" below) subsequent to quarter end.

Assets Held for Sale, net

Assets held for sale, net is as follows (in thousands):


	March 31, 2024		December 31, 2023
Under Contract for Sale:
Hyatt Place - Dallas (Plano), TX	$	—	$	9,940
Courtyard by Marriott and SpringHill Suites - New Orleans, LA	43,693		43,504
Hilton Garden Inn - Bryan (College Station), TX	10,652		10,642
Parcel of undeveloped land - San Antonio, TX	1,225		1,225
	55,570		65,311
Marketed for Sale:
One individual lodging property	8,024		8,004
Parcel of undeveloped land - Flagstaff, AZ	425		425
	$	64,019	$	73,740

The parcel of undeveloped land in San Antonio, TX is currently under contract to sell and the sale is expected to close in the fourth quarter of 2024.

Intangible Assets

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


	March 31, 2024		December 31, 2023
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		19,750
Key money	9,370		9,370


	29,120		29,120
Intangible assets	39,954		39,954
Less accumulated amortization	(10,283)		(9,251)
Intangible assets, net	$	29,671	$	30,703

We recorded amortization expense related to intangible assets of approximately $1.0 million for each of the three months ended March 31, 2024 and 2023, respectively.

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


For the Year Ending December 31,	Amount
2024	$	3,486
2025	1,564
2026	1,564
2027	1,374
2028	1,016
Thereafter	9,833
	$	18,837