
	September 30, 2024		December 31, 2023
Lodging buildings and improvements	$	2,800,853	$	2,798,667
Land	374,213		375,413
Furniture, fixtures and equipment	281,758		269,682
Construction in progress	52,536		41,359
Intangible assets	32,267		39,954
Real estate development loan, net	4,576		4,176
	3,546,203		3,529,251
Less accumulated depreciation and amortization	(876,725)		(792,276)
	$	2,669,478	$	2,736,975

Depreciation and amortization expense related to our lodging properties (excluding amortization of franchise fees) was $36.5 million and $37.7 million for the three months ended September 30, 2024 and 2023, respectively, and $109.5 million and $111.9 million for the nine months ended September 30, 2024 and 2023, respectively.

During the three months ended September 30, 2024, the GIC Joint Venture received a $9.9 million tax incentive payment from the City of Dallas related to the NCI Transaction (described in Note 5 - Debt to the Condensed Consolidated Financial Statements). We recorded the payment as a reduction to the accounting basis of the related depreciable assets during the three months ended September 30, 2024.


Date Acquired	Brand/Hotel Name	Location	Guestrooms	Purchase Price
June 2023	Residence Inn by Marriott	Scottsdale, AZ	120	$	29,000
June 2023	Nordic Lodge	Steamboat Springs, CO	47	13,700
Total			167	$	42,700

All of the acquisitions completed during the nine months ended September 30, 2023 were recorded as asset acquisitions. As such, we allocated the aggregate purchase price paid for each transaction to the net assets acquired based on their relative fair values. In determining relative fair values, we made significant estimates regarding replacement costs for the buildings and furniture, fixtures and equipment, and judgments related to certain market assumptions. Acquisition costs related to the transactions have been capitalized as part of the recorded amounts of the acquired net assets.

The allocation of the aggregate purchase prices to the fair value of assets and liabilities acquired for the above acquisitions is as follows (in thousands):


	Nine Months Ended September 30, 2023

Land	$	12,257
Lodging buildings and improvements	29,225

Furniture, fixtures and equipment	1,331





Net assets acquired (1)	$	42,813

(1) Net 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. Additionally, during the nine months ended September 30, 2023, we capitalized $2.0 million related to contingent consideration paid to the seller of the Onera property in Fredericksburg, TX. See Note 9 - Non-controlling Interests and Redeemable Non-controlling Interests for details related to the Onera Joint Venture.

In April 2024, we completed the sale of the 202-guestroom Courtyard by Marriott and the 208-guestroom SpringHill Suites by Marriott, both located in New Orleans, LA, for an aggregate selling price of $73.0 million, which resulted in a gain of approximately $28.3 million that was recorded in the nine months ended September 30, 2024.

In April 2024, we completed the sale of the 119-guestroom Hilton Garden Inn - Bryan (College Station), TX for $11.0 million. The net selling price of the lodging property approximated its net book value on the closing date.

In February 2024, we completed the sale of the 127-guestroom Hyatt Place - Dallas (Plano), TX for $10.3 million. We recorded a nominal gain on the sale during the nine months ended September 30, 2024 upon closing the transaction.

In May 2023, we completed the sale of four lodging properties (the "Sale Portfolio") for an aggregate gross selling price of $28.1 million. The properties sold include the following:

Franchise/Brand

Location

Guestrooms

Hyatt Place

Chicago (Lombard/Oak Brook), IL

151

Hyatt Place

Chicago (Hoffman Estates), IL

126

Hilton Garden Inn

Minneapolis (Eden Prairie), MN

Holiday Inn Express & Suites

Minneapolis (Minnetonka), MN

467

During the third quarter of 2024, we entered into a purchase and sale agreement to sell the 101-guestroom Four Points by Marriott San Francisco Airport hotel for an aggregate selling price of $17.7 million, at which time we reclassified the carrying value of the property to Assets held for sale, net. We closed on the sale of the property on October 23, 2024 according to the terms of the agreement and will recognize a gain of approximately $0.4 million in the fourth quarter of 2024.


	September 30, 2024		December 31, 2023
Under Contract for Sale:
Four Points by Marriott - San Francisco, CA	$	16,971	$	—
Courtyard by Marriott and SpringHill Suites - New Orleans, LA	—		43,504
Hilton Garden Inn - Bryan (College Station), TX	—		10,642
Hyatt Place - Dallas (Plano), TX	—		9,940
Parcel of undeveloped land - San Antonio, TX	1,225		1,225
	18,196		65,311
Marketed for Sale:

Parcel of undeveloped land - Flagstaff, AZ	425		425
	$	18,621	$	65,736

The parcel of undeveloped land in San Antonio, TX is currently under contract to sell, and the sale is expected to close in the first quarter of 2025.


	September 30, 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	12,063		19,750
Key money	9,370		9,370


	21,433		29,120
Intangible assets	32,267		39,954
Less - accumulated amortization	(5,300)		(9,251)
Intangible assets, net	$	26,967	$	30,703

We recorded amortization expense related to intangible assets of approximately $0.8 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively, and $2.9 million and $3.1 million for the nine months ended September 30, 2024 and 2023, respectively.


For the Year Ending December 31,	Amount
2024	$	782
2025	1,564
2026	1,564
2027	1,374
2028	1,016
Thereafter	9,833
	$	16,133