INVESTMENTS IN LODGING PROPERTY, NET

6 Months Ended

Jun. 30, 2025

Real Estate [Abstract]

INVESTMENTS IN LODGING PROPERTY, NET

INVESTMENTS IN LODGING PROPERTY, NET

Investments in Lodging Property, net

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

	June 30, 2025		December 31, 2024
Lodging buildings and improvements	$	2,898,939	$	2,867,256
Land	416,200		415,574
Furniture, fixtures and equipment	302,061		296,476
Construction in progress	43,328		35,294
Intangible assets	32,267		32,267
Real estate development loan	4,576		4,576
	3,697,371		3,651,443
Less accumulated depreciation and amortization	(974,912)		(904,678)
	$	2,722,459	$	2,746,765

Depreciation and amortization expense related to our lodging properties (excluding amortization of franchise fees) was $37.0 million and $36.3 million for the three months ended June 30, 2025 and 2024, respectively, and $74.1 million and $72.9 million for the six months ended June 30, 2025 and 2024, respectively.

Lodging Property Sales

Undeveloped Parcel of Land - San Antonio, TX

We owned a 5.99-acre parcel of undeveloped land in San Antonio, TX that was classified as Assets held for sale at December 31, 2024. In February 2025, we closed on the sale of the parcel of undeveloped land for $1.3 million, which approximated its carrying amount.

Portfolio of Two Lodging Properties - New Orleans, LA

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 million, which resulted in a gain of approximately $28.3 million that was recorded in the six months ended June 30, 2024.

Hilton Garden Inn - Bryan (College Station), TX

In April 2024, the GIC Joint Venture completed the sale of the 119-guestroom Hilton Garden Inn - Bryan (College Station), TX for $11 million. The net selling price of the lodging property approximated its carrying amount on the closing date.

Hyatt Place - Dallas (Plano), TX

In February 2024, the GIC Joint Venture 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 six months ended June 30, 2024 upon closing the transaction.

Intangible Assets

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

	June 30, 2025		December 31, 2024
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		12,063
Key money	9,370		9,370
	21,433		21,433
Intangible assets	32,267		32,267
Less - accumulated amortization	(6,473)		(5,691)
Intangible assets, net	$	25,794	$	26,576

We recorded amortization expense related to intangible assets of approximately $0.4 million and $1.0 million for the three months ended June 30, 2025 and 2024, respectively, and $0.8 million and $2.1 million for the six months ended June 30, 2025 and 2024, respectively.

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

For the Year Ending December 31,	Amount
2025	$	782
2026	1,564
2027	1,510
2028	1,016
2029	1,016
Thereafter	9,072
	$	14,960