PROPERTY AND EQUIPMENT - REIT

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Line Items]

Net investment in property and equipment as of March 31, 2020 and December 31, 2019, consists of the following (in thousands):


	March 31, 2020		December 31, 2019
Hotel properties:
Land and site improvements ⁽¹⁾	$	1,231,474	$	1,228,231
Building and improvements	2,814,840		2,792,579
Furniture, fixtures and equipment ⁽²⁾	749,815		745,145
Total hotel properties	4,796,129		4,765,955
Development in process ⁽³⁾	80,269		70,864
Corporate furniture, fixtures, equipment, software and other	30,894		30,680

Total cost	4,907,292		4,867,499
Less accumulated depreciation:
Hotel properties	(1,393,347)		(1,353,772)
Corporate furniture, fixtures, equipment, software and other	(21,124)		(20,178)
Total accumulated depreciation	(1,414,471)		(1,373,950)
Property and equipment — net	$	3,492,821	$	3,493,549

_________________________________

(1)Includes finance lease asset of $3.2 million as of March 31, 2020 and December 31, 2019.

(2)Includes finance lease asset of $0.4 million and $0 as of March 31, 2020 and December 31, 2019, respectively.

(3)Includes finance lease asset of $0.8 million as of March 31, 2020 and December 31, 2019.

As of March 31, 2020 and December 31, 2019, development in process consisted of 14 and 15 land parcels, respectively, that were in various phases of construction and/or development. The Company expects to delay commencement of construction at four of these locations as a result of current market uncertainty.

During the three months ended March 31, 2020, the Company completed construction of a 120-room hotel in Florida. The hotel opened in March 2020. During 2019, the Company completed construction of a 124-room hotel in Florida and a 136-room hotel in Arizona. The hotels opened in December 2019. During the three months ended March 31, 2020, these hotels contributed total room and other hotel revenues, total operating expenses and income before income tax expense as follows (in thousands):


	Three Months Ended
	March 31, 2020
Total room and other hotel revenues	$	1,683
Total operating expenses	1,153
Income before income tax expense	530

ESH Hospitality, Inc.

Property, Plant and Equipment [Line Items]

PROPERTY AND EQUIPMENT

Net investment in property and equipment as of March 31, 2020 and December 31, 2019, consists of the following (in thousands):


	March 31, 2020		December 31, 2019
Hotel properties:
Land and site improvements ⁽¹⁾	$	1,233,841	$	1,230,598
Building and improvements	2,846,322		2,824,061
Furniture, fixtures and equipment ⁽²⁾	756,088		751,417
Total hotel properties	4,836,251		4,806,076
Development in process ⁽³⁾	80,269		70,864
Other	1,675		1,675
Total cost	4,918,195		4,878,615
Less accumulated depreciation	(1,412,562)		(1,372,595)
Property and equipment — net	$	3,505,633	$	3,506,020

_________________________________

(1)Includes finance lease asset of $3.2 million as of March 31, 2020 and December 31, 2019.

(2)Includes finance lease asset of $0.4 million and $0 as of March 31, 2020 and December 31, 2019, respectively

(3)Includes finance lease asset of $0.8 million as of March 31, 2020 and December 31, 2019.

As of March 31, 2020 and December 31, 2019, development in process consisted of 14 and 15 land parcels, respectively, that were in various phases of construction and/or development. ESH REIT expects to delay commencement of construction of four of these locations as a result of current market uncertainty.

During the three months ended March 31, 2020, ESH REIT completed construction of a 120-room hotel in Florida. The hotel opened and was leased to the Corporation in March 2020. During 2019, ESH REIT completed construction of a 124-room hotel in Florida and a 136-room hotel in Arizona. The hotels opened and were leased to the Corporation in December 2019. During the three months ended March 31, 2020, these hotels contributed rental revenues, total operating expenses and income before income tax expense as follows (in thousands):


	Three Months Ended March 31, 2020

Rental revenues	$	702
Total operating expenses	586
Income before income tax expense	115