PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

Net investment in property and equipment as of June 30, 2020 and December 31, 2019, consists of the following (in thousands):


	June 30, 2020		December 31, 2019
Hotel properties:
Land and site improvements ⁽¹⁾	$	1,239,747	$	1,228,231
Building and improvements	2,846,722		2,792,579
Furniture, fixtures and equipment ⁽²⁾	763,319		745,145
Total hotel properties	4,849,788		4,765,955
Development in process ⁽³⁾	63,611		70,864
Corporate furniture, fixtures, equipment, software and other	31,378		30,680
Total cost	4,944,777		4,867,499
Less accumulated depreciation:
Hotel properties	(1,435,357)		(1,353,772)
Corporate furniture, fixtures, equipment, software and other	(22,080)		(20,178)
Total accumulated depreciation	(1,457,437)		(1,373,950)
Property and equipment — net	$	3,487,340	$	3,493,549

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(1)Includes finance lease asset of $3.2 million as of June 30, 2020 and December 31, 2019.

(2)Includes finance lease asset of $0.5 million and $0 as of June 30, 2020 and December 31, 2019, respectively.

(3)Includes finance lease asset of $0.8 million as of June 30, 2020 and December 31, 2019.

As of June 30, 2020 and December 31, 2019, development in process consisted of 11 and 15 land parcels, respectively, that were in various phases of construction and/or development. The Company expects to delay commencement of construction at three of these locations as a result of current market uncertainty.

During the three and six months ended June 30, 2020, and the year ended December 31, 2019, the following owned, newly constructed hotels were opened under the Extended Stay America brand:


Opening Date	Location	Number of Hotels	Number of Rooms

December 2019	Florida	1	124
December 2019	Arizona	1	136
March 2020	Florida	1	120
April 2020	South Carolina	1	120
June 2020	Georgia	1	124
June 2020	Texas	1	124

During the three and six months ended June 30, 2020, these new hotels contributed total room and other hotel revenues, total operating expenses and (loss) income before income tax expense as follows (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2020		June 30, 2020
Total room and other hotel revenues	$	1,551	$	3,234
Total operating expenses	1,831		2,985
(Loss) income before income tax expense	(280)		249

During the three and six months ended June 30, 2020, the Company recognized a $0.7 million impairment charge related to an undeveloped land parcel. The Company used Level 2 observable inputs, including a non-binding bid to sell the asset, and Level 3 unobservable inputs, including estimated transaction costs, to determine the impairment charge incurred during the three and six months ended June 30, 2020. No impairment charges were recognized during the three and six months ended June 30, 2019.