Investment in Hotel and Other Properties

12 Months Ended

Dec. 31, 2014

Property, Plant and Equipment [Abstract]

Investment in Hotel and Other Properties

Investment in Hotels and Other Properties

Investment in hotels and other properties as of December 31, 2014 and 2013 consisted of the following (in thousands):

	December 31, 2014			December 31, 2013
Land and land improvements	$	706,497		$	594,402
Buildings and improvements	3,005,390			2,866,849
Furniture, fixtures and equipment	498,126			485,531
Intangible assets	2,507			2,507
	4,212,520			3,949,289
Accumulated depreciation and amortization	(693,717		)	(708,126		)
Investment in hotel and other properties, net	$	3,518,803		$	3,241,163

For the years ended December 31, 2014, 2013 and 2012 depreciation and amortization expense related to investment in hotel and other properties was approximately $143.9 million, $126.8 million and $125.9 million (excluding discontinued operations), respectively.

Impairment

During the year ended December 31, 2014, the Company recorded an impairment loss of $9.2 million related to three hotels. The Company evaluated the recoverability of the carrying values of hotels given the current expectation to sell certain hotels before the end of their previously estimated useful lives. Based on an analysis of estimated undiscounted net cash flows, the Company concluded that the carrying values of three hotels were not recoverable. The Company estimated the fair value of the hotels using a widely accepted revenue multiple approach with significant unobservable inputs, including revenue growth projections and prevailing market multiples, from third party sources.

The Company determined that there was no impairment of any assets for the year ended December 31, 2013.

During the year ended December 31, 2012, the Company recorded an impairment loss of $0.9 million related to one hotel (recognized in discontinued operations). The Company evaluated the recoverability of the hotel’s carrying value given deteriorating operating results for the year ended December 31, 2012. Based on an analysis of estimated undiscounted net cash flow, the Company concluded that the carrying value of the hotel was not recoverable. The Company estimated the fair value of the hotel using a discounted cash flow analysis. In the analysis, the Company estimated the future net cash flows from the hotel, the expected useful life and holding period, and applicable capitalization and discount rates.

Held for Sale

In November 2014, the Company entered into a purchase and sale agreement to sell a portfolio of 20 hotel properties for an aggregate sale price of $230.3 million. At December 31, 2014, these hotel properties have been included in assets of hotel properties held for sale in the accompanying consolidated balance sheets. The transaction closed on February 23, 2015.