Sale of Hotel Properties

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Sale of Hotel Properties

4. Sale of Hotel Properties

During the six months ended June 30, 2019, the Company sold three hotels as summarized below.

Hotel	Date of Sale		Proceeds		Gain (Loss)			Mortgage Payable Repaid
Homewood Suites—Laredo, Texas		January 2019	$	9,765	$	26		$	8,159
Residence Inn—Laredo, Texas		February 2019		9,302		72			7,149
Courtyard—Dothan, Alabama		February 2019		6,097		(536	)		7,016
Properties sold in 2018				83		83			—
Total			$	25,247	$	(355	)	$	22,324

The Company received proceeds of $25.2 million from the sales of these hotels, which are net of $0.8 million in selling costs. During the year ended December 31, 2018, the Company recorded a $5.0 million impairment of investment in real estate related to these three properties. 

During the six months ended June 30, 2018, the Company sold two hotels as summarized below.

Hotel	Date of Sale	Proceeds		Gain		Mortgage Payable Repaid
Residence Inn—Huntsville, Alabama	January 2018	$	7,587	$	—	$	7,587
Marriott—Redmond, Washington	February 2018		67,753		—		68,917
Total		$	75,340	$	—	$	76,504

The Company received proceeds of $75.3 million from the sales of these hotels, which are net of $2.5 million in selling costs. Due to the sale of these hotels, the Company made an additional principal payment of $6.6 million in order to comply with the debt yield as required under the terms of the Company’s mortgage loan agreement. During the year ended December 31, 2017, the Company recorded a $10.9 million impairment of investment in real estate related to these two properties, therefore, no gain or loss was recorded during the six months ended June 30, 2018.