Investments in Hotels

9 Months Ended

Sep. 30, 2022

Investments in Hotels

Investments in Hotels

Note 3 – Investments in Hotels

The following table sets forth summary information regarding the Company’s investments in hotel properties as of September 30, 2022:

					Contract			Mortgage
				Ownership	Purchase			Debt
Property Name	Date Acquired		Location	Interest	Price(1)(2)		Rooms	Outstanding
Springhill Suites Wilmington	05/24/2017	(1)	Wilmington, NC	51%	$	18,000,000	120	$	10,863,886
Staybridge Suites St. Petersburg	06/29/2017	(1)	St. Petersburg, FL	51%	$	20,500,000	119	$	12,853,374
Hotel Indigo Traverse City	08/15/2018		Traverse City, MI	100%	$	26,050,000	107	$	15,092,000
Hilton Garden Inn Providence	02/27/2020		Providence, RI	100%	$	28,500,000	137	$	16,936,901
Cherry Tree Inn	07/30/2021		Traverse City, MI	100%	$	15,000,000	76	$	9,270,226

1) Represents the date and contract purchase price of PCF’s acquisition of the Springhill Suites Wilmington (the “Springhill Suites Wilmington”) and the Staybridge Suites St. Petersburg (the “Staybridge Suites St. Petersburg”). The Company exercised its option under an option agreement to purchase a 51% membership interest in PCF on March 29, 2018.

2) Contract purchase price excludes acquisition fees and costs.

Investments in hotel properties consisted of the following as of September 30, 2022 and December 31, 2021:

	September 30,		December 31,
	2022		2021
Land	$	14,450,538	$	14,450,538
Building and improvements		88,917,136		88,767,739
Furniture, fixtures, and equipment		11,008,932		8,896,732
Total cost		114,376,606		112,115,009
Accumulated depreciation		(12,690,666)		(9,878,030)
Property and equipment, net	$	101,685,940	$	102,236,979

Depreciation expense for the three months ended September 30, 2022 and 2021 was $986,607 and $879,734, respectively. Depreciation expense for the nine months ended September 30, 2022 and 2021 was $2,840,579 and $2,431,637, respectively.