Real Estate Properties

3 Months Ended

Mar. 31, 2025

Note 5. Real Estate Properties

As of March 31, 2025, we owned 202 hotels with an aggregate of 35,359 rooms or suites and 739 service-focused retail net lease properties with an aggregate of 13,189,476 square feet that are primarily subject to “triple net” leases, or net leases where the tenant is generally responsible for payment of operating expenses and capital expenditures of the property during the lease term. Our properties had an aggregate undepreciated book value of $9,589,528, including $1,722,906 related to properties classified as held for sale as of March 31, 2025.

We funded capital improvements to certain of our properties of $45,869 and $68,782 during the three months ended March 31, 2025 and 2024, respectively.

Acquisitions

From April 1, 2025 through May 2, 2025, we acquired three net lease properties with a total of 18,218 square feet for a combined purchase price of $12,597, excluding closing costs. We have also entered into agreements to acquire six net lease properties with a total of 69,236 square feet for a combined purchase price of $20,734, excluding closing costs. These pending acquisitions are subject to conditions; accordingly, we cannot be sure that we will complete these acquisitions, that these acquisitions will not be delayed or that the terms will not change.

Dispositions

During the three months ended March 31, 2025, we sold seven properties for a combined sales price of $22,700, excluding closing costs. The sales of these properties as presented in the table below do not represent significant dispositions, individually or in the aggregate, nor do they represent a strategic shift in our business. As a result, the results of the operations of these properties are included in continuing operations through the date of sale in our condensed consolidated statements of comprehensive income (loss).


Quarter Sold	Property Type	Number of Properties	Rooms or Suites / Square Feet	Gross Sales Price (1)		Gain on Sale of Real Estate, net

Q1 2025	Hotel	4	514	$	19,600	$	403
Q1 2025	Net Lease	3	103,043	3,100		343


		7	514 / 103,043	$	22,700	$	746

(1)Gross sales price is the gross contract price, excluding closing costs.

As of March 31, 2025, we had 118 hotels with a total of 15,417 keys and seven net lease properties with a total of 82,302 square feet classified as held for sale. See Note 14 for further information on certain of these properties. The following table summarizes the major class of assets and liabilities by our hotel investments and net lease investments segments as of March 31, 2025:


	As of March 31, 2025
	Hotels		Net Lease		Total
Assets of properties held for sale:
Real estate properties, net	$	846,594	$	1,092	$	847,686

Other assets, net (1)	23,754		24		23,778
Total assets of properties held for sale	$	870,348	$	1,116	$	871,464

Liabilities of properties held for sale:

Accounts payable and other liabilities	$	8,849	$	51	$	8,900
Total liabilities of properties held for sale	$	8,849	$	51	$	8,900

(1) Other assets, net includes working capital of $15,556 for our hotel investments segment as described in Note 6.

From April 1, 2025 through May 2, 2025, we sold one net lease property with 2,053 square feet for a sales price of $365, excluding closing costs. We have also entered into agreements to sell four hotels with a total of 492 keys for a combined sales price of $26,500, excluding closing costs, and one net lease property with 1,122 square feet for a sales price of $395, excluding closing costs. These pending sales are subject to conditions; accordingly, we cannot be sure that we will complete these sales, that these sales will not be delayed or that the terms will not change. We are at various stages of selling 114 hotels with a total of 14,925 keys and six net lease properties with a total of 80,249 square feet for sale. We believe it is probable that the sales of these properties will be completed within one year.