XML 38 R25.htm IDEA: XBRL DOCUMENT v3.24.3
Contingencies
 9 Months Ended
Sep. 30, 2024
Loss Contingency [Abstract]  
Contingencies Contingencies
Many of our hotels in Florida were affected by Hurricanes Helene and Milton, which made landfall in September and October 2024, respectively. Due to evacuation mandates and/or loss of commercial power, four of our properties in Florida were temporarily closed, three of which have reopened. The most significant damage sustained during the storms occurred at The Don CeSar, which closed on September 25, 2024, following a mandatory evacuation order prior to the landfall of Hurricane Helene. The Don CeSar sustained extensive damage due to storm surge, which flooded the lower level of the hotel, including the fitness center, two food and beverage ("F&B") outlets, retail outlets and the resort's beach club. Remediation efforts are underway, and we currently expect a phased reopening of the hotel beginning late in the first quarter of 2025. Limited property damage was reported at the other Florida properties within our consolidated portfolio.
We are still evaluating the scope of property damage and business interruption loss at our Florida properties. For Hurricane Helene, which occurred in the third quarter and primarily impacted The Don CeSar, we are unable to estimate the total loss at this time, due to the proximity of the hurricane to quarter end, the added impact of Hurricane Milton in early fourth quarter, and ongoing investigation into remediation and reopening requirements. For the property loss that occurred during the third quarter, we expect our insurance coverage to sufficiently cover the property damage in excess of our insurance deductible; therefore we have not recorded any loss on the condensed consolidated statements of operations as of September 30, 2024. However, we will have ongoing remediation efforts and business interruption at The Don CeSar subsequent to quarter end. Additionally, The Don CeSar and several of our other Florida properties were affected by Hurricane Milton, which occurred in the fourth quarter. For both hurricanes, we will record an insurance receivable based on the anticipated insurance proceeds, not to exceed the expected loss, in the fourth quarter when the loss can be reliably estimated. We are
subject to various deductibles on our claims as a result of the two storms and the various properties affected, and costs at certain properties may not meet the deductible threshold.
Additionally, as of September 30, 2024, we have received the total settlement of $308 million of insurance proceeds related to claims resulting from Hurricane Ian, which made landfall in September 2022. The final $29 million of property insurance proceeds were received during the third quarter of 2024, resulting in a $25 million gain on property insurance, which is included in gain on insurance settlements on our unaudited condensed consolidated statements of operations.