Favorable Lease Assets

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

In connection with the acquisition of certain hotels, we have recognized intangible assets for favorable ground leases and tenant leases. Our favorable lease assets, net of accumulated amortization of $2.3 million and $2.6 million as of September 30, 2016 and December 31, 2015, respectively, consist of the following (in thousands):



	September 30, 2016		December 31, 2015
Westin Boston Waterfront Hotel Ground Lease	$	17,914	$	18,076
Hilton Minneapolis Ground Lease	—		5,685
Lexington Hotel New York Tenant Leases	162		186
Hilton Boston Downtown Tenant Leases	—		8
	$	18,076	$	23,955

Favorable lease assets are recorded at the acquisition date and are generally amortized using the straight-line method over the remaining non-cancelable term of the lease agreement. We recorded $0.1 million of amortization expense for each of the three months ended September 30, 2016 and 2015. We recorded $0.2 million and $0.4 million, respectively, of amortization expense for each of the nine months ended September 30, 2016 and 2015.

On June 30, 2016, we sold the Hilton Minneapolis (see Note 9). In connection with the sale, we wrote off the favorable ground lease asset, which is included in the gain on sale of hotel properties on the accompanying condensed consolidated statements of operations for the nine months ended September 30, 2016.