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Favorable Lease Assets | 9 Months Ended
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Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Favorable Lease Assets | Favorable Lease Assets In connection with the acquisition of certain hotels, we have recognized intangible assets for favorable leases. Our favorable lease assets, net of accumulated amortization of $2.6 million and $2.3 million as of September 30, 2017 and December 31, 2016, respectively, consist of the following (in thousands):
| September 30, 2017 |  | December 31, 2016
Westin Boston Waterfront Hotel Ground Lease | $ | 17,698 |  |  | $ | 17,859 |
Orchards Inn Sedona Annex Sublease | 8,967 |  |  | — |
Lexington Hotel New York Tenant Leases | 130 |  |  | 154 |
| $ | 26,795 |  |  | $ | 18,013 |
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, 2017 and 2016. We recorded $0.3 million and $0.2 million, respectively, of amortization expense for each of the nine months ended September 30, 2017 and 2016. In connection with our acquisition of the Orchards Inn Sedona on February 28, 2017, we recorded a $9.1 million favorable lease asset. We determined the value using a discounted cash flow of the favorable difference between the contractual lease payments and estimated market rents. The market rents were estimated by a third-party valuation firm and the discount rate was estimated using a risk adjusted rate of return. See Note 9 for further discussion of this favorable lease asset.

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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