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Favorable Lease Assets | 3 Months Ended
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Mar. 31, 2018
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 $2.8 million and $2.7 million as of March 31, 2018 and December 31, 2017, respectively, consist of the following (in thousands):
| March 31, 2018 |  | December 31, 2017
Westin Boston Waterfront Hotel Ground Lease | $ | 17,589 |  |  | $ | 17,643 |
Hotel Palomar Phoenix Ground Lease | 20,144 |  |  | — |
Orchards Inn Sedona Annex Sublease | 8,884 |  |  | 8,925 |
Lexington Hotel New York Tenant Leases | 114 |  |  | 122 |
| $ | 46,731 |  |  | $ | 26,690 |
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 March 31, 2018 and 2017. In connection with our acquisition of the Hotel Palomar Phoenix on March 1, 2018, we recorded a $20.1 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 with the assistance of 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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