Property and Equipment

3 Months Ended

Mar. 31, 2021

Property, Plant and Equipment [Abstract]

Property and equipment as of March 31, 2021 and December 31, 2020 consists of the following (in thousands):


	March 31, 2021		December 31, 2020
Land	$	583,349	$	618,210
Land improvements	7,994		7,994
Buildings and site improvements	2,602,661		2,724,277
Furniture, fixtures and equipment	472,685		539,729
Construction in progress	20,660		37,481
	3,687,349		3,927,691
Less: accumulated depreciation	(1,010,193)		(1,110,335)
	$	2,677,156	$	2,817,356

As of March 31, 2021 and December 31, 2020, we had accrued capital expenditures of $2.5 million and $3.9 million, respectively.

On March 24, 2021, we entered into an agreement to sell The Lexington Hotel to an unaffiliated third party for a contractual purchase price of $185.0 million. We anticipate the sale will close before the end of the third quarter of 2021. No assurance can be given, however, that we will successfully complete the sale. The hotel remains classified as held and used as of March 31, 2021, based on our assessment of the criteria for a hotel to be classified as held for sale (see Note 2). During the three months ended March 31, 2021, we evaluated the recoverability of the carrying amount of The Lexington Hotel as a result of our assessment in the first quarter of 2021 that it is more likely than not that the hotel will be sold significantly before the end

of its previously estimated useful life. As a result, we recorded an impairment loss of $111.7 million to adjust the hotel's carrying amount to its estimated fair value. See Note 9 for further discussion about the determination of the hotel's fair value. On April 30, 2021, we sold a wholly owned subsidiary of the Company that owns Frenchman's Reef to an unaffiliated third party pursuant to a share purchase agreement (the “Purchase Agreement”) dated April 27, 2021. Pursuant to the Purchase Agreement, the Company received $35.0 million in cash upon closing, as well as a participation right in the future profits of the hotel once certain return metrics are achieved. Although we expect the profit participation could be meaningful, there can be no assurance that the property will satisfy such return metrics. The Purchase Agreement is a recognized subsequent event in accordance with FASB ASC 855, Subsequent Events. As a result, we recorded an impairment loss of $10.8 million for the three months ended March 31, 2021 to adjust the hotel's carrying amount to the contractual consideration. The hotel was classified as held and used as of March 31, 2021, based on our assessment of the criteria for a hotel to be classified as held for sale (see Note 2).