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Investment in Hotel Properties | 9 Months Ended
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Sep. 30, 2025
Real Estate [Abstract] |
Investment in Hotel Properties | Investment in Hotel Properties Investment in hotel properties as of September 30, 2025 and December 31, 2024 consisted of the following (in thousands):
| September 30, 2025 |  | December 31, 2024
Land | $ | 763,764 |  |  | $ | 800,143 |
Buildings and improvements | 5,018,027 |  |  | 5,062,727 |
Furniture, fixtures and equipment | 528,503 |  |  | 539,616 |
Finance lease asset | 91,181 |  |  | 91,181 |
Construction in progress | 5,865 |  |  | 5,066 |
| $ | 6,407,340 |  |  | $ | 6,498,733 |
Operating lease, right-of-use asset | 356,322 |  |  | 351,150 |
Investment in hotel properties | $ | 6,763,662 |  |  | $ | 6,849,883 |
Less: Accumulated depreciation | (1,660,213) |  |  | (1,530,854) |
Investment in hotel properties, net | $ | 5,103,449 |  |  | $ | 5,319,029 |
Hurricane Helene and Hurricane Milton On September 26, 2024, LaPlaya Beach Resort & Club ("LaPlaya") in Naples, FL was impacted by Hurricane Helene and, on October 9, 2024, was also impacted by Hurricane Milton. The damage primarily impacted the ground floor of the Beach House, the pool complex and landscaping. LaPlaya closed following Hurricane Milton to undertake clean-up, repairs and a full assessment of damages. The resort is substantially open. The Company’s insurance policies provide coverage for property damage, business interruption and other costs that are incurred relating to damages sustained in excess of the applicable deductibles. For damage due to Hurricane Helene, the Company recognized a loss of $1.9 million during the nine months ended September 30, 2024, which is included in impairment on the Company’s accompanying consolidated statement of operations and comprehensive income. In September 2025, the Company finalized a settlement agreement for its Hurricane Helene claim with its insurance providers totaling $9.0 million. For damage due to Hurricane Milton, the Company recorded an insurance receivable for the remediation costs incurred and the estimate of the book value of the property and equipment written off in excess of the applicable deductibles. The Company is continuing to work with its insurance providers on its remaining Hurricane Milton claims. Through September 30, 2025, the Company received a total of $14.5 million in preliminary advances from the insurance providers for damage due to Hurricane Milton. For the nine months ended September 30, 2025, the Company recognized $11.4 million of business interruption insurance income and gain on insurance settlement for damage due to Hurricanes Helene and Milton. Impairment The Company reviews its investment in hotel properties for impairment whenever events or circumstances indicate potential impairment. The Company periodically adjusts its estimate of future operating cash flows and estimated hold periods for certain properties. As a result of this review, the Company may identify an impairment trigger has occurred and assess its investment in hotel properties for recoverability. During the nine months ended September 30, 2025, the Company recognized an impairment loss of $46.5 million for three hotels as a result of their fair values being lower than their carrying values. The impairment losses were determined using Level 2 inputs under authoritative guidance for fair value measurements using purchase and sale agreements and information from marketing efforts for these properties. During the nine months ended September 30, 2024, no impairment losses were incurred. Lease Assets and Lease Liabilities The Company recognized right-of-use assets and related liabilities related to its ground leases, all of which are operating leases. The Company recognized finance lease assets and related finance lease liabilities for properties subject to finance leases. When the rate implicit in the lease could not be determined, the Company used incremental borrowing rates, which ranged from 4.7% to 7.6%. In addition, the term used includes any options to exercise extensions when it is reasonably certain the Company will exercise such option. See Note 11. Commitments and Contingencies for additional information about the ground leases. The operating lease right-of-use assets and liabilities are amortized to ground rent expense over the term of the underlying lease agreements. As of September 30, 2025, the Company's lease liabilities consisted of operating lease liabilities of $333.1 million and financing lease liabilities of $44.4 million. As of December 31, 2024, the Company's lease liabilities consisted of operating lease liabilities of $320.7 million and financing lease liabilities of $44.0 million. The financing lease liabilities are included in accounts payable, accrued expenses and other liabilities on the Company's accompanying consolidated balance sheets.

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