Investment in Hotel and Other Properties

Investment in Hotel and Other Properties

Investment in hotel and other properties as of September 30, 2013 and December 31, 2012 consisted of the following (in thousands):



	September 30, 2013			December 31, 2012
Land and land improvements	$	587,348		$	563,524
Buildings and improvements	2,834,524			2,655,086
Furniture, fixtures and equipment	465,070			438,807
Intangibles	2,199			1,857
	3,889,141			3,659,274
Accumulated depreciation and amortization	(676,852		)	(585,791		)
Investment in hotel and other properties, net	$	3,212,289		$	3,073,483

For the three and nine months ended September 30, 2013, depreciation and amortization expense related to investment in hotel and other properties was approximately $31.5 million and $94.5 million (excluding discontinued operations), respectively. For the three and nine months ended September 30, 2012, depreciation and amortization expense related to investment in hotel and other properties was approximately $30.7 million and $95.4 million (excluding discontinued operations), respectively.

Impairment

The Company determined that there was no impairment of any assets for the three and nine months ended September 30, 2013.

During the quarter ended September 30, 2012, the Company recorded an impairment loss of $0.9 million related to the Fairfield Inn Memphis. The Company evaluated the recoverability of the hotel’s carrying value given deteriorating operating results for the period ending September 30, 2012. Based on an analysis of estimated undiscounted net cash flow, the Company concluded that the carrying value of the hotel was not recoverable. The Company estimated the fair value of the hotel using a discounted cash flow analysis. In the analysis, the Company estimated the future net cash flows from the hotel, the expected useful life and holding period, and applicable capitalization and discount rates.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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