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Acquisition of Hotel Property
 9 Months Ended
Sep. 30, 2021
Business Combinations [Abstract]  
Acquisition of Hotel Property Acquisition of Hotel Property
 
During the nine months ended September 30, 2021, the Company acquired a 100% interest in the following property:
PropertyLocationAcquisition DateManagement CompanyRoomsPurchase Price (in thousands)
Hampton Inn and Suites Atlanta Midtown Atlanta, GAAugust 5, 2021Aimbridge Hospitality186 $58,000 

The acquisition of the Hampton Inn and Suites Atlanta Midtown was accounted for as an asset acquisition, whereby approximately $0.8 million of transactions costs were capitalized as part of the cost of the asset acquisition. The allocation of the costs for the property acquired was as follows (in thousands):
September 30, 2021
Land and improvements$5,983 
Buildings and improvements48,267 
Furniture, fixtures and equipment4,563 
Total purchase price $58,813 

The value of the assets acquired was primarily based on a sales comparison approach (for land) and a depreciated replacement cost approach (for building and improvements and furniture, fixtures and equipment). The sales comparison approach uses inputs of recent land sales in the respective hotel markets. The depreciated replacement cost approach uses inputs of both direct and indirect replacement costs using a nationally recognized authority on replacement cost information as well as the age, square footage and number of rooms of the respective assets.