Investment in Hotel Properties

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Investment in hotel properties consisted of the following (in thousands):


	September 30, 2021		December 31, 2020
Land and improvements	$	1,030,035	$	1,089,597
Buildings and improvements	4,020,434		4,084,712
Furniture, fixtures and equipment	695,470		697,404
	5,745,939		5,871,713
Accumulated depreciation	(1,487,236)		(1,385,297)
Investment in hotel properties, net	$	4,258,703	$	4,486,416

For the three and nine months ended September 30, 2021, the Company recognized depreciation expense related to its investment in hotel properties of approximately $46.9 million and $140.5 million, respectively. For the three and nine months ended September 30, 2020, the Company recognized depreciation expense related to its investment in hotel properties of approximately $48.2 million and $146.1 million, respectively.

Impairments

During the nine months ended September 30, 2021, the Company entered into purchase and sale agreements to sell two hotel properties with an aggregate book value of approximately $18.5 million. The Company recorded impairment losses of $5.9 million to write down the hotel properties to fair value during the three months ended March 31, 2021. The sales of these two hotel properties closed in May 2021.

The Company evaluated the recoverability of the carrying value of the DoubleTree Metropolitan Hotel New York City and determined that the carrying value of this hotel property was not recoverable. As a result, the Company recorded an impairment

loss of $138.9 million to write down the hotel property to its estimated fair value as of September 30, 2021 of $153.0 million. The estimated fair value was determined using the market approach with observable inputs other than quoted prices (Level 2 inputs in the fair value hierarchy as discussed in footnote 10, Fair Value).