XML 24 R12.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Acquisition of Hotel Properties | 12 Months Ended
--- | ---
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract] |
Acquisition of Hotel Properties | Acquisition of Hotel Properties During the year ended December 31, 2021, the Company acquired a 100% interest in the following properties:
Property |  | Location |  | Acquisition Date |  | Management Company |  | Rooms |  | Purchase Price (in thousands)
Hampton Inn and Suites Atlanta Midtown |  | Atlanta, GA |  | August 5, 2021 |  | Aimbridge Hospitality |  | 186 |  |  | $ | 58,000 |
AC Hotel Boston Downtown |  | Boston, MA |  | October 18, 2021 |  | Colwen Management |  | 205 |  |  | $ | 89,000 |
Moxy Denver Cherry Creek (1) |  | Denver, CO |  | December 23, 2021 |  | Sage Hospitality |  | 170 |  |  | $ | 51,250 |
|  |  |  |  |  |  |  | 561 |  |  | $ | 198,250 |
(1) In connection with this acquisition, the Company assumed a $25.0 million mortgage loan with a fair value at assumption of $27.6 million. The hotel properties acquired were accounted for as asset acquisitions, whereby approximately $2.0 million of transaction costs were capitalized as part of the cost of the asset acquisitions. The allocation of the costs for the properties acquired was as follows (in thousands):
| December 31, 2021
Land and improvements | $ | 32,550 |  |  |
Buildings and improvements | 150,400 |  |  |
Furniture, fixtures and equipment | 16,472 |  |  |
Favorable lease asset | 4,294 |  |  |
Fair value adjustment on mortgage debt assumed | (2,554) |  |  |
Other liability | (898) |  |  |
Total purchase price | $ | 200,264 |  |  |
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 used inputs of recent land sales in the respective hotel markets. The depreciated replacement cost approach used 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. The fair value of the assumed mortgage debt was based on a discounted cash flow model and incorporated various inputs and assumptions for the effective borrowing rates for debt with similar terms. The fair value of the ground lease was based on the present value of the difference between the contractual rental amount paid according to the ground lease agreement and the market rental rates for similar leases, measured over a period equal to the remaining non-cancelable term of the ground lease.

X
- Definition The entire disclosure for asset acquisition. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 50 -Section 15 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6911878&loc=d3e8732-128492 + Details
Name: | us-gaap_AssetAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration