Investment in Hotel Properties

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

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


	September 30, 2022		December 31, 2021
Land and improvements	$	991,267	$	975,688
Buildings and improvements	4,011,832		4,001,875
Furniture, fixtures and equipment	722,589		691,057
	5,725,688		5,668,620
Accumulated depreciation	(1,554,260)		(1,449,504)
Investment in hotel properties, net	$	4,171,428	$	4,219,116

For the three and nine months ended September 30, 2022, the Company recognized depreciation expense related to its investment in hotel properties of approximately $46.5 million and $139.9 million, respectively. 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.

Impairments

During the nine months ended September 30, 2021, the Company recorded impairment losses of $5.9 million related to two hotel properties to adjust the hotels' carrying amounts to their estimated fair values. This impairment was recorded during the three months ended March 31, 2021. In addition, the Company recorded an impairment loss of $138.9 million to write down the Doubletree Metropolitan Hotel New York City to its estimated fair value as of September 30, 2021 of $153.0 million. This hotel property was sold in December 2021. The fair values were determined based on the contractual sales price pursuant to an executed purchase and sale agreement (a Level 2 measurement in the fair value hierarchy). There were no impairment losses recorded during the nine months ended September 30, 2022.