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Acquisition of Hotel Properties
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisition of Hotel Properties Acquisition of Hotel Properties
During the year ended December 31, 2022, the Company acquired a 100% interest in the following property:
Property (1)LocationAcquisition DateManagement Company (1)RoomsPurchase Price (in thousands)
21c Hotel NashvilleNashville, TNJuly 29, 2022Accor Hotels124 $59,000 

(1)    During the year ended December 31, 2023, the Company converted this hotel to The Bankers Alley Hotel, a Tapestry Collection by Hilton, and transitioned management to an affiliate of Hilton.

The acquisition of the 21c Hotel Nashville was accounted for as an asset acquisition, whereby approximately $1.1 million of transaction costs were capitalized as part of the cost of the acquisition. The allocation of the costs for the property acquired was as follows (in thousands):
December 31, 2022
Land and improvements$19,807 
Buildings and improvements36,223 
Furniture, fixtures and equipment4,081 
Total purchase price $60,111 
During the year ended December 31, 2021, the Company acquired a 100% interest in the following properties:
PropertyLocationAcquisition DateManagement CompanyRoomsPurchase Price (in thousands)
Hampton Inn and Suites Atlanta Midtown Atlanta, GAAugust 5, 2021Aimbridge Hospitality186 $58,000 
AC Hotel Boston DowntownBoston, MAOctober 18, 2021Colwen Management205 89,000 
Moxy Denver Cherry Creek (1)Denver, CODecember 23, 2021Sage Hospitality170 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 improvements150,400 
Furniture, fixtures and equipment16,472 
Favorable lease asset4,294 
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.