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Hotel Disposition, Impairment Charges, and Assets Held For Sale

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Hotel Disposition, Impairment Charges, and Assets Held For Sale

Hotel Disposition, Impairment Charges and Assets Held For SaleHotel DispositionsThe results of operations for disposed hotel properties are included in net income (loss) through the date of disposition. See note 2 for a list of fiscal year 2021 hotel property dispositions. There were no hotel dispositions for the three and six months ended June 30, 2022. The following table includes condensed financial information from hotel property dispositions that occurred in 2021 for the three and six months ended June 30, 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Total hotel revenue	$	—	$	345	$	—	$	1,160
Total hotel operating expenses	—		(366)		—		(1,345)
Gain (loss) on disposition of assets and hotel properties	—		361		—		237
Property taxes, insurance and other	—		(23)		—		(141)
Depreciation and amortization	—		(41)		—		(206)

Operating income (loss)	—		276		—		(295)

Interest expense and amortization of discounts and loan costs	—		(162)		—		(624)

Gain (loss) on extinguishment of debt	—		10,604		—		10,604


Income (loss) before income taxes	—		10,718		—		9,685

(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership	—		(143)		—		(182)
Net income (loss) before income taxes attributable to the Company	$	—	$	10,575	$	—	$	9,503

Impairment ChargesFor the three and six months ended June 30, 2022 and 2021, no impairment charges were recorded.

Assets Held For Sale

On June 7, 2022, the Company entered into a purchase and sale agreement for the Ann Arbor Sheraton. At June 30, 2022, the Sheraton Ann Arbor was classified as held for sale in the consolidated balance sheet. We classify assets as held for sale when we have obtained a firm commitment from a buyer, and consummation of the sale is considered probable and expected within one year. Depreciation and amortization ceased as of the date the assets were deemed held for sale. Since the sale of the hotel property does not represent a strategic shift that has (or will have) a major effect on our operations or financial results, its results of operations were not reported as discontinued operations in the consolidated financial statements.

The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheet at June 30, 2022 were as follows:


	June 30, 2022
Assets
Investments in hotel properties, net	$	35,175
Cash and cash equivalents	584
Restricted cash	560
Accounts receivable, net	41
Inventories	50
Deferred costs, net	55
Prepaid expenses	67

Other assets	3



Assets held for sale	$	36,535

Liabilities
Indebtedness, net	$	29,700
Accounts payable and accrued expenses	915
Accrued interest	73






Liabilities related to assets held for sale	$	30,688