Hotel Disposition and Impairment Charges

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Hotel Disposition and Impairment Charges

Hotel Disposition and Impairment ChargesHotel Dispositions

On September 1, 2022, the Company sold the Sheraton in Ann Arbor, MI (“Sheraton Ann Arbor”) for total consideration of approximately $35.7 million, which included cash of $34.5 million and an interest-free receivable with an estimated fair value of $1.2 million and a face value of $1.5 million. The payment of the $1.5 million is deferred until the last day of the twenty-fourth month following the closing date. The sale resulted in a loss of approximately $29,000 for the three and nine months ended September 30, 2022, which was included in “gain (loss) on sale of assets and hotel properties” in the consolidated statements of operations. The Company also repaid the $30.0 million mortgage loan secured by the hotel property. See note 7.

The 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 and 2022 hotel property dispositions. The following table includes condensed financial information from hotel property dispositions that occurred in 2021 and 2022 for the three and nine months ended September 30, 2022 and 2021 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total hotel revenue	$	2,088	$	2,092	$	5,544	$	4,345
Total hotel operating expenses	(1,285)		(1,326)		(4,261)		(4,114)
Gain (loss) on disposition of assets and hotel properties	4		—		4		237
Property taxes, insurance and other	(134)		(148)		(433)		(565)
Depreciation and amortization	—		(590)		(1,203)		(2,030)

Operating income (loss)	673		28		(349)		(2,127)

Interest expense and amortization of discounts and loan costs	(207)		(359)		(955)		(1,691)

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


Income (loss) before income taxes	466		(331)		(1,304)		6,786

(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership	(4)		3		8		(53)
Net income (loss) before income taxes attributable to the Company	$	462	$	(328)	$	(1,296)	$	6,733

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