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Dispositions, Impairment Charges and Assets Held For Sale

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Dispositions, Impairment Charges and Assets Held For Sale

Dispositions, Impairment Charges and Assets Held For SaleDispositionsOn August 1, 2023, the Company sold the WorldQuest Resort in Orlando, Florida (“WorldQuest”) for $14.8 million in cash. The sale resulted in a gain of approximately $6.4 million for the three and nine months ended September 30, 2023, which was included in “gain (loss) on consolidation of VIE and disposition of assets” in the consolidated statements of operations.The results of operations for disposed hotel properties are included in net income (loss) through the date of disposition. See note 2 for the fiscal year 2022 and 2023 dispositions. The following table includes condensed financial information for the three and nine months ended September 30, 2023 and 2022 from the Company’s dispositions (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Total hotel revenue	$	351	$	3,455	$	2,942	$	10,064
Total hotel operating expenses	(1,570)		(2,498)		(3,872)		(7,800)
Gain (loss) on disposition of assets and hotel properties	6,389		(29)		6,389		244
Property taxes, insurance and other	(39)		(197)		(164)		(617)
Depreciation and amortization	—		(122)		(163)		(1,580)

Operating income (loss)	5,131		609		5,132		311
Interest income	—		—		—		1
Interest expense and amortization of discounts and loan costs	—		(207)		—		(955)


Income (loss) before income taxes	5,131		402		5,132		(643)
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership	(66)		(4)		(57)		5
Net income (loss) before income taxes attributable to the Company	$	5,065	$	398	$	5,075	$	(638)

Impairment ChargesFor the three and nine months ended September 30, 2023 and 2022, no impairment charges were recorded.

Assets Held For Sale

On August 4, 2023, the Company entered into a purchase and sale agreement for the Sheraton Bucks County hotel in Langhorne, Pennsylvania. As of September 30, 2023, the Sheraton Bucks County was classified as held for sale. 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 Sheraton Bucks County 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. See note 19.

The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheet at September 30, 2023 were as follows:


	September 30, 2023
Assets
Investments in hotel properties, net	$	9,458
Cash and cash equivalents	556
Restricted cash	286
Accounts receivable, net	228
Inventories	43
Deferred costs, net	3
Prepaid expenses	193


Other assets	49
Due from related party, net	57
Due from Ashford Inc., net	9

Assets held for sale	$	10,882

Liabilities
Indebtedness, net	$	9,247
Accounts payable and accrued expenses	510
Accrued interest	38






Liabilities related to assets held for sale	$	9,795