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Dispositions, Impairment Charges and Assets Held For Sale | 6 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Dispositions, Impairment Charges and Assets Held For Sale | Dispositions, Impairment Charges and Assets Held For Sale Dispositions On January 10, 2025, the Company completed the sale of the 315-room Courtyard Boston Downtown located in Boston, Massachusetts, for $123.0 million, subject to customary pro rations and adjustments, resulting in a recognized gain of $31.9 million. This gain is reported within “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the Company’s consolidated statement of operations. On April 14, 2025, the Residence Inn Orlando sold a parcel of land for $7.2 million, net of selling expenses, resulting in a recognized gain of $6.7 million. This gain is reported within “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the Company’s consolidated statements of operations. On May 19, 2025, the Company sold state tax credits held by the Le Méridien Fort Worth property for $18.8 million in cash. The results of operations for disposed and derecognized hotel properties are included in net income (loss) through the date of disposition. See note 2 for the fiscal year 2024 and 2025 dispositions. The following table includes condensed financial information f rom the Company’s dispositions (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Total hotel revenue | $ | — |  |  | $ | 18,285 |  |  | $ | 159 |  |  | $ | 54,671 |  |  |
Total hotel operating expenses | — |  |  | (11,755) |  |  | (363) |  |  | (38,798) |  |  |
Property taxes, insurance and other | — |  |  | (1,196) |  |  | 180 |  |  | (4,167) |  |  |
Depreciation and amortization | — |  |  | (1,261) |  |  | — |  |  | (5,482) |  |  |
Total operating expenses | — |  |  | (14,212) |  |  | (183) |  |  | (48,447) |  |  |
Gain (loss) on consolidation of VIE and disposition of assets and hotel properties | — |  |  | 87,441 |  |  | 31,868 |  |  | 94,397 |  |  |
Gain (loss) on derecognition of assets | — |  |  | 11,725 |  |  | 10,046 |  |  | 145,634 |  |  |
Operating income (loss) | — |  |  | 103,239 |  |  | 41,890 |  |  | 246,255 |  |  |
Interest income | — |  |  | 65 |  |  | — |  |  | 166 |  |  |
Interest expense and amortization of discounts and loan costs | — |  |  | (3,989) |  |  | (126) |  |  | (10,298) |  |  |
Interest expense associated with hotels in receivership | — |  |  | (11,944) |  |  | (10,046) |  |  | (24,042) |  |  |
Write-off of premiums, loan costs and exit fees | — |  |  | (850) |  |  | — |  |  | (838) |  |  |
Gain (loss) on extinguishment of debt | — |  |  | — |  |  | — |  |  | 45 |  |  |
Income (loss) before income taxes | — |  |  | 86,521 |  |  | 31,718 |  |  | 211,288 |  |  |
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership | — |  |  | (1,090) |  |  | (507) |  |  | (2,651) |  |  |
Net income (loss) attributable to the Company | $ | — |  |  | $ | 85,431 |  |  | $ | 31,211 |  |  | $ | 208,637 |  |  |
Impairment Charges For the three and six months ended June 30, 2025, we recorded an impairment charge of $1.4 million at the Residence Inn Evansville as a result of reduced estimated cash flows resulting from changes to the expected holding period of the hotel property. The impairment charge was based on the market approach methodology which compares the net book value of the assets to their fair market value, which is considered a Level 3 valuation technique. For the three and six months ended June 30, 2024, no impairment charges were recorded related to hotel properties. Assets Held For Sale On May 22, 2025 and May 31, 2025, the Company entered into purchase and sale agreements for the Houston Hilton NASA Clear Lake in Houston, Texas and Residence Inn Evansville in Evansville, Indiana, respectively. As of June 30, 2025, both properties were classified as held for sale. Depreciation and amortization ceased as of the date the assets were deemed held for sale. Since the sale of these hotels does not represent a strategic shift that has (or will have) a major effect on our operations or financial results, their results of operations were not reported as discontinued operations in the consolidated financial statements. The Residence Inn Evansville sale closed on August 11, 2025. See note 18. The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheet were as follows:
| June 30, 2025 |
Assets |  |
Investments in hotel properties, gross | $ | 26,267 |  |
Accumulated depreciation | (9,871) |  |
Investments in hotel properties, net | 16,396 |  |
Cash and cash equivalents | 1,310 |  |
Restricted cash | 710 |  |
Accounts receivable, net | 296 |  |
Inventories | 49 |  |
Deferred costs, net | 8 |  |
Other assets | 135 |  |
Assets held for sale | $ | 18,904 |  |
Liabilities |  |
Indebtedness, net | $ | 27,234 |  |
Accounts payable and accrued expenses | 1,499 |  |
Accrued interest | 229 |  |
Due to related parties, net | 127 |  |
Due to Ashford Inc., net | 64 |  |
Liabilities related to assets held for sale | $ | 29,153 |  |

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