Dispositions, Impairment Charges and Assets Held For Sale

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

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 from 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