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Fair Value of Assets and Liabilities
 12 Months Ended
Dec. 31, 2011
Fair Value of Assets and Liabilities  
Fair Value of Assets and Liabilities

12. Fair Value of Assets and Liabilities

        The table below presents certain of our assets carried at fair value at December 31, 2011, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.

 
    
   Fair Value at Reporting Date Using  
Description
  Total   Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) 		  Significant
Unobservable
Inputs
(Level 3) 		  Total Gains
(Losses), Net 		 

Properties held for sale(1)

   $ 123,025   $ —   $ 123,025   $ (11,418 )

Investment securities(2)

   $ 10,795   $ 10,795   $ —   $ —  
(1)
Our properties held for sale are reported at estimated fair value less costs to sell and consist of 21 hotel properties we were marketing for sale at December 31, 2011. In connection with our decision to pursue the sale of these 21 Marriott hotels as described in Note 4, we classified the hotels as held for sale and recorded a $11,418, or $0.09 per share, loss on asset impairment during 2011 to reduce the carrying value of 17 of these hotels to their estimated fair value less costs to sell. We estimated the fair value of these hotels using standard valuation techniques and estimates of value developed by hotel brokerage firms (Level 3 inputs). Three InterContinental branded hotels with a carrying value of $46,745 were removed from held for sale status in August 2011. We are no longer marketing these hotels for sale and are currently evaluating rebranding alternatives for these hotels.

(2)
Our investment securities, including our 2,540,000 shares of TA, which are included in other assets, are reported at fair value which is based on quoted market prices (Level 1 inputs).

        In addition to the investment securities included in the table above, our financial instruments include our cash and cash equivalents, restricted cash, revolving credit facility, senior notes and mortgage notes payable and security deposits. At December 31, 2011 and December 31, 2010, the fair values of these additional financial instruments were not materially different from their carrying values, except as follows:

 
   December 31, 2011   December 31, 2010  
 
   Carrying
Amount 		  Fair
Value 		  Carrying
Amount 		  Fair
Value 		 

Mortgage Note, due 2011 at 8.3%

   $ —   $ —   $ 3,383   $ 3,408  

Senior Notes, due 2012 at 6.85%

     100,829     105,407     100,829     109,897  

Senior Notes, due 2013 at 6.75%

     287,000     301,871     287,000     315,364  

Senior Notes, due 2014 at 7.875%

     300,000     333,887     300,000     349,974  

Senior Notes, due 2015 at 5.125%

     280,000     290,052     280,000     296,782  

Senior Notes, due 2016 at 6.3%

     275,000     291,572     275,000     297,795  

Senior Notes, due 2017 at 5.625%

     300,000     313,106     300,000     316,846  

Senior Notes, due 2018 at 6.7%

     350,000     386,942     350,000     392,303  

Convertible Senior Notes, due 2027 at 3.8%

     79,054     80,087     79,054     81,579  

Unamortized discounts

     (5,169 )   —     (8,043 )   —  
                   

Total financial liabilities

   $ 1,966,714   $ 2,102,924   $ 1,967,223   $ 2,163,948  
                   

        We estimate the fair value of our indebtedness using discounted cash flow analyses and currently prevailing market interest rates (Level 3 inputs).