Fair Value of Assets and Liabilities

9 Months Ended

Sep. 30, 2022

Note 13. Fair Value of Assets and Liabilities

The table below presents certain of our assets carried at fair value at September 30, 2022, 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 Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring Fair Value Measurement Assets:
Investment in TA (1)	$	63,896	$	63,896	$	—	$	—
Non-Recurring Fair Value Measurement Assets:

Assets of properties held for sale (2)	$	20,553	$	—	$	20,553	$	—

(1)See Note 6 for further information regarding our investment in TA.

(2)We recorded a loss on impairment of $7,305 during the nine months ended September 30, 2022 and $17,741 during the twelve months ended December 31, 2021 to reduce the carrying values of three of the 22 hotels classified as held for sale as of September 30, 2022 and three net lease properties classified as held for sale as of September 30, 2022, with an aggregate carrying value of $20,553, to their estimated fair value less costs to sell based on offers received from third parties (Level 2 inputs as defined in the fair value hierarchy under GAAP).

In addition to the assets included in the table above, our financial instruments include our cash and cash equivalents, restricted cash, rents receivable, revolving credit facility and senior notes. At September 30, 2022 and December 31, 2021, the fair values of these additional financial instruments approximated their carrying values in our condensed consolidated balance sheets due to their short-term nature or floating interest rates, except as follows:


	September 30, 2022				December 31, 2021
	Carrying Value (1)		Fair Value		Carrying Value (1)		Fair Value
Senior Unsecured Notes, due 2022 at 5.00%	$	—	$	—	$	499,244	$	501,033
Senior Unsecured Notes, due 2023 at 4.50%	499,884		488,125		499,761		505,378
Senior Unsecured Notes, due 2024 at 4.65%	349,409		323,750		349,105		347,039
Senior Unsecured Notes, due 2024 at 4.35%	822,120		725,555		821,017		821,184
Senior Unsecured Notes, due 2025 at 4.50%	348,321		292,499		347,806		342,493
Senior Unsecured Notes, due 2025 at 7.50%	793,089		748,000		791,340		867,712
Senior Unsecured Notes, due 2026 at 5.25%	346,189		278,702		345,342		348,537
Senior Unsecured Notes, due 2026 at 4.75%	447,584		339,611		447,126		439,889
Senior Unsecured Notes, due 2027 at 4.95%	396,727		296,516		396,160		395,862
Senior Unsecured Notes, due 2027 at 5.50%	444,222		365,544		443,383		461,522
Senior Unsecured Notes, due 2028 at 3.95%	393,919		271,756		393,057		370,562
Senior Unsecured Notes, due 2029 at 4.95%	419,486		291,078		418,895		407,448
Senior Unsecured Notes, due 2030 at 4.375%	391,637		262,484		390,786		370,836
Total financial liabilities	$	5,652,587	$	4,683,620	$	6,143,022	$	6,179,495

(1)Carrying value includes unamortized discounts and premiums and issuance costs.

At September 30, 2022 and December 31, 2021, we estimated the fair values of our senior notes using an average of the bid and ask price of our then outstanding issuances of senior notes (Level 2 inputs).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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