Investment in Hotel Properties

Investment in hotel properties as of September 30, 2017 and December 31, 2016 consisted of the following (in thousands):



	September 30, 2017			December 31, 2016
Land and improvements	$	284,655		$	274,554
Building and improvements	1,087,046			1,045,880
Furniture, fixtures and equipment	59,040			50,495
Renovations in progress	14,807			10,067
	1,445,548			1,380,996
Less: accumulated depreciation	(182,365		)	(147,902		)
Investment in hotel properties, net	$	1,263,183		$	1,233,094

During the nine months ended September 30, 2017, the Company identified indicators of impairment at its Washington SHS, PA hotel, primarily due to decreased operating performance and continued economic weakness. As such, the Company was required to perform a test of recoverability. This test compared the sum of the estimated future undiscounted cash flow attributable to the hotel over its remaining anticipated holding period and to its disposition. The Company determined that the estimated undiscounted future cash flow attributable to the hotel did not exceed its carrying value and an impairment existed. As a result, the Company recorded a $6.7 million impairment charge in the consolidated statements of operations during the nine months ended September 30, 2017. Fair value was determined based on a discounted cash flow model using third-party market data, considered Level 3 inputs. We may record additional impairment charges if operating results of this hotel are materially different from our forecasts, the economy and lodging industry weakens, or we shorten our contemplated holding period.