Investment in Hotel Properties

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



	December 31, 2017			December 31, 2016
Land and improvements	$	291,054		$	274,554
Building and improvements	1,140,477			1,045,880
Furniture, fixtures and equipment	63,443			50,495
Renovations in progress	13,262			10,067
	1,508,236			1,380,996
Less: accumulated depreciation	(188,154		)	(147,902		)
Investment in hotel properties, net	$	1,320,082		$	1,233,094

During the year ended December 31, 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 flows attributable to the hotel over our remaining anticipated holding period and its expected value upon disposition to our carrying value for the hotel. 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 year ended December 31, 2017. Fair value was determined based on a discounted cash flow model using our estimates of future cash flows and 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.