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Investment in Hotel Properties

12 Months Ended

Dec. 31, 2021

Investment in hotel properties, net

Investment in hotel properties, net as of December 31, 2021 and 2020 consisted of the following (in thousands):


	December 31, 2021		December 31, 2020
Land and improvements	$	291,768	$	287,049
Building and improvements	1,258,845		1,195,276
Furniture, fixtures and equipment	91,110		84,381
Renovations in progress	7,869		11,225
	1,649,592		1,577,931
Less: accumulated depreciation	(366,722)		(312,757)
Investment in hotel properties, net	$	1,282,870	$	1,265,174

During the year ended December 31, 2021, the Company entered into a purchase and sale agreement to sell a hotel property with a net book value of $28.3 million. The Company recorded an impairment loss of $5.6 million to write down the hotel property to fair value. The sale of the hotel property may close during the first quarter of 2022. This hotel is not presented as held for sale at this point given uncertainties around whether the sale will ultimately close.

Investment in hotel properties under development

We are developing a Home2 Suites by Hilton hotel in the Warner Center submarket of Los Angeles, CA on a parcel of land owned by us. We have incurred $67.6 million of costs to date, which includes $6.6 million of land acquisition costs and $61.0 million of other development costs. We expect the total development costs for construction of the hotel to be approximately $70.0 million, which includes the cost of the land. This hotel opened on January 24, 2022.