Investment in Hotel Properties, net

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Investments in hotel properties, net consisted of the following (in thousands):



	March 31, 2016			December 31, 2015
Land	$	227,890		$	227,620
Buildings and improvements	1,015,068			1,017,086
Furniture, fixtures and equipment	66,265			68,529
Construction in progress	1,678			2,386
Total cost	1,310,901			1,315,621
Accumulated depreciation	(228,089		)	(224,142		)
Investments in hotel properties, net	$	1,082,812		$	1,091,479

Ritz-Carlton, St. Thomas

On December 15, 2015, we acquired a 100% interest in the Ritz-Carlton St. Thomas in St. Thomas, U.S. Virgin Islands for total consideration of $64.0 million. Subsequent to the close of the transaction, we completed the financing of a $42.0 million mortgage loan. See note 6. We prepared the preliminary purchase price allocation of the assets acquired and liabilities assumed. The final purchase price allocation was completed subsequent to December 31, 2015, with the assistance of a third-party appraisal firm. The final purchase price allocation resulted in adjustments to land, buildings and improvements and furniture, fixtures and equipment, which resulted in a $25,000 increase in depreciation expense for the three months ended March 31, 2016. We are in the process of evaluating the amounts of property level working capital balances. This valuation is considered a Level 3 valuation technique.

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed in the acquisition (in thousands):



	Preliminary Allocations as of December 31, 2015		Adjustments			Final Allocations as of March 31, 2016
Land	$	25,264	$	269		$	25,533
Buildings and improvements	34,853		(3,100		)	31,753
Furniture, fixtures, and equipment	3,883		2,831			6,714
	$	64,000	$	—		$	64,000