Intangible Assets, net and Intangible Liability, net

Intangible assets, net and intangible liability, net consisted of the following (in thousands):



	Intangible Assets, net						Intangible Liability, net
	December 31,						December 31,
	2018			2017			2018		2017
Cost	$	29,732		$	24,050		$	—	$	4,179
Accumulated amortization	(2,054		)	(1,505		)	—		(610		)
	$	27,678		$	22,545		$	—	$	3,569

Intangible assets represents favorable market-rate leases which relate to the acquisitions of the Hilton La Jolla Torrey Pines hotel in La Jolla, CA and the Bardessono Hotel in Yountville, CA, which are being amortized over the lease terms with expiration dates of 2067 and 2105, respectively. Intangible assets also include the customer relationships associated with the Ritz-Carlton, Sarasota acquisition on April 4, 2018. The customer relationships are being amortized over the 15 year expected life.

The intangible liability represented an unfavorable market-rate lease which related to the acquisition of the Tampa Renaissance in Tampa, FL, which was being amortized over the remaining initial lease term that was set to expire in 2080. The hotel property was sold on June 1, 2018. The unamortized balance was written off as of the time of the sale and included in the calculation of gain/loss. See note 5.

For the years ended December 31, 2018, 2017 and 2016, amortization related to intangible assets was $549,000, $301,000 and $314,000, respectively, and amortization related to the intangible liability was $23,000, $56,000 and $57,000, respectively.

As discussed in note 2, we will adopt ASU 2016-02 effective January 1, 2019. Upon adoption, we will derecognize the assets and/or liabilities previously recognized associated with favorable/unfavorable market-rate leases where we are the lessee. The carrying amount of the ROU assets will then be adjusted by the corresponding amount. The effect on the estimated future amortization expense for intangible assets for each of the next five years and thereafter is as follows (in thousands):



	Intangible Assets
	Estimated Future Amortization Expense Pre-Adoption		Impact Due To Adoption of ASU 2016-02			Estimated Future Amortization Expense Post-Adoption
2019	$	632	$	(253	)	$	379
2020	632		(253		)	379
2021	632		(253		)	379
2022	632		(253		)	379
2023	632		(253		)	379
Thereafter	24,518		(21,015		)	3,503
Total	$	27,678	$	(22,280	)	$	5,398