Investment in Hotel Properties, net (Tables)

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of Investment in Hotel Properties

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



	September 30, 2019			December 31, 2018
Land	$	455,298		$	428,567
Buildings and improvements	1,106,503			989,180
Furniture, fixtures and equipment	109,715			103,025
Construction in progress	96,644			42,034
Total cost	1,768,160			1,562,806
Accumulated depreciation	(296,557		)	(262,905		)
Investments in hotel properties, net	$	1,471,603		$	1,299,901

We accounted for this transaction as an asset acquisition because substantially all of the fair value of the gross assets acquired were concentrated in a group of similar identifiable assets. We allocated the cost of the acquisition including transaction costs to the individual assets acquired and liabilities assumed on a relative fair value basis, which is considered a Level 3 valuation technique, as noted in the following table (in thousands):



Land ⁽¹⁾	$	26,731
Buildings and improvements	89,569
Furniture, fixtures and equipment	2,034
	$	118,334
Capital reserves	6,117
Key money	(3,811		)
	$	120,640
Net other assets (liabilities)	$	510

________


⁽¹⁾	Amount includes the value of a 3.4-acre parking lot adjacent to the hotel which could be used for future development of luxury town homes.

The results of operations of the hotel property have been included in our results of operations as of the acquisition date. The table below summarizes the total revenue and net income (loss) in our condensed consolidated statements of operations for the three and nine months ended September 30, 2019 (in thousands):



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Total revenue	$	12,206	$	31,624
Net income (loss)	$	643	$	469