Investments in Hotel Properties, net

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

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


	December 31, 2020		December 31, 2019
Land	$	455,298	$	455,298
Buildings and improvements	1,190,437		1,173,151
Furniture, fixtures and equipment	127,692		129,595
Construction in progress	11,422		33,130
Total cost	1,784,849		1,791,174
Accumulated depreciation	(360,259)		(309,752)
Investments in hotel properties, net	$	1,424,590	$	1,481,422

The cost of land and depreciable property, net of accumulated depreciation, for U.S. federal income tax purposes was approximately $1.3 billion and $1.3 billion as of December 31, 2020 and 2019, respectively.

For the years ended December 31, 2020, 2019 and 2018, depreciation expense was $72.8 million, $69.5 million and $56.8 million, respectively.

Impairment Charges and Insurance Recoveries

In September 2020, the Company reached a final settlement with its insurance carriers related to Hurricane Irma. Upon settlement, the Company recorded a gain of $10.1 million as the proceeds received exceeded the carrying value of the hotel property at the time of the loss. Additionally, for the year ended December 31, 2019, the Company recorded a gain of $26.2 million upon settlement of a portion of the insurance claim.

For the years ended December 31, 2020, 2019 and 2018, the Company received proceeds of $14.5 million, $36.6 million and $48.1 million, respectively, from our insurance carriers for property damage and business interruption from Hurricane Irma.

During the years ended December 31, 2020 and 2019, no impairment charges were recorded. During the year ended December 31, 2018, the Company recorded an impairment charge of $71,000, as a result of a change in estimate of property

damage as a result of the hurricanes Maria and Irma. During the year ended December 31, 2019, the Company recorded a loss of $1.2 million related to the disposition of FF&E resulting from the renovation at The Notary Hotel. As of December 31, 2019, the Company had a net liability of $2.2 million included in “other liabilities” on the consolidated balance sheet, as it had received insurance proceeds in excess of the sum of its impairment, remediation expenses and business interruption revenue recorded through December 31, 2019.