Intangible Assets, net

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

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



	December 31,
	2020		2019
Cost	$	5,682	$	5,682
Accumulated amortization	(1,042)		(663)
	$	4,640	$	5,019

As of December 31, 2018, intangible assets represented 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 and Spa 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.

Prior to June 1, 2018 we held an intangible liability that 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.

Following the adoption of ASC 842 on January 1, 2019, we derecognized the intangible assets associated with favorable market-rate leases where we are the lessee in the amount of $22.3 million. The carrying amount of the ROU assets was then adjusted by the corresponding amount. See notes 2 and 18. As a result, as of December 31, 2020, intangible assets include the customer relationships associated with The Ritz-Carlton Sarasota acquisition only.

For the years ended December 31, 2020, 2019 and 2018, amortization related to intangible assets was $379,000, $379,000 and $549,000, respectively, and amortization related to the intangible liability was $0, $0 and $23,000, respectively.

Estimated future amortization expense for intangible assets, net for each of the next five years and thereafter is as follows (in thousands):


	Intangible Assets, net

2021	$	379
2022	379
2023	379
2024	379
2025	379
Thereafter	2,745
Total	$	4,640