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Investments in Hotel Properties, net | 12 Months Ended
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Dec. 31, 2022
Property, Plant and Equipment [Abstract] |
Investments in Hotel Properties, net | Investments in Hotel Properties, net Investments in hotel properties, net consisted of the following (in thousands):
|  | December 31, 2022 |  | December 31, 2021
Land |  | $ | 630,489 |  |  | $ | 480,530 |
Buildings and improvements |  | 1,511,949 |  |  | 1,215,810 |
Furniture, fixtures and equipment |  | 147,019 |  |  | 123,954 |
Construction in progress |  | 22,890 |  |  | 12,038 |
Residences |  | 12,746 |  |  | 12,746 |
Total cost |  | 2,325,093 |  |  | 1,845,078 |
Accumulated depreciation |  | (440,492) |  |  | (399,481) |
Investments in hotel properties, net |  | $ | 1,884,601 |  |  | $ | 1,445,597 |
For the years ended December 31, 2022, 2021 and 2020, depreciation expense was $78.0 million, $73.0 million and $72.8 million, respectively. Impairment Charges and Insurance Recoveries For the year ended December 31, 2020, the Company received proceeds of $14.5 million from our insurance carriers for property damage and business interruption from Hurricane Irma. 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. For the year ended December 31, 2021, we recognized a gain of $481,000 associated with proceeds received from an insurance claim. There was no such gain recognized for the year ended December 31, 2022. During the years ended December 31, 2022, 2021 and 2020, no impairment charges were recorded. The Ritz-Carlton Reserve Dorado Beach On March 11, 2022, the Company acquired a 100% interest in the 96-room Ritz-Carlton Reserve Dorado Beach in Dorado, Puerto Rico. The total consideration consisted of $104.0 million of cash and 6.0 million shares of the Company’s common stock with a fair value of approximately $35.0 million. Additionally, the Company assumed a $54.0 million mortgage loan with a fair value of approximately $58.6 million. See note 6 for further discussion regarding the mortgage loan. On March 14, 2022, the Company filed a resale registration statement on Form S-3, which was declared effective by the SEC on April 1, 2022, to register for resale the 6.0 million shares of common stock. We accounted for this acquisition 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. The cost of the acquisition including transaction costs of approximately $1.9 million, was allocated to the individual assets acquired and liabilities assumed on a relative fair value basis, which 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):
Land | $ | 79,711 |
Buildings and improvements | 102,105 |
Furniture, fixtures and equipment | 15,405 |
Investments in hotel properties | 197,221 |
Restricted cash | 1,091 |
Inventories | 1,184 |
Mortgage loan | (58,601) |
| $ | 140,895 |
Net other assets (liabilities) | $ | (9,966) |
The results of operations of the hotel property have been included in our results of operations from the acquisition date. The table below summarizes the total revenue and net income (loss) in our consolidated statements of operations for the year ended December 31, 2022:
|  |  | Year Ended December 31, 2022 |  |  |  |
Total revenue |  |  | $ | 61,246 |  |  |  |  |
Net income (loss) |  |  | 7,583 |  |  |  |  |
Four Seasons Resort Scottsdale On December 1, 2022, the Company acquired a 100% interest in the 210-room Four Seasons Resort Scottsdale at Troon North in Scottsdale, Arizona. The total consideration for the acquisition was $267.8 million. We accounted for this acquisition 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. The cost of the acquisition including transaction costs of approximately $538,000, was allocated to the individual assets acquired and liabilities assumed on a relative fair value basis, which 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):
Land | $ | 70,248 |
Buildings and improvements | 181,560 |
Furniture, fixtures and equipment | 16,050 |
Investments in hotel properties | 267,858 |
Inventories | 480 |
| $ | 268,338 |
Net other assets (liabilities) | $ | (691) |
The results of operations of the hotel property have been included in our results of operations from the acquisition date. The table below summarizes the total revenue and net income (loss) in our consolidated statements of operations for the year ended December 31, 2022:
|  |  | Year Ended December 31, 2022 |  |  |  |
Total revenue |  |  | $ | 5,194 |  |  |  |  |
Net income (loss) |  |  | 934 |  |  |  |  |

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- Definition The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 6 -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99893-112916 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 7 -URI https://asc.fasb.org/extlink&oid=126982197&loc=SL120174063-112916 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 958 -SubTopic 360 -Section 50 -Paragraph 1 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126982197&loc=d3e99779-112916 + Details
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