Investments in Hotel Properties, net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

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


	June 30, 2024		December 31, 2023
Land	$	630,842	$	630,842
Buildings and improvements	1,429,670		1,535,501
Furniture, fixtures and equipment	169,828		166,673
Construction in progress	26,437		36,954
Residences	12,746		12,746
Total cost	2,269,523		2,382,716
Accumulated depreciation	(469,885)		(498,508)
Investments in hotel properties, net	$	1,799,638	$	1,884,208

Assets Held For Sale

On May 6, 2024, the Company entered into a purchase and sale agreement for the Hilton La Jolla Torrey Pines. As of June 30, 2024, the Hilton La Jolla Torrey Pines was classified as held for sale. Depreciation and amortization ceased as of the date the assets were deemed held for sale. Since the sale of this hotel did not represent a strategic shift that has (or will have) a major effect on our operations or financial results, its results of operations were not reported as discontinued operations in the consolidated financial statements. The Hilton La Jolla Torrey Pines sale closed on July 17, 2024. See note 17.

The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheet at June 30, 2024 were as follows:


	June 30, 2024
Assets
Investments in hotel properties, net	$	65,156
Cash and cash equivalents	5,711
Restricted cash	8,402
Accounts receivable, net	1,586
Inventories	61

Prepaid expenses	373

Operating lease right-of-use assets	43,538
Other assets	104



Assets held for sale	$	124,931

Liabilities
Indebtedness, net	$	66,482
Accounts payable and accrued expenses	5,114


Due to Ashford Inc., net	173
Due to third-party hotel managers, net	579

Operating lease liabilities	41,112

Liabilities related to assets held for sale	$	113,460

Impairment Charges

During the six months ended June 30, 2024 and 2023, no impairment charges were recorded.