v3.26.1
Fair Value of Assets and Liabilities
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value of Assets and Liabilities
Note 14. Fair Value of Assets and Liabilities
The table below presents certain of our assets carried at fair value at March 31, 2026, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.
Fair Value at Reporting Date Using
DescriptionTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Non-recurring Fair Value Measurement Assets:
Assets of properties held for sale (1) (2)
$54,058 $— $51,293 $2,765 
(1)We recorded impairment charges totaling $27,340 during the three months ended March 31, 2026, to reduce the carrying value of seven hotels and 13 net lease properties in our condensed consolidated balance sheet to their estimated fair value, less estimated costs to sell of $2,128, based on negotiated sales prices with third party buyers (Level 2 inputs as defined in the fair value hierarchy under GAAP).
(2)We recorded impairment charges totaling $755 during the three months ended March 31, 2026, to reduce the carrying value of eight net lease properties in our condensed consolidated balance sheet to their estimated fair value, less estimated costs to sell of $200, based on brokers’ opinions of values (Level 3 inputs as defined in the fair value hierarchy under GAAP).
In addition to the assets included in the table above, our financial instruments include our cash and cash equivalents, restricted cash, rents receivable, revolving credit facility, VFN, net lease mortgage notes, senior notes and security deposits. At March 31, 2026 and December 31, 2025, the fair values of these financial instruments approximated their carrying values in our condensed consolidated balance sheets due to their short-term nature or floating interest rates, except as follows:
March 31, 2026December 31, 2025
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
Senior Unsecured Notes, due 2027 at 4.95%
$99,836 $99,924 $399,164 $401,716 
Senior Guaranteed Unsecured Notes, due 2027 at 5.50%
448,126 450,590 447,858 442,985 
Senior Secured Notes, due 2027 at zero coupon511,956 527,825 501,256 524,263 
Net Lease Mortgage Notes, due 2028 at 5.60%
580,911 595,750 578,368 598,113 
Senior Unsecured Notes, due 2028 at 3.95%
397,927 382,512 397,645 377,596 
Senior Guaranteed Unsecured Notes, due 2029 at 8.375%
— — 686,738 703,780 
Senior Unsecured Notes, due 2029 at 4.95%
422,252 384,923 422,056 368,382 
Senior Unsecured Notes, due 2030 at 4.375%
395,599 355,208 395,318 338,932 
Net Lease Mortgage Notes, due 2031 at 5.96%
722,548 733,533 — — 
Senior Secured Notes, due 2031 at 8.625%
977,130 1,044,320 976,121 1,050,370 
Senior Guaranteed Unsecured Notes, due 2032 at 8.875%
485,484 495,570 484,904 493,225 
Total financial liabilities$5,041,769 $5,070,155 $5,289,428 

$5,299,362 
(1)Carrying value includes unamortized discounts, premiums and certain debt issuance costs.
At March 31, 2026 and December 31, 2025, we estimated the fair values of our senior notes using an average of the bid and ask price of our then outstanding issuances of senior notes (Level 2 inputs). At March 31, 2026 and December 31, 2025, we estimated the fair value of our net lease mortgage notes using discounted cash flow analyses and current prevailing market rates as of the measurement dates (Level 3 inputs). As Level 3 inputs are unobservable, our estimated value may differ materially from the actual fair value.