v3.26.1
Dispositions, Impairment Charges and Assets Held For Sale
 6 Months Ended
Jun. 30, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Dispositions, Impairment Charges and Assets Held For Sale Dispositions, Impairment Charges and Assets Held For Sale
Dispositions
The following table presents the relevant information related to the Company’s dispositions of hotel properties and the related gains or losses on sale for the six months ended June 30, 2026 (in thousands):
PropertyLocationDate
Sale Price (1)
Gain (Loss) on Sale (2)
Embassy Suites Houston
Houston, TX
February 9, 2026$13,500 $4,855 
Embassy Suites AustinAustin, TXFebruary 17, 202613,500 4,248 
Hilton St. Petersburg BayfrontSt. Petersburg, FLMarch 5, 202696,000 80,189 
La Posada de Santa FeSanta Fe, NMMarch 17, 202657,500 13,188 
Hilton Alexandria Old TownAlexandria, VAMarch 31, 202658,000 (2,289)
Embassy Suites Palm Beach GardensPalm Beach Gardens, FLApril 7, 202641,000 21,857 
Embassy Suites DallasDallas, TXMay 6, 202617,000 4,941 
Lakeway Resort & SpaAustin, TXMay 19, 202637,750 15,237 
Sheraton Indianapolis City CentreIndianapolis, INMay 21, 202632,100 (620)
Silversmith HotelChicago, ILJune 1, 202616,000 105 
Sheraton San Diego Mission ValleySan Diego, CAJune 9, 202645,250 9,104 
Hilton Garden Inn JacksonvilleJacksonville, FLJune 11, 202611,300 4,240 
Hilton Garden Inn Austin DowntownAustin, TXJune 18, 202626,850 6,040 
Hyatt Regency SavannahSavannah, GAJune 30, 2026158,000 89,339 
Other (358)
Total$250,076 
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(1)    Sale price is prior to adjustments and buyer credits.
(2)    Gain (loss) on sale of hotel properties is reported within “gain (loss) on disposition of assets and hotel properties” in the Company’s consolidated statement of operations.
On January 10, 2025, the Company completed the sale of the 315-room Courtyard Boston Downtown located in Boston, Massachusetts, for $123.0 million, subject to customary pro rations and adjustments, resulting in a recognized gain of $31.9 million. This gain is reported within “gain (loss) on disposition of assets and hotel properties” in the Company’s consolidated statement of operations.
On April 14, 2025, the Residence Inn Orlando sold a parcel of land for $7.2 million, net of selling expenses, resulting in a recognized gain of $6.7 million. This gain is reported within “gain (loss) on disposition of assets and hotel properties” in the Company’s consolidated statements of operations.

On May 19, 2025, the Company sold state tax credits held by the Le Méridien Fort Worth property for $18.8 million in cash.
The results of operations for disposed hotel properties are included in net income (loss) through the date of disposition. See note 2 for the fiscal year 2026 and 2025 dispositions. The following table includes condensed financial information from the Company’s dispositions (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Total hotel revenue
$26,902 $65,347 $72,811 $125,990 
Total hotel expenses
(17,965)(43,050)(49,655)(83,569)
Property taxes, insurance and other(1,429)(3,712)(4,638)(7,772)
Depreciation and amortization(2,504)(8,808)(8,539)(18,139)
Impairment charges— (1,447)(33,101)(1,447)
Total operating expenses(21,898)(57,017)(95,933)(110,927)
Gain (loss) on disposition of assets and hotel properties
150,046 6,684 250,076 38,552 
Gain (loss) on derecognition of assets
6,828 9,900 14,618 19,946 
Operating income (loss)161,878 24,914 241,572 73,561 
Interest income— 26 — 50 
Interest expense and amortization of discounts and loan costs(5,306)(14,565)(15,059)(31,383)
Interest expense associated with hotels in receivership
(7,607)(10,454)(15,427)(20,846)
Write-off of premiums, loan costs and exit fees(127)(877)(519)(1,599)
Gain (loss) on extinguishment of debt(1,950)— (1,975)— 
Income (loss) before income taxes146,888 (956)208,592 19,783 
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership(2,071)15 (2,962)(324)
Net income (loss) attributable to the Company$144,817 $(941)$205,630 $19,459 
Impairment Charges
For the three months ended June 30, 2026, no impairment charges were recorded related to hotel properties.
For the six months ended June 30, 2026, we recorded impairment charges on nine properties totaling $112.6 million. The impairment charges were a result of reduced estimated future cash flows resulting from reductions to the expected holding periods of the hotel properties. The impairment charges for four properties were based on a market approach methodology which compares the net book value of the assets to their fair market value. The impairment charge for the remaining five properties were based on the income approach which utilized a discounted cash flow methodology, supported by the market approach. These valuation techniques are considered Level 3 techniques under the fair value hierarchy.
The following table presents the impairment charges of our hotel properties for the six months ended June 30, 2026 (in thousands):
Impairment Charges
Silversmith Hotel$2,875 
Hyatt Regency Long Island
1,233 
Sheraton Indianapolis City Centre8,582 
Hilton Garden Inn Austin Downtown21,645 (1)
Hilton Minneapolis St. Paul Airport22,275 
Embassy Suites Portland12,738 
Embassy Suites Crystal City4,936 
Hilton Parsippany31,014 
Hampton Inn Parsippany7,351 
Total Impairment Charges$112,649 
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(1)    The impairment charge included $2.6 million related to operating lease right-of-use assets associated with the property.
For the three and six months ended June 30, 2025, we recorded an impairment charge of $1.4 million at the Residence Inn Evansville as a result of reduced estimated cash flows resulting from changes to the expected holding period of the hotel property. The impairment charge was based on the market approach methodology which compares the net book value of the assets to their fair market value, which is considered a Level 3 valuation technique.
Assets Held For Sale
On April 8, 2026, the Company entered into a definitive agreement to sell the 358-room Hyatt Regency Long Island located in Hauppauge, New York for a purchase price of approximately $26.5 million. The agreement included nonrefundable deposits totaling $6.7 million, of which $1.2 million was paid in the second quarter of 2026. See note 16.
On June 19, 2026, the Company entered into a definitive agreement to sell the 357-room Marriott Fremont Silicon Valley located in Fremont, California for a purchase price of $53.0 million. The agreement included a nonrefundable deposit of $1.5 million which was paid in June of 2026. See note 16.
As of June 30, 2026, the Hyatt Regency Long Island and Marriott Fremont Silicon Valley were classified as held for sale. As of December 31, 2025, the Embassy Suites Houston and the Embassy Suites Austin, which were sold in February 2026, were classified as held for sale. Depreciation and amortization ceased as of the dates the assets were deemed held for sale.
Since the sales of these hotels did not represent a strategic shift that has (or will have) a major effect on our operations or financial results, their results of operations were not reported as discontinued operations in the consolidated financial statements.
The major classes of assets and liabilities related to assets held for sale included in the consolidated balance sheets were as follows:
June 30, 2026December 31, 2025
Assets
Investments in hotel properties, gross
$85,594 $34,818 
Accumulated depreciation
(22,475)(17,391)
Investments in hotel properties, net63,119 17,427 
Cash and cash equivalents2,445 671 
Accounts receivable, net2,226 127 
Inventories110 45 
Deferred costs, net80 10 
Operating lease right-of-use assets601 — 
Prepaid expenses and other assets
2,292 198 
Due from related party, net(802)— 
Assets held for sale$70,071 $18,478 
Liabilities
Indebtedness, net$68,368 $38,820 
Accounts payable and accrued expenses4,752 2,044 
Accrued interest284 354 
Due to related parties, net — 9 
Operating lease liabilities601 — 
Due to Ashford Inc., net
808 65 
Liabilities related to assets held for sale$74,813 $41,292