v3.26.3
Fair Value of Assets and Liabilities
 9 Months Ended
Sep. 30, 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 September 30, 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)
$62,018 $— $61,018 $1,000 
(1)The Level 2 fair value measurements presented in the table included nine hotels and five net lease properties classified as held for sale as of September 30, 2026, and were based on negotiated sales prices with third-party buyers. During the nine months ended September 30, 2026, we recognized impairment charges of $180,175 to reduce the carrying value of these properties to their estimated fair value less costs to sell. Estimated costs to sell totaled $2,444.
(2)The Level 3 fair value measurements presented in the table included one net lease property classified as held for sale as of September 30, 2026, and was based on brokers’ opinions of values. During the nine months ended September 30, 2026, we recognized impairment charges of $166 to reduce the carrying value of this property to its estimated fair value less costs to sell. Estimated costs to sell was $50.
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, net lease mortgage notes, senior notes and security deposits. At September 30, 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:
September 30, 2026December 31, 2025
Carrying Value (1)
Fair Value
Carrying Value (1)
Fair Value
Senior Unsecured Notes, due 2027 at 4.95%
$— $— $399,164 $401,716 
Senior Guaranteed Unsecured Notes, due 2027 at 5.50%
— — 447,858 442,985 
Senior Secured Notes, due 2027 at zero coupon533,897 542,636 501,256 524,263 
Net Lease Mortgage Notes, due 2028 at 5.60%
585,999 588,611 578,368 598,113 
Senior Unsecured Notes, due 2028 at 3.95%
398,493 381,952 397,645 377,596 
Senior Guaranteed Unsecured Notes, due 2029 at 8.375%
— — 686,738 703,780 
Senior Unsecured Notes, due 2029 at 4.95%
422,645 384,872 422,056 368,382 
Senior Unsecured Notes, due 2030 at 4.375%
396,161 351,224 395,318 338,932 
Net Lease Mortgage Notes, due 2031 at 5.96%
722,450 703,138 — — 
Senior Secured Notes, due 2031 at 8.625%
979,148 1,022,830 976,121 1,050,370 
Senior Guaranteed Unsecured Notes, due 2032 at 8.875%
486,645 491,450 484,904 493,225 
Total financial liabilities$4,525,438 $4,466,713 $5,289,428 

$5,299,362 
(1)Carrying value includes unamortized discounts, premiums and certain debt issuance costs.
At September 30, 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 September 30, 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.