Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The components of the Company's intangible assets are as follows:

	As of December 31, 2021						As of December 31, 2020
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value		Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Franchise Rights(1)	$	190,641	$	105,604	$	85,037	$	190,714	$	98,027	$	92,687
Franchise Agreement Acquisition Costs(2)	263,718		66,373		197,345		223,536		43,036		180,500
Trademarks & Other(3)	16,152		12,403		3,749		17,810		13,937		3,873
Capitalized SaaS Licenses(4)	14,773		11,529		3,244		11,779		8,128		3,651
Total amortizing intangible assets	485,284		195,909		289,375		443,839		163,128		280,711
Trademarks (non-amortizing)(5)	23,014		—		23,014		23,014		—		23,014
Total intangible assets	$	508,298	$	195,909	$	312,389	$	466,853	$	163,128	$	303,725

(1)Represents the purchase price assigned to long-term franchise contracts. The unamortized balance relates primarily to the acquisition of the WoodSpring franchise rights. The franchise rights are being amortized over lives ranging from 12 to 20 years on a straight-line basis.

(2)Represents certain payments to customers as an incentive to enter into new franchise agreements generally amortized as an offset to royalty fees and marketing and reservation system fees over lives ranging from 5 to 30 years on a straight-line basis commencing at

hotel opening. Gross and accumulated amortization amounts are written off upon full amortization recognition, including at termination of an associated franchise agreement. Refer to Note 2 for discussion of impairments recognized.

(3)Represents definite-lived trademarks and other various amortizing assets generally amortized on a straight-line basis over a period of 8 years to 40 years.

(4)Represents software licenses capitalized under a SaaS agreement generally amortized on a straight-line basis over a period of 3 to 5 years.

(5)Represents the purchase price assigned to the WoodSpring and Suburban trademarks at acquisition. The trademarks are expected to generate future cash flows for an indefinite period of time and therefore are non-amortizing.

Amortization expense for the years ended December 31, 2021, 2020 and 2019 amounted to $25.2 million, $23.6 million, and $19.4 million, respectively.

The estimated annual amortization expense related to the Company’s amortizing intangible assets for each of the next five years is as follows:

 

(in thousands)
2022	$	24,340
2023	$	22,631
2024	$	21,631
2025	$	21,140
2026	$	20,341