Investment in Hotel Properties

Investment in hotel properties consisted of the following (in thousands):



	June 30, 2018			December 31, 2017
Land and improvements	$	556,336		$	597,451
Buildings and improvements	1,659,512			1,801,302
Furniture, fixtures and equipment	122,886			126,590
	2,338,734			2,525,343
Accumulated depreciation	(64,736		)	(27,463		)
Investment in hotel properties, net	$	2,273,998		$	2,497,880

For the three and six months ended June 30, 2018, the Company recognized depreciation expense related to its investment in hotel properties of approximately $20.3 million and $40.9 million, respectively. For the Predecessor three and six months ended June 30, 2017, the Company recognized depreciation expense related to its investment in hotel properties of approximately $27.4 million and $55.1 million, respectively.

Impairment

The Company determined that there was no impairment of any assets for the six months ended June 30, 2018.

During the Predecessor six months ended June 30, 2017, the Company recorded a total impairment loss of $35.1 million related to two hotel properties. In March 2017, the Company recorded a $24.8 million impairment loss on one hotel property based on third-party offers to purchase the hotel property and observable market data on a price per room basis from transactions involving hotel properties in similar locations (a Level 2 input in the fair value hierarchy). In June 2017, two hotel properties, including the hotel property that was previously impaired in March 2017, were classified as held for sale on the consolidated balance sheet. The basis for these hotel properties had previously been written down to the respective fair values of the hotel properties based on third-party offers to purchase the hotel properties and observable market data on a price per room basis from transactions involving hotel properties in similar locations (a Level 2 input in the fair value hierarchy). The Company recorded an additional impairment loss of $10.3 million on these two hotel properties in order to reflect the contractual sale prices, less the estimated costs to sell.

Held for Sale

In May 2018, the Company entered into a purchase and sale agreement to sell the Embassy Suites Napa Valley for $102.0 million. At June 30, 2018, this hotel property has been included in assets of hotel properties held for sale, net in the accompanying consolidated balance sheet. The transaction closed on July 13, 2018.

The following table is a summary of the major classes of assets held for sale (in thousands):



	June 30, 2018
Land and improvements	$	24,356
Buildings and improvements	62,141
Furniture, fixtures and equipment	1,671
Total assets of hotel properties held for sale, net	88,168