Investment in Hotel Properties

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



	September 30, 2018			December 31, 2017
Land and improvements	$	531,850		$	597,451
Buildings and improvements	1,545,752			1,801,302
Furniture, fixtures and equipment	116,378			126,590
	2,193,980			2,525,343
Accumulated depreciation	(71,526		)	(27,463		)
Investment in hotel properties, net	$	2,122,454		$	2,497,880

For the three and nine months ended September 30, 2018, the Company recognized depreciation expense related to its investment in hotel properties of approximately $19.2 million and $60.0 million, respectively. For the Successor period of September 1, 2017 through September 30, 2017, the Company recognized depreciation expense related to its investment in hotel properties of approximately $5.9 million. For the Predecessor period of July 1, 2017 through August 31, 2017, the Company recognized depreciation expense related to its investment in hotel properties of approximately $17.6 million. For the Predecessor period of January 1, 2017 through August 31, 2017, the Company recognized depreciation expense related to its investment in hotel properties of approximately $72.7 million.

Impairment

The Company determined that there was no impairment of any assets for the nine months ended September 30, 2018 or for the Successor period of September 1, 2017 through September 30, 2017.

During the Predecessor period of January 1, 2017 through August 31, 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, which was based on both 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 both 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 July 2018, the Company entered into a purchase and sale agreement to sell the Holiday Inn San Francisco - Fisherman's Wharf. At September 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 October 15, 2018.

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



	September 30, 2018
Land and improvements	$	12,203
Buildings and improvements	10,900
Furniture, fixtures and equipment	2,074
Total assets of hotel properties held for sale, net	$	25,177