BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2019

Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows:



Buildings and improvements		15 - 40 years
Furniture, fixtures, and equipment		3 - 5 years
Tenant improvements		Shorter of the useful lives or the terms of the related leases

For the three and six months ended June 30, 2019 and 2018, we recognized rental income as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	20,640	$	34,114	$	51,536	$	67,315
Variable lease payments (2)	1,779		3,711		4,464		5,654
Rental and other property income	$	22,419	$	37,825	$	56,000	$	72,969


(1)	Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives.


(2)	Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases.

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 18:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(in thousands)
Hotel properties
Hotel income	$	9,549	$	10,160	$	19,353	$	19,849
Rental and other property income	736		733		1,472		1,496
Interest and other income	45		54		94		93
Hotel revenues	$	10,330	$	10,947	$	20,919	$	21,438