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

9 Months Ended

Sep. 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 nine months ended September 30, 2019 and 2018, we recognized rental income as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	15,389	$	34,108	$	66,925	$	101,423
Variable lease payments (2)	1,917		2,498		6,381		8,152
Rental and other property income	$	17,306	$	36,606	$	73,306	$	109,575


(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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	(in thousands)
Hotel properties
Hotel income	$	7,734	$	7,715	$	27,087	$	27,564
Rental and other property income	736		777		2,208		2,273
Interest and other income	41		50		135		143
Hotel revenues	$	8,511	$	8,542	$	29,430	$	29,980