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

12 Months Ended

Dec. 31, 2019

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of Estimated Useful Lives of Real Estate Investment Assets

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

Schedule of Recognized Rental Income

For the years ended December 31, 2019, 2018 and 2017, we recognized rental income as follows:

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	80,205	$	136,145	$	162,479
Variable lease payments (2)	8,126		10,950		13,055
Rental and other property income	$	88,331	$	147,095	$	175,534

(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.

Reconciliation of Hotel Revenue

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 19:

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Hotel properties
Hotel income	$	35,633	$	35,672	$	35,576
Rental and other property income	2,947		2,922		2,877
Interest and other income	168		195		132
Hotel revenues	$	38,748	$	38,789	$	38,585