Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of certain of the entity's assets carried at fair value, categorized by the level of inputs used in the valuation of each asset

The table below presents certain of our assets and liabilities carried at fair value at June 30, 2020, categorized by the level of inputs, as defined in the fair value hierarchy under GAAP, used in the valuation of each asset or liability.



			Fair Value at Reporting Date Using
	Carrying Value at		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	June 30, 2020		(Level 1)		(Level 2)		(Level 3)
Recurring Fair Value Measurement Assets:
Investment in TA ⁽¹⁾	$	10,534	$	10,534	$	—	$	—
Non-recurring Fair Value Measurement Assets:
Assets of properties held for sale⁽²⁾	$	152,367	$	—	$	156,610	$	—

(1)

Our 684,000 common shares of TA, which are included in other assets in our condensed consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these shares is $17,407 as of June 30, 2020. During the three months ended June 30, 2020, we recorded unrealized gains of $3,848, during the six months ended June 30, 2020, we recorded unrealized losses of $1,198 and during the three and six months ended June 30, 2019, we recorded unrealized losses of $1,676 and $479, respectively, to adjust the carrying value of our investment in TA shares to its fair value.

(2)

As of June 30, 2020, we owned 25 hotels and nine net lease properties located in eight states classified as held for sale with an aggregate net carrying value of $152,367 before adjusting for estimated costs of sale of $4,243. These properties are recorded at their estimated fair value less costs to sell based on the sales prices under purchase agreements with third-parties (Level 2 inputs as defined in the fair value hierarchy under GAAP). We recorded a $28,514 loss on asset impairment during the three months ended June 30, 2020 to reduce the carrying value of 21 of these properties to its estimated fair value less costs to sell.

Schedule of fair value of additional financial instruments

At June 30, 2020 and December 31, 2019, the fair values of these additional financial instruments approximated their carrying values in our condensed consolidated balance sheets due to their short-term nature or floating interest rates, except as follows:



	June 30, 2020				December 31, 2019
	Carrying Value ⁽¹⁾		Fair Value		Carrying Value ⁽¹⁾		Fair Value
Senior Unsecured Notes, due 2021 at 4.25%	$	49,887	$	49,925	$	398,379	$	406,838
Senior Unsecured Notes, due 2022 at 5.00%	497,427		490,115		496,821		526,500
Senior Unsecured Notes, due 2023 at 4.50%	499,514		480,255		499,432		520,478
Senior Unsecured Notes, due 2024 at 4.65%	348,497		317,597		348,295		364,277
Senior Unsecured Notes, due 2024 at 4.35%	818,810		748,584		818,075		848,847
Senior Unsecured Notes, due 2025 at 4.50%	346,774		318,931		346,431		361,783
Senior Unsecured Notes, due 2025 at 7.50%	788,098		847,704		—		—
Senior Unsecured Notes, due 2026 at 5.25%	343,649		319,519		343,083		369,185
Senior Unsecured Notes, due 2026 at 4.75%	446,210		402,597		445,905		464,315
Senior Unsecured Notes, due 2027 at 4.95%	395,027		351,598		394,649		414,012
Senior Unsecured Notes, due 2028 at 3.95%	391,333		326,966		390,759		393,940
Senior Unsecured Notes, due 2029 at 4.95%	417,703		360,906		417,307		434,248
Senior Unsecured Notes, due 2030 at 4.375%	389,089		327,906		388,522		394,788
Total financial liabilities	$	5,732,018	$	5,342,603	$	5,287,658	$	5,499,211

(1)

Carrying value includes unamortized discounts and premiums and issuance costs.