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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022
OR
    
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to              .
Commission File Number 001-34571
PEBBLEBROOK HOTEL TRUST
(Exact Name of Registrant as Specified in Its Charter)

Maryland27-1055421
(State of Incorporation or Organization)(I.R.S. Employer Identification No.)
4747 Bethesda Avenue, Suite 1100, Bethesda, Maryland
20814
(Address of Principal Executive Offices)(Zip Code)

(240)507-1300
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $0.01 par value per sharePEBNew York Stock Exchange
Series E Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PENew York Stock Exchange
Series F Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PFNew York Stock Exchange
Series G Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PGNew York Stock Exchange
Series H Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PHNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ☑  Yes     No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer(do not check if a smaller reporting company)Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes      No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding at July 22, 2022
Common shares of beneficial interest ($0.01 par value per share)131,452,043




Pebblebrook Hotel Trust
TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION
Item 1.Financial Statements.
Consolidated Balance Sheets - June 30, 2022 (unaudited) and December 31, 2021
Consolidated Statements of Operations and Comprehensive Income (unaudited) - Three and six months ended June 30, 2022 and 2021
Consolidated Statements of Equity (unaudited) - Three and six months ended June 30, 2022 and 2021
Consolidated Statements of Cash Flows (unaudited) - Six months ended June 30, 2022 and 2021
Notes to Consolidated Financial Statements (unaudited)
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3.Quantitative and Qualitative Disclosures About Market Risk.
Item 4.Controls and Procedures.
PART II. OTHER INFORMATION
Item 1.Legal Proceedings.
Item 1A.Risk Factors.
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3.Defaults Upon Senior Securities.
Item 4.Mine Safety Disclosures.
Item 5.Other Information.
Item 6.Exhibits.
2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.

Pebblebrook Hotel Trust
Consolidated Balance Sheets
(in thousands, except share and per-share data)
June 30, 2022December 31, 2021
 (Unaudited) 
ASSETS
Investment in hotel properties, net$6,039,477 $6,079,333 
Hotels held for sale146,805  
Cash and cash equivalents32,046 58,518 
Restricted cash30,744 33,729 
Hotel receivables (net of allowance for doubtful accounts of $281 and $1,142, respectively)
54,899 37,045 
Prepaid expenses and other assets84,954 52,565 
Total assets$6,388,925 $6,261,190 
LIABILITIES AND EQUITY
Debt$2,517,751 $2,441,888 
Accounts payable, accrued expenses and other liabilities261,169 250,584 
Lease liabilities - operating leases320,315 319,426 
Deferred revenues75,340 69,064 
Accrued interest4,821 4,567 
Liabilities related to hotels held for sale4,636  
Distribution payable12,217 11,756 
Total liabilities3,196,249 3,097,285 
Commitments and contingencies (Note 11)
Shareholders’ equity:
Preferred shares of beneficial interest, $.01 par value (liquidation preference $740,000 at June 30, 2022 and December 31, 2021), 100,000,000 shares authorized; 29,600,000 shares issued and outstanding at June 30, 2022 and December 31, 2021
296 296 
Common shares of beneficial interest, $.01 par value, 500,000,000 shares authorized; 130,905,132 shares issued and outstanding at June 30, 2022 and 130,813,750 shares issued and outstanding at December 31, 2021
1,309 1,308 
Additional paid-in capital4,271,169 4,268,042 
Accumulated other comprehensive income (loss)23,748 (19,442)
Distributions in excess of retained earnings(1,190,693)(1,094,023)
Total shareholders’ equity3,105,829 3,156,181 
Non-controlling interests86,847 7,724 
Total equity3,192,676 3,163,905 
Total liabilities and equity$6,388,925 $6,261,190 

The accompanying notes are an integral part of these financial statements.
3

Pebblebrook Hotel Trust
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except share and per-share data)
(Unaudited)
 For the three months ended June 30,For the six months ended June 30,
 2022202120222021
Revenues:
Room$261,394 $108,603 $430,026 $162,066 
Food and beverage100,724 31,514 163,148 46,323 
Other operating35,406 23,197 62,418 38,568 
Total revenues397,524 163,314 655,592 246,957 
Expenses:
Hotel operating expenses:
Room58,002 28,563 100,465 45,273 
Food and beverage64,513 22,453 110,563 33,196 
Other direct and indirect105,881 56,219 191,728 101,447 
Total hotel operating expenses228,396 107,235 402,756 179,916 
Depreciation and amortization60,274 54,701 119,374 110,144 
Real estate taxes, personal property taxes, property insurance, and ground rent33,020 29,436 63,477 58,026 
General and administrative9,686 9,724 19,394 17,370 
Impairment loss12,271  73,254 14,856 
Gain on sale of hotel properties (64,558) (64,558)
Other operating expenses1,933 521 3,056 1,083 
Total operating expenses345,580 137,059 681,311 316,837 
Operating income (loss)51,944 26,255 (25,719)(69,880)
Interest expense(23,161)(24,804)(45,733)(50,135)
Other14 29 33 58 
Income (loss) before income taxes28,797 1,480 (71,419)(119,957)
Income tax (expense) benefit (52) (55)
Net income (loss)28,797 1,428 (71,419)(120,012)
Net income (loss) attributable to non-controlling interests808 (102)122 (960)
Net income (loss) attributable to the Company27,989 1,530 (71,541)(119,052)
Distributions to preferred shareholders(11,343)(10,094)(22,687)(18,233)
Net income (loss) attributable to common shareholders$16,646 $(8,564)$(94,228)$(137,285)
Net income (loss) per share available to common shareholders, basic$0.13 $(0.07)$(0.72)$(1.05)
Net income (loss) per share available to common shareholders, diluted$0.12 $(0.07)$(0.72)$(1.05)
Weighted-average number of common shares, basic130,904,876 130,813,521 130,904,589 130,794,801 
Weighted-average number of common shares, diluted160,720,239 130,813,521 130,904,589 130,794,801 


4

Pebblebrook Hotel Trust
Consolidated Statements of Operations and Comprehensive Income - Continued
(in thousands, except share and per-share data)
(Unaudited)
For the three months ended June 30,For the six months ended June 30,
2022202120222021
Comprehensive Income:
Net income (loss)$28,797 $1,428 $(71,419)$(120,012)
Other comprehensive income (loss):
Change in fair value of derivative instruments9,330 (2,310)36,697 7,426 
Amounts reclassified from other comprehensive income2,404 6,407 6,778 12,825 
Comprehensive income (loss)40,531 5,525 (27,944)(99,761)
Comprehensive income (loss) attributable to non-controlling interests886 (76)407 (828)
Comprehensive income (loss) attributable to the Company$39,645 $5,601 $(28,351)$(98,933)

The accompanying notes are an integral part of these financial statements.
5

Pebblebrook Hotel Trust
Consolidated Statements of Equity
(in thousands, except share data)
(Unaudited)
For the three months ended June 30, 2022
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at March 31, 2022
29,600,000$296 130,904,299 $1,309 $4,269,322 $12,092 $(1,206,019)$3,077,000 $7,934 $3,084,934 
Issuance of shares, net of offering costs— — — (75)— — (75)— (75)
Issuance of operating partnership units— — — — — — — 78,000 78,000 
Share-based compensation— 833 — 1,922 — — 1,922 698 2,620 
Distributions on common shares/units— — — — — (1,320)(1,320)(24)(1,344)
Distributions on preferred shares/units— — — — — (11,343)(11,343)(647)(11,990)
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — 9,252 — 9,252 78 9,330 
Amounts reclassified from other comprehensive income— — — — 2,404 — 2,404 — 2,404 
Net income (loss)— — — — — 27,989 27,989 808 28,797 
Balance at June 30, 2022
29,600,000$296 130,905,132$1,309 $4,271,169 $23,748 $(1,190,693)$3,105,829 $86,847 $3,192,676 


6



Pebblebrook Hotel Trust
Consolidated Statements of Equity - Continued
(in thousands, except share data)
(Unaudited)
For the three months ended June 30, 2021
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at March 31, 2021
20,400,000 $204 130,812,917 $1,308 $4,038,860 $(43,917)$(983,771)$3,012,684 $6,472 $3,019,156 
Issuance of shares, net of offering costs9,200,000 92 — — 222,248 — — 222,340 — 222,340 
Share-based compensation— — 833 — 2,365 — — 2,365 698 3,063 
Distributions on common shares/units— — — — — — (1,319)(1,319)(25)(1,344)
Distributions on preferred shares— — — — — — (10,094)(10,094)— (10,094)
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — — (2,310)— (2,310)— (2,310)
Amounts reclassified from other comprehensive income— — — — — 6,407 — 6,407 — 6,407 
Net income (loss)— — — — — — 1,530 1,530 (102)1,428 
Balance at June 30, 2021
29,600,000 $296 130,813,750 $1,308 $4,263,473 $(39,820)$(993,654)$3,231,603 $7,043 $3,238,646 



7

Pebblebrook Hotel Trust
Consolidated Statements of Equity - Continued
(in thousands, except share data)
(Unaudited)
For the six months ended June 30, 2022
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at December 31, 2021
29,600,000$296 130,813,750 $1,308 $4,268,042 $(19,442)$(1,094,023)$3,156,181 $7,724 $3,163,905 
Issuance of shares, net of offering costs— — — (75)— — (75)— (75)
Issuance of operating partnership units— — — — — — — 78,000 78,000 
Issuance of common shares for Board of Trustees compensation— 33,866 1 737 — — 738 — 738 
Repurchase of common shares— (49,787)(1)(1,112)— — (1,113)— (1,113)
Share-based compensation— 107,303 1 3,577 — — 3,578 1,396 4,974 
Distributions on common shares/units— — — — — (2,442)(2,442)(33)(2,475)
Distributions on preferred shares/units— — — — — (22,687)(22,687)(647)(23,334)
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — 36,412 — 36,412 285 36,697 
Amounts reclassified from other comprehensive income— — — — 6,778 — 6,778 — 6,778 
Net income (loss)— — — — — (71,541)(71,541)122 (71,419)
Balance at June 30, 2022
29,600,000$296 130,905,132$1,309 $4,271,169 $23,748 $(1,190,693)$3,105,829 $86,847 $3,192,676 




8



Pebblebrook Hotel Trust
Consolidated Statements of Equity - Continued
(in thousands, except share data)
(Unaudited)
For the six months ended June 30, 2021
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at December 31, 2020
20,400,000 $204 130,673,300 $1,307 $4,169,870 $(60,071)$(853,973)$3,257,337 $6,989 $3,264,326 
Issuance of shares, net of offering costs9,200,000 92 — — 222,238 — — 222,330 — 222,330 
Issuance of common shares for Board of Trustees compensation— — 27,711 1 515 — — 516 — 516 
Repurchase of common shares— — (38,310)(1)(719)— — (720)— (720)
Share-based compensation— — 151,049 1 5,643 — — 5,644 1,047 6,691 
Distributions on common shares/units— — — — — — (2,396)(2,396)(33)(2,429)
Distributions on preferred shares— — — — — — (18,233)(18,233)— (18,233)
Cumulative effect adjustment from adoption of new accounting standard— — — — (113,099)— — (113,099)— (113,099)
Purchases of capped calls in connection with convertible senior notes— — — — (20,975)— — (20,975)— (20,975)
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — — 7,426 — 7,426 — 7,426 
Amounts reclassified from other comprehensive income— — — — — 12,825 — 12,825 — 12,825 
Net income (loss)— — — — — — (119,052)(119,052)(960)(120,012)
Balance at June 30, 2021
29,600,000 $296 130,813,750 $1,308 $4,263,473 $(39,820)$(993,654)$3,231,603 $7,043 $3,238,646 

The accompanying notes are an integral part of these financial statements.
9

Pebblebrook Hotel Trust
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
 For the six months ended June 30,
 20222021
Operating activities:
Net income (loss)$(71,419)$(120,012)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization119,374 110,144 
Share-based compensation4,974 5,244 
Amortization of deferred financing costs, non-cash interest and other amortization6,852 9,068 
Gain on sale of hotel properties (64,558)
Impairment loss73,254 14,856 
Non-cash ground rent4,978 3,041 
Other adjustments(2,945)(52)
Changes in assets and liabilities:
Hotel receivables(19,048)(17,610)
Prepaid expenses and other assets(12,328)7,315 
Accounts payable and accrued expenses34,779 38,765 
Deferred revenues4,158 11,516 
Net cash provided by (used in) operating activities142,629 (2,283)
Investing activities:
Improvements and additions to hotel properties(42,411)(26,984)
Proceeds from sales of hotel properties72,969 171,988 
Acquisition of hotel properties(247,163) 
Deposits on hotel properties (17,148)
Other investing activities(86)(64)
Net cash provided by (used in) investing activities(216,691)127,792 
Financing activities:
Gross proceeds from issuance of preferred shares 230,000 
Payment of offering costs — common and preferred shares(75)(7,670)
Payment of deferred financing costs(96)(9,611)
Borrowings under revolving credit facilities180,000  
Repayments under revolving credit facilities(80,000)(40,000)
Proceeds from debt 268,599 
Repayments of debt(27,111)(338,000)
Purchases of capped calls for convertible senior notes (20,975)
Repurchases of common shares(1,113)(720)
Distributions — common shares/units(2,644)(2,634)
Distributions — preferred shares(22,688)(16,278)
Repayments of refundable membership deposits(1,668)(1,510)
Net cash provided by (used in) financing activities44,605 61,201 
Net change in cash and cash equivalents and restricted cash(29,457)186,710 
Cash and cash equivalents and restricted cash, beginning of year92,247 136,300 
Cash and cash equivalents and restricted cash, end of period$62,790 $323,010 

The accompanying notes are an integral part of these financial statements.
10


PEBBLEBROOK HOTEL TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Organization
Pebblebrook Hotel Trust (the "Company") is an internally managed hotel investment company, formed as a Maryland real estate investment trust in October 2009 to opportunistically acquire and invest in hotel properties located primarily in major United States cities, with an emphasis on major gateway coastal markets.
As of June 30, 2022, the Company owned 54 hotels with a total of 13,415 guest rooms. The hotel properties are located in: Boston, Massachusetts; Chicago, Illinois; Hollywood, Florida; Jekyll Island, Georgia; Key West, Florida; Miami (Coral Gables), Florida; Los Angeles, California (Beverly Hills, Santa Monica, and West Hollywood); Naples, Florida; Newport, Rhode Island; Philadelphia, Pennsylvania; Portland, Oregon; San Diego, California; San Francisco, California; Santa Cruz, California; Seattle, Washington; Stevenson, Washington; and Washington, D.C.
Substantially all of the Company’s assets are held by, and all of the Company's operations are conducted through, Pebblebrook Hotel, L.P. (the "Operating Partnership"). The Company is the sole general partner of the Operating Partnership. As of June 30, 2022, the Company owned 99.3% of the common limited partnership units issued by the Operating Partnership ("common units"). The remaining 0.7% of the common units are owned by the other limited partners of the Operating Partnership. For the Company to maintain its qualification as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"), it cannot operate the hotels it owns. Therefore, the Operating Partnership and its subsidiaries lease the hotel properties to subsidiaries of Pebblebrook Hotel Lessee, Inc. (collectively with its subsidiaries, "PHL"), a taxable REIT subsidiary ("TRS"), which in turn engage third-party eligible independent contractors to manage the hotels. PHL is consolidated into the Company’s financial statements.
COVID-19 Update
The COVID-19 pandemic, which began in early 2020, has had a significant negative impact on the Company's operations and financial results and is expected to continue to have a negative impact on the hotel industry and the Company's results of operations, financial position and cash flows for the remainder of 2022. Results improved in 2021 and have continued to improve through the first six months of 2022. The Company exited its debt covenant waiver period under its credit facilities as of the end of the second quarter of 2022, and is in compliance with the covenants in the credit facility agreements. There remains significant uncertainty regarding the trends and outlook as a result of new variants and individual and government responses.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited interim consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and in conformity with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) applicable to interim financial information. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited consolidated financial statements include all adjustments considered necessary for a fair presentation of the consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of equity and consolidated statements of cash flows for the periods presented. Interim results are not necessarily indicative of full-year performance, as a result of the impact of seasonal and other short-term variations and the acquisitions and or dispositions of hotel properties. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
The Company and its subsidiaries are separate legal entities and maintain records and books of accounts separate and apart from each other. The consolidated financial statements include all of the accounts of the Company and its subsidiaries and are presented in accordance with U.S. GAAP. All significant intercompany balances and transactions have been eliminated in consolidation.
Certain reclassifications have been made to the prior period's financial statements to conform to the current year presentation.
11

Use of Estimates
The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management’s best judgment, after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.
Risks and Uncertainties
The state of the overall economy can significantly impact the hotels' operational performance and thus the Company's financial position. As discussed in Note 1. Organization, the COVID-19 pandemic has significantly impacted the hotels' operational performance. There has been a significant recovery in travel, however, the emergence of new variant strains or other factors that may impact travel demand may impact the Company's cash flow and ability to service debt or meet other financial obligations.
New Accounting Pronouncements
Reference Rate Reform
In March 2020 and January 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01, Reference Rate Reform (Topic 848), respectively. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance in ASU 2020-04 and ASU 2021-01 was effective upon issuance and, once adopted, may be applied prospectively to contract modifications and hedging relationships through December 31, 2022.
In 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company will continue to evaluate the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its consolidated financial statements and disclosures.
Business Combinations
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and to payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in ASU 2021-08 require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts.
ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. While the Company is continuing to assess the timing of adoption and the potential impacts of ASU 2021-08, it does not expect ASU 2021-08 to have a material effect on its consolidated financial statements and disclosures.
Note 3. Acquisition and Disposition of Hotel Properties
Acquisitions
On May 11, 2022, the Company acquired the 119-room Inn on Fifth in Naples, Florida for $156.0 million, excluding prorations and transactions costs. This transaction was funded with cash on hand, the issuance of 16,291 common units of limited partnership interest in the Operating Partnership and 3,104,400 preferred units of the Operating Partnership designated as 6.0% Series Z Preferred Units.
On June 23, 2022, the Company acquired the 257-room Gurney's Newport Resort & Marina in Newport, Rhode Island for $174.0 million, using cash on hand and proceeds from its senior unsecured revolving credit facility. The property was acquired as part of a reverse 1031 Exchange in which the Company engaged a qualified intermediary to establish a trust to hold the property pending completion of the sale of the subject property or properties related to the reverse 1031 Exchange. The trust was deemed to be a variable interest entity (VIE) for which the Company is the primary beneficiary, and therefore, the Company has consolidated the trust and property.
12

Dispositions
The following table summarizes disposition transactions during 2022 and 2021 (in thousands):
Hotel Property NameLocationSale DateSale Price
The Marker San FranciscoSan Francisco, CAJune 28, 2022$77,000 
2022 Total$77,000 
Sir Francis DrakeSan Francisco, CAApril 1, 2021$157,625 
The Roger New YorkNew York, NYJune 10, 202119,000 
Villa Florence San Francisco on Union SquareSan Francisco, CASeptember 9, 202187,500 
2021 Total$264,125 
For the three and six months ended June 30, 2022, the accompanying consolidated statements of operations and comprehensive income included operating income (loss) of $(0.2) million and $(1.4) million, respectively, excluding impairment loss and (gain) loss on sale of hotel properties related to the hotel property sold.
For the three and six months ended June 30, 2021, the accompanying consolidated statements of operations and comprehensive income included operating income (loss) of $(3.0) million and $(9.1) million, respectively, excluding impairment loss and (gain) loss on sale of hotel properties related to the hotel properties sold.
The sales of the hotel properties described above did not represent a strategic shift that had a major effect on the Company’s operations and financial results and, therefore, did not qualify as discontinued operations.
Held for Sale
As of June 30, 2022, the Company had entered into agreements to sell two hotel properties in separate transactions for an aggregate sales price of approximately $151.0 million. These hotels were designated as held for sale as they met all of the Company's held for sale criteria. Accordingly, the Company classified all of the assets and liabilities related to these hotels as assets and liabilities held for sale in the accompanying consolidated balance sheets and ceased depreciating the assets. The Company expects to complete the sales of these properties in the third quarter of 2022.
Note 4. Investment in Hotel Properties
Investment in hotel properties as of June 30, 2022 and December 31, 2021 consisted of the following (in thousands):
June 30, 2022December 31, 2021
Land$918,165 $926,330 
Buildings and improvements5,232,001 5,197,816 
Furniture, fixtures and equipment536,723 535,607 
Finance lease asset91,181 91,181 
Construction in progress13,208 15,869 
$