Item 2. Properties
Item 2. Properties
At December 31, 2023, we owned 221 hotels and 752 service-focused retail net lease properties. The following tables summarize certain information about our properties as of December 31, 2023 (dollars in thousands):
Hotels Net Lease All Properties
Location of
Properties Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Total Number of Properties Total Undepreciated Carrying Value Total Depreciated Carrying Value
Held and Used:
United States:
Alabama 3 $ 30,634 $ 18,396 32 $ 108,369 $ 79,837 35 $ 139,003 $ 98,233
Alaska — — — 1 3,716 2,347 1 3,716 2,347
Arizona 14 209,503 117,328 25 182,689 135,687 39 392,192 253,015
Arkansas — — — 16 85,917 53,711 16 85,917 53,711
California 36 1,047,343 660,117 22 217,686 173,074 58 1,265,029 833,191
Colorado 5 137,753 98,736 8 87,748 70,890 13 225,501 169,626
Connecticut — — — 3 17,339 9,847 3 17,339 9,847
Delaware 1 16,614 12,135 — — — 1 16,614 12,135
Florida 12 423,028 325,131 46 190,886 148,858 58 613,914 473,989
Georgia 16 387,841 241,117 73 212,367 164,150 89 600,208 405,267
Hawaii 1 132,945 77,224 — — — 1 132,945 77,224
Idaho — — — 2 16,969 13,163 2 16,969 13,163
Illinois 10 404,971 282,591 53 228,530 177,202 63 633,501 459,793
Indiana 2 29,738 15,068 39 187,001 140,763 41 216,739 155,831
Iowa 1 6,656 2,865 9 27,954 22,560 10 34,610 25,425
Kansas 1 14,575 8,546 5 38,088 29,068 6 52,663 37,614
Kentucky — — — 12 52,894 37,478 12 52,894 37,478
Louisiana 3 241,828 167,895 12 95,224 64,498 15 337,052 232,393
Maryland 5 115,201 64,637 8 51,038 34,781 13 166,239 99,418
Massachusetts 8 248,808 165,844 — — — 8 248,808 165,844
Michigan 8 70,656 38,416 49 94,743 67,598 57 165,399 106,014
Minnesota 3 105,144 75,500 11 66,370 54,119 14 171,514 129,619
Mississippi — — — 5 23,155 15,786 5 23,155 15,786
Missouri 4 152,975 106,939 24 89,429 64,465 28 242,404 171,404
Nebraska — — — 5 24,144 13,965 5 24,144 13,965
Nevada 3 53,787 27,859 6 142,211 100,690 9 195,998 128,549
New Hampshire — — — 1 5,847 3,093 1 5,847 3,093
New Jersey 8 146,395 83,112 3 75,529 51,504 11 221,924 134,616
New Mexico 2 26,306 10,965 16 96,115 62,518 18 122,421 73,483
New York 1 68,635 43,726 9 44,426 28,481 10 113,061 72,207
North Carolina 8 145,285 86,825 15 52,643 39,094 23 197,928 125,919
North Dakota — — — 1 3,476 2,802 1 3,476 2,802
Ohio 5 117,015 82,592 37 238,118 172,175 42 355,133 254,767
Oklahoma 1 7,212 3,637 12 66,320 53,746 13 73,532 57,383
Oregon 1 109,682 88,780 7 72,491 60,502 8 182,173 149,282
Pennsylvania 5 116,687 66,997 28 147,052 105,260 33 263,739 172,257
Rhode Island 1 16,681 6,600 — — — 1 16,681 6,600
South Carolina 1 54,942 35,373 16 88,520 63,031 17 143,462 98,404
Tennessee 7 149,879 68,097 37 107,733 81,682 44 257,612 149,779
Texas 20 331,090 170,190 55 368,882 260,169 75 699,972 430,359
Utah 2 76,427 38,902 3 12,827 8,015 5 89,254 46,917
Virginia 8 121,017 61,126 18 73,354 54,200 26 194,371 115,326
Washington 7 194,398 126,966 4 20,480 16,600 11 214,878 143,566
West Virginia 1 10,600 5,242 5 14,284 10,001 6 24,884 15,243
Wisconsin 2 45,755 33,491 4 10,897 7,035 6 56,652 40,526
Wyoming — — — 6 56,885 35,198 6 56,885 35,198
216 5,568,006 3,518,965 743 3,800,346 2,789,643 959 9,368,352 6,308,608
Washington, DC 1 146,147 130,722 — — — 1 146,147 130,722
Ontario, Canada 2 55,082 29,337 — — — 2 55,082 29,337
Puerto Rico 1 216,756 135,873 — — — 1 216,756 135,873
4 417,985 295,932 — — — 4 417,985 295,932
Total 220 $ 5,985,991 $ 3,814,897 743 $ 3,800,346 $ 2,789,643 963 $ 9,786,337 $ 6,604,540
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Table of Contents
Hotels Net Lease All Properties
Location of
Properties Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Number of
Properties Undepreciated Carrying Value Depreciated Carrying Value Total Number of Properties Total Undepreciated Carrying Value Total Depreciated Carrying Value
Held For Sale:
Illinois — $ — $ — 3 $ 777 $ 777 3 $ 777 $ 777
Indiana — — — 1 73 73 1 73 73
Michigan — — — 2 239 239 2 239 239
Minnesota 1 6,919 4,060 — — — 1 6,919 4,060
Missouri — — — 1 5,044 5,044 1 5,044 5,044
Ohio — — — 2 253 253 2 253 253
Total 1 $ 6,919 $ 4,060 9 $ 6,386 $ 6,386 10 $ 13,305 $ 10,446
221 $ 5,992,910 $ 3,818,957 752 $ 3,806,732 $ 2,796,029 973 $ 9,799,642 $ 6,614,986
As of December 31, 2023, 308 of our net lease properties with an aggregate undepreciated carrying value of $755.1 million were encumbered by mortgage notes with an aggregate principal balance of $608.6 million, and 70 of our net lease travel center properties with an aggregate undepreciated carrying value of $785.9 million secured our $1.0 billion senior secured notes. In addition, 69 properties, including 66 hotels and three net lease properties, with an aggregate undepreciated carrying value of $1,594.3 million secured our revolving credit facility. For further information regarding our mortgage notes, senior secured notes, and revolving credit facility, see Note 6 to our consolidated financial statements included in Part IV, Item 15 of this Annual Report on Form 10-K.
At December 31, 2023, eight of our hotels and 14 of our net lease properties were on land we leased partially or entirely from unrelated third parties. The average remaining term of the ground leases (including renewal options) for our hotels and our net lease properties is approximately 39 years (range of 11 to 64 years) and 16 years (range of three months to 41 years), respectively. Ground rent payable under three of the hotel ground leases is generally calculated as a percentage of hotel revenues. Seven of the eight hotel ground leases require annual minimum rents averaging $337 thousand per year; future rent under one ground lease has been prepaid. Ground rent payable under the ground leases for our net lease properties is generally a fixed amount, averaging $420 thousand per year. Pursuant to the terms of our management agreements and leases, payments of ground lease obligations are generally made by our hotel managers and tenants. However, if a hotel manager or a tenant does not perform obligations under a ground lease or elects not to renew any ground lease, we might have to perform obligations under the ground lease or renew the ground lease in order to protect our investment in the affected property. Any pledge, sale or transfer of our interests in a ground lease may require the consent of the applicable ground lessor and its lenders.
At December 31, 2023, the aggregate depreciated carrying value of our properties subject to ground leases was as follows (dollars in thousands):
8 hotels (1)
$ 133,155
14 net lease (2)
50,275
Total $ 183,430
(1) Two of these hotels with a depreciated carrying value totaling $53,401 are partially on land we lease from unrelated third parties. The leased land is generally used for parking. We believe these two hotels would be operable without the leased land.
(2) Three of these net lease properties with a depreciated carrying value totaling $23,651 are partially on land we lease from unrelated third parties. The leased land is generally used for additional parking or storm water runoff; however, certain building structures for one of these three net lease properties are located on leased land. We believe these three net lease properties would be operable without the leased land, although we would have to remove the part of the building structure that is located on the leased land and might replace that structure with a new building on land we own.