Item 2. Properties
Item 2. Properties
At December 31, 2024, we owned 206 hotels and 742 service-focused retail net lease properties. The following tables summarize certain information about our properties as of December 31, 2024 (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 2 $ 17,901 $ 9,297 32 $ 108,064 $ 76,199 34 $ 125,965 $ 85,496
Alaska — — — 1 4,209 2,491 1 4,209 2,491
Arizona 14 212,879 115,287 25 180,945 130,227 39 393,824 245,514
Arkansas — — — 16 84,654 50,806 16 84,654 50,806
California 36 1,102,377 689,060 22 212,801 167,988 58 1,315,178 857,048
Colorado 4 132,547 92,696 8 86,320 68,664 12 218,867 161,360
Connecticut — — — 3 17,206 9,226 3 17,206 9,226
Delaware 1 15,158 11,660 — — — 1 15,158 11,660
Florida 12 450,066 341,218 46 189,335 143,631 58 639,401 484,849
Georgia 15 379,977 230,916 70 205,539 153,528 85 585,516 384,444
Hawaii 1 129,254 66,809 — — — 1 129,254 66,809
Idaho — — — 2 16,925 12,771 2 16,925 12,771
Illinois 9 392,864 279,001 51 217,256 164,301 60 610,120 443,302
Indiana 2 31,408 16,038 39 177,828 130,086 41 209,236 146,124
Iowa 1 7,013 3,025 7 21,422 16,927 8 28,435 19,952
Kansas 1 17,203 10,799 5 34,354 27,913 6 51,557 38,712
Kentucky — — — 12 52,600 35,826 12 52,600 35,826
Louisiana 3 241,667 163,512 12 90,502 61,647 15 332,169 225,159
Maryland 5 118,162 64,611 8 50,649 33,317 13 168,811 97,928
Massachusetts 8 253,011 163,821 — — — 8 253,011 163,821
Michigan 5 47,161 27,405 49 93,945 63,129 54 141,106 90,534
Minnesota 1 80,615 63,839 11 66,521 51,387 12 147,136 115,226
Mississippi — — — 5 22,879 15,159 5 22,879 15,159
Missouri 3 141,972 98,148 24 88,278 60,838 27 230,250 158,986
Nebraska — — — 5 23,985 13,174 5 23,985 13,174
Nevada 3 54,255 26,787 6 141,023 97,342 9 195,278 124,129
New Hampshire — — — 1 4,818 2,876 1 4,818 2,876
New Jersey 8 151,811 83,990 3 74,976 49,573 11 226,787 133,563
New Mexico 2 26,528 10,304 16 94,948 59,184 18 121,476 69,488
New York 1 91,197 64,222 8 42,556 26,626 9 133,753 90,848
North Carolina 7 132,419 79,423 15 52,480 37,890 22 184,899 117,313
North Dakota — — — 1 3,476 2,645 1 3,476 2,645
Ohio 5 121,140 86,558 35 228,515 156,991 40 349,655 243,549
Oklahoma 1 7,526 3,705 12 66,128 51,647 13 73,654 55,352
Oregon 1 110,318 86,891 7 71,988 58,592 8 182,306 145,483
Pennsylvania 3 97,070 53,744 28 146,085 101,922 31 243,155 155,666
Rhode Island 1 16,744 6,156 — — — 1 16,744 6,156
South Carolina 1 69,907 48,689 16 88,415 59,811 17 158,322 108,500
Tennessee 7 154,015 66,460 37 108,098 78,963 44 262,113 145,423
Texas 13 261,631 140,994 55 355,252 248,845 68 616,883 389,839
Utah 2 78,300 38,497 3 12,652 7,550 5 90,952 46,047
Virginia 8 131,186 67,656 18 67,696 48,695 26 198,882 116,351
Washington 7 198,244 125,971 4 19,900 16,002 11 218,144 141,973
West Virginia 1 10,649 5,055 5 13,847 9,322 6 24,496 14,377
Wisconsin — — — 4 10,701 6,547 4 10,701 6,547
Wyoming — — — 6 55,948 33,032 6 55,948 33,032
194 5,484,175 3,442,244 733 3,705,719 2,643,290 927 9,189,894 6,085,534
Washington, DC 1 147,804 128,975 — — — 1 147,804 128,975
Ontario, Canada 2 58,179 30,123 — — — 2 58,179 30,123
Puerto Rico 1 217,467 130,076 — — — 1 217,467 130,076
4 423,450 289,174 — — — 4 423,450 289,174
Total 198 $ 5,907,625 $ 3,731,418 733 $ 3,705,719 $ 2,643,290 931 $ 9,613,344 $ 6,374,708
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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:
Alabama 1 $ 8,250 $ 3,775 — $ — $ — 1 $ 8,250 $ 3,775
Georgia — — — 1 804 518 1 804 518
Illinois — — — 2 374 374 2 374 374
Indiana — — — 1 73 73 1 73 73
Iowa — — — 1 1,653 701 1 1,653 701
Michigan 2 15,245 8,676 1 77 77 3 15,322 8,753
Minnesota 1 13,620 3,761 — — — 1 13,620 3,761
Missouri 1 13,097 5,380 — — — 1 13,097 5,380
Ohio — — — 3 2,635 1,535 3 2,635 1,535
Pennsylvania 2 20,862 10,230 — — — 2 20,862 10,230
Texas 1 14,066 6,715 — — — 1 14,066 6,715
Total 8 $ 85,140 $ 38,537 9 $ 5,616 $ 3,278 17 $ 90,756 $ 41,815
206 $ 5,992,765 $ 3,769,955 742 $ 3,711,335 $ 2,646,568 948 $ 9,704,100 $ 6,416,523
As of December 31, 2024, 315 of our net lease properties with an aggregate undepreciated carrying value of $760.0 million were encumbered by mortgage notes with an aggregate principal balance of $606.6 million, and 70 of our net lease travel center properties with an aggregate undepreciated carrying value of $761.1 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 $1,717.3 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, 2024, eight of our hotels and 13 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 38 years (range of ten to 63 years) and 18 years (range of four months to 40 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 $505 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, 2024, the aggregate depreciated carrying value of our properties subject to ground leases was as follows (dollars in thousands):
Eight hotels (1)
$ 146,013
13 net lease (2)
46,549
Total $ 192,562
(1) Two of these hotels with a depreciated carrying value totaling $52,697 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 $22,266 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.