Long-Lived Assets |
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| Long-Lived Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Lived Assets |
Property, plant and equipment
As a result of the coronavirus pandemic, (“COVID-19”) and the related governmental preventative and protective actions to slow the spread of COVID-19, the travel industry is experiencing a sharp decline in travel demand. As a result, during the first quarter of 2020, the Company temporarily closed its two owned hotels indefinitely. Due to the temporary closure of such hotels, the Company has evaluated the recoverability of its net property plant and equipment associated with its two owned hotels for impairment and believes that it is more likely than not that the carrying value of those assets are recoverable from future expected cash flows, on an undiscounted basis, from such assets.
Although the Company believes that it is more likely than not that the carrying values of its net property, plant and equipment for its two owned hotels are not impaired, the impact of COVID-19 and the ultimate duration remains highly uncertain. Should the current effects of COVID-19 persist for a prolonged duration, the Company's results of operations may continue to be negatively impacted and the property, plant and equipment associated with its owned hotels may be exposed to impairment.
Property, plant and equipment, net as of March 31, 2020 and December 31, 2019 was $299 million and $307 million, respectively.
Intangible assets
As a result of COVID-19 and the significant negative impact it has had on travel demand, the Company performed a qualitative assessment of its intangible assets. The Company has determined through its analysis that it is more likely than not that the fair value of each of its goodwill and trademarks and the future expected cash flows on an undiscounted basis for its franchise agreements and management contracts are in excess of their carrying values. Although the Company believes that such intangible assets are not impaired, the impact of COVID-19 and the ultimate duration remains highly uncertain. Should the current effects of COVID-19 persist for a prolonged duration, the Company's results of operations may continue to be negatively impacted and certain intangible assets may be exposed to impairments at the Company's (i) hotel franchising, (ii) hotel management and (iii) owned hotel reporting units. To the extent estimated market-based valuation multiples and/or discounted cash flows are revised downward, the Company may be required to write-down all or a portion of goodwill, trademarks, franchise agreements and management contracts, which would adversely impact earnings.
Intangible assets as of March 31, 2020 and December 31, 2019 consisted of the following:
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