Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net Property and Equipment, Net

v3.20.4
Property and Equipment, Net Property and Equipment, Net
 12 Months Ended
Dec. 31, 2020
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
6. PROPERTY AND EQUIPMENT, NET
As a result of COVID-19 and the related governmental preventative and protective actions to slow the spread of the virus, the travel industry is continuing to experience a sharp decline in travel demand. As a result, the Company closed its two owned hotels temporarily for April and May 2020. Due to the temporary closure of such hotels and the continued decrease in travel demand, the Company evaluated the recoverability of its net property plant and equipment associated with its two owned hotels for impairment in each of the quarters of 2020 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 and equipment, net consisted of:
As of December 31,
2020 2019
Land $ 19  $ 19 
Buildings and leasehold improvements 215  214 
Capitalized software 353  311 
Furniture, fixtures and equipment 85  92 
Finance leases 65  72 
Construction in progress 3  21 
740  729 
Less: Accumulated depreciation 462  422 
$ 278  $ 307 

The Company recorded depreciation expense of $61 million, $71 million, and $68 million during 2020, 2019 and 2018, respectively, related to property and equipment.