Does Morguard choose a different cost method for hotels versus its other properties? If yes, why do you think it is so?

NOTE 6 HOTEL PROPERTIES Hotel properties consist of the following: Accumulated As at December 31, 2018 Impairment Accumulated Net Book Cost Provision Amortization Value Land $97,111 ($2,407) $- $94,704 Buildings 590,882 (46,382) (34,423) 510,077 Fumiture, fixtures, equipment and other 100,419 (5,469) (33,653) 61,297 $788,412 ($54,258) ($68,076) $666,078 Accumulated As at December 31, 2017 Impairment Accumulated Net Book Cost Provision Amortization Value Land $91,984 ($2,407) $- $89,577 Buildings 533,313 (19,483) (21,462) 492,368 Fumiture, fixtures, equipment and other 83,788 (2,700) (21,272) 59,816 $709,085 ($24,590) ($42,734) $641,761 Hotel property under development 27,265 27,265 $736,350 ($24,590) ($42,734) $669,026Transactions in hotel properties for the year ended December 31, 2018, are summarized as follows: Opening Net Book Impairment Closing As at December 31, 2018 Value Additions Provision Transfer Amortization Net Book Value Land $89,577 S- $- $5,127 $- $94,704 Buildings 492,368 8,082 (26,899) 49,487 (12,961) 610,077 Fumiture, fixtures, equipment and other 59,816 8,947 (2,769) 7,684 (12,381) 61,297 $641,761 $17,029 ($29,668) $62,298 ($25,342) $666,078 Hotel property under development 27,265 35,033 (62,298) $669,026 $52,062 ($29,668) $- ($25,342) $666,078 Transactions in hotel properties for the year ended December 31, 2017, are summarized as follows: Opening Impairment Closing As at December 31, 2017 Net Book Additions Provision Disposals Amortization Net Book Value Value Land $93,334 $- ($2,407) ($1,350) $89,577 Buildings 522, 189 10,412 (19,483) (7,245) (13,505) 492,368 Fumiture, fixtures, equipment and other 70,001 6,374 (2,700) (724) (13,135) 59,816 $685,524 $16,786 ($24,590) ($9,319) ($26,640) $641,761 Hotel property under development 20,139 7.126 27,265 $705,663 $23,912 $24,590 $9,319) ($26,640) $669,026 On December 28, 2018, the Company reached practical completion of the re-development of the dual branded Hilton Garden Inn and Homewood Suites by Hilton in downtown Ottawa, Ontario, and the hotel was transferred from properties under development to hotel properties. The Company identified each hotel property as a cash-generating unit for impairment purposes. The recoverable amounts of the hotel properties have been estimated using the higher of the value-in-use method or fair value less costs to sell. Under these calculations, discount rates are applied to the forecasted cash flows reflecting the assumptions for hotel activity. The key assumptions are the first year net operating income and the discount rate applied over the useful life of the hotel property. IFRS permits an impairment provision to be reversed in the subsequent accounting periods if recoverability analysis at that time supports reversal. During 2018, impairment indicators were identified including decreases in occupancy at hotel properties. A recoverability analysis was completed in accordance with the procedures specified by IFRS, which indicated that an impairment provision of $29,668 should be recorded. The table below provides details of first year net operating income and the discount rates used for valuing the hotel properties.- Properties Hotel properties comprise land, buildings, furniture, xtures and equipment, and other and are stated at cost less accumulated amortization and any impairment losses. The application of this policy requires an estimate of the useful life of the asset and its residual value. The revenue and operating expenses of the hotel properties are included within net operating income in the consolidated statements of income- The Company provides for amortization of hotel properties so as to apply the cost of the assets over the estimated useful lives as follows: Method Raine Buildings Straight-line 40 years Fumilure, xtures and equipment Straightline 5 to 10 years Other Straight-line 5 to 10 years Revenue from - Properties Revenue from hotel properties relates to all revenue received from guests by owned hotels. The services rendered, including room rentals, food and beverage sales and other ancillary services, are distinct performance obligations, for which prices invoiced to the guests are representative of their standalone selling prices. These obligations are fullled over time when they relate to room rentals, that is over the stay within the hotel, and at a point in time for other goods or services, when they have been delivered or rendered. Property and equipment and investments in joint arrangements are assessed for impairment. Significant assumptions are used in the assessment of fair value and impairment including estimates of future operating cash flows, the time period over which they will occur, an appropriate discount rate, appropriate growth rates (revenues and costs) and changes in market valuation parameters. Management considers various factors in its assessment including the historical performance of property and equipment and investments in joint arrangements, expected trends in each specific market as well as local and macroeconomic conditions. The critical estimates and assumptions underlying the valuation of hotel properties are outlined in Note 6. The estimated useful lives and related amortization method are determined for each component of hotel properties. The selected amortization method and estimate of useful life impact the amount of amortization expense recognized. In establishing useful lives and related amortization method management considers its capital maintenance plans