Leases

9 Months Ended

Sep. 30, 2021

We are subject to operating leases, the most significant of which are ground leases. We are the lessee to ground leases under eight of our hotels and two parking garages as of September 30, 2021. The lease liabilities for our operating leases assume the exercise of all available extension options, as we believe they are reasonably certain to be exercised. As of September 30, 2021, our operating leases have a weighted-average remaining lease term of 66 years and a weighted-average discount rate of 5.77%.

The components of operating lease expense, which is included in other hotel expenses in our consolidated statements of operations, and cash paid for amounts included in the measurement of lease liabilities, are as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	2,781	$	2,760	$	8,315	$	8,331
Variable lease payments	$	251	$	17	$	416	$	256
Cash paid for amounts included in the measurement of operating lease liabilities	$	884	$	802	$	2,628	$	2,412

Maturities of lease liabilities as of September 30, 2021 are as follows (in thousands):


Year Ending December 31,
2021 (excluding the nine months ended September 30, 2021)	$	887
2022	3,976
2023	4,033
2024	4,012
2025	4,072
Thereafter	764,477
Total lease payments	781,457
Less imputed interest	(673,518)
Total lease liabilities	$	107,939

The Salt Lake City Marriott Downtown at City Creek is subject to a ground lease. On April 1, 2021, we completed a transaction to extend the lease term by 50 years to December 31, 2106. In consideration for the extension, we transferred our 21.25% interest in the land to the majority ground lessors and provided a cash payment of $2.8 million.