Leases

12 Months Ended

Dec. 31, 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 areas. 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. Additional information regarding the terms of our ground leases can be found in Note 13. As of December 31, 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):


	Year Ended December 31,
	2021		2020
Operating lease cost	$	11,101	$	11,091
Variable lease payments	$	648	$	295
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,515	$	3,214

Maturities of lease liabilities are as follows (in thousands):


Year Ending December 31,	As of December 31, 2021
2022	$	3,976
2023	4,033
2024	4,012
2025	4,072
2026	4,640
Thereafter	759,838
Total lease payments	780,571
Less imputed interest	(671,966)
Total lease liabilities	$	108,605

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 owners and provided a cash payment of $2.8 million.