Leases

9 Months Ended

Sep. 30, 2023

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 one parking area as of September 30, 2023. 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, 2023, our operating leases have a weighted-average remaining lease term of 64 years and a weighted-average discount rate of 5.78%.

The components of operating lease expense, which is included in other hotel expenses in our consolidated statements of operations and comprehensive income, 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,
	2023		2022		2023		2022
Operating lease cost	$	2,754	$	2,797	$	8,278	$	8,370
Variable lease payments	$	399	$	447	$	1,156	$	1,210
Cash paid for amounts included in the measurement of operating lease liabilities	$	981	$	1,011	$	2,942	$	2,990

Maturities of lease liabilities as of September 30, 2023 are as follows (in thousands):


Year Ending December 31,
2023 (excluding the nine months ended September 30, 2023)	$	982
2024	3,966
2025	4,026
2026	4,594
2027	4,737
Thereafter	752,819
Total lease payments	771,124
Less imputed interest	(659,292)
Total lease liabilities	$	111,832

On April 20, 2023, we acquired the fee simple interest in a land parcel underlying the parking structure at the Worthington Renaissance Fort Worth Hotel, which had been subject to a ground lease, for $1.8 million.