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Leases (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule Of Lease-Related Assets and Liabilities
The following table sets forth the lease-related assets and liabilities in our consolidated balance sheet as of December 31, 2024 and 2023 (in thousands):
Location in Consolidated Balance SheetsYear Ended December 31,
20242023
Assets
Operating lease assets, netRight-of-use assets$89,931 $97,692 
Finance lease assets, netPrepaid and other assets8,179 — 
Total lease assets$98,110 $97,692 
Liabilities
Operating lease liabilitiesLease liabilities$85,235 $112,866 
Finance lease liabilitiesAccounts payable and accrued expenses31,632 — 
Total lease liabilities$116,867 $112,866 
Weighted-average remaining lease term
Operating leases63 years
Finance leases97 years
Weighted-average discount rate
Operating leases5.77 %
Finance leases5.91 %

The following table sets forth the lease costs related to the operating and finance leases included in the consolidated statements of operations and comprehensive income for the year ended December 31, 2024, 2023, and 2022 (in thousands):

Location in Statements of Operations and Comprehensive IncomeYear Ended December 31,
202420232022
Operating lease costOther property-level expenses$10,889 $11,106 11,255 
Finance lease costs:
Amortization of lease assetsOther property-level expenses14 — — 
Interest on lease liabilitiesInterest expense122 — — 
Total lease costs$11,025 $11,106 $11,255 
Schedule of Components of Lease Expense and Other Information
Year Ended December 31,
20242023
Cash paid for amounts included in the measurement of operating lease liabilities$3,950 $3,995 
Variable lease payments$1,972 $1,687 
Cash paid for amounts included in the measurement of finance lease liabilities$189 $— 
Schedule of Operating Lease Maturities
Future minimum lease payments included in the consolidated balance sheets are as follows (in thousands):
Year Ending December 31,Operating LeasesFinance Lease
2025$3,073 $1,133 
20263,571 1,133 
20273,534 1,204 
20283,604 1,416 
20293,678 1,416 
Thereafter593,357 404,379 
Total lease payments610,817 410,681 
Less imputed interest(525,582)(379,049)
Total lease liabilities$85,235 $31,632 
Schedule of Current and Future Minimum Rental Payments for Ground Leases
The following table reflects the current and future annual rents under our ground leases:
Property
Term (1)
Annual Rent
Embassy Suites by Hilton BethesdaThrough 4/2087
$1,077,381 (2)
Courtyard New York Manhattan/Fifth Avenue (3)
10/2017 - 9/2027$1,132,812
10/2027 - 9/2037$1,416,015
10/2037 - 9/2047$1,770,019
10/2047 - 9/2057$2,212,524
10/2057 - 9/2067$2,765,655
10/2067 - 9/2077$3,457,069
10/2077 - 9/2087$4,321,336
10/2087 - 9/2097$5,401,670
10/2097 - 9/2107$6,752,088
10/2107 - 9/2117$8,440,110
10/2117 - 9/2121$10,550,138
Salt Lake City Marriott (Ground lease for hotel) Through 12/2106
Greater of $132,000 or 2.6% of annual gross room sales
Salt Lake City Marriott (Ground lease for extension)1/2018 - 12/2056
$15,203 (4)
Westin Boston Seaport District (5) (Base rent)
1/2021 - 12/2025$1,000,000
1/2026 - 12/2030$1,500,000
1/2031 - 12/2035$1,750,000
1/2036 - 5/2099
No base rent
Westin Boston Seaport District (Percentage rent)6/2016 - 5/2026
1.0% of annual gross revenue
6/2026 - 5/2036
1.5% of annual gross revenue
6/2036 - 5/2046
2.75% of annual gross revenue
6/2046 - 5/2056
3.0% of annual gross revenue
6/2056 - 5/2066
3.25% of annual gross revenue
6/2066 - 5/2099
3.5% of annual gross revenue
Hotel Clio1/2021 - 12/2025$55,000
1/2026 - 12/2030 (6)
$60,000
Orchards Inn Sedona7/2018 - 12/2070
$150,993 (7)
Hotel Palomar Phoenix (Base Rent)4/2022 - 3/2085
$37,253 (8)
Hotel Palomar Phoenix (Government Property Lease Excise Tax) (9)
1/2022 - 6/2033$312,000
7/2033 - 6/2043$234,000
7/2043 - 6/2053$156,000
7/2053 - 6/2063$78,000
7/2063 - 3/2085$—
Cavallo Point (Base Rent)1/2019 - 12/2066
$140,531 (10)
Cavallo Point (11) (Percentage Rent)
1/2024 - 12/2028
3.0% of adjusted gross revenue over threshold
1/2029 - 12/2033
4.0% of adjusted gross revenue over threshold
1/2034 - 12/2066
5.0% of adjusted gross revenue over threshold
Cavallo Point (12) (Participation Rent)
Through 12/2066
10.0% of adjusted gross revenue over threshold
Bourbon Orleans Hotel parking subleaseThrough 7/2069
$36,000 (13)
__________
(1)These terms assume our exercise of all renewal options.
(2)
Represents rent for the year ended December 31, 2024. Rent increases annually by 5.5%.
(3)
The total annual rent includes the fixed rent noted in the table plus a percentage rent equal to 5% of gross receipts for each lease year, but only to the extent that 5% of gross receipts exceeds the minimum fixed rent in such lease year. There was no such percentage rent earned during the years ended December 31, 2024 and 2023.
(4)
Represents rent for the year ended December 31, 2024. Rent increases annually based on the greater of 2% or a Consumer Price Index calculation.
(5)
Total annual rent under the ground lease is capped at 2.5% of hotel gross revenues during the initial 30 years of the ground lease.
(6)
Beginning January 2031, we have the right to renew the ground lease in one-year increments at the prior year's annual rent plus 3%.
(7)Represents rent for the year ended December 31, 2024. Rent increases annually in June based on a Consumer Price Index calculation.
(8)
Represents rent for the year ended March 31, 2024. Rent increases annually each April by 2.5%.
(9)As the lessee of a government property, the hotel is subject to a Government Property Lease Excise Tax under Arizona state statute.
(10)
Represents rent for the year ending December 31, 2024. Base rent resets every five years based on the average of the previous three years of adjusted gross revenues, as defined in the ground lease, multiplied by 75%. The next base rent reset will be January 2029.
(11)
Percentage rent is applied to annual adjusted gross revenues, as defined in the ground lease, between $30 million and the participation rent threshold. Base rent is deducted from the percentage rent.
(12)
Participation rent is applied to annual adjusted gross revenues, as defined in the ground lease, over $42 million plus an annual increase based on a Consumer Price Index calculation.
(13)
Represents rent for the year ending December 31, 2024. Annual rent increases by $6,000 every five years. The next rent increase will be January 2027.