The majority of our leases, as lessee, are operating ground leases. We also have operating equipment leases, such as copier and vehicle leases, at our hotel properties. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one year to 99 years. The exercise of lease renewal options is at our sole discretion. Some leases have variable payments, however, if variable payments are contingent, they are not included in the ROU assets and liabilities.

In December 2022, the Company acquired the lease of a single hotel property in Marietta, Georgia. The lease is considered a finance lease and resulted in an increase to “investments in hotel properties, net” and “finance lease liabilities” of approximately $19.0 million, inclusive of transaction costs, and $18.8 million, respectively. See note 4.

The discount rate used to calculate the lease liability and ROU asset related to our ground leases is based on our incremental borrowing rate (“IBR”), as the rate implicit in each lease is not readily determinable. The IBR is determined at commencement of the lease, or upon modification of the lease, as the interest rate a lessee would have to pay to borrow on a fully collateralized basis over a similar term and at an amount equal to the lease payments in a similar economic environment.

As of December 31, 2022 and 2021, our leased assets and liabilities consisted of the following (in thousands):


	Lease Classification	December 31, 2022		December 31, 2021

Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	43,921	$	44,575
Finance lease assets	Investments in hotel properties, net	18,972		—
Total leased assets		$	62,893	$	44,575

Liabilities
Operating lease liabilities	Operating lease liabilities	$	44,661	$	45,106
Finance lease liabilities	Finance lease liabilities	18,847		—
Total leased liabilities		$	63,508	$	45,106



		Year Ended December 31,
Lease cost	Classification	2022		2021		2020
Operating lease cost
Rent expense	Hotel operating expenses - other (1)	$	4,714	$	4,665	$	4,453
Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	26	$	—	$	—

(1) For the years ended December 31, 2022, 2021, and 2020, operating lease cost includes approximately $1.2 million, $1.1 million and $495,000, respectively, of variable lease cost associated with the ground leases and $181,000, $211,000 and $227,000, respectively of net amortization costs related to the intangible assets and liabilities that were reclassified to “operating lease right-of-use assets” upon adoption of ASC 842. Short-term lease costs in aggregate are immaterial.


	Year Ended December 31,

Supplemental Cash Flows Information	2021			2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (in thousands)	$	2,713		$	2,824		$	3,028






Weighted Average Remaining Lease Term
Operating leases (1)	67 years			68 years			69 years
Finance lease (2)	32 years			—			—

Weighted Average Discount Rate
Operating leases (1)	5.14		%	5.14		%	5.14		%
Finance lease	10.68		%	—		%	—		%

(1) Calculated using the lease term, excluding extension options, and our calculated discount rates of the ground leases and owner managed leases.

(2) The weighted-average remaining lease term includes the lease term of our finance lease with the City of Marietta which terminates December 31, 2054.

Future minimum lease payments due under non-cancellable leases as of December 31, 2022 were as follows (in thousands):


	Operating Leases		Finance Lease
2023	$	3,017	$	2,411
2024	2,976		2,411
2025	2,972		2,411
2026	2,957		2,284
2027	2,924		1,904
Thereafter	178,169		53,821
Total future minimum lease payments (1)	193,015		65,242
Less: interest	148,354		46,395
Present value of lease liabilities	$	44,661	$	18,847