Leases (Tables)

12 Months Ended

Dec. 31, 2023

As of December 31, 2023 and 2022, our leased assets and liabilities consisted of the following (in thousands):


	Lease Classification	December 31, 2023		December 31, 2022

Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	44,047	$	43,921
Finance lease assets	Investments in hotel properties, net	17,269		18,972
Total leased assets		$	61,316	$	62,893

Liabilities
Operating lease liabilities	Operating lease liabilities	$	44,765	$	44,661
Finance lease liabilities	Finance lease liabilities	18,469		18,847
Total leased liabilities		$	63,234	$	63,508

Lease Cost and Other Information

We incurred the following lease costs related to our leases (in thousands):



		Year Ended December 31,
Lease cost	Classification	2023		2022		2021
Operating lease cost
Rent expense	Hotel operating expenses - other (1)	$	4,351	$	4,714	$	4,665
Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	537	$	26	$	—

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(1) For the years ended December 31, 2023, 2022, and 2021, operating lease cost includes approximately $1.1 million, $1.2 million and $1.1 million, respectively, of variable lease cost associated primarily with the ground leases and $(15,000), $181,000 and $211,000, 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. The change in net intangible amortization costs from 2022 to 2023 was primarily due to certain leases with intangible balances reaching maturity in 2023. Short-term lease costs in aggregate are immaterial.

Other information related to leases is as follows:


	Year Ended December 31,

Supplemental Cash Flows Information	2023			2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (in thousands)	$	2,647		$	2,713		$	2,824






Weighted Average Remaining Lease Term
Operating leases (1)	67 years			67 years			68 years
Finance lease (2)	31 years			32 years			—

Weighted Average Discount Rate
Operating leases (1)	5.26		%	5.14		%	5.14		%
Finance lease	10.68		%	10.68		%	—		%

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(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.

Maturities of Operating Lease Liabilities

Future minimum lease payments due under non-cancellable leases as of December 31, 2023 were as follows (in thousands):


	Operating Leases		Finance Lease
2024	$	3,102	$	2,411
2025	3,085		2,411
2026	3,057		2,284
2027	3,017		1,904
2028	3,017		1,904
Thereafter	180,660		51,917
Total future minimum lease payments (1)	195,938		62,831
Less: interest	151,173		44,362
Present value of lease liabilities	$	44,765	$	18,469

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(1) Based on payment amounts as of December 31, 2023.