Commitments and License Rights

12 Months Ended

Dec. 29, 2016

Commitments and Contingencies Disclosure [Abstract]

10. Commitments and License Rights

Lease Commitments - The Company leases real estate under various noncancellable operating leases with an initial term greater than one year that contain multiple renewal options, exercisable at the Company’s option. The Company recognizes rent expense on a straight-line basis over the expected lease term, including cancelable option periods where failure to exercise such options would result in an economic penalty. Percentage rentals are based on the revenues at the specific rented property. Rent expense charged to operations under these leases was as follows:

	Year Ended		31 Weeks Ended		Year Ended
	December 29, 2016		December 31, 2015		May 28, 2015		May 28, 2014
	(in thousands)
Fixed minimum rentals	$	7,707	$	4,693	$	8,064	$	7,995
Amortization of favorable lease right		334		194		334		334
Percentage rentals		343		153		193		193
	$	8,384	$	5,040	$	8,591	$	8,522

Aggregate minimum rental commitments under long-term operating leases, assuming the exercise of certain lease options, are as follows at December 29, 2016:

Fiscal Year	(in thousands)
2017	$	13,051
2018		10,898
2019		10,336
2020		9,086
2021		8,429
Thereafter		75,878
	$	127,678

Commitments - The Company has commitments for the completion of construction at various properties totaling approximately $15,130,000 at December 29, 2016.

License Rights - The Company has license rights to operate three hotels using the Hilton trademark, one hotel using the InterContinental trademark and two hotels using the Marriott trademark. Under the terms of the licenses, the Company is obligated to pay fees based on defined gross sales.