LEASES

6 Months Ended

Jun. 30, 2025

LEASES

LEASES

10. LEASES:

The Company is a lessee of a 65.3-acre site in Osceola County, Florida on which Gaylord Palms is located; a 234-acre site in Maricopa County, Arizona on which a portion of JW Marriott Desert Ridge is located; building or land leases for Ole Red Gatlinburg, Ole Red Orlando, Ole Red Tishomingo, Ole Red Nashville International Airport and Ole Red Las Vegas; and various warehouse, general office and other equipment leases. The Gaylord Palms land lease has a term through 2074, which may be extended through January 2101, at the Company’s discretion. The JW Marriott Desert Ridge land lease has a term through 2092. The leases for Ole Red locations range from five to ten years, with renewal options ranging from five to fifty-five years, at the Company’s discretion, with the exception of Ole Red Nashville International Airport, which has no extension option. Extension options were not considered reasonably assured to be exercised as of the date of the agreement and, as a result, are not included in the Company’s calculation of its right-of-use assets and lease liabilities.

The terms of the Gaylord Palms lease include variable lease payments based upon net revenues at Gaylord Palms, and certain other of the Company’s leases include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company’s lease costs for the three and six months ended June 30, 2025 and 2024 are as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Operating lease cost	$	5,135	$	4,901	$	10,048	$	9,567
Finance lease cost:
Amortization of right-of-use assets		57		47		98		95
Interest on lease liabilities		4		—		8		1
Net lease cost	$	5,196	$	4,948	$	10,154	$	9,663

Future minimum lease payments under non-cancelable leases at June 30, 2025 are as follows (in thousands):

	Operating		Finance
	Leases		Leases
Year 1	$	12,653	$	404
Year 2		11,787		266
Year 3		11,454		153
Year 4		10,389		43
Year 5		10,352		—
Years thereafter		607,876		—
Total future minimum lease payments		664,511		866
Less amount representing interest		(520,018)		(81)
Total present value of minimum payments	$	144,493	$	785

​
The remaining lease term and discount rate for the Company’s leases are as follows:

Weighted-average remaining lease term:
Operating leases	42.9	years
Finance leases	2.5	years
Weighted-average discount rate:
Operating leases	7.1	%
Finance leases	5.8	%