LEASES

12 Months Ended

Dec. 31, 2021

We own five hotels within our consolidated portfolio of hotels where we do not own the land on which the hotels reside, rather we lease the land from an unrelated third-party lessor. All of our land leases are classified as operating leases and have initial terms, with extension options that range from May 2062 to October 2103. Based on the nature of these leases, the Company assumed that all extension options would be fully executed in the measurement of the right of use assets and lease liabilities. Some of our land leases include variable payments, which are tied to an index such as the consumer price index or include rental payments based partially on the hotel revenues. Lease costs for our land leases are presented as Hotel Ground Rent in the Consolidated Statements of Operations.

Two additional office space leases are also factored into the lease liability and are classified as operating leases with terms ranging from March 2023 to December 2027. Our office space leases include variable payments for the Company's proportionate share of the building's property taxes, insurance, and common area maintenance. Lease costs for our office spaces are included in General and Administrative Expense in the Consolidated Statements of Operations.

The components of lease costs for the years ended December 31, 2021, 2020, and 2019 were as follows:


	For the Year Ended December 31, 2021
	Ground Lease		Office Lease		Total
Operating lease costs	$	4,228	$	483	$	4,711
Variable lease costs	172		298		470
Total lease costs	$	4,400	$	781	$	5,181


	For the Year Ended December 31, 2020
	Ground Lease		Office Lease		Total
Operating lease costs	$	4,153	$	483	$	4,636
Variable lease costs	139		253		392
Total lease costs	$	4,292	$	736	$	5,028


	For the Year Ended December 31, 2019
	Ground Lease		Office Lease		Total
Operating lease costs	$	4,195	$	483	$	4,678
Variable lease costs	386		308		694
Total lease costs	$	4,581	$	791	$	5,372

NOTE 6 – LEASES (CONTINUED)

Other information related to leases as of and for the years ended December 31, 2021 and 2020 is as follows:


	December 31, 2021			December 31, 2020
Cash paid from operating cash flows for operating leases	$	4,657		$	4,383
Weighted average remaining lease term in years	63.5			64.2
Weighted average discount rate	7.86		%	7.86		%

Maturities of lease liabilities as of December 31, 2021 are as follows:


	Amount
2022	$	4,965
2023	4,612
2024	4,473
2025	4,515
2026	4,578
Thereafter	279,840
Total undiscounted lease payments	302,983
Less imputed interest	(249,292)
Total lease liability	$	53,691

LEASES

The components of lease costs for the years ended December 31, 2021, 2020, and 2019 were as follows:


	For the Year Ended December 31, 2021
	Ground Lease		Office Lease		Total
Operating lease costs	$	4,228	$	483	$	4,711
Variable lease costs	172		298		470
Total lease costs	$	4,400	$	781	$	5,181


	For the Year Ended December 31, 2020
	Ground Lease		Office Lease		Total
Operating lease costs	$	4,153	$	483	$	4,636
Variable lease costs	139		253		392
Total lease costs	$	4,292	$	736	$	5,028


	For the Year Ended December 31, 2019
	Ground Lease		Office Lease		Total
Operating lease costs	$	4,195	$	483	$	4,678
Variable lease costs	386		308		694
Total lease costs	$	4,581	$	791	$	5,372

NOTE 6 – LEASES (CONTINUED)

Other information related to leases as of and for the years ended December 31, 2021 and 2020 is as follows:


	December 31, 2021			December 31, 2020
Cash paid from operating cash flows for operating leases	$	4,657		$	4,383
Weighted average remaining lease term in years	63.5			64.2
Weighted average discount rate	7.86		%	7.86		%

Maturities of lease liabilities as of December 31, 2021 are as follows:


	Amount
2022	$	4,965
2023	4,612
2024	4,473
2025	4,515
2026	4,578
Thereafter	279,840
Total undiscounted lease payments	302,983
Less imputed interest	(249,292)
Total lease liability	$	53,691