LEASES

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

LEASES

LEASES

As of March 31, 2023, we own two hotels (the Hilton Garden Inn JFK and the Annapolis Waterfront Hotel) 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. Our land leases are classified as operating leases and have initial terms with extension options that range from August 2064 to October 2103. We also have two additional office space leases for our Philadelphia office and New York City office. Our Philadelphia office lease ended in March 2023, and we have subsequently entered into a new lease agreement which commenced in April 2023. Our New York City office lease term is through December 2027. Lease costs for our office spaces are included in General and Administrative expense.

We disposed of the following hotels during the year ended December 31, 2022 which had ground leases that were assumed by the buyers: the Courtyard Brookline, the Gate JFK Airport, Hotel Milo, and Towneplace Suites Sunnyvale.

The components of lease costs for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	303	$	121	$	424	$	1,050	$	88	$	1,138
Variable lease costs	15		81		96		40		70		110
Total lease costs	$	318	$	202	$	520	$	1,090	$	158	$	1,248

Other information related to leases as of and for the three months ended March 31, 2023 and 2022 is as follows:

	March 31, 2023			March 31, 2022
Cash paid from operating cash flow for operating leases	$	538		$	1,085
Weighted average remaining lease term (in years)	50.7			63.4
Weighted average discount rate	7.84		%	7.86		%

LEASES

LEASES

As of March 31, 2023, we own two hotels (the Hilton Garden Inn JFK and the Annapolis Waterfront Hotel) 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. Our land leases are classified as operating leases and have initial terms with extension options that range from August 2064 to October 2103. We also have two additional office space leases for our Philadelphia office and New York City office. Our Philadelphia office lease ended in March 2023, and we have subsequently entered into a new lease agreement which commenced in April 2023. Our New York City office lease term is through December 2027. Lease costs for our office spaces are included in General and Administrative expense.

We disposed of the following hotels during the year ended December 31, 2022 which had ground leases that were assumed by the buyers: the Courtyard Brookline, the Gate JFK Airport, Hotel Milo, and Towneplace Suites Sunnyvale.

The components of lease costs for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	303	$	121	$	424	$	1,050	$	88	$	1,138
Variable lease costs	15		81		96		40		70		110
Total lease costs	$	318	$	202	$	520	$	1,090	$	158	$	1,248

Other information related to leases as of and for the three months ended March 31, 2023 and 2022 is as follows:

	March 31, 2023			March 31, 2022
Cash paid from operating cash flow for operating leases	$	538		$	1,085
Weighted average remaining lease term (in years)	50.7			63.4
Weighted average discount rate	7.84		%	7.86		%