LEASES

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

LEASES

LEASES

As of June 30, 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. The Philadelphia office lease commenced in April 2023 with a lease term through July 2028. 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 June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	304	$	140	$	444	$	1,050	$	153	$	1,203
Variable lease costs	307		40		347		481		87		568
Total lease costs	$	611	$	180	$	791	$	1,531	$	240	$	1,771

The components of lease costs for the six months ended June 30, 2023 and 2022 were as follows:

	Six months ended June 30, 2023						Six months ended June 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	607	$	261	$	868	$	2,101	$	242	$	2,343
Variable lease costs	322		121		443		520		156		676
Total lease costs	$	929	$	382	$	1,311	$	2,621	$	398	$	3,019

Other information related to leases as of and for the six months ended June 30, 2023 and 2022 is as follows:

	June 30, 2023			June 30, 2022
Cash paid from operating cash flow for operating leases	$	1,347		$	2,758
Weighted average remaining lease term (in years)	48.6			63.5
Weighted average discount rate	7.84		%	7.86		%

LEASES

LEASES

As of June 30, 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. The Philadelphia office lease commenced in April 2023 with a lease term through July 2028. 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 June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30, 2023						Three Months Ended June 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	304	$	140	$	444	$	1,050	$	153	$	1,203
Variable lease costs	307		40		347		481		87		568
Total lease costs	$	611	$	180	$	791	$	1,531	$	240	$	1,771

The components of lease costs for the six months ended June 30, 2023 and 2022 were as follows:

	Six months ended June 30, 2023						Six months ended June 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	607	$	261	$	868	$	2,101	$	242	$	2,343
Variable lease costs	322		121		443		520		156		676
Total lease costs	$	929	$	382	$	1,311	$	2,621	$	398	$	3,019

Other information related to leases as of and for the six months ended June 30, 2023 and 2022 is as follows:

	June 30, 2023			June 30, 2022
Cash paid from operating cash flow for operating leases	$	1,347		$	2,758
Weighted average remaining lease term (in years)	48.6			63.5
Weighted average discount rate	7.84		%	7.86		%