LEASES

9 Months Ended

Sep. 30, 2023

As of September 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 hotel JFK Airport, Hotel Milo, and Towneplace Suites Sunnyvale.

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


	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	302	$	51	$	353	$	943	$	121	$	1,064
Variable lease costs	284		45		329		242		47		289
Total lease costs	$	586	$	96	$	682	$	1,185	$	168	$	1,353

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


	Nine months ended September 30, 2023						Nine months ended September 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	909	$	306	$	1,215	$	3,045	$	363	$	3,408
Variable lease costs	606		172		778		761		203		964
Total lease costs	$	1,515	$	478	$	1,993	$	3,806	$	566	$	4,372

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


	September 30, 2023			September 30, 2022
Cash paid from operating cash flow for operating leases	$	2,048		$	4,080
Weighted average remaining lease term (in years)	48.7			66.4
Weighted average discount rate	7.84		%	7.87		%

LEASES

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


	Three Months Ended September 30, 2023						Three Months Ended September 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	302	$	51	$	353	$	943	$	121	$	1,064
Variable lease costs	284		45		329		242		47		289
Total lease costs	$	586	$	96	$	682	$	1,185	$	168	$	1,353

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


	Nine months ended September 30, 2023						Nine months ended September 30, 2022
	Ground Lease		Office Lease		Total		Ground Lease		Office Lease		Total
Operating lease costs	$	909	$	306	$	1,215	$	3,045	$	363	$	3,408
Variable lease costs	606		172		778		761		203		964
Total lease costs	$	1,515	$	478	$	1,993	$	3,806	$	566	$	4,372

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


	September 30, 2023			September 30, 2022
Cash paid from operating cash flow for operating leases	$	2,048		$	4,080
Weighted average remaining lease term (in years)	48.7			66.4
Weighted average discount rate	7.84		%	7.87		%