Leases

9 Months Ended

Sep. 30, 2025

Leases [Abstract]

Leases

8. Leases

As of both September 30, 2025 and December 31, 2024, the Company had operating leases for ground, office, equipment, and airspace leases with maturity dates ranging from 2025 through 2097, excluding renewal options. Including renewal options available to the Company, the lease maturity date extends to 2147.

Operating leases were included on the Company’s consolidated balance sheets as follows (in thousands):

	September 30,			December 31,
	2025			2024
	(unaudited)
Right-of-use assets, net	$	5,477		$	8,464
Lease obligations	$	8,574		$	12,019
Weighted average remaining lease term		11 years
Weighted average discount rate		5.7	%

The components of lease expense were as follows (unaudited and in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating lease cost	$	1,380	$	1,334	$	4,108	$	4,024
Variable lease cost (1)		2,459		2,015		6,712		6,521
Sublease income (2)		(296)		(296)		(890)		(890)
Total lease cost	$	3,543	$	3,053	$	9,930	$	9,655

(1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds.

(2) Sublease income is included in corporate overhead in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024.