Leases (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of supplemental balance sheet information related to leases

Leases were included on the Company’s consolidated balance sheet as follows (in thousands):


	March 31,
	2019
	(unaudited)
Finance Leases:
Right-of-use assets, net (land)	$	6,605
Right-of-use assets, net (buildings and improvements)		58,799
Accumulated amortization		(10,045)
Right-of-use assets, net	$	55,359

Accounts payable and accrued expenses	$	1
Lease obligations, less current portion		27,064
Total lease obligations	$	27,065


Operating Leases:
Right-of-use assets, net	$	63,235

Accounts payable and accrued expenses	$	4,528
Lease obligations, less current portion		53,276
Total lease obligations	$	57,804


Weighted Average Remaining Lease Term:
Finance leases		53.2 years
Operating leases		24.5 years


Weighted Average Discount Rate:
Finance leases		9.5	%
Operating leases		5.3	%

Lease costs

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


	Three Months Ended
	March 31, 2019
	(unaudited)
Finance lease cost:
Amortization of right-of-use assets	$	368
Interest on lease obligations		644
Total finance lease cost	$	1,012

Operating lease cost (1)	$	3,149

(1)

Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. During the three months ended March 31, 2019, the Company recorded $1.4 million in percentage rent related to its operating leases.

Schedule of supplemental cash flow information related to leases

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended
	March 31, 2019
	(unaudited)
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows from operating leases	$	1,632
Operating cash flows from finance leases	$	—
Finance cash flows from finance leases	$	—

Right-of-use assets obtained in exchange for lease obligations upon adoption of ASU No. 2016-02:
Operating leases	$	45,677
Finance leases	$	—

Summary of Future payments on leases, Operating lease

Future maturities of the Company’s operating and finance lease obligations at March 31, 2019 were as follows (in thousands):


	Operating Leases		Finance Leases
	(unaudited)		(unaudited)
2019	$	7,480	$	2,357
2020		7,532		2,357
2021		7,583		2,413
2022		7,635		2,453
2023		7,689		2,453
Thereafter		79,789		135,607
Total lease payments		117,708		147,640
Less: interest (1)		(59,904)		(120,575)
Present value of lease obligations	$	57,804	$	27,065

(1)

Calculated using the appropriate discount rate for each lease.

Summary of Future payments on leases, Finance lease


	Operating Leases		Finance Leases
	(unaudited)		(unaudited)
2019	$	7,480	$	2,357
2020		7,532		2,357
2021		7,583		2,413
2022		7,635		2,453
2023		7,689		2,453
Thereafter		79,789		135,607
Total lease payments		117,708		147,640
Less: interest (1)		(59,904)		(120,575)
Present value of lease obligations	$	57,804	$	27,065

(1)

Calculated using the appropriate discount rate for each lease.