Leases (Tables)

6 Months Ended

Jun. 30, 2019

Leases

Schedule of supplemental balance sheet information related to leases

	June 30,
	2019
	(unaudited)
Finance Leases:
Right-of-use assets, net (land)	$	6,605
Right-of-use assets, net (buildings and improvements)		58,799
Accumulated depreciation		(10,413)
Right-of-use assets, net	$	54,991
Accounts payable and accrued expenses	$	1
Lease obligations, less current portion		27,120
Total lease obligations	$	27,121
Operating Leases:
Right-of-use assets, net	$	62,380
Accounts payable and accrued expenses	$	4,599
Lease obligations, less current portion		52,097
Total lease obligations	$	56,696
Weighted Average Remaining Lease Term:
Finance leases		52.9 years
Operating leases		24.6 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		Six Months Ended
	June 30, 2019		June 30, 2019
	(unaudited)		(unaudited)
Finance lease cost:
Amortization of right-of-use assets	$	368	$	736
Interest on lease obligations		645		1,289
Total finance lease cost	$	1,013	$	2,025
Operating lease cost (1)	$	3,229		6,378

(1) Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. During the three and six months ended June 30, 2019, the Company recorded $1.5 million and $2.9 million, respectively, 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):

	Six Months Ended
	June 30, 2019
	(unaudited)
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows from operating leases	$	3,499
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	45,677

Summary of Future payments on leases, Operating lease

Future maturities of the Company’s operating and finance lease obligations at June 30, 2019 were as follows (in thousands):

	Operating Leases		Finance Leases
	(unaudited)		(unaudited)
Year 1	$	7,494	$	2,357
Year 2		7,545		2,357
Year 3		7,595		2,437
Year 4		7,649		2,453
Year 5		7,704		2,453
Thereafter		77,854		134,994
Total lease payments		115,841		147,051
Less: interest (1)		(59,145)		(119,930)
Present value of lease obligations	$	56,696	$	27,121

(1) Calculated using the appropriate discount rate for each lease.

Summary of Future payments on leases, Finance lease

	Operating Leases		Finance Leases
	(unaudited)		(unaudited)
Year 1	$	7,494	$	2,357
Year 2		7,545		2,357
Year 3		7,595		2,437
Year 4		7,649		2,453
Year 5		7,704		2,453
Thereafter		77,854		134,994
Total lease payments		115,841		147,051
Less: interest (1)		(59,145)		(119,930)
Present value of lease obligations	$	56,696	$	27,121

(1) Calculated using the appropriate discount rate for each lease.