Other Current Liabilities and Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Other Current Liabilities and Other Liabilities

Schedule of other current liabilities

Other current liabilities consisted of the following (in thousands):

	September 30,		December 31,
	2020		2019
	(unaudited)
Property, sales and use taxes payable	$	13,971	$	16,074
Accrued interest		7,462		6,735
Advance deposits		12,845		18,001
Management fees payable		92		1,527
Other		2,192		4,618
Total other current liabilities	$	36,562	$	46,955

Schedule of other liabilities

Other liabilities consisted of the following (in thousands):

	September 30,		December 31,
	2020		2019
	(unaudited)
Deferred revenue	$	7,252	$	5,225
Deferred property taxes payable (1)		8,830		8,887
Interest rate swap derivatives		6,505		1,081
Other		3,322		2,943
Total other liabilities	$	25,909	$	18,136

(1) Under the terms of a sublease agreement at the Hilton Times Square, sublease rent amounts are considered to be property taxes under a payment-in-lieu of taxes (“PILOT”) program. In accordance with the terms of the sublease agreement, a portion of the property taxes has been deferred, with installments due beginning in 2020 through 2029. At September 30, 2020 and December 31, 2019, an additional $2.2 million and $1.4 million, respectively, of deferred property taxes payable are included in accounts payable and accrued expenses on the Company’s consolidated balance sheets. Under the terms of the sublease agreement, the amount due for current property taxes was adjusted in May 2020 based on the fair market value of the land. While the Company is negotiating with the landlord to agree on the fair market value of the land, the Company is recording property tax expense in accordance with the lease based on 90.0% of the landlord’s estimate of fair value. The sublease agreement requires monthly payments be paid to the landlord, which the Company has not made since March 2020. As such, the Company has received a default notice from the landlord, and a total of $1.2 million in accrued sublease current property taxes is included in accounts payable and accrued expenses on the Company’s consolidated balance sheet as of September 30, 2020 (see Notes 7 and 9).