Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases

Schedule of supplemental balance sheet information related to leases

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

	June 30,			December 31,
	2021			2020
	(unaudited)
Finance Lease:
Right-of-use asset, gross (buildings and improvements)	$	58,799		$	58,799
Accumulated amortization		(13,352)			(12,617)
Right-of-use asset, net	$	45,447		$	46,182
Accounts payable and accrued expenses	$	2		$	1
Lease obligation, less current portion		15,568			15,569
Total lease obligation	$	15,570		$	15,570
Remaining lease term		77 years
Discount rate		9.0	%
Operating Leases:
Right-of-use assets, net	$	24,939		$	26,093
Accounts payable and accrued expenses	$	5,344		$	5,028
Lease obligations, less current portion		27,816			29,954
Total lease obligations	$	33,160		$	34,982
Weighted average remaining lease term, including reasonably certain extension options (1)		6 years
Weighted average discount rate		5.1	%

(1) The weighted average remaining term including all available extension options is approximately 34 years.

Lease costs

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Finance lease cost:
Amortization of right-of-use asset	$	367	$	367	$	735	$	735
Interest on lease obligation		351		351		702		702
Operating lease cost		1,366		2,341		2,686		4,070
Variable lease cost (1)		13		(689)		13		24
Total lease cost	$	2,097	$	2,370	$	4,136	$	5,531

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