Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases

Schedule of supplemental balance sheet information related to leases

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

	September 30,			December 31,
	2022			2021
	(unaudited)
Right-of-use assets, net	$	17,866		$	23,161
Accounts payable and accrued expenses	$	5,678		$	5,586
Lease obligations, less current portion		18,349			25,120
Total lease obligations	$	24,027		$	30,706
Weighted average remaining lease term		33 years
Weighted average discount rate		5.0	%

Lease costs

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Finance lease cost (1):
Amortization of right-of-use asset	$	—	$	368	$	—	$	1,103
Interest on lease obligation		—		351		117		1,053
Operating lease cost		1,325		1,382		4,041		4,068
Variable lease cost (2)		2,241		—		5,100		13
Total lease cost	$	3,566	$	2,101	$	9,258	$	6,237

(1) Finance lease cost for the nine months ended September 30, 2022 and the three and nine months ended September 30, 2021 included expenses for the Hyatt Centric Chicago Magnificent Mile’s finance lease obligation before the hotel’s sale in February 2022 (see Note 4).

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