Leases (Tables)

9 Months Ended

Sep. 30, 2024

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,
	2024			2023
	(unaudited)
Right-of-use assets, net	$	9,330		$	12,755
Lease obligations	$	13,039		$	16,735
Weighted average remaining lease term		25 years
Weighted average discount rate		5.4	%

Lease costs

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Operating lease cost	$	1,334	$	1,360	$	4,024	$	4,068
Variable lease cost (1)		2,015		2,481		6,521		6,764
Sublease income (2)		(296)		(296)		(890)		(890)
Total lease cost	$	3,053	$	3,545	$	9,655	$	9,942

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

(2) Sublease income is included in corporate overhead in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2024 and 2023.