LEASES

3 Months Ended

Mar. 31, 2021

The Company has operating leases related to the land under certain hotel properties, conference centers, parking spaces, automobiles, our corporate office and other miscellaneous office equipment. These leases have remaining terms of 1 year to 77 years, some of which include options to extend the leases for additional years. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Certain of our lease agreements include rental payments based on a percentage of revenue over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or restrictive covenants that materially affect our business. In addition, we rent or sublease certain owned real estate to third parties. We recorded gross third-party tenant income of $0.6 million and $0.5 million during the three months ended March 31, 2021 and 2020, respectively, which were recorded in Other income in the Condensed Consolidated Statement of Operations.

The majority of our third-party tenants requested rent deferrals to ease the negative financial effects of the COVID-19 pandemic on their businesses. We have generally negotiated with these tenants and granted rent deferrals that defer rent for a specified number of months and require repayment of the deferred rent over a negotiated period of time.

On January 1, 2019, the Company adopted ASC No. 842, Leases, and recognized right-of-use lease assets and related liabilities. The right-of-use assets and related liabilities include renewal options reasonably certain to be exercised. We base our lease calculations on our estimated incremental borrowing rate. As of March 31, 2021, our weighted average incremental borrowing rate was 4.91%.

During the three months ended March 31, 2021 and 2020, the Company's total operating lease cost was $0.8 million and $0.9 million, respectively, and the operating cash outflows from operating leases was $0.7 million and $0.8 million, respectively. As of March 31, 2021, the weighted average operating lease term was 28.2 years.

Operating lease maturities as of March 31, 2021 are as follows (in thousands):


2021	$	1,536
2022	1,842
2023	970
2024	910
2025	913
Thereafter	27,993
Total lease payments (1)	34,164
Less interest	(16,041)
Total	$	18,123

(1)Certain payments above include future increases to the minimum fixed rent based on the Consumer Price Index in effect at the initial measurement of the lease balances.