COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Franchise Agreements

We expensed fees related to our franchise agreements of $12.9 million and $5.9 million for the three months ended June 30, 2022 and 2021, respectively, and $23.0 million and $10.0 million for the six months ended June 30, 2022, and 2021, respectively.

Management Agreements

Our hotel properties operate pursuant to management agreements with various professional third-party management companies. The terms of our management agreements range from month-to-month to twenty-five years with various extension provisions. Each management company receives a base management fee, which is a percentage of total hotel property revenues. In some

cases there are also monthly fees for certain services, such as accounting, based on the number of guestrooms. Generally, there

are also incentive fees based on attaining certain financial thresholds. Management fee expenses were $5.0 million and $2.3 million for the three months ended June 30, 2022 and 2021, respectively, and $8.8 million and $3.9 million for the six months ended June 30, 2022, and 2021, respectively.

Litigation

We are involved from time to time in litigation arising in the ordinary course of business. There are currently no pending legal actions that we believe would have a material effect on our financial position or results of operations.