LEASES

3 Months Ended

Mar. 31, 2026

The Company has operating leases related to the land under certain lodging properties, conference centers, parking spaces, automobiles, our corporate office, and miscellaneous office equipment. These leases have remaining terms of one year to 72.3 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 rental 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.

Our 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, 2026 and December 31, 2025 our weighted average incremental borrowing rate was 4.8%.

The Company's total operating lease cost was $1.2 million for each of the three months ended March 31, 2026 and 2025, respectively, and the cash payments on operating leases were $1.0 million during each of the three months ended March 31, 2026 and 2025. As of March 31, 2026 and December 31, 2025, the weighted-average operating lease term was approximately 31.4 years and 31.8 years, respectively.

Operating lease maturities at March 31, 2026 are as follows (in thousands):


For the Year Ending December 31,	Amount
2026	$	1,800
2027	2,460
2028	2,278
2029	2,058
2030	1,387

Thereafter	32,415
Total lease payments (1)	42,398
Less: Imputed interest	(18,649)
Total	$	23,749

(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.

In addition, we rent or lease commercial space in certain of our lodging properties to third parties. We recorded gross third-party tenant income of $1.0 million and $1.1 million during the three months ended March 31, 2026 and 2025, respectively, in Other income, net on our Condensed Consolidated Statements of Operations.

As of March 31, 2026, non-cancelable commercial operating leases provide for future minimum rental income as follows (in thousands):


For the Year Ending December 31,	Amount
2026	$	2,535
2027	2,736
2028	1,013
2029	724
2030	462

Thereafter	1,624
Total lease payments	$	9,094