Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

Note 9: Leases

We lease hotel properties, land and equipment under operating and financing leases. We are subject to ground leases on 14 of our consolidated properties. Our leases expire, including options under lessor control, at various dates through 2083, with varying renewal options, and the majority expire before 2032.

Our operating leases may require minimum rent payments, variable rent payments based on a percentage of revenue or income or rent payments equal to the greater of a minimum rent or variable rent. In addition, we may be required to pay some, or all, of the capital costs for property and equipment in the hotel during the term of the lease.

The future minimum rent payments under our current leases, due in each of the next five years and thereafter as of December 31, 2021, were:

	Operating Leases
Year	(in millions)
2022	$	29
2023		24
2024		24
2025		24
2026		14
Thereafter		327
Total minimum rent payments		442
Less: imputed interest		215
Total operating lease liabilities	$	227

As of December 31, 2021 and 2020, the weighted average remaining operating lease term was 26.9 years and 26.5 years, respectively, and the weighted average discount rate used to determine the operating lease liabilities was 5.3% for both periods.

The components of rent expense, which are primarily included in other property-level expenses in our consolidated statements of comprehensive (loss) income, as well as supplemental cash flow and non-cash information for all operating leases were:

	Year Ended		Year Ended		Year Ended
	December 31, 2021		December 31, 2020		December 31, 2019
	(in millions)
Operating lease expense	$	29	$	30	$	30
Variable lease expense		4		2		13
Operating cash flows for operating leases		30		28		36
Right-of-use assets obtained in exchange for lease obligations(1)		—		—		278

(1) For the year ended December 31, 2019, balance represents right-of-use assets recognized upon adoption of ASC 842, Leases, on January 1, 2019, and right-of-use assets assumed in connection with the Merger.