Leases

12 Months Ended

Dec. 31, 2022

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, 2022, were:


	Operating Leases
Year	(in millions)
2023	$	24
2024		24
2025		27
2026		18
2027		19
Thereafter		345
Total minimum rent payments		457
Less: imputed interest		223
Total operating lease liabilities	$	234

As of December 31, 2022 and 2021, the weighted average remaining operating lease term was 26.0 years and 26.9 years, respectively, and the weighted average discount rate used to determine the operating lease liabilities was 5.6% and 5.3%, respectively.

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


	Year Ended			Year Ended		Year Ended
	December 31, 2022			December 31, 2021		December 31, 2020
	(in millions)
Operating lease expense	$	28		$	29	$	30
Variable lease expense		13			4		2
Operating cash flows for operating leases		29			30		28
Operating lease right-of-use asset reassessment(1)		(4	)		—		—

(1) For the year ended December 31, 2022, amount represents a reduction to our right-of-use assets and lease liability due to a change in

discount rate upon a lease remeasurement.