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Leases

3 Months Ended

Mar. 31, 2019

Note 8: Leases

We lease hotel properties, land and equipment under operating and financing leases. We are subject to ground leases for 13 of our consolidated properties. Our leases expire, including options under lessor control, at various dates through 2076, with varying renewal options, and the majority expire before 2027.

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 maturities of our non-cancelable operating lease liabilities, due in each of the next five years and thereafter as of March 31, 2019, were:

	Operating Leases
Year	(in millions)
2019	$	20
2020		27
2021		28
2022		27
2023		21
Thereafter		204
Total minimum rent payments	$	327
Less: imputed interest		123
Total operating lease liabilities	$	204

As of March 31, 2019 the weighted average remaining operating lease term was 15.8 years and the weighted average discount rate used to determine the operating lease liability was 5.7%.

The components of rent expense, primarily included in other property-level expenses in our condensed consolidated statements of comprehensive income, supplemental cash flow and non-cash information for all operating leases were:

	Three Months Ended March 31,
	2019
	(in millions)
Operating lease expense	$	7
Variable lease expense		3
Operating cash flows for operating leases		7
Right-of-use assets obtained in exchange for lease obligations⁽¹⁾		213

⁽¹⁾	Represents right-of-use assets recorded upon adoption of ASC 842, Leases, on January 1, 2019. No additional right-of-use assets were obtained during the three months ended March 31, 2019.