8. Leases As of both March 31, 2025 and December 31, 2024, the Company had operating leases for ground, office, equipment, and airspace leases with maturity dates ranging from 2025 through 2097, excluding renewal options. Including renewal options available to the Company, the lease maturity date extends to 2147. Operating leases were included on the Company’s consolidated balance sheets as follows (in thousands): | | | | | | | | | | March 31, | | December 31, | | | | 2025 | | 2024 | | | | (unaudited) | | | | | Right-of-use assets, net | | $ | 7,782 | | $ | 8,464 | | | | | | | | | | Lease obligations | | $ | 11,196 | | $ | 12,019 | | | | | | | | | | Weighted average remaining lease term | | | 19 years | | | | | Weighted average discount rate | | | 5.6 | % | | | |
The components of lease expense were as follows (unaudited and in thousands): | | | | | | | | | Three Months Ended March 31, | | | 2025 | | 2024 | Operating lease cost | | $ | 1,367 | | $ | 1,352 | Variable lease cost (1) | | | 1,986 | | | 2,135 | Sublease income (2) | | | (297) | | | (297) | Total lease cost | | $ | 3,056 | | $ | 3,190 |
| (1) | Several of the Company’s hotels pay percentage rent, which is calculated on operating revenues above certain thresholds. |
| (2) | Sublease income is included in corporate overhead in the accompanying consolidated statements of operations for the three months ended March 31, 2025 and 2024. |
|