Leases (Tables)

12 Months Ended

Dec. 31, 2025

As of December 31, 2025 and 2024, our leased assets and liabilities consisted of the following (in thousands):


	Lease Classification	December 31, 2025		December 31, 2024

Assets
Operating lease right-of-use assets	Operating lease right-of-use assets	$	43,582	$	43,780
Finance lease asset	Investments in hotel properties, net	15,627		16,167
Total leased assets		$	59,209	$	59,947

Liabilities
Operating lease liabilities	Operating lease liabilities	$	44,045	$	44,369
Finance lease liability	Finance lease liability	17,536		17,992
Total leased liabilities		$	61,581	$	62,361

Schedule of Lease Cost and Other Information

We incurred the following lease costs related to our leases (in thousands):



		Year Ended December 31,
Lease cost	Classification	2025		2024		2023
Operating lease cost
Rent expense	Hotel operating expenses - other (1)	$	3,260	$	4,084	$	4,351
Finance lease cost
Amortization of lease assets	Depreciation and amortization	$	540	$	540	$	537

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(1) For the years ended December 31, 2025, 2024, and 2023, operating lease cost includes approximately $1.5 million, $1.0 million and $1.1 million, respectively, of variable lease cost associated primarily with the ground leases and $(122,000), $(122,000) and $(15,000), respectively of net amortization costs related to the intangible assets and liabilities that were reclassified to “operating lease right-of-use assets” upon adoption of ASC 842. Short-term lease costs in aggregate are immaterial.

Other information related to leases is as follows:


	Year Ended December 31,

Supplemental Cash Flows Information	2025			2024			2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (in thousands)	$	2,706		$	2,707		$	2,647






Weighted Average Remaining Lease Term
Operating leases (1)	66 years			66 years			67 years
Finance lease (2)	29 years			30 years			31 years

Weighted Average Discount Rate
Operating leases (1)	5.27		%	5.27		%	5.26		%
Finance lease	10.68		%	10.68		%	10.68		%

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(1) Calculated using the lease term, excluding extension options, and our calculated discount rates of the ground leases and owner managed leases.

(2) Represents our finance lease with the city of Marietta, Georgia, which terminates December 31, 2054.

Schedule of Maturities of Operating Lease Liabilities

Future minimum lease payments due under non-cancellable leases as of December 31, 2025 were as follows (in thousands):


	Operating Leases		Finance Lease
2026	$	3,455	$	2,284
2027	3,417		1,904
2028	3,403		1,904
2029	3,282		1,904
2030	3,208		1,904
Thereafter	189,644		48,110
Total future minimum lease payments (1)	206,409		58,010
Less: interest	162,364		40,474
Present value of lease liabilities	$	44,045	$	17,536

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(1) Based on payment amounts as of December 31, 2025.