Leases

3 Months Ended

Mar. 31, 2023

We are subject to operating leases, the most significant of which are ground leases. We are the lessee to ground leases under eight of our hotels and two parking garages as of March 31, 2023. The lease liabilities for our operating leases assume the exercise of all available extension options, as we believe they are reasonably certain to be exercised. As of March 31, 2023, our operating leases have a weighted-average remaining lease term of 64 years and a weighted-average discount rate of 5.77%.

The components of operating lease expense, which is included in other hotel expenses in our consolidated statements of operations and comprehensive income, and cash paid for amounts included in the measurement of lease liabilities, are as follows (in thousands):


	Three Months Ended March 31,
	2023		2022
Operating lease cost	$	2,770	$	2,786
Variable lease payments	$	340	$	230
Cash paid for amounts included in the measurement of operating lease liabilities	$	983	$	985

Maturities of lease liabilities as of March 31, 2023 are as follows (in thousands):


Year Ending December 31,
2023 (excluding the three months ended March 31, 2023)	$	2,975
2024	4,012
2025	4,072
2026	4,640
2027	4,783
Thereafter	754,898
Total lease payments	775,380
Less imputed interest	(663,943)
Total lease liabilities	$	111,437

In April 2023, we acquired the fee simple interest in a land parcel underlying the parking structure at the Worthington Renaissance Fort Worth Hotel which had been subject to a ground lease for $1.8 million.