Leases
The Company has operating leases for office spaces, buildings, and equipment. The Company's leases, excluding the assumed ground lease discussed below, have remaining lease terms of two to nine years, some of which include options to extend the lease for up to ten years. Additionally, the Company has a ground lease on an owned hotel with a remaining lease term of 86.3 years.
The Company's lease costs were as follows:
| | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 |
| Operating lease cost | $ | 12,130 | | | $ | 11,979 | |
| | | |
| Sublease income | (937) | | | (789) | |
| Total lease cost | $ | 11,193 | | | $ | 11,190 | |
Other information related to the Company's lease arrangements were as follows: | | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 8,602 | | | $ | 6,637 | |
| ROU assets obtained in exchange for lease liabilities in non-cash transactions: | | | |
| Operating lease assets obtained in exchange for operating lease liabilities | $ | 427 | | | $ | 4,585 | |
| Weighted-average remaining lease term | 31.6 years | | 31.7 years |
| Weighted-average discount rate | 5.09 | % | | 5.07 | % |
As of December 31, 2025, the future minimum lease payments were as follows:
| | | | | | | | |
| (in thousands) | | | | |
| 2026 | $ | 13,071 | | | | |
| 2027 | 13,697 | | | | |
| 2028 | 13,594 | | | | |
| 2029 | 13,586 | | | | |
| 2030 | 13,642 | | | | |
| Thereafter | 297,944 | | | | |
| Total minimum lease payments | $ | 365,534 | | | | |
| Less: imputed interest | 249,207 | | | | |
| Present value of the minimum lease payments | $ | 116,327 | | | | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.