Company: BHR-PD
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001574085-25-000024
Chunk: 275

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 275
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 cost includes approximately $934,000, $2.3 million and $2.2 million, respectively, of variable lease cost associated with the ground leases. Additionally, we recorded $451,000, $474,000 and $474,000, respectively, of amortization costs related to the intangible assets 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 31,202420232022Supplemental Cash Flows InformationCash paid for amounts included in the measurement of lease liabilities:Operating cash flows used for operating leases (in thousands)$3,288 $3,310 $3,307 Weighted Average Remaining Lease TermOperating leases (1)41 years43 years44 yearsWeighted Average Discount RateOperating leases (1)5.25 %4.98 %4.98 %_______________________________________(1)     Calculated using the lease term, excluding extension options, and discount rates of the ground leases.Future minimum lease payments due under non-cancellable leases as of December 31, 2024 were as follows (in thousands):Operating Leases2025$1,216 20261,124 20271,132 20281,136 20291,129 Thereafter52,152 Total future minimum lease payments (1)57,889 Less: interest(37,905)Present value of operating lease liabilities$19,984 _______________________________________(1)     Based on payment amounts as of December 31, 2024.

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BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

20. Income Taxes 

For U.S. federal income tax purposes, we elected to be taxed as a REIT under the Code. To qualify as a REIT, we must meet certain organizational and operational stipulations, including a requirement that we distribute at least 90% of our REIT taxable income, excluding net capital gains, to our stockholders. We currently intend to adhere to these requirements and maintain our REIT status. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not qualify as a REIT for four subsequent taxable