Company: BHR-PD
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001574085-25-000024
Chunk: 274

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 274
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 land under one non-cancelable operating ground lease, which expires in 2065, related to our hotel property in Yountville, California. The lease in Yountville, California contains two 25-year extension options. The lease is subject to base rent plus contingent rent based on the hotel property’s financial results and escalation clauses. Capital Commitments—At December 31, 2024, we had capital commitments of $29.1 million, including commitments that will be satisfied with insurance proceeds, relating to general capital improvements that are expected to be paid in the next twelve months.

19. Leases

We have operating ground leases and operating equipment leases, such as copier and vehicle leases, at our hotel properties. Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years. The 

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

exercise of lease renewal options is at our sole discretion. Some leases have variable payments, however, if variable payments are contingent, they are not included in the ROU assets and liabilities. We have no finance leases as of December 31, 2024.The discount rate used to calculate the lease liability and ROU asset related to our ground leases is based on our incremental borrowing rate (“IBR”), as the rate implicit in each lease is not readily determinable. The IBR is determined at commencement of the lease, or upon modification of the lease, as the interest rate a lessee would have to pay to borrow on a fully collateralized basis over a similar term and at an amount equal to the lease payments in a similar economic environment.As of December 31, 2024 and 2023, our leased assets and liabilities consisted of the following (in thousands):December 31, 2024December 31, 2023AssetsOperating lease right-of-use assets$34,852 $78,383 LiabilitiesOperating lease liabilities$19,984 $60,379 We incurred the following lease costs related to our operating leases (in thousands):Year Ended December 31,Classification 202420232022Operating lease cost (1)Hotel operating expenses - other$4,505 $6,757 $6,653 _______________________________________(1) For the years ended December 31, 2024, 2023 and 2022, operating lease