COMMITMENTS AND CONTINGENCIES Lease Commitments The Company is a tenant under long-term ground leases at five of its hotel properties. Three of these leases are operating leases and two are finance leases. The ground lease agreements terminate at various dates between 2023 and 2096 and several of the agreements include multiple renewal options for generally five or ten year periods. The Company is also a tenant under an operating lease for its corporate office, which terminates in August 2021 and includes renewal options for two five -year terms. As the Company is reasonably certain that it will exercise the options to extend its ground leases, fixed payments associated with the extensions are included in the measurement of related right-of-use assets and lease liabilities. Payments associated with the option to extend the corporate office lease are not included in the measurement of the right-of-use asset and lease liability, as the associated payments cannot be reasonably estimated. Additionally, as of September 30, 2020, the Company leased certain technology equipment located at its hotel sites under finance leases. Operating lease costs related to ground leases are included in hotel operating expenses, while operating lease costs related to the Companys office lease are included in general and administrative expenses, in the condensed consolidated statements of operations. Finance lease interest costs are included in interest expense, net in the condensed consolidated statements of operations (see Note 7) or, when pertaining to assets under development, are capitalized and included in property and equipment, net on the condensed consolidated balance sheets (see Note 5). No amortization costs were incurred during the three and nine months ended September 30, 2020 and 2019 for finance leases pertaining to land or land in development. The Company has no variable lease costs or short-term leases. For the three and nine months ended September 30, 2020 and 2019, the components of the Companys total lease costs are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease costs $ 769 $ 794 $ 2,307 $ 2,332 Finance lease costs 77 61 223 183 Total lease costs $ 846 $ 855 $ 2,530 $ 2,515 The Companys right-of-use assets and lease liabilities are as follows (in thousands): September 30, 2020 December 31, 2019 Right-of-use assets: Operating (1) $ 3,132 $ 4,863 Finance (2) 4,370 3,979 Lease liabilities: Operating (3) 10,997 12,590 Finance 3,704 3,379 _________________________________ (1) Included in other assets on the accompanying condensed consolidated balance sheets. (2) Included in property and equipment, net on the accompanying condensed consolidated balance sheets. (3) Included in accounts payable and accrued liabilities on the accompanying condensed consolidated balance sheets. Maturities of lease liabilities as of September 30, 2020, are as follows (in thousands): Years Ending December 31, Operating Leases Finance Leases Remainder of 2020 $ 735 $ 97 2021 2,220 850 2022 807 397 2023 552 400 2024 503 402 2025 503 428 Thereafter 77,091 2,671 Total $ 82,411 $ 5,245 Total discounted lease liability $ 10,997 $ 3,704 Difference between undiscounted cash flows and discounted cash flows $ 71,414 $ 1,541 Weighted-average remaining lease term 49 years 11 years Weighted-average discount rate 6.5 % 6.7 % The Companys leases do not contain residual value guarantees and do not contain restrictions with respect to incurring additional financial obligations or paying dividends. As of September 30, 2020, the Company does not have any material leases that have not yet commenced. Letter of Credit As of September 30, 2020, the Company had one outstanding letter of credit, issued by the Corporation, for $0.2 million, which is collateralized by the Corporation Revolving Credit Facility. Legal Contingencies As of September 30, 2020, six purported class action lawsuits in California have been filed against the Company. The complaints allege, among other things, failure to provide meal and rest periods, wage and hour violations and violations of the Fair Credit Reporting Act. The complaints seek, among other relief, collective and class certification of the lawsuits, unspecified damages, costs and expenses, including attorneys fees, and such other relief as the court might find just and proper. With respect to the Fair Credit Reporting Act violations alleged in the lawsuits described above, the parties reached a tentative settlement agreement in May 2019, which is subject to certain conditions, including court approval. During the three months ended June 30, 2019, the Company recorded a payable and a corresponding insurance receivable for the amount of the tentative settlement. The expected resolution of the alleged Fair Credit Reporting Act violations in the lawsuits did not have, and is not expected to have, a material adverse impact on the Companys condensed consolidated financial statements, results of operations or liquidity. With respect to the meal and rest period and the wage and hour violations alleged in the lawsuits described above, excluding the one lawsuit described below, the parties reached a tentative settlement agreement in January 2020, which is subject to certain conditions, including court approval. During the three months ended December 31, 2019, the Company incurred a loss and recorded a charge equal to the amount of the tentative settlement. The expected resolution of the alleged meal and rest period and wage and hour violations in the lawsuits did not have, and is not expected to have, a material adverse impact on the Companys condensed consolidated financial statements, results of operations or liquidity. With respect to one lawsuit, although the Company believes it is reasonably possible that it may incur losses associated with such matter, it is not possible to estimate the amount of loss or range of loss, if any, that might result from adverse judgments, settlements or other resolution based on the early stage of the lawsuit, the uncertainty as to the certification of a class or classes and the size of any certified class, if applicable, and the lack of resolution of significant factual and legal issues. However, depending on the amount and timing, an unfavorable resolution of the lawsuit or a change in the Company's assessment of the likelihood of loss could have a material adverse effect on the Companys condensed consolidated financial statements, results of operations or liquidity in a future period. The Company believes that it has meritorious defenses and is prepared to vigorously defend the lawsuit. The Company is not a party to any additional litigation or claims, other than routine matters arising in the ordinary course of business that are incidental to the operation of the business of the Company. The Company believes that the results of all additional litigation and claims, individually or in the aggregate, will not have a material adverse effect on the Company's condensed consolidated financial statements, its business, results of operations and financial condition.