Leases (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Leases [Abstract] |
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| Schedule of Operating and Finance Lease Term Years, Weighted-average Discount Rates, Right of Use Assets and Lease Liabilities |
As of December 31, 2025, the operating and finance lease term years, weighted-average discount rates, right of use assets and lease liabilities, are as follows:
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December 31, 2025 |
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Operating |
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Finance |
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Weighted-average remaining lease term, including reasonably certain extension options (years) |
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27.12 |
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49.00 |
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Weighted-average discount rate |
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8.01 |
% |
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7.42 |
% |
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Right of use assets |
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$ |
4,227,290 |
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$ |
23,075,033 |
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Lease liabilities |
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$ |
(4,698,771 |
) |
$ |
(24,003,378 |
) |
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| Summary of Lease Related Assets and Liabilities |
Lease Position as of December 31, 2025 and 2024– The following tables set forth the lease-related assets and liabilities included in the Company’s consolidated balance sheets as of December 31, 2025 and 2024;
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Assets |
Balance Sheet Classification |
December 31, 2025 |
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December 31, 2024 |
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Right of use assets |
Prepaid expenses, inventory and other assets |
$ |
588,971 |
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$ |
723,732 |
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Right of use assets |
Investment in hotel properties, net |
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3,638,319 |
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3,727,805 |
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Finance lease right of use assets |
Investment in hotel properties, net |
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23,075,033 |
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23,021,483 |
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Total lease assets |
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$ |
27,302,323 |
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$ |
27,473,020 |
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Liabilities |
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Operating lease liabilities |
Accounts payable and accrued liabilities |
$ |
4,698,771 |
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$ |
4,874,919 |
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Finance lease liabilities |
Finance lease liabilities |
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24,003,378 |
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|
23,201,751 |
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Total lease liabilities |
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$ |
28,702,149 |
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$ |
28,076,670 |
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| Schedule of Lease Costs |
The following table sets forth the lease costs related to the Company’s operating and finance ground leases included in the Company’s consolidated statement of operations for the twelve months ended December 31, 2025, 2024, and 2023:
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Consolidated Statement of Operations |
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Classification |
December 31, 2025 |
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December 31, 2024 |
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December 31, 2023 |
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Operating lease costs: |
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Fixed |
Corporate general and administrative |
$ |
188,774 |
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$ |
188,774 |
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$ |
(73,104 |
) |
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Hotel operating expenses - Other operating |
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— |
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— |
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271,000 |
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Hotel operating expenses - Indirect |
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412,691 |
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468,407 |
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164,330 |
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Variable |
Hotel operating expenses - Indirect |
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— |
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529,623 |
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591,147 |
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Finance lease costs: |
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Amortization of lease assets |
Depreciation and amortization |
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518,814 |
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188,346 |
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— |
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Variable |
Hotel operating expenses - Indirect |
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325,305 |
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204,161 |
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— |
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Interest on lease liabilities |
Interest expense |
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936,682 |
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622,249 |
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|
4,486 |
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Total lease costs |
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$ |
2,382,266 |
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$ |
2,201,560 |
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$ |
957,859 |
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| Schedule of Undiscounted Cash Flows |
The following table reconciles the undiscounted cash flows for each of the next five years and total of the remaining years to the operating lease liabilities and finance lease liabilities included in the Company’s consolidated balance sheet as of December 31, 2025:
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December 31, 2025 |
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Operating |
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Finance |
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December 31, 2026 |
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$ |
574,776 |
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$ |
1,888,913 |
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December 31, 2027 |
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|
572,184 |
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|
1,881,630 |
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December 31, 2028 |
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560,531 |
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1,873,335 |
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December 31, 2029 |
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569,472 |
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1,844,397 |
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December 31, 2030 |
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397,713 |
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1,808,662 |
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December 31, 2031 and thereafter |
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9,883,920 |
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79,743,998 |
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Total undiscounted lease payments |
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12,558,596 |
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89,040,935 |
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Less imputed interest |
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(7,859,825 |
) |
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(65,037,557 |
) |
Total lease liability |
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$ |
4,698,771 |
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$ |
24,003,378 |
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| Schedule of Minimum Future Lease Payments |
A schedule of minimum future lease payments receivable for the remaining twelve-month periods is as follows:
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December 31, 2026 |
$ |
1,002,097 |
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December 31, 2027 |
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734,574 |
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December 31, 2028 |
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500,751 |
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December 31, 2029 |
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507,625 |
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December 31, 2030 |
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432,869 |
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December 31, 2031 and thereafter |
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979,074 |
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Total |
$ |
4,156,990 |
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