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Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Contract Liabilities
Contract liabilities relate to (i) advance consideration received related to services considered to be a part of the brand intellectual property performance obligation, such as initial franchise fees that are paid when a franchise agreement is executed and system implementation fees that are paid at the time of installation, and (ii) amounts received when loyalty points are issued but the associated revenue has not yet been recognized because the related loyalty points have not been redeemed.
Deferred revenues from initial franchise fees and system implementation fees are typically recognized over a ten-year period, unless the franchise agreement is terminated and the hotel exits the franchise system whereby the remaining deferred revenue amounts are recognized to revenue in the period of termination. Loyalty points are typically redeemed within three years of issuance.
The following table summarizes the significant changes in the contract liabilities balances during the period from December 31, 2023 to September 30, 2024:
(in thousands)
Balance as of December 31, 2023$209,895 
Increases to the contract liability balance due to cash received92,468 
Revenue recognized in the period(87,924)
Balance as of September 30, 2024$214,439 
Remaining Performance Obligations
The aggregate amount of the transaction price that is allocated to unsatisfied, or partially unsatisfied, performance obligations was $214.4 million as of September 30, 2024. This amount represents the fixed transaction price that will be recognized as revenue in future periods, which is presented as current and non-current deferred revenue in the consolidated balance sheets.
Based on the practical expedient elections permitted by ASU 2014-09, Revenue From Contracts with Customers (Topic 606) and subsequent amendments ("Topic 606"), the Company does not disclose the value of unsatisfied performance obligations for (i) variable consideration subject to the sales or usage-based royalty constraint or comprising a component of a series (including franchise, partnership, qualified vendor, and software as a service ("SaaS") agreements), (ii) variable consideration for which the Company recognizes revenue at the amount to which it has the right to invoice for the services performed, or (iii) contracts with an expected original duration of one year or less.
Disaggregation of Revenue
The following table presents the Company's revenues by over time and point in time recognition:
Three Months EndedThree Months Ended
September 30, 2024September 30, 2023
(in thousands)Over timePoint in timeTotalOver timePoint in timeTotal
Royalty, licensing and management fees$143,987 $3,164 $147,151 $145,830 $2,682 $148,512 
Initial franchise fees5,866 — 5,866 6,194 — 6,194 
Platform and procurement services fees15,492 686 16,178 14,874 668 15,542 
Owned hotels24,491 7,445 31,936 19,497 6,742 26,239 
Other13,857 — 13,857 11,436 — 11,436 
Other revenues from franchised and managed properties193,173 19,803 212,976 200,399 17,235 217,634 
Total revenues$396,866 $31,098 $427,964 $398,230 $27,327 $425,557 
Nine Months EndedNine Months Ended
September 30, 2024September 30, 2023
(in thousands)Over timePoint in timeTotalOver timePoint in timeTotal
Royalty, licensing and management fees$385,553 $8,878 $394,431 $389,332 $7,171 $396,503 
Initial franchise fees19,133 — 19,133 21,240 — 21,240 
Platform and procurement services fees56,050 2,010 58,060 56,112 2,074 58,186 
Owned hotels63,742 21,603 85,345 55,544 18,531 74,075 
Other45,251 — 45,251 33,211 — 33,211 
Other revenues from franchised and managed properties524,256 68,593 592,849 546,332 56,222 602,554 
Total revenues$1,093,985 $101,084 $1,195,069 $1,101,771 $83,998 $1,185,769 
The owned hotels revenues that are recognized at a point in time represent the goods and services that are purchased independently of the hotel stay, such as food and beverage, incidentals, and parking fees. The remaining revenues that are recognized at a point in time represent the loyalty points that are redeemed by members for benefits (with both franchisees and third-party partners), net of the cost of redemptions. The loyalty net revenues, inclusive of adjustments to the estimated redemption rates, were $23.7 million and $20.6 million for the three months ended September 30, 2024 and 2023, respectively, and $79.5 million and $65.5 million for the nine months ended September 30, 2024 and 2023, respectively.
As presented in Note 11, the Corporate & Other segment revenue amounts were $35.4 million and $33.8 million for the three months ended September 30, 2024 and 2023, respectively, and $94.7 million and $86.5 million for the nine months ended September 30, 2024 and 2023, respectively, which are presented in other revenues and owned hotels revenues in the consolidated statements of income. The remaining revenues relate to the Hotel Franchising & Management reportable segment.
Royalty, licensing and management fees and other revenues from franchised and managed properties are presented net of intersegment revenues of $3.2 million and $4.0 million for the three months ended September 30, 2024 and 2023, respectively, and $8.8 million and $7.3 million for the nine months ended September 30, 2024 and 2023, respectively