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Investments in Affiliates | 12 Months Ended
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Dec. 31, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investments in Affiliates | Investments in Affiliates The Company has equity method investments in affiliates primarily related to the Company's program to offer equity support to qualified franchisees to develop and operate Cambria Hotels and Everhome Suites in strategic markets. As of December 31, 2024 and 2023, the Company had total investments in affiliates in the consolidated balance sheets of $117.0 million and $70.6 million, respectively, which included investments in affiliates that represent VIEs of $104.2 million and $59.4 million, respectively. The Company has determined that it is not the primary beneficiary of any of these VIEs, however the Company does exercise significant influence through its equity ownership and as a result, the investments in these affiliates are accounted for under the equity method of accounting. During the years ended December 31, 2024, 2023, and 2022, the Company recognized gains of $6.9 million, and losses of $3.4 million and $3.7 million, respectively, from these investments that represent VIEs. The Company's maximum exposure to losses related to its investments in the VIEs is limited to the total of its respective equity investment as well as certain limited payment guaranties, which are described in Note 23 to these consolidated financial statements. During the years ended December 31, 2024 and 2023, the Company recognized no impairment charges related to its equity method investments. During the year ended December 31, 2022, the Company recognized impairment charges of $0.2 million related to certain equity method investments. The Company estimated the fair value of each investment on an individual basis and derived the fair value from a combination of observable prices from offers received for either the underlying collateral or the ownership interest of the unconsolidated affiliate, comparable market transactions, and DCF techniques to project the cash flows for the investment based upon the underlying property. There are judgments and assumptions in each of these fair value determinations, including our selection of comparable market transactions, the amount and timing of the expected future cash flows, long-term growth rates, and sales capitalization rates. These nonrecurring fair value measurements are classified as level three in the fair value measurement hierarchy, as the Company utilized unobservable inputs which are significant to the overall fair value. Based on these analyses, in each case, the Company determined that the fair value declined below the carrying value and the decline is other-than-temporary. As a result, the Company recognized an impairment charge equal to the difference between the carrying value and the estimated fair value for each investment. During the year ended December 31, 2024, the Company received distributions from the sale of affiliates of $15.9 million and recognized net gains of $7.2 million, which was recognized in equity in net gain of affiliates in the consolidated statements of income. During the year ended December 31, 2023, the Company received distributions of $0.9 million which resulted in no net gains (losses). During the year ended December 31, 2022, the Company received no distributions and therefore recognized no net gains (losses). The Company's ownership interests in its affiliates were as follows:
|  | Ownership Interest
|  | December 31, 2024 |  | December 31, 2023
Choice Hotels Canada, Inc. (1) |  | 50 | % |  | 50 | %
Main Street WP Hotel Associates, LLC |  | 50 | % |  | 50 | %
CS Hotel West Orange, LLC |  | 50 | % |  | 50 | %
City Market Hotel Development, LLC (2) |  | — | % |  | 43 | %
926 James M. Wood Boulevard, LLC |  | 75 | % |  | 75 | %
EH Glendale JV, LLC |  | 80 | % |  | 80 | %
CS Lakeside Santa Clara LLC |  | 50 | % |  | 50 | %
BL 219 Holdco, LP |  | 50 | % |  | 50 | %
Integrated 32 West Randolph, LLC |  | 20 | % |  | 20 | %
EH Nampa JV LLC |  | 80 | % |  | 80 | %
Radisson Hotel La Crosse (1) |  | 14 | % |  | 14 | %
EH Cheyenne JV, LLC |  | 80 | % |  | 80 | %
EH Waco JV, LLC |  | 80 | % |  | 80 | %
EH Amarillo JV, LLC |  | 80 | % |  | 80 | %
EH Yuma JV, LLC |  | 80 | % |  | 80 | %
EH El Paso JV, LLC |  | 80 | % |  | 80 | %
EH Brownsville JV, LLC |  | 80 | % |  | 80 | %
EH Wichita JV, LLC |  | 80 | % |  | — | %
CH East Avenue, LLC |  | 65 | % |  | — | %
EH Salem JV, LLC |  | 80 | % |  | — | %
EH Clarksville JV, LLC |  | 80 | % |  | — | %
(1) Non-VIE investments. (2) During the year ended December 31, 2024, the Company received a liquidating distribution as a result of the affiliate selling its underlying assets. The following tables present summarized financial information for all of the unconsolidated joint ventures in which the Company holds an investment in affiliate that is accounted for under the equity method of accounting:
| Year Ended December 31,
(in thousands) | 2024 |  | 2023 |  | 2022
Revenues | $ | 65,732 |  |  | $ | 65,634 |  |  | $ | 58,821 |
Operating income | $ | 14,199 |  |  | $ | 12,504 |  |  | $ | 7,977 |
(Loss) income before income taxes | $ | (1,203) |  |  | $ | 314 |  |  | $ | 1,837 |
Net loss | $ | (3,488) |  |  | $ | (1,255) |  |  | $ | (1,058) |
| As of December 31,
(in thousands) | 2024 |  | 2023
Current assets | $ | 71,737 |  |  | $ | 63,397 |
Non-current assets | 412,269 |  |  | 269,693 |
Total assets | $ | 484,006 |  |  | $ | 333,090 |
Current liabilities | $ | 84,966 |  |  | $ | 63,526 |
Non-current liabilities | 257,130 |  |  | 177,451 |
Total liabilities | $ | 342,096 |  |  | $ | 240,977 |

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 810 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/810/tableOfContent + Details
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