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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We have one reportable segment, hotel ownership, as discussed in Note 2. The hotel ownership segment is mostly comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest
services. The Company’s chief operating decision maker (“CODM”) is the Executive Committee which includes: 1) the Chief Executive Officer, 2) President and Chief Operating Officer, 3) Executive Vice President, Chief Financial Officer & Treasurer, and 4) Senior Vice President, General Counsel & Corporate Secretary.

The CODM evaluates the hotel ownership segment primarily based on hotel adjusted earnings (loss) before interest income and expense, taxes and depreciation and amortization (“Hotel Adjusted EBITDA”). The CODM uses Hotel Adjusted EBITDA to evaluate the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis, in order to make informed decisions on how to allocate resources. Hotel Adjusted EBITDA is also used to monitor budget versus actual results. The monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. Hotel Adjusted EBITDA, presented herein, is calculated as EBITDA from hotel operations, adjusted to exclude the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and thus excluded from the CODM’s analysis in making day-to-day operating decisions:

▪Non-cash lease expense and other amortization
▪Cumulative effect of a change in accounting principle
▪Gains or losses from early extinguishment of debt
▪Hotel acquisition costs
▪Severance costs
▪Hotel manager transition items
▪Hotel pre-opening costs
▪Impairment losses, gains or losses on asset sales and casualty gains or losses; and
▪Other items that we believe are not representative of our current or future operating performance.

The following table presents revenues for our hotel ownership segment reconciled to our consolidated amounts and Hotel Adjusted EBITDA reconciled to consolidated net income (in thousands):
Year Ended December 31,
202420232022
Revenues:
Hotel ownership revenue$1,129,883 $1,074,867 $1,001,503 
Total consolidated revenue1,129,883 1,074,867 1,001,503 
Significant expenses:
Rooms expense186,131 176,765 163,062 
Food and beverage expense193,331 180,546 163,622 
Other departmental and support expenses268,563 261,536 233,691 
Management fees28,739 26,587 25,029 
Franchise fees39,724 35,738 32,683 
Property taxes54,195 48,586 33,243 
Total significant expenses770,683 729,758 651,330 
Other segment expenses:
Other hotel expenses(1)
40,586 43,953 38,068 
Hotel adjusted EBITDA:318,614 301,156 312,105 
Non-cash lease expense and other amortization5,970 6,156 6,226 
Hotel pre-opening and manager transition items1,006 1,246 1,164 
Impairment losses34,169 941 2,843 
Depreciation and amortization113,588 111,302 108,849 
Corporate expenses32,549 32,048 31,790 
Interest expense65,516 65,072 38,283 
Interest income(4,013)(2,442)(1,029)
Loss on early extinguishment of debt— — 9,766 
Severance costs20,362 — (532)
Other (income) expense, net(324)(119)2,433 
Income tax expense1,541 317 2,607 
Consolidated net income:$48,250 $86,635 $109,705 
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(1)Other hotel expenses is principally comprised of cash payments for leases and property insurance.

The following table presents total assets for our hotel ownership segment, reconciled to total consolidated assets (in thousands):

Year Ended December 31,
20242023
Hotel ownership$3,063,835 $3,118,140 
All other108,416 120,547 
Total assets$3,172,251 $3,238,687 
Total capital expenditures related to our hotel ownership segment were $81.6 million, $86.3 million and $67.7 million for the years ended December 31, 2024, 2023 and 2022, respectively.