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Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
    We have one reportable segment, which is hotel ownership. 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) the President and Chief Operating Officer, 3) the Executive Vice President, Chief Financial Officer & Treasurer, and 4) the 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 principles
▪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):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenues:
Hotel ownership revenue$305,720 $309,280 $560,573 $565,703 
Total consolidated revenue305,720 309,280 560,573 565,703 
Significant expenses:
Rooms expense47,272 47,585 91,115 91,553 
Food and beverage expense50,548 50,717 96,965 97,956 
Other departmental and support expenses68,719 67,817 134,005 132,417 
Management fees7,804 8,405 13,219 14,113 
Franchise fees10,003 10,567 19,051 19,593 
Property taxes16,663 13,051 30,944 26,073 
Total significant expenses201,009 198,142 385,299 381,705 
Other segment expenses:
Other hotel expenses(1)
9,351 11,650 18,250 23,096 
Hotel Adjusted EBITDA:95,360 99,488 157,024 160,902 
Non-cash lease expense and other amortization1,284 1,555 2,583 3,073 
Hotel pre-opening and manager transition items321 535 344 769 
Depreciation and amortization28,156 27,873 56,048 56,186 
Corporate expenses9,465 28,519 17,148 37,423 
Interest expense14,868 16,202 30,026 32,448 
Interest income(802)(1,169)(1,583)(2,219)
Other (income) expense, net38 (26)(645)(45)
Income tax benefit991 1,368 149 278 
Consolidated net income:$41,039 $24,631 $52,954 $32,989 


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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):

June 30, 2025December 31, 2024
Hotel ownership$2,995,926 $3,063,835 
All other65,389 108,416 
Total assets$3,061,315 $3,172,251 
Total capital expenditures related to our hotel ownership segment were $15.7 million and $41.3 million for the three and six months ended June 30, 2025, respectively. Total capital expenditures related to our hotel ownership segment were $16.9 million and $35.8 million for the three and six months ended June 30, 2024, respectively.