XML 28 R18.htm IDEA: XBRL DOCUMENT v3.25.3
Segment Reporting
 9 Months Ended
Sep. 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 debt extinguishment
▪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 September 30,Nine Months Ended September 30,
2025202420252024
Revenues:
Hotel ownership revenue$285,384 $285,129 $845,957 $850,832 
Total consolidated revenue285,384 285,129 845,957 850,832 
Significant expenses:
Rooms expense46,529 47,919 137,644 139,472 
Food and beverage expense47,181 47,319 144,146 145,275 
Other departmental and support expenses68,127 67,357 202,132 199,774 
Management fees7,492 7,491 20,711 21,604 
Franchise fees9,731 10,117 28,782 29,710 
Property taxes14,560 12,923 45,504 38,996 
Total significant expenses193,620 193,126 578,919 574,831 
Other segment expenses:
Other hotel expenses(1)
8,596 9,744 26,846 32,840 
Hotel Adjusted EBITDA:83,168 82,259 240,192 243,161 
Non-cash lease expense and other amortization1,279 1,531 3,862 4,604 
Hotel pre-opening and manager transition items135 156 479 925 
Loss on debt extinguishment5,850 — 5,850 — 
Depreciation and amortization28,340 28,356 84,388 84,542 
Corporate expenses8,567 7,660 25,715 45,083 
Interest expense17,111 16,986 47,137 49,434 
Interest income(2,202)(967)(3,785)(3,185)
Impairment loss1,076 1,596 1,076 1,596 
Other (income) expense, net(95)(34)(740)(80)
Income tax expense469 418 618 696 
Consolidated net income:$22,638 $26,557 $75,592 $59,546 


_____________________________
(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):

September 30, 2025December 31, 2024
Hotel ownership$2,974,249 $3,063,835 
All other172,154 108,416 
Total assets$3,146,403 $3,172,251 
Total capital expenditures related to our hotel ownership segment were $19.7 million and $60.9 million for the three and nine months ended September 30, 2025, respectively. Total capital expenditures related to our hotel ownership segment were $22.6 million and $58.4 million for the three and nine months ended September 30, 2024, respectively.