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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We operate in one reportable business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refer to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments; (i) offer similar products and services to their customers in the form of hotel rooms, food and beverage, and ancillary services; (ii) utilize third-party hotel management companies to deliver its products and services to its customers; (iii) are designed and operated to appeal to similar individuals, groups, leisure, and business customers; and (iv) third-party hotel managers utilize the same methods (direct hotel sales and various online booking portals) to distribute the Company’s products and services. As of December 31, 2024 and December 31, 2023, all of our hotel properties were in the U.S. and its territories. The Company’s chief operating decision maker (“CODM”) is its President and Chief Executive Officer.
Each hotel property derives revenue primarily from guestroom sales, food and beverage sales, and revenues from other lodging services and amenities. The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies in note 2.
The CODM reviews and makes decisions on all aspects of the Company’s business using all available financial and non-financial data for each hotel individually. Capital allocation decisions to acquire, sell, enhance, redevelop, or perform renewal and replacement expenditures are determined on a hotel-by-hotel basis. Specifically, the CODM reviews the results of each hotel to assess the hotel’s profitability. The key measure the CODM uses to allocate resources and assess performance is individual hotel net income (loss) before interest expense, income taxes, depreciation, and amortization, adjusted to exclude certain items determined by management to not be reflective of its ongoing operating performance or incurred in the normal course of business (Hotel Adjusted EBITDA). The CODM does not regularly review the results of Stirling OP. The adjustments include gains and losses on hotel dispositions, impairment charges, pre-opening costs associated with extensive renovation projects, property-level legal settlements, restructuring, severance, and management transition costs, and other expenses identified by management to be non-recurring.
The following tables include revenues, significant hotel operating expenses, and Hotel Adjusted EBITDA for the Company’s hotels, reconciled to the consolidated amounts included in the Company’s consolidated statements of operations (in thousands):
Year Ended December 31,
202420232022
REVENUE
Rooms$873,644 $1,058,198 $974,002 
Food and beverage212,581 232,829 196,663 
Other hotel revenue67,536 72,730 67,310 
Total hotel revenue1,153,761 1,363,757 1,237,975 
EXPENSES
Rooms$205,721 $249,230 $229,115 
Food and beverage145,304 161,300 140,775 
Direct expenses9,055 11,058 10,378 
Indirect expenses:
Property, general and administration
116,806 137,017 124,961 
Sales and marketing121,061 141,274 126,431 
Information and telecommunications systems18,655 21,679 18,342 
Repairs and maintenance55,294 61,857 57,837 
Energy42,684 51,463 47,347 
Lease expense4,177 4,344 4,514 
Ownership expenses2,447 3,073 3,152 
Incentive management fee18,026 19,457 16,595 
Management fees40,807 50,071 44,472 
Property taxes40,426 46,544 48,227 
Other taxes(778)634 813 
Insurance23,973 21,724 17,572 
843,658 980,725 890,531 
Hotel adjusted EBITDA$310,103 $383,032 $347,444 
Reconciliation of hotel operating income (loss) to net income (loss)
Year Ended December 31,
202420232022
Hotel adjusted EBITDA$310,103 $383,032 $347,444 
Other revenue2,325 2,801 2,884 
Stirling OP hotel profit (loss)
4,453 232 — 
Ownership expenses included in other hotel expenses (24,127)(12,455)(11,538)
Ownership expenses included in property taxes, insurance and other1,087 (1,250)(726)
Management fees (841)(490)(536)
Depreciation and amortization(152,776)(187,807)(201,797)
Impairment charges
(59,331)— — 
Advisory services fee
(58,606)(48,927)(49,897)
Corporate, general, and administrative
(24,662)(16,181)(9,879)
Gain (loss) on disposition of assets and hotel properties
94,406 11,488 300 
Gain (loss) on derecognition of assets
167,177 — — 
Equity in earnings (loss) of unconsolidated entities
(2,370)(1,134)(804)
Interest income6,942 8,978 4,777 
Other income (expense), net108 310 415 
Interest expense and amortization of discounts and loan costs
(273,359)(326,970)(207,916)
Interest expense associated with hotels in receivership(45,592)(39,178)(19,079)
Write-off of premiums, loan costs and exit fees(5,245)(3,469)(3,536)
Gain (loss) on extinguishment of debt2,774 53,386 — 
Realized and unrealized gain (loss) on derivatives(6,480)(2,200)15,166 
Income tax (expense) benefit(997)(900)(6,336)
Net income (loss)$(65,011)$(180,734)$(141,058)
The following table reconciles segment total revenue to total consolidated revenue:
Year Ended December 31,
202420232022
Segment total hotel revenue
$1,153,761 $1,363,757 $1,237,975 
Stirling OP total hotel revenue
16,373 975 — 
Consolidated total hotel revenue
1,170,134 1,364,732 1,237,975 
Other revenue
2,325 2,801 2,884 
Total consolidated revenue
$1,172,459 $1,367,533 $1,240,859 
The CODM does not regularly review asset information by segment.