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Segment Reporting
 9 Months Ended
Sep. 30, 2025
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) have third-party hotel managers that utilize the same methods (direct hotel sales and various online booking portals) to distribute the Company’s products and services. As of September 30, 2025 and 2024, 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 adjustments include gains and losses on hotel dispositions, impairment charges, pre-opening costs associated with extensive renovation projects, property-level legal settlements, restructuring, severance, management transition costs and other expenses identified by management as non-recurring. The CODM does not regularly review asset information by segment.
Following Stirling OP’s redemption of its unit holders on September 2, 2025, the Company updated the presentation of its reportable segment for both the three and nine months ended September 30, 2025 and 2024 to incorporate the results of Stirling OP’s four hotel properties. Prior to September 2, 2025, the CODM did not regularly review the results of Stirling OP. 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):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
REVENUE
Rooms$201,916 $212,962 $635,420 $685,774 
Food and beverage45,922 46,384 155,787 159,002 
Other hotel revenue17,838 16,672 53,064 50,298 
Total hotel revenue265,676 276,018 844,271 895,074 
EXPENSES
Rooms50,246 50,929 149,696 159,682 
Food and beverage32,887 33,908 104,068 109,247 
Direct expenses2,406 2,182 7,029 7,034 
Indirect expenses:
Property, general and administration
23,019 27,017 75,470 90,869 
Sales and marketing29,260 29,752 89,901 94,267 
Information and telecommunications systems4,566 4,565 12,769 14,421 
Repairs and maintenance12,565 13,703 39,463 42,041 
Energy12,461 12,067 33,146 33,546 
Lease expense928 917 3,324 3,083 
Ownership expenses503 560 1,647 1,783 
Incentive management fee2,842 3,233 11,721 13,498 
Management fees9,099 9,693 28,949 31,870 
Property taxes10,888 9,655 30,949 30,851 
Other taxes (refunds)
107 222 433 (659)
Insurance5,159 5,782 16,214 18,262 
Total expenses
196,936 204,185 604,779 649,795 
Hotel adjusted EBITDA$68,740 $71,833 $239,492 $245,279 
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Reconciliation of hotel operating income (loss) to net income (loss)
Hotel adjusted EBITDA$68,740 $71,833 $239,492 $245,279 
Other revenue385 582 1,150 1,904 
Ownership expenses included in other hotel expenses (12,425)(6,099)(22,986)(11,577)
Ownership expenses included in property taxes, insurance and other(58)(2,403)(898)(3,379)
Management fees (65)(209)(408)(750)
Depreciation and amortization(34,589)(37,740)(107,204)(115,471)
Impairment charges
(18,374)— (19,821)— 
Advisory services fee
(10,550)(11,856)(34,112)(38,531)
Corporate, general, and administrative
(7,303)(5,059)(17,120)(20,462)
Gain (loss) on disposition of assets and hotel properties
16,753 9 55,305 94,406 
Gain (loss) on derecognition of assets
9,703 11,114 29,649 156,748 
Equity in earnings (loss) of unconsolidated entities
129 (133)(258)(828)
Interest income1,199 1,771 3,666 5,443 
Other income (expense), net— 36 — 108 
Interest expense and amortization of discounts and loan costs
(62,879)(66,825)(200,368)(209,202)
Interest expense associated with hotels in receivership(9,684)(11,120)(29,632)(35,162)
Write-off of premiums, loan costs and exit fees(2,278)(17)(8,361)(3,831)
Gain (loss) on extinguishment of debt58 2,745 43 2,790 
Realized and unrealized gain (loss) on derivatives(1,228)(6,202)(4,804)(84)
Income tax (expense) benefit(259)445 (695)(3,313)
Net income (loss)$(62,725)$(59,128)$(117,362)$64,088 
The following table reconciles segment total revenue to total consolidated revenue:
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Consolidated total hotel revenue
265,676 276,018 844,271 895,074 
Other revenue
385 582 1,150 1,904 
Total consolidated revenue
$266,061 $276,600 $845,421 $896,978