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Note 15 - Segment Information
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

15.         Segment Information

 

Management evaluates the Company's hotels as a single reportable segment as a result of aggregating multiple operating segments, because all of the Company's hotels have similar economic characteristics and provide similar services to similar types of customers. Our single reportable segment comprises the structure used by our Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, who collectively have been determined to be our Chief Operating Decision Maker ("CODM"), to make key operating decisions and assess performance. Our CODM evaluates our single reportable segment's operating performance based on individual hotel property net income (loss) before interest expense, income tax expense, depreciation and amortization, corporate general and administrative expense, impairment loss, loss on early extinguishment of debt, other charges, interest and other income, and gains or losses on sales of hotel properties ("Adjusted Hotel EBITDA"). Our single reportable segment's assets are consistent with total assets included in the Company's consolidated balance sheets.

 

The following table includes revenue, significant hotel operating expenses, and Adjusted Hotel EBITDA for the Company’s hotels, reconciled to Net income (loss) (in thousands):

 

 

  

For the three months ended

  

For the nine months ended

 
  

September 30,

  

September 30,

 
  

2025

  

2024

  

2025

  

2024

 

Revenue:

                

Room

 $71,923  $80,236  $207,737  $221,762 

Food and beverage

  1,561   1,832   5,083   5,806 

Other

  4,649   4,826   13,715   13,695 

Total hotel property level revenue (1)

  78,133   86,894   226,535   241,263 

Expenses:

                

Room

  15,469   17,011   45,255   49,110 

Food and beverage

  1,368   1,592   4,192   4,683 

Telephone

  292   343   884   991 

Other hotel operating

  1,171   1,188   3,353   3,031 

General and administrative

  6,667   7,506   20,703   21,903 

Franchise and marketing fees

  6,349   6,990   18,215   19,415 

Advertising and promotions

  1,923   1,677   5,185   4,604 

Utilities

  3,597   3,946   9,561   10,061 

Repairs and maintenance

  3,797   4,178   11,463   12,235 

Management fees paid to related parties

  2,600   2,959   7,575   8,118 

Insurance

  813   851   2,459   2,504 

Property taxes, ground rent and insurance

  5,328   6,453   17,205   17,728 

Total hotel property level expenses

  49,374   54,694   146,050   154,383 
                 

Adjusted Hotel EBITDA

 $28,759  $32,200  $80,485  $86,880 
                 

Reconciliation of Adjusted Hotel EBITDA to Net income

                

Interest expense, including amortization of deferred fees

  (6,243)  (8,262)  (19,508)  (23,292)

Depreciation and amortization

  (14,707)  (15,287)  (45,133)  (45,455)

Corporate general and administrative

  (4,142)  (4,395)  (12,741)  (13,623)

Other charges

  (16)  -   (24)  (77)

Loss on early extinguishment of debt

  (174)  -   (174)  (17)

Interest and other income

  71   97   192   1,627 

Gain (loss) on sale of hotel properties

  39   (14)  7,507   (154)
                 

Net income

 $3,587  $4,339  $10,604  $5,889 

 

(1) The difference between total hotel property level revenue and total revenue on the consolidated statements of operations is due to reimbursable costs from related parties of $0.3 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively, and $0.8 million and $0.8 million for the nine months ended September 30, 2025 and 2024, respectively.