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Note 15 - Segment Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [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 (in thousands):

 

  

For the three months ended

  

For the six months ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Revenue:

                

Room

 $80,644  $73,396  $141,847  $135,814 

Food and beverage

  1,604   1,864   3,205   3,523 

Other

  5,306   4,785   9,734   9,066 

Total hotel property level revenue (1)

  87,554   80,045   154,786   148,403 

Expenses:

                

Room

  16,625   14,957   30,630   29,786 

Food and beverage

  1,347   1,386   2,715   2,823 

Telephone

  382   281   726   592 

Other hotel operating

  1,270   1,157   2,385   2,183 

General and administrative

  7,240   7,125   14,291   14,036 

Franchise and marketing fees

  6,950   6,435   12,227   11,866 

Advertising and promotions

  1,902   1,655   3,570   3,262 

Utilities

  3,096   2,811   6,163   5,964 

Repairs and maintenance

  3,864   3,708   7,530   7,666 

Management fees paid to related parties

  2,958   2,685   5,220   4,975 

Insurance

  909   820   1,758   1,647 

Property taxes, ground rent and insurance

  5,282   6,134   10,442   11,877 

Total hotel property level expenses

  51,825   49,154   97,657   96,677 
                 

Adjusted Hotel EBITDA

 $35,729  $30,891  $57,129  $51,726 
                 

Reconciliation of Adjusted Hotel EBITDA to Net income

                

Interest expense, including amortization of deferred fees

  (6,903)  (6,414)  (13,103)  (13,266)

Depreciation and amortization

  (15,726)  (15,395)  (30,505)  (30,426)

Corporate general and administrative

  (4,590)  (3,992)  (9,239)  (8,599)

Other charges

  (26)  -   (482)  (7)

Income tax expense

  (62)  -   (125)  - 

Interest and other income

  23   59   102   121 

Gain on sale of hotel properties

  10   350   131   7,468 
                 

Net income

 $8,455  $5,499  $3,908  $7,017 

 

(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 $0.2 million for the three months ended June 30, 2026 and 2025, respectively, and $0.5 million and $0.5 million for the six months ended June 30, 2026 and 2025, respectively.