Revenue

On January 1, 2018, we adopted Topic 606 using the modified retrospective method. As the adoption of this standard did not have a material impact on our consolidated financial statements, no adjustments to opening retained earnings were made as of January 1, 2018. Results for reporting periods beginning after January 1, 2018, are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605-Revenue Recognition.

Rooms revenue represents revenues from the occupancy of our hotel rooms and is driven by the occupancy and average daily rate charged. Rooms revenue includes revenue for guest no-shows, day use, and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized as services are provided over the course of the hotel stay.

Food & Beverage (“F&B”) revenue consists of revenue from the restaurants and lounges at our hotel properties, In-room dining and mini-bars revenue, and banquet/catering revenue from group and social functions. Other F&B revenue may include revenue from audio-visual equipment/services, rental of function rooms, and other F&B related revenues. Revenue is recognized as the services or products are provided. Our hotel properties may employ third parties to provide certain services at the property, for example, audio visual services. We evaluate each of these contracts to determine if the hotel is the principal or the agent in the transaction, and record the revenues as appropriate (i.e. gross vs. net).

Other revenue consists of ancillary revenue at the property, including attrition and cancellation fees, resort and destination fees, spas, parking, entertainment and other guest services, as well as rental revenue; primarily consisting of leased retail outlets at our hotel properties. Attrition and cancellation fees are recognized for non-cancellable deposits when the customer provides notification of cancellation within established management policy time frames.

Taxes collected from customers and submitted to taxing authorities are not recorded in revenue. Interest income is recognized when earned. We discontinue recording interest and amortizing discounts/premiums when the contractual payment of interest and/or principal is not received when contractually due.

The following table presents our revenue disaggregated by geographical areas (in thousands):



	Three Months Ended March 31, 2018

Primary Geographical Markets	Number of hotels	Rooms		Food and Beverage		Other Hotel		Other		Total
California	4	$	19,104	$	7,306	$	3,474	$	—	$	29,884
Colorado	1	9,797		4,819		3,543		—		18,159
Florida	2	10,755		2,749		863		—		14,367
Illinois	1	3,419		1,251		210		—		4,880
Pennsylvania	1	6,153		1,173		297		—		7,623
Washington	1	5,502		1,664		265		—		7,431
Washington, D.C.	1	8,961		4,339		284		—		13,584
USVI	1	1,816		199		4,546		—		6,561
Total	12	$	65,507	$	23,500	$	13,482	$	—	$	102,489



	Three Months Ended March 31, 2017

Primary Geographical Markets	Number of hotels	Rooms		Food and Beverage		Other Hotel		Other		Total
California	3	$	16,924	$	6,017	$	1,400	$	—	$	24,341
Colorado	1	—		—		—		—		—
Florida	2	10,925		3,052		463		—		14,440
Illinois	1	3,473		1,214		99		—		4,786
Pennsylvania	1	4,960		979		183		—		6,122
Washington	1	5,413		1,830		255		—		7,498
Washington, D.C.	1	10,874		4,650		311		—		15,835
USVI	1	9,743		3,518		2,414		—		15,675
Sold hotel properties	1	5,106		3,213		240		40		8,599
Total	12	$	67,418	$	24,473	$	5,365	$	40	$	97,296