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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 refers 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 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$452,361 $464,899 $431,515 
Food and beverage181,250 185,331 159,241 
Other hotel revenue94,793 89,112 78,829 
Total hotel revenue$728,404 $739,342 $669,585 
EXPENSES
Rooms$106,465 $105,439 $94,410 
Food and beverage145,901 144,544 125,555 
Direct expenses32,824 31,887 28,842 
Indirect expenses:
Property, general and administration62,214 59,714 53,412 
Sales and marketing49,331 48,998 40,078 
Information and telecommunications systems8,331 8,159 6,521 
Repairs and maintenance30,732 29,587 25,509 
Energy23,696 24,603 22,205 
Lease expense4,052 6,283 6,190 
Ownership expenses3,765 3,912 3,575 
Incentive management fee8,037 9,935 12,466 
Management fees22,837 22,839 19,950 
Property taxes23,745 21,343 19,236 
Other taxes1,571 1,171 677 
Insurance16,766 14,489 10,454 
540,267 532,903 469,080 
Hotel adjusted EBITDA
$188,137 $206,439 $200,505 
Reconciliation of hotel operating income (loss) to net income (loss)
Year Ended December 31,
202420232022
Hotel adjusted EBITDA$188,137 $206,439 $200,505 
Ownership expenses included in other hotel expenses(2,882)(4,834)(6,575)
Ownership expenses included in property taxes, insurance and other(426)(1,626)(399)
Management fees(663)(422)(199)
Depreciation and amortization(98,733)(93,272)(78,122)
Advisory services fee(30,487)(31,089)(28,847)
Gain (loss) on legal settlements— — 114 
Corporate, general and administrative(14,361)(13,523)(18,084)
Gain (loss) on disposition of assets and hotel properties88,165 — — 
Equity in earnings (loss) of unconsolidated entities(1,608)(253)(328)
Interest income7,135 6,401 2,677 
Other income (expense)— 293 — 
Interest expense and amortization of discounts and loan costs(108,124)(94,219)(52,166)
Write-off of loan costs and exit fees(6,111)(3,489)(146)
Gain (loss) on extinguishment of debt(22)2,318 — 
Realized and unrealized gain (loss) on derivatives585 (663)4,961 
Income tax (expense) benefit(842)(2,689)(4,043)
Net income (loss)$19,763 $(30,628)$19,348 
The CODM does not receive asset information by segment.