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Segment Reporting
 6 Months Ended
Jun. 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 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) 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 June 30, 2025 and December 31, 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 of the consolidated financial statements included in our 2024 Annual Report on Form 10-K.
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 CODM does not regularly review asset information by segment.
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 condensed consolidated statements of operations (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
REVENUE
Rooms$109,824 $116,227 $245,916 $254,779 
Food and beverage45,571 47,563 97,359 101,110 
Other hotel revenue23,682 23,797 51,622 50,777 
Total hotel revenue$179,077 $187,587 $394,897 $406,666 
EXPENSES
Hotel expenses:
Rooms$27,285 $27,476 $55,504 $55,740 
Food and beverage35,767 36,664 75,977 77,381 
Direct expenses8,208 7,970 17,667 17,739 
Indirect expenses:
Property, general and administration15,466 15,644 30,864 32,247 
Sales and marketing12,557 12,624 25,730 26,005 
Information and telecommunications systems1,884 2,072 3,959 4,120 
Repairs and maintenance8,053 7,906 15,825 15,568 
Energy5,892 5,781 11,751 11,745 
Lease expense568 1,483 1,122 2,656 
Ownership expenses1,172 761 2,154 1,937 
Incentive management fee1,221 2,361 5,450 6,211 
Management fees5,424 5,871 12,161 12,737 
Property taxes4,002 5,203 9,953 10,913 
Other taxes299 332 767 845 
Insurance3,486 4,362 7,479 8,765 
Total expenses131,284 136,510 276,363 284,609 
Hotel adjusted EBITDA$47,793 $51,077 $118,534 $122,057 
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Hotel adjusted EBITDA$47,793 $51,077 $118,534 $122,057 
Ownership expenses included in other hotel expenses(1,424)(1,553)(2,299)(3)
Ownership expenses included in property taxes, insurance and other(105)(161)(158)(232)
Management fees(117)(197)(290)(307)
Depreciation and amortization(23,360)(24,694)(46,755)(50,114)
Advisory services fee(7,191)(7,828)(13,802)(14,528)
Corporate, general and administrative2,298 (4,469)(596)(2,231)
Equity in earnings (loss) of unconsolidated entities— (85)— (134)
Interest income1,519 1,072 3,407 1,868 
Other income (expense)(1,250)— (1,250)— 
Interest expense and amortization of discounts and loan costs(25,361)(27,285)(50,188)(53,776)
Write-off of loan costs and exit fees(3)(82)(1,467)(803)
Gain (loss) on extinguishment of debt— (22)— (22)
Realized and unrealized gain (loss) on derivatives15 326 (183)1,258 
Income tax (expense) benefit345 114 (1,122)(1,338)
Net income (loss)$(6,841)$(13,787)$3,831 $1,695