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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information

14. Segment Information

The Company’s chief operating decision maker (“CODM”) is the President and Chief Executive Officer.

The CODM separately evaluates the performance of each of the Company’s hotel properties and each hotel property is an operating segment. However, because each of the hotels has similar economic characteristics, facilities, and services, the hotel properties have been aggregated into a single reportable segment.

The hotel segment revenues are derived from the operation of hotel properties. The hotel segment generates room revenue by renting hotel rooms to customers at the Company’s hotel properties. The hotel segment generates food and beverage revenue from the sale of food and beverage to customers at the Company’s hotel properties. The hotel segment generates other revenue from parking fees, resort fees, gift shop sales and other guest service fees at the Company’s hotel properties.

The CODM assesses performance for the hotel segment and decides how to allocate resources based on Hotel EBITDA, which is a non-GAAP financial measure. We define Hotel EBITDA as net income or loss excluding: (1) interest expense, (2) interest income, (3) income tax provision or benefit, (4) depreciation and amortization, (5) impairment of long-lived assets or investments, (6) gains and losses on disposal and/or sale of assets, (7) gains and losses on involuntary conversions of assets, (8) realized and unrealized gains and losses on derivative instruments not included in other comprehensive income, (9) other income at the properties, (10) loss on early debt extinguishment, (11) Paycheck Protection Program (PPP) debt forgiveness, (12) gain on exercise of development right, (13) corporate general and administrative expense, and (14) other income.

 

The following table presents information about profit or loss for the hotel segment:

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

$

32,537,497

 

 

$

34,575,890

 

 

$

63,837,998

 

 

$

64,315,546

 

Food and beverage department

 

 

9,597,210

 

 

 

9,901,554

 

 

 

19,749,070

 

 

 

19,654,003

 

Other operating departments

 

 

6,659,436

 

 

 

6,216,923

 

 

 

13,519,419

 

 

 

13,273,249

 

Total revenue

 

 

48,794,143

 

 

 

50,694,367

 

 

 

97,106,487

 

 

 

97,242,798

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

7,030,115

 

 

 

7,452,407

 

 

 

13,870,960

 

 

 

14,004,590

 

Food and beverage department

 

 

6,576,018

 

 

 

6,541,720

 

 

 

13,532,539

 

 

 

13,006,575

 

Other operating departments

 

 

2,455,516

 

 

 

2,505,721

 

 

 

5,060,808

 

 

 

5,191,863

 

Indirect

 

 

18,840,141

 

 

 

18,496,840

 

 

 

37,829,026

 

 

 

36,981,736

 

Total hotel operating expenses

 

 

34,901,790

 

 

 

34,996,688

 

 

 

70,293,333

 

 

 

69,184,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel EBITDA

 

$

13,892,353

 

 

$

15,697,679

 

 

$

26,813,154

 

 

$

28,058,034

 

 

The following table provides a reconciliation of the hotel segment profit and loss to the Company’s consolidated totals:

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

1,556,424

 

 

$

4,664,232

 

 

$

6,289,950

 

 

$

5,987,053

 

Income tax provision

 

 

14,868

 

 

 

17,184

 

 

 

18,328

 

 

 

35,277

 

Depreciation and amortization

 

 

5,019,340

 

 

 

4,817,523

 

 

 

9,938,077

 

 

 

9,587,240

 

Corporate general and administrative

 

 

2,298,261

 

 

 

1,580,373

 

 

 

4,187,601

 

 

 

3,496,898

 

Interest expense

 

 

5,497,789

 

 

 

5,000,995

 

 

 

10,945,354

 

 

 

9,889,801

 

Interest income

 

 

(66,146

)

 

 

(208,102

)

 

 

(136,936

)

 

 

(422,873

)

Other income

 

 

(125,430

)

 

 

(142,353

)

 

 

(252,020

)

 

 

(267,230

)

Loss on early extinguishment of debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

241,878

 

Unrealized gain (loss) on hedging activities

 

 

(53,369

)

 

 

84,872

 

 

 

(53,935

)

 

 

(250,573

)

Gain on sale of assets

 

 

—

 

 

 

(4,400

)

 

 

—

 

 

 

(4,400

)

Gain on involuntary conversion of assets

 

 

(249,384

)

 

 

(112,645

)

 

 

(4,123,265

)

 

 

(235,037

)

Hotel EBITDA

 

$

13,892,353

 

 

$

15,697,679

 

 

$

26,813,154

 

 

$

28,058,034

 

 

A measure of segment assets is not currently provided to the CODM and has therefore not been included herein.