v3.25.2
Note 15 - Segment Information
 6 Months Ended
Jun. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [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 (loss) (in thousands):

 

 

  

For the three months ended

  

For the six months ended

 
  

June 30,

  

June 30,

 
  

2025

  

2024

  

2025

  

2024

 

Revenue:

                

Room

 $73,396  $79,044  $135,814  $141,526 

Food and beverage

  1,864   2,127   3,523   3,973 

Other

  4,785   5,033   9,066   8,868 

Total hotel property level revenue (1)

  80,045   86,204   148,403   154,367 

Expenses:

                

Room

  14,957   16,966   29,786   32,099 

Food and beverage

  1,386   1,608   2,823   3,091 

Telephone

  281   328   592   647 

Other hotel operating

  1,157   1,025   2,183   1,844 

General and administrative

  7,125   7,231   14,036   14,396 

Franchise and marketing fees

  6,435   6,936   11,866   12,425 

Advertising and promotions

  1,655   1,585   3,262   2,927 

Utilities

  2,811   3,106   5,964   6,115 

Repairs and maintenance

  3,708   4,103   7,666   8,057 

Management fees paid to related parties

  2,685   2,850   4,975   5,159 

Insurance

  820   833   1,647   1,653 

Property taxes, ground rent and insurance

  6,134   5,981   11,877   11,275 

Total hotel property level expenses

  49,154   52,552   96,677   99,688 
                 

Adjusted Hotel EBITDA

 $30,891  $33,652  $51,726  $54,679 
                 

Reconciliation of Adjusted Hotel EBITDA to net income (loss)

                

Interest expense, including amortization of deferred fees

  (6,414)  (7,723)  (13,266)  (15,030)

Depreciation and amortization

  (15,395)  (14,914)  (30,426)  (30,169)

Corporate general and administrative

  (3,992)  (4,633)  (8,599)  (9,227)

Other charges

  -   (27)  (7)  (77)

Loss on early extinguishment of debt

  -   (17)  -   (17)

Interest and other income

  59   684   121   1,529 

Gain (loss) on sale of hotel properties

  350   12   7,468   (140)
                 

Net income

 $5,499  $7,034  $7,017  $1,548 

 

(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 $0.2 million and $0.3 million for the three months ended June 30, 2025 and 2024, respectively, and $0.5 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively.