v3.26.1
Segment Reporting
 12 Months Ended
Dec. 31, 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 refer 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 December 31, 2025, 2024 and 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, management transition costs and other expenses identified by management as non-recurring. The CODM does not regularly review asset information by segment.
Following Stirling OP’s redemption of its unit holders on September 2, 2025, the Company updated the presentation of its reportable segment for December 31, 2025, 2024 and 2023 to incorporate the results of Stirling OP’s four hotel properties. Prior to September 2, 2025, the CODM did not regularly review the results of Stirling OP. 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,
202520242023
REVENUE
Rooms$825,623 $889,753 $1,059,155 
Food and beverage207,588 212,581 232,829 
Other hotel revenue69,643 67,800 72,748 
Total hotel revenue1,102,854 1,170,134 1,364,732 
EXPENSES
Rooms198,002 209,569 $249,434 
Food and beverage139,324 145,304 161,300 
Direct expenses9,198 9,134 11,058 
Indirect expenses:
Property, general and administration
99,688 118,598 137,160 
Sales and marketing118,204 123,275 141,425 
Information and telecommunications systems17,202 19,031 21,707 
Repairs and maintenance53,704 56,118 61,892 
Energy43,269 43,442 51,516 
Lease expense4,374 4,177 4,344 
Ownership expenses1,955 2,456 3,075 
Incentive management fee15,562 18,110 19,457 
Management fees37,743 41,543 50,120 
Property taxes40,790 41,050 46,590 
Other taxes (refunds)
165 (766)634 
Insurance21,049 24,401 21,746 
Total expenses
800,229 855,442 981,458 
Hotel adjusted EBITDA$302,625 $314,692 $383,274 
Year Ended December 31,
202520242023
Reconciliation of hotel operating income (loss) to net income (loss)
Hotel adjusted EBITDA$302,625 $314,692 $383,274 
Other revenue1,534 2,325 2,801 
Ownership expenses included in rooms expense(104)— — 
Ownership expenses included in food and beverage expense(504)— — 
Ownership expenses included in other hotel expenses (28,915)(24,127)(12,457)
Ownership expenses included in property taxes, insurance and other2,211 973 (1,257)
Management fees (520)(863)(491)
Depreciation and amortization(141,295)(152,776)(187,807)
Impairment charges
(67,648)(59,331)— 
Advisory services fee
(49,039)(58,606)(48,927)
Corporate, general, and administrative
(20,783)(24,662)(16,181)
Gain (loss) on disposition of assets and hotel properties
79,799 94,406 11,488 
Gain (loss) on derecognition of assets
39,054 167,177 — 
Equity in earnings (loss) of unconsolidated entities
(325)(2,370)(1,134)
Interest income4,739 6,942 8,978 
Other income (expense), net— 108 310 
Interest expense and amortization of discounts and loan costs
(256,229)(273,359)(326,970)
Interest expense associated with hotels in receivership(39,038)(45,592)(39,178)
Write-off of premiums, loan costs and exit fees(8,853)(5,245)(3,469)
Gain (loss) on extinguishment of debt335 2,774 53,386 
Realized and unrealized gain (loss) on derivatives(5,346)(6,480)(2,200)
Income tax (expense) benefit143 (997)(900)
Net income (loss)$(188,159)$(65,011)$(180,734)
The following table reconciles segment total revenue to total consolidated revenue:
Year Ended December 31,
202520242023
Consolidated total hotel revenue
$1,102,854 $1,170,134 $1,364,732 
Other revenue
1,534 2,325 2,801 
Total consolidated revenue
$1,104,388 $1,172,459 $1,367,533