v3.26.1
Receivables and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2026
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract]  
Receivables and Allowance for Credit Losses Receivables and Allowance for Credit Losses
Notes Receivable
The Company has provided financing in the form of notes receivable loans to franchisees in order to support the development of hotel properties in strategic markets. The Company's credit quality indicator is the level of security in the note receivable.
The following table summarizes the composition of the notes receivable balances by credit quality indicator and the allowance for credit losses:
(in thousands)March 31, 2026December 31, 2025
Senior$56,546 $98,257 
Subordinated30,505 13,356 
Unsecured3,652 4,044 
Total notes receivable$90,703 $115,657 
Less: allowance for credit losses8,451 8,481 
Total notes receivable, net of allowance for credit losses$82,252 $107,176 
Current portion, net of allowance for credit losses$54,849 $94,686 
Long-term portion, net of allowance for credit losses$27,403 $12,490 
The following table summarizes the amortized cost basis of the notes receivable by the year of origination and credit quality indicator:
(in thousands)20262025202420232022PriorTotal
Senior$— $— $41,346 $— $— $15,200 $56,546 
Subordinated— 1,501 — 3,503 — 25,501 30,505 
Unsecured— 357 129 — — 3,166 3,652 
Total notes receivable$— $1,858 $41,475 $3,503 $— $43,867 $90,703 
The following table summarizes the activity related to the Company’s notes receivable allowance for credit losses:
(in thousands)March 31, 2026December 31, 2025
Beginning balance$8,481 $7,331 
(Reversal) provision for credit losses(30)1,150 
Ending balance$8,451 $8,481 
As of March 31, 2026 and December 31, 2025, three note receivable loans with senior credit quality indicators met the definition of collateral-dependent and are collateralized by the membership interests in the borrowing entities, the associated land parcel, or the operating hotel. The Company used both a market approach that uses quoted market prices and an income approach that uses discounted cash flows to value the underlying collateral. The Company reviewed the borrower's financial statements, economic trends, industry projections for the market, and comparable sales capitalization rates, which represent significant inputs to the cash flow projections. These nonrecurring fair value measurements are classified as Level 3 in the fair value measurement hierarchy because they are unobservable inputs which are significant to the overall fair value. Based on the Company's analysis, the fair value of the collateral secures substantially all of the carrying value of the respective note receivable loans. The allowance for credit losses attributable to the collateral-dependent note receivable loans was $4.6 million as of both March 31, 2026 and December 31, 2025.

The following table summarizes the past due balances by credit quality indicator of the notes receivable:
(in thousands)1- 30 days
Past Due		31-89 days
Past Due		> 90 days
Past Due		Total
Past Due		CurrentTotal
 Notes Receivable
As of March 31, 2026
Senior$— $— $42,900 $42,900 $13,646 $56,546 
Subordinated— — — — 30,505 30,505 
Unsecured— — 204 204 3,448 3,652 
$— $— $43,104 $43,104 $47,599 $90,703 
As of December 31, 2025
Senior$— $— $42,900 $42,900 $55,357 $98,257 
Subordinated— — — — 13,356 13,356 
Unsecured— — 404 404 3,640 4,044 
$— $— $43,304 $43,304 $72,353 $115,657 
The amortized cost basis of the notes receivable in a non-accrual status was $42.9 million as of both March 31, 2026 and December 31, 2025.
Variable Interest through Notes Receivable
The Company has issued notes receivable loans to certain entities that have created variable interests in the associated borrowers totaling $78.7 million and $103.2 million as of March 31, 2026 and December 31, 2025, respectively. The Company has determined that it is not the primary beneficiary of these variable interest entities ("VIEs"). For collateral-dependent loans, the Company has no exposure to the borrowing VIE beyond the respective note receivable and the limited commitments which are addressed in Note 11.
Transactions with Unconsolidated Affiliates
The Company has extended loans to various unconsolidated affiliates or members of our unconsolidated affiliates. The Company had a total principal balance on these loans of $42.5 million and $65.3 million as of March 31, 2026 and December 31, 2025, respectively.
Accounts Receivable
Accounts receivable consists primarily of franchise and related fees due from the hotel franchisees and are recorded at the invoiced amount.
During the three months ended March 31, 2026, the Company recognized provisions for credit losses on accounts receivable of $9.5 million in selling, general and administrative expenses, and $7.4 million in reimbursable expenses from franchised and managed properties, in the consolidated statements of income. During the year ended December 31, 2025, the Company recognized provisions for credit losses on accounts receivable of $20.2 million in selling, general and administrative expenses, and $15.0 million in reimbursable expenses from franchised and managed properties, in the consolidated statements of income.
During the three months ended March 31, 2026, the Company recorded write-offs, net of recoveries, through the accounts receivable allowance for credit losses of $5.8 million. During the year ended December 31, 2025, the Company recorded write-offs, net of recoveries, through the accounts receivable allowance for credit losses of $29.6 million.