v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information
Note 13. Segment Information
Our operating segments are based on our internal reporting structure and property type and are aligned with how our Chief Operating Decision Maker, or CODM, reviews the operating results to allocate resources and assess segment performance. The CODM is our President and Chief Executive Officer. Our two reportable segments are net lease investments and hotel investments. Our net lease investments segment consists of service-focused retail net lease properties, including travel centers leased to TA, our largest tenant. Our hotel investments segment consists of hotels managed by subsidiaries of Sonesta, Hyatt, Radisson and IHG.
The significant expense categories and amounts presented below align with the segment-level information that is regularly provided to our CODM. Our CODM reviews operating and financial results, including net income (loss) and its components, to allocate resources and assess segment performance. The accounting policies of our reportable segments are the same as those described in Note 2 to our consolidated financial statements included in our 2025 Annual Report. The tables below present information about our segments.
Three Months Ended March 31, 2026
Net LeaseHotelsTotal
Revenues:   
Hotel operating revenues$— $264,575 $264,575 
Rental income99,876 — 99,876 
Total revenues99,876 264,575 364,451 
Less (plus):
Room expenses— 67,112 67,112 
Food and beverage expenses— 40,305 40,305 
Management fees2,771 9,129 11,900 
Real estate taxes and insurance2,105 23,680 25,785 
Other operating expenses (1)
2,564 102,418 104,982 
Depreciation and amortization32,937 42,906 75,843 
Interest expense
15,792 — 15,792 
Other segment items (2)
8,988 20,196 29,184 
Segment profit (loss)34,719 (41,171)(6,452)
Reconciliation of segment profit or loss:
General and administrative
(8,796)
Transaction related costs
(6)
Interest income
884 
Interest expense(80,755)
Loss on early extinguishment of debt, net(51,871)
Income tax expense(1,181)
Equity in losses of an investee(3,001)
Net loss
$(151,178)
(1)    Other operating expenses for each reportable segment include expenses such as repairs and maintenance, utilities and other costs, including property level expense reimbursements for our net lease investments segment as discussed in Note 10, incurred in connection with the operation of our properties.
(2)    Other segment items for each reportable segment include transaction related costs, gains and losses on asset impairment and sale of real estate and interest income, as applicable.
Three Months Ended March 31, 2025
Net LeaseHotelsTotal
Revenues:  
Hotel operating revenues $— $334,963 $334,963 
Rental income100,216 — 100,216 
Total revenues 100,216 334,963 435,179 
Less (plus):   
Room expenses— 93,909 93,909 
Food and beverage expenses— 40,319 40,319 
Management fees2,087 12,485 14,572 
Real estate taxes and insurance788 29,613 30,401 
Other operating expenses (1)
2,753 129,514 132,267 
Depreciation and amortization35,357 53,743 89,100 
Interest expense
12,126 — 12,126 
Other segment items (2)
(490)36,698 36,208 
Segment profit (loss)47,595 (61,318)(13,723)
Reconciliation of segment profit or loss:
General and administrative
(9,556)
Transaction related costs
(29)
Interest income
1,054 
Interest expense(89,391)
Income tax expense(843)
Equity in losses of an investee(3,947)
Net loss
$(116,435)
(1)    Other operating expenses for each reportable segment include expenses such as repairs and maintenance, utilities and other costs, including property level expense reimbursements for our net lease investments segment as discussed in Note 10, incurred in connection with the operation of our properties.
(2)    Other segment items for each reportable segment include transaction related costs, gains and losses on asset impairment and sale of real estate and interest income, as applicable.
As of March 31, 2026
As of December 31, 2025
Assets:
Net Lease$2,865,157 $2,902,699 
Hotels3,066,762 3,107,967 
Corporate149,706 480,914 
Total assets$6,081,625 $6,491,580 
Three Months Ended March 31,
20262025
Capital expenditures:
Net Lease$580 $748 
Hotels20,350 45,121 
Total capital expenditures$20,930 $45,869