v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
    We have one reportable segment, which is hotel ownership. The hotel ownership segment is mostly comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest services. The Company’s chief operating decision maker (“CODM”) is the Executive Committee which includes: 1) the Chief Executive Officer, 2) the President and Chief Operating Officer, 3) the Executive Vice President, Chief Financial Officer & Treasurer, and 4) the Senior Vice President, General Counsel & Corporate Secretary.
The CODM evaluates the hotel ownership segment primarily based on hotel adjusted earnings (loss) before interest income and expense, taxes and depreciation and amortization (“Hotel Adjusted EBITDA”). The CODM uses Hotel Adjusted EBITDA to evaluate the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis, in order to make informed decisions on how to allocate resources. Hotel Adjusted EBITDA is also used to monitor budget versus actual results. The monitoring of budgeted versus actual results is used in assessing performance of the segment and in establishing management’s compensation. Hotel Adjusted EBITDA, presented herein, is calculated as EBITDA from hotel operations, adjusted to exclude the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and thus excluded from the CODM’s analysis in making day-to-day operating decisions:

▪Non-cash lease expense and other amortization
▪Cumulative effect of a change in accounting principles
▪Gains or losses from debt extinguishment
▪Hotel acquisition costs
▪Severance costs
▪Hotel manager transition items
▪Hotel pre-opening costs
▪Impairment losses, gains or losses on asset sales and casualty gains or losses; and
▪Other items that we believe are not representative of our current or future operating performance.

The following table presents revenues for our hotel ownership segment reconciled to our consolidated amounts and Hotel Adjusted EBITDA reconciled to consolidated net income (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Revenues:
Hotel ownership revenue$318,286 $305,720 $576,448 $560,573 
Total consolidated revenue318,286 305,720 576,448 560,573 
Significant expenses:
Rooms expense46,982 47,272 89,305 91,115 
Food and beverage expense50,826 50,548 96,726 96,965 
Other departmental and support expenses70,594 68,719 136,782 134,005 
Management fees9,263 7,804 14,671 13,219 
Franchise fees10,549 10,003 19,804 19,051 
Property taxes6,843 16,663 21,863 30,944 
Total significant expenses195,057 201,009 379,151 385,299 
Other segment expenses:
Other hotel expenses(1)
9,506 9,351 17,418 18,250 
Hotel Adjusted EBITDA:113,723 95,360 179,879 157,024 
Non-cash lease expense and other amortization1,347 1,284 2,575 2,583 
Hotel pre-opening and manager transition items— 321 — 344 
Depreciation and amortization28,841 28,156 57,381 56,048 
Corporate expenses10,192 9,465 17,959 17,148 
Interest expense14,442 14,868 29,132 30,026 
Interest income(654)(802)(1,203)(1,583)
Other (income) expense, net(1,292)38 (1,391)(645)
Gain on sale of hotel, net(31,591)— (31,591)— 
Income tax expense1,680 991 1,726 149 
Consolidated net income:$90,758 $41,039 $105,291 $52,954 
_____________________________
(1)Other hotel expenses is principally comprised of cash payments for leases and property insurance.

The following table presents total assets for our hotel ownership segment, reconciled to total consolidated assets (in thousands):

June 30, 2026December 31, 2025
Hotel ownership$2,920,573 $2,908,811 
All other145,718 94,890 
Total assets$3,066,291 $3,003,701 
Total capital expenditures related to our hotel ownership segment were $18.4 million and $37.0 million for the three and six months ended June 30, 2026, respectively. Total capital expenditures related to our hotel ownership segment were $15.7 million and $41.3 million for the three and six months ended June 30, 2025, respectively.