v3.26.1
Reportable Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Reportable Segments Reportable Segments
The Hotel Franchising & Management reportable segment includes the Company's hotel franchising operations, which consists of its 22 brands and brand extensions and the hotel management operations of 13 hotels (inclusive of four owned hotels). The 22 brands and brand extensions and hotel management operations are aggregated together within this reportable segment because they have similar economic characteristics, types of customers, distribution channels, and regulatory business environments. The revenues from the hotel franchising and management business include royalty fees, initial franchise fees and relicensing fees, cost reimbursement revenues, partnership services and fees, base and incentive management fees, and other hotel franchising and management-related revenue. The Company provides certain services under its franchise and management agreements which result in direct and indirect reimbursements. The cost reimbursement revenues received from the franchisees are included in Hotel Franchising & Management revenues and are offset by the related expenses in order to calculate Hotel Franchising & Management operating income. The equity in the earnings or losses from the hotel franchising-related investment in affiliates is allocated to the Hotel Franchising & Management reportable segment.
The Company evaluates its Hotel Franchising & Management reportable segment based primarily on the operating income of the segment without allocating corporate expenses or indirect general and administrative expenses. The Corporate & Other column includes the operations of the Company's owned hotels.
Intersegment Eliminations to revenues is the elimination of Hotel Franchising & Management revenue which includes royalty fees, management and cost reimbursement fees charged to our owned hotels against the franchise and management fee expense that is recognized by our owned hotels in Corporate & Other operating income (loss).
Our Interim Chief Executive Officer, who is our chief operating decision maker ("CODM"), utilizes budgeted and forecasted financial information as well as industry metrics, such as revenue per available room ("RevPar"), occupancy, and average daily room rate ("ADR"), to assess the performance and to make resource allocation decisions. The CODM does not use assets by operating segment when assessing the performance or when making operating segment resource allocation decisions and therefore, assets by segment are not disclosed below.
The following tables present the financial information for the Company's segments:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidatedHotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$407,664 $36,735 $(3,637)$440,762 $396,841 $32,724 $(3,122)$426,443 
Other segment items (1)
255,396 68,052 (3,637)319,811 231,648 59,896 (3,122)288,422 
Depreciation and amortization9,467 7,346 — 16,813 7,327 6,097 — 13,424 
Operating income (loss)142,801 (38,663)— 104,138 157,866 (33,269)— 124,597 
Reconciliation of segment profit or loss:
Interest expense24,259 22,736 
Interest income(1,095)(1,456)
Other gains, net(6,124)(5,374)
Equity in net loss of affiliates1,216 80 
Income before income taxes$85,882 $108,611 
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
(in thousands)Hotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidatedHotel Franchising & ManagementCorporate &
Other		Intersegment EliminationsConsolidated
Revenues$717,208 $71,276 $(7,147)$781,337 $700,025 $65,628 $(6,350)$759,303 
Other segment items (1)
468,485 122,193 (7,147)583,531 424,073 109,879 (6,350)527,602 
Depreciation and amortization19,107 14,527 — 33,634 14,701 12,471 — 27,172 
Operating income (loss)229,616 (65,444)— 164,172 261,251 (56,722)— 204,529 
Reconciliation of segment profit or loss:
Interest expense48,221 43,978 
Interest income(2,306)(3,015)
Other gains, net(5,403)(4,938)
Equity in net loss of affiliates7,468 131 
Income before income taxes$116,192 $168,373 
(1) Other segment items for the reportable segment include selling, general and administrative expenses and reimbursable expenses from franchised and managed properties.