| Segment Reporting |
Note 8 – Segment Reporting The Company’s business consists of acquiring and owning a diverse portfolio of hospitality properties, primarily, select-service, extended-stay and compact full-service hotel properties throughout the United States operating in a single segment. The Company’s President and Chief Executive Officer is its chief operating decision maker (“CODM”) responsible for managing and allocating resources for the Company at a consolidated level. The CODM uses consolidated net income (loss) to assess the segment’s overall performance, with specific focus on the segment revenue and expenses associated with the Company’s hotel operations. The table below includes information about the Company’s segment, including significant segment expenses, and a reconciliation to net income (loss). | | | | | | | | | | | | | | | Three Months Ended June 30 | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Revenue: | | | | | | | | | | | | | Total revenue | | $ | 8,899,581 | | $ | 9,172,720 | | $ | 14,051,294 | | $ | 15,019,694 | Operating expenses: | | | | | | | | | | | | | Rooms | | | 1,541,186 | | | 1,545,287 | | | 2,782,441 | | | 2,913,270 | Food and beverage | | | 526,797 | | | 435,986 | | | 884,889 | | | 774,378 | Other property operating expenses | | | 2,976,063 | | | 2,941,912 | | | 5,588,111 | | | 5,494,973 | Property management fees to affiliates | | | 265,989 | | | 275,311 | | | 419,299 | | | 450,973 | Other segment expenses (1) | | | 1,526,922 | | | 1,567,614 | | | 3,038,327 | | | 3,176,664 | Operating income: | | | 2,062,624 | | | 2,406,610 | | | 1,338,227 | | | 2,209,436 | Non-operating expenses: | | | | | | | | | | | | | Interest expense, net | | | (1,070,069) | | | (1,001,140) | | | (2,154,819) | | | (1,954,494) | Income tax (expense) benefit | | | (5,000) | | | 7,732 | | | (6,600) | | | 224,619 | Segment and consolidated net income (loss) | | $ | 987,555 | | $ | 1,413,202 | | $ | (823,192) | | $ | 479,561 |
| (1) | Other segment expenses include corporate general and administrative, other fees to affiliates and depreciation and amortization. |
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