v3.26.3
Segment Reporting
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
2026202520262025
Revenues:
Hotel ownership revenue$297,605 $285,384 $874,053 $845,957 
Total consolidated revenue297,605 285,384 874,053 845,957 
Significant expenses:
Rooms expense46,521 46,529 135,826 137,644 
Food and beverage expense48,998 47,181 145,724 144,146 
Other departmental and support expenses70,528 68,127 207,310 202,132 
Management fees(2)
8,319 7,492 22,990 20,711 
Franchise fees10,132 9,731 29,936 28,782 
Property taxes12,690 14,560 34,553 45,504 
Total significant expenses197,188 193,620 576,339 578,919 
Other segment expenses:
Other hotel expenses(1)
8,730 8,596 26,148 26,846 
Hotel Adjusted EBITDA:91,687 83,168 271,566 240,192 
Non-cash lease expense and other amortization1,331 1,279 3,906 3,862 
Hotel pre-opening and manager transition items— 135 — 479 
Loss on debt extinguishment— 5,850 — 5,850 
Depreciation and amortization28,530 28,340 85,911 84,388 
Corporate expenses10,696 8,567 28,656 25,715 
Interest expense14,648 17,111 43,780 47,137 
Interest income(1,215)(2,202)(2,419)(3,785)
Impairment loss— 1,076 — 1,076 
Other (income) expense, net(48)(95)(1,439)(740)
Loss (gain) on sale of hotel, net239 — (31,352)— 
Income tax expense4,097 469 5,823 618 
Consolidated net income:$33,409 $22,638 $138,700 $75,592 
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(1)Other hotel expenses is principally comprised of cash payments for leases and property insurance.
(2)Excludes the amortization of unfavorable management contracts.

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

September 30, 2026December 31, 2025
Hotel ownership$2,906,272 $2,908,811 
All other190,580 94,890 
Total assets$3,096,852 $3,003,701 
Total capital expenditures related to our hotel ownership segment were $18.3 million and $55.3 million for the three and nine months ended September 30, 2026, respectively. Total capital expenditures related to our hotel ownership segment were $19.7 million and $60.9 million for the three and nine months ended September 30, 2025, respectively.