v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 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 September 30,
20262025
Net LeaseHotelsTotalNet LeaseHotelsTotal
Revenues:
Hotel operating revenues$— $298,379 $298,379 $— $377,576 $377,576 
Rental income101,141 — 101,141 101,194 — 101,194 
Total revenues101,141 298,379 399,520 101,194 377,576 478,770 
Less (plus):
Room expenses— 74,648 74,648 — 105,891 105,891 
Food and beverage expenses— 40,178 40,178 — 41,552 41,552 
Management fees2,788 10,520 13,308 2,162 14,204 16,366 
Real estate taxes and insurance875 21,127 22,002 710 30,665 31,375 
Other operating expenses (1)
2,726 109,307 112,033 2,364 136,046 138,410 
Depreciation and amortization31,702 40,450 72,152 34,155 40,298 74,453 
Interest expense
24,527 — 24,527 12,411 — 12,411 
Other segment items (2)
2,109 54,291 56,400 2,186 2,011 4,197 
Segment profit (loss)36,414 (52,142)(15,728)47,206 6,909 54,115 
Reconciliation of segment profit or loss:
General and administrative
(9,965)(11,057)
Transaction related costs
(194)(222)
Interest income
318 4,766 
Interest expense(61,405)(95,365)
Loss on early extinguishment of debt, net(335)(529)
Income tax expense(875)(253)
Equity in earnings of an investee244 1,600 
Net loss
$(87,940)$(46,945)
Nine Months Ended September 30,
20262025
Net LeaseHotelsTotalNet LeaseHotelsTotal
Revenues:
Hotel operating revenues $— $883,025 $883,025 $— $1,116,944 $1,116,944 
Rental income301,920 — 301,920 300,441 — 300,441 
Total revenues 301,920 883,025 1,184,945 300,441 1,116,944 1,417,385 
Less (plus):
Room expenses— 217,814 217,814 — 303,877 303,877 
Food and beverage expenses— 124,821 124,821 — 126,318 126,318 
Management fees8,307 30,700 39,007 6,359 41,802 48,161 
Real estate taxes and insurance4,096 67,479 71,575 2,169 89,452 91,621 
Other operating expenses (1)
7,472 322,264 329,736 7,775 401,662 409,437 
Depreciation and amortization98,004 127,074 225,078 106,088 132,495 238,583 
Interest expense
64,877 — 64,877 37,084 — 37,084 
Other segment items (2)
11,870 265,546 277,416 5,508 53,982 59,490 
Segment profit (loss)107,294 (272,673)(165,379)135,458 (32,644)102,814 
Reconciliation of segment profit or loss:
General and administrative
(29,854)(30,831)
Transaction related costs1,747 (251)
Interest income
2,309 6,572 
Interest expense(205,257)(274,888)
Loss on early extinguishment of debt, net(61,589)(529)
Income tax expense(1,924)(1,553)
Equity in losses of an investee(3,009)(2,873)
Net loss
$(462,956)$(201,539)
(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 September 30, 2026
As of December 31, 2025
Assets:
Net Lease$2,801,750 $2,902,699 
Hotels2,748,688 3,107,967 
Corporate170,018 480,914 
Total assets$5,720,456 $6,491,580 
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Capital expenditures:
Net Lease$154 $449 $2,014 $1,431 
Hotels29,282 46,271 78,256 130,233 
Total capital expenditures$29,436 $46,720 $80,270 $131,664