v3.26.3
Note 15 - Segment Information
 9 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

15.         Segment Information

 

Management evaluates the Company's hotels as a single reportable segment as a result of aggregating multiple operating segments, because all of the Company's hotels have similar economic characteristics and provide similar services to similar types of customers. Our single reportable segment comprises the structure used by our Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, who collectively have been determined to be our Chief Operating Decision Maker ("CODM"), to make key operating decisions and assess performance. Our CODM evaluates our single reportable segment's operating performance based on individual hotel property net income (loss) before interest expense, income tax expense, depreciation and amortization, corporate general and administrative expense, impairment loss, loss on early extinguishment of debt, other charges, interest and other income, and gains or losses on sales of hotel properties ("Adjusted Hotel EBITDA"). Our single reportable segment's assets are consistent with total assets included in the Company's consolidated balance sheets.

 

The following table includes revenue, significant hotel operating expenses, and Adjusted Hotel EBITDA for the Company’s hotels, reconciled to Net income (in thousands):

 

  

For the three months ended

  

For the nine months ended

 
  

September 30,

  

September 30,

 
  

2026

  

2025

  

2026

  

2025

 

Revenue:

                

Room

 $83,339  $71,923  $225,186  $207,737 

Food and beverage

  1,598   1,561   4,804   5,083 

Other

  5,686   4,649   15,420   13,715 

Total hotel property level revenue (1)

  90,623   78,133   245,410   226,535 

Expenses:

                

Room

  18,004   15,469   48,635   45,255 

Food and beverage

  1,350   1,368   4,064   4,192 

Telephone

  418   292   1,145   884 

Other hotel operating

  1,527   1,171   3,912   3,353 

General and administrative

  7,384   6,667   21,675   20,703 

Franchise and marketing fees

  7,230   6,349   19,456   18,215 

Advertising and promotions

  1,921   1,923   5,491   5,185 

Utilities

  4,107   3,597   10,270   9,561 

Repairs and maintenance

  4,197   3,797   11,727   11,463 

Management fees paid to related parties

  3,064   2,600   8,284   7,575 

Insurance

  903   813   2,662   2,459 

Property taxes, ground rent and insurance

  5,486   5,328   15,928   17,205 

Total hotel property level expenses

  55,591   49,374   153,249   146,050 
                 

Adjusted Hotel EBITDA

 $35,032  $28,759  $92,161  $80,485 
                 

Reconciliation of Adjusted Hotel EBITDA to Net income

                

Interest expense, including amortization of deferred fees

  (6,805)  (6,243)  (19,909)  (19,508)

Depreciation and amortization

  (16,053)  (14,707)  (46,557)  (45,133)

Corporate general and administrative

  (4,718)  (4,142)  (13,957)  (12,741)

Other charges

  122   (16)  (360)  (24)

Income tax expense

  (62)  —   (187)  — 

Loss on early extinguishment of debt

  —   (174)  —   (174)

Interest and other income

  28   71   130   192 

(Loss) gain on sale of hotel properties

  (82)  39   49   7,507 
                 

Net income

 $7,462  $3,587  $11,370  $10,604 

 

(1) The difference between total hotel property level revenue and total revenue on the consolidated statements of operations is due to reimbursable costs from related parties of $0.3 million and $0.3 million for the three months ended September 30, 2026 and 2025, respectively, and $0.8 million and $0.8 million for the nine months ended September 30, 2026 and 2025, respectively.