v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We operate in one reportable business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refers to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments: (i) offer similar products and services to their customers in the form of hotel rooms, food and beverage, and ancillary services; (ii) utilize third-party hotel management companies to deliver its products and services to its customers; (iii) are designed and operated to appeal to similar individuals, groups, leisure, and business customers; and (iv) have third-party hotel managers that utilize the same methods (direct hotel sales and various online booking portals) to distribute the Company’s products and services. As of September 30, 2026 and 2025, all of our hotel properties were in the U.S. and its territories. The Company’s chief operating decision maker (“CODM”) is its President and Chief Executive Officer.
Each hotel property derives revenue primarily from guestroom sales, food and beverage sales, and revenues from other lodging services and amenities. The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies in note 2 of the consolidated financial statements included in our 2025 Annual Report on Form 10-K.
The CODM reviews and makes decisions on all aspects of the Company’s business using all available financial and non-financial data for each hotel individually. Capital allocation decisions to acquire, sell, enhance, redevelop, or perform renewal and replacement expenditures are determined on a hotel-by-hotel basis. Specifically, the CODM reviews the results of each hotel to assess the hotel’s profitability. The key measure the CODM uses to allocate resources and assess performance is individual hotel net income (loss) before interest expense, income taxes, depreciation, and amortization, adjusted to exclude certain items determined by management to not be reflective of its ongoing operating performance or incurred in the normal course of business (Hotel Adjusted EBITDA). The adjustments include gains and losses on hotel dispositions, impairment charges, pre-opening costs associated with extensive renovation projects, property-level legal settlements, restructuring,
severance, and management transition costs, and other expenses identified by management to be non-recurring. The CODM does not regularly review asset information by segment.
The following tables include revenues, significant hotel operating expenses, and Hotel Adjusted EBITDA for the Company’s hotels, reconciled to the consolidated amounts included in the Company’s condensed consolidated statements of operations (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
REVENUE
Rooms$63,147 $85,701 $294,131 $331,617 
Food and beverage25,983 36,637 123,647 133,996 
Other hotel revenue12,448 21,218 63,809 72,840 
Total hotel revenue$101,578 $143,556 $481,587 $538,453 
EXPENSES
Hotel expenses:
Rooms$18,665 $24,728 $67,761 $80,232 
Food and beverage24,268 30,685 98,075 106,662 
Direct expenses4,840 7,236 22,837 24,903 
Indirect expenses:
Property, general and administration10,334 14,364 38,920 45,228 
Sales and marketing8,535 11,138 32,163 36,868 
Information and telecommunications systems1,487 1,969 5,323 5,928 
Repairs and maintenance5,776 7,802 19,810 23,627 
Energy5,127 6,148 17,229 17,899 
Lease expense125 634 1,242 1,756 
Ownership expenses89 995 1,565 3,149 
Incentive management fee(44)(187)7,727 5,263 
Management fees3,015 4,337 14,120 16,498 
Property taxes2,694 4,405 8,083 14,358 
Other taxes53 331 232 1,098 
Insurance1,918 3,409 8,389 10,888 
Total expenses86,882 117,994 343,476 394,357 
Hotel adjusted EBITDA$14,696 $25,562 $138,111 $144,096 
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Hotel adjusted EBITDA$14,696 $25,562 $138,111 $144,096 
Ownership expenses included in other hotel expenses(2,087)(1,667)(4,342)(3,966)
Ownership expenses included in property taxes, insurance and other(12)(66)(132)(224)
Management fees(88)(103)(315)(393)
Depreciation and amortization(16,611)(23,164)(60,623)(69,919)
Advisory services fee(7,498)(7,915)(22,182)(21,717)
Corporate general and administrative
(12,139)(3,811)(21,419)(4,407)
Termination fee(480,000)— (480,000)— 
Gain (loss) on disposition of assets and hotel properties259,927 40,970 277,325 40,970 
Equity in earnings (loss) of unconsolidated entities— — (31)— 
Interest income841 1,494 2,425 4,901 
Other income (expense)— — — (1,250)
Interest expense and amortization of discounts and loan costs(16,203)(25,188)(57,911)(75,376)
Write-off of loan costs and exit fees(20)(366)(1,509)(1,833)
Gain (loss) on extinguishment of debt— (1,553)— (1,553)
Realized and unrealized gain (loss) on derivatives54 (118)337 (301)
Income tax (expense) benefit9,756 648 5,858 (474)
Net income (loss)$(249,384)$4,723 $(224,408)$8,554