Segment Information
The Company’s chief operating decision maker (“CODM”) is the President and Chief Executive Officer.
The CODM separately evaluates the performance of each of the Company’s hotel properties and each hotel property is an operating segment. However, because each of the hotels has similar economic characteristics, facilities, and services, the hotel properties have been aggregated into a single reportable segment.
The hotel segment revenues are derived from the operation of hotel properties. The hotel segment generates room revenue by renting hotel rooms to customers at the Company’s hotel properties. The hotel segment generates food and beverage revenue from the sale of food and beverage to customers at the Company’s hotel properties. The hotel segment generates other revenue from parking fees, resort fees, gift shop sales and other guest service fees at the Company’s hotel properties.
The CODM assesses performance for the hotel segment and decides how to allocate resources based on Hotel EBITDA, which is a non-GAAP financial measure. Hotel EBITDA is defined as net income or loss excluding: (1) interest expense; (2) income tax expense; and (3) depreciation and amortization expense, adjusted for corporate-level expenses, certain non-cash items, and certain other items that the Company considers outside the normal course of operations.
The following table presents information about profit or loss for the hotel segment:
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| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Revenues | | | | | |
| Room revenue | $ | 1,093,265 | | | $ | 1,121,586 | | | $ | 1,095,028 | |
| Food and beverage revenue | 158,218 | | | 153,108 | | | 141,625 | |
| Other revenue | 98,377 | | | 94,746 | | | 88,924 | |
| Total revenues | 1,349,860 | | | 1,369,440 | | | 1,325,577 | |
| Operating expenses | | | | | |
| Room expense | 293,405 | | | 288,567 | | | 277,058 | |
| Food and beverage expense | 119,799 | | | 117,766 | | | 109,707 | |
| Management and franchise fee expense | 102,757 | | | 107,978 | | | 107,417 | |
| Other operating expenses | 371,558 | | | 363,631 | | | 340,485 | |
| Total operating expenses | 887,519 | | | 877,942 | | | 834,667 | |
| Property tax, insurance and other | 101,315 | | | 107,043 | | | 100,229 | |
| Other, net (1) | (8,052) | | | (14,300) | | | (11,535) | |
| Hotel EBITDA | $ | 369,078 | | | $ | 398,755 | | | $ | 402,216 | |
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(1) Includes miscellaneous hotel segment income, as well as adjustments for corporate-level expenses, certain non-cash items, and certain other items that the Company considers outside the normal course of operations.
The following table provides a reconciliation of the hotel segment profit and loss to the Company’s consolidated totals:
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| For the Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Income before income tax expense | $ | 29,702 | | | $ | 69,790 | | | $ | 77,873 | |
| Depreciation and amortization | 186,356 | | | 179,431 | | | 179,103 | |
| Interest expense, net of interest income | 98,718 | | | 94,044 | | | 79,064 | |
| General and administrative | 47,644 | | | 54,804 | | | 58,998 | |
| Loss (gain) on sale of hotel properties, net | 1,526 | | | (8,262) | | | 34 | |
| Other, net | 5,132 | | | 8,948 | | | 7,144 | |
| Hotel EBITDA | $ | 369,078 | | | $ | 398,755 | | | $ | 402,216 | |
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A measure of segment assets is not currently provided to the CODM and has therefore not been included herein.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.