Segment Information (Tables)

9 Months Ended

Sep. 30, 2025

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

The following tables include revenues, significant hotel operating expenses, and Hotel Adjusted EBITDAre for the Company’s hotels, reconciled to the consolidated amounts included in the Company’s consolidated statements of operations, which the CODM uses to manage its business, such as how to allocate capital to its hotels and how to determine the Company’s acquisition and disposition strategies (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenues
Total revenues	$	229,323	$	226,392	$	723,160	$	691,039

Operating Expenses
Room		39,303		37,342		117,333		110,145
Food and beverage		48,717		46,155		148,731		138,170
Other operating		6,337		5,797		18,430		18,126
Advertising and promotion		13,420		12,940		39,593		37,873
Repairs and maintenance		9,954		9,094		29,203		26,764
Utilities		7,832		7,670		21,624		19,909
Franchise costs		4,471		4,711		13,773		13,735
Property tax, ground lease and insurance		19,665		19,868		57,855		59,190
Other property-level expenses (1)		26,926		26,389		87,240		83,212
		176,625		169,966		533,782		507,124

Hotel Adjusted EBITDAre	$	52,698	$	56,426	$	189,378	$	183,915


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Reconciliation of Hotel Adjusted EBITDAre to Net Income
Hotel Adjusted EBITDAre	$	52,698	$	56,426	$	189,378	$	183,915
Non-hotel operating expenses, net (2)		(8)		18		100		9
Pre-opening expenses (3)		—		(853)		(6,471)		(1,452)
Property-level COVID-19 relief grant (3)		—		—		—		1,343
Taxes assessed on commercial rents (3)		(189)		(215)		(541)		(376)
Amortization of right-of-use assets and obligations		288		288		871		871
Corporate overhead		(6,970)		(7,577)		(24,221)		(23,263)
Depreciation and amortization		(33,928)		(31,689)		(100,328)		(91,841)
Interest and other income		3,160		2,350		7,024		11,306
Interest expense		(13,412)		(15,982)		(39,258)		(39,685)
(Loss) gain on sale of assets, net		—		—		(8,751)		457
(Loss) gain on extinguishment of debt		(180)		—		(180)		59
Income tax (provision) benefit, net		(137)		483		(272)		1,083
Net income	$	1,322	$	3,249	$	17,351	$	42,426

(1)

Other property-level expenses include property-level general and administrative expenses, such as payroll, benefits, and other employee-related expenses, contract and professional fees, credit and collection expenses, employee recruitment, relocation and training expenses, labor dispute expenses, consulting fees, management fees, and other expenses.

(2)

Non-hotel operating expenses, net are included in property tax, ground lease and insurance on the Company’s consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024, and include corporate-level current year property taxes and insurance, as well as any prior year property taxes assessed on sold hotels, net of any refunds received.

(3)

When assessing a hotel’s operating performance, the CODM excludes certain items that are not indicative of the ongoing operating performance of the Company’s hotels, including pre-opening expenses associated with extensive renovation projects such as the work performed at Andaz Miami Beach, property-level grants, and taxes assessed on commercial rents.