REVENUE

On January 1, 2018, we adopted Topic 606 using the modified retrospective method. The adoption of this standard did not have a material impact on our consolidated financial statements, thus no adjustments to opening retained earnings were made as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC Topic 605-Revenue Recognition.

The Company derives hotel revenues from our hotel in Sonoma, California. Rooms revenue represents revenue from the occupancy of our hotel rooms and is driven by the occupancy and average daily rate charged. Rooms revenue includes revenue for guest no-shows, day use, and early/late departure fees. The contracts for room stays with customers are generally short in duration and revenues are recognized as services are provided over the course of the hotel stay.

Food & Beverage (“F&B”) revenue consists of revenue from the restaurants and lounges at our hotel properties, In-room dining and mini-bar revenue, and banquet/catering revenue from group and social functions. Other F&B revenue may include revenue from audio-visual equipment/services, rental of function rooms, and other F&B related revenue. Revenue is recognized as the services or products are provided. Our hotel properties may employ third parties to provide certain services at the property, for example, audio visual services. We evaluate each of these contracts to determine if the hotel is the principal or the agent in the transaction, and record the revenue as appropriate (i.e., gross vs. net).

Other revenue consists of ancillary revenue at the property, including attrition and cancellation fees, resort fees, spa and other guest services. Attrition and cancellation fees are recognized for non-cancellable deposits when the customer provides notification of cancellation within established management policy time frames. Taxes collected from customers and submitted to taxing authorities are not recorded in revenue. Interest income is recognized when earned.

Following is a breakdown of revenue by source (in thousands):



	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
Operating property revenue
Rooms	$	1,311	$	—	$	3,207	$	—
Golf range fees	—		—		—		820
Banquet	175		—		333		114
Food and beverage	314		—		1,440		352
Spa and fitness center	194		—		522		240
Other	91		—		251		156
Total operating property revenue	2,085		—		5,753		1,682
Mortgage loan income, net	709		350		1,976		402
Management fees, investment and other income	32		300		323		808
Total revenue	$	2,826	$	650	$	8,052	$	2,892