SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We have investments in lodging properties located in 25 states across the United States of America. Our lodging properties derive revenue primarily from guestroom sales, food and beverage sales, and revenues from other lodging services and amenities. Our President and Chief Executive Officer, who serves as our Chief Operating Decision Maker (“CODM”), evaluates the performance, makes capital allocation decisions, and manages the overall operating and investing strategy of each hotel individually. As such, we consider each lodging property to be an operating segment. Each of our properties has similar economic characteristics and risks, facilities, and services and distribute their products and services in the same manner through third-party management companies. Therefore, all of our lodging properties are aggregated into a single reportable segment. The accounting policies of the lodging property segment are the same as those described in Note 2 - Basis of Presentation and Significant Accounting Policies to the Consolidated Financial Statements.

On a regular basis, the segment's performance is assessed, and decisions are made related to the allocation of resources primarily based on lodging property earnings before interest, taxes, depreciation and amortization ("Hotel EBITDA") by comparing Hotel EBITDA results to budgets and forecasts, prior period results, and industry or peer group benchmarks. Additionally, the CODM considers other performance metrics such as total revenue, revenue per available room ("RevPAR'), average daily rate ("ADR"), occupancy, and hotel gross operating profit to assess operating performance.

Lodging revenues and Hotel EBITDA, including significant lodging expenses for our single reportable operating segment, is as follows (in thousands):

	For the Years Ended December 31,
	2024		2023		2022
Lodging property revenues:
Room	$	650,713	$	656,063	$	609,370
Food and beverage	40,865		41,513		32,117
Other	40,205		38,551		34,208
Total revenues	731,783		736,127		675,695
Lodging property expenses:
Room	146,790		148,005		136,999
Sales and marketing	93,083		93,053		84,752
Administrative and general	57,678		58,269		54,013
Property taxes, insurance and other	54,116		55,167		49,921
Food and beverage	30,964		31,580		24,897
Property operations & maintenance	30,582		30,416		27,713
Utility costs	26,917		26,989		25,488
Management fees	15,866		18,452		17,442
Other lodging property expenses	16,149		16,174		16,009
Total lodging property expenses	472,145		478,105		437,234
Hotel EBITDA	$	259,638	$	258,022	$	238,461

A reconciliation of Income (loss) from continuing operations before income taxes as shown on our Consolidated Statements of Operations to Hotel EBITDA is as follows (in thousands):

	For the Years Ended December 31,
	2024		2023		2022
Income (loss) from continuing operations before income taxes	$	30,148	$	(25,318)	$	4,828
Adjusted for:
Depreciation and amortization	146,436		150,924		150,160
Corporate general and administrative	31,891		32,530		30,765
Transaction costs	10		13		749
Loss on impairment and write-down of assets	6,723		16,661		10,420
Recovery of credit losses	—		(1,230)		(1,100)
(Gain) loss on disposal of assets, net	(28,912)		337		(20,315)
Interest expense	82,632		86,798		65,581
Interest income	(1,906)		(1,688)		(1,544)
Gain on extinguishment of debt	(3,000)		—		—
Other expense, net	(4,384)		(1,005)		(1,083)
Hotel EBITDA	$	259,638	$	258,022	$	238,461

Our measure of segment assets is total assets as reported on our Consolidated Balance Sheets.