SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We have investments in lodging properties located in 25 states of the USA. 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, 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 Condensed Consolidated Financial Statements. Our measure of segment assets is total assets as reported on our Condensed Consolidated Balance Sheets.

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, are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Lodging property revenues:
Room	$	156,323	$	157,408	$	490,653	$	497,864
Food and beverage	10,017		9,272		32,202		30,174
Other	10,777		10,127		31,657		30,814
Total revenues	177,117		176,807		554,512		558,852
Lodging property expenses:
Room	38,958		37,286		114,256		111,303
Sales and marketing	23,630		22,763		72,187		71,004
Administrative and general	14,408		14,515		43,736		43,671
Property taxes, insurance and other	14,106		13,250		41,123		40,822
Food and beverage	8,217		7,289		24,596		23,130
Property operations & maintenance	8,410		7,712		24,487		22,752
Utility costs	7,999		7,495		21,968		20,436
Management fees	3,142		2,728		12,048		12,059
Other lodging property expenses	4,128		3,845		12,062		12,198
Total lodging property expenses	122,998		116,883		366,463		357,375
Hotel EBITDA	$	54,119	$	59,924	$	188,049	$	201,477

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
(Loss) income from continuing operations before income taxes	$	(12,112)	$	(3,224)	$	(7,520)	$	40,899
Adjusted for:
Depreciation and amortization	37,634		36,708		112,123		109,965
Corporate general and administrative	7,845		7,473		24,696		24,488
Transaction costs	—		10		—		10
Loss (gain) on disposal of assets, net	57		(22)		136		(28,439)
Interest expense	20,676		20,428		61,260		62,840
Interest income	(259)		(450)		(836)		(1,473)
Gain on extinguishment of debt	—		—		—		(3,000)
Other expense (income), net	278		(999)		(1,810)		(3,813)
Hotel EBITDA	$	54,119	$	59,924	$	188,049	$	201,477