Segments (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Operating Segments Evaluated on Income from Operations

The performance of the Company’s operating segments is evaluated primarily on income from operations. Selected financial data is provided below (in thousands):


	Year Ended December 31,
	2019		2018		2017
Revenues:
Owned hotels	$	1,196,091	$	1,259,182	$	1,282,725
Franchise and management ⁽¹⁾	9,000		7,086		3,873
Total segment revenues	1,205,091		1,266,268		1,286,598
Corporate and other ⁽²⁾	77,084		80,942		75,692
Other revenues from franchise and managed properties ⁽³⁾	16,716		12,567		—
Intersegment eliminations ⁽⁴⁾	(80,672)		(84,718)		(79,565)
Total	$1,218,219		$1,275,059		$1,282,725

Income (loss) from operations:
Owned hotels ⁽⁵⁾	$	346,999	$	394,669	$	383,061
Franchise and management ⁽¹⁾	9,000		7,086		3,873
Total segment income from operations	355,999		401,755		386,934
Corporate and other ⁽²⁾	(32,019)		(23,168)		(25,859)
Other expenses from franchise and managed properties, net⁽³⁾	(2,154)		(650)		—
Total	$	321,826	$	377,937	$	361,075

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(1)Includes intellectual property fees charged to the owned hotels segment of $3.6 million, $3.8 million and $3.9 million for the years ended December 31, 2019, 2018 and 2017, respectively, that are eliminated in the consolidated statements of operations.

(2)Includes revenues generated and operating expenses incurred in connection with the overall support of owned, franchised and managed hotels and related operations. Corporate and other revenues are comprised of management fees earned by and cost reimbursements charged to the owned hotels segment that are eliminated in the consolidated statements of operations.

(3)Includes direct reimbursement of specific costs incurred under franchise and management agreements that the Company is reimbursed for on a dollar-for-dollar basis, as well as indirect reimbursement of certain costs incurred associated with the Company’s shared platform (i.e., system services) (see Note 2).

(4)Includes management fees, intellectual property fees and other cost reimbursements charged to the owned hotels segment that are eliminated in the consolidated statements of operations.

(5)Net of impairment charges of $2.7 million, $43.6 million and $25.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. Also includes gain on sale of hotel properties of $42.5 million and $10.0 million for the years ended December 31, 2018 and 2017, respectively.

Schedule of Assets and Capital Expenditures of Operating Segments

Total assets for each of the Company’s operating segments are provided below (in thousands):


	December 31, 2019		December 31, 2018
Assets:
Owned hotels	$	3,661,609	$	3,643,603
Franchise and management	14,576		14,634
Total segment assets	3,676,185		3,658,237
Corporate and other	397,568		308,181
Intersegment eliminations	(43,157)		(42,208)
Total	$	4,030,596	$	3,924,210

Total capital expenditures for each of the Company's operating segments are provided below (in thousands):


	Year Ended December 31,
	2019		2018		2017
Capital Expenditures:
Owned hotels	$	260,155	$	207,997	$	164,909
Franchise and management	—		250		—
Total segment capital expenditures	260,155		208,247		164,909
Corporate and other	1,139		1,027		1,469
Total	$	261,294	$	209,274	$	166,378