REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates room revenues from owned hotels by booking source for the three months ended March 31, 2020 and 2019 (in thousands):


	Three Months Ended March 31,
	2020		2019
Property direct	$	60,024	$	69,829	⁽²⁾
Central call center	77,191		68,108		⁽²⁾
Proprietary website	52,939		50,398		⁽²⁾
Third-party intermediaries	57,820		69,097
Travel agency global distribution systems	6,490		9,614
Total room revenues from owned hotels ⁽¹⁾	$	254,464	$	267,046

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(1)In addition to room revenues, the Company’s owned hotels earned $6.8 million and $5.3 million of other hotel revenues during the three months ended March 31, 2020 and 2019, respectively.

(2)As a result of the correction of a classification error, $3.7 million of room revenues that were previously classified as revenues generated from property direct have been reclassified and reported as $2.6 million of revenues generated from central call center and $1.1 million of revenues generated from proprietary website. The Company concluded that the effect of the error is immaterial to previously issued financial statements but has made the correction for consistent presentation.

The following table disaggregates room revenues from owned hotels by length of guest stay for the three months ended March 31, 2020 and 2019 (in thousands):


	Three Months Ended March 31,
	2020		2019
1-6 nights	$	84,594	$	101,424
7-29 nights	54,831		55,100
30+ nights	115,039		110,522
Total room revenues from owned hotels ⁽¹⁾	$	254,464	$	267,046

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(1)In addition to room revenues, the Company’s owned hotels earned $6.8 million and $5.3 million of other hotel revenues during the three months ended March 31, 2020 and 2019, respectively.

The following table disaggregates revenues from franchised and managed hotels for the three months ended March 31, 2020 and 2019 (in thousands):


	Three Months Ended March 31,
	2020		2019
Management fees	$	235	$	293
Franchise fees	1,044		932
Indirect reimbursements (system service fees)	1,190		1,185
Direct reimbursements	2,600		2,910
Total revenues from franchised and managed hotels	$	5,069	$	5,320

Outstanding Contract Liabilities

Contract liabilities relate to advance deposits with respect to owned hotels and, with respect to franchised hotels, advance consideration received, such as initial franchise fees paid when a franchise agreement is executed and certain system implementation fees paid at the time of installation. Contract liabilities are included in accounts payable and accrued liabilities on the accompanying condensed consolidated balance sheets. The following table presents outstanding contract liabilities as of March 31, 2020 and January 1, 2020, and the amount of outstanding January 1, 2020 contract liabilities recognized as revenue during the three months ended March 31, 2020 (in thousands):


	Outstanding Contract Liabilities		Outstanding Contract Liabilities as of January 1, 2020 Recognized as Revenue
As of March 31, 2020	$	16,111
As of January 1, 2020	16,231
For the three months ended March 31, 2020			$	10,172

Performance Obligations

As of March 31, 2020, $10.7 million of outstanding contract liabilities related to owned hotels and $5.4 million related to franchised hotels. The Company does not estimate revenues expected to be recognized related to unsatisfied performance obligations for royalty fees, system service fees or management fees, as they are considered either sales-based fees or allocated to wholly unsatisfied performance obligations in a series. Performance obligations related to owned hotels are expected to be satisfied within less than one year. Performance obligations related to third-party owned (i.e., franchised) hotels are expected to be satisfied over the term of the respective franchise agreements, which are typically 20 years.