SEGMENTS

3 Months Ended

Mar. 31, 2020

SEGMENTSThe Company’s operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by its chief operating decision maker to assess performance and make decisions regarding the allocation of resources. The Company’s operating and reportable segments are defined as follows:

•Owned Hotels—Earnings are derived from the operation of Company-owned hotel properties and include room and other hotel revenues.

•Franchise and management—Earnings are derived from fees under franchise and management agreements with third parties. These contracts provide the Company the ability to earn compensation for licensing the Extended Stay America brand name, providing access to shared system-wide platforms and/or management services.

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


	Three Months Ended March 31,
	2020		2019
Revenues:
Owned hotels	$	261,232	$	272,349
Franchise and management⁽¹⁾	2,062		2,042
Total segment revenues	263,294		274,391
Corporate and other ⁽²⁾	19,992		19,514
Other revenues from franchised and managed properties ⁽³⁾	3,790		4,095
Intersegment eliminations ⁽⁴⁾	(20,775)		(20,331)
Total	$	266,301	$	277,669

Income (loss) from operations:
Owned hotels	$	48,551	$	69,695
Franchise and management ⁽¹⁾	2,062		2,042
Total segment income from operations	50,613		71,737
Corporate and other ⁽²⁾	(7,853)		(7,232)
Other expenses from franchised and managed properties, net ⁽³⁾	(417)		(552)
Total	$	42,343	$	63,953

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(1)Includes intellectual property fees charged to the owned hotels segment of $0.8 million for each of the three months ended March 31, 2020 and 2019, that are eliminated in the condensed 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 condensed 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 condensed consolidated statements of operations.

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


	March 31, 2020		December 31, 2019
Assets:
Owned hotels	$	3,687,800	$	3,661,609
Franchise and management	13,332		14,576
Total segment assets	3,701,132		3,676,185
Corporate and other	750,602		397,568
Intersegment eliminations	(58,729)		(43,157)
Total	$	4,393,005	$	4,030,596

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


	Three Months Ended March 31,
	2020		2019
Capital Expenditures:
Owned hotels	$	54,368	$	54,762


Corporate and other	211		526
Total	$	54,579	$	55,288