XML 49 R36.htm IDEA: XBRL DOCUMENT v3.20.2
REVENUE FROM CONTRACTS WITH CUSTOMERS
6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
The following table disaggregates room revenues from owned hotels by booking source for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Property direct$59,830  $75,426  
(2)
$119,854  $145,255  
(2)
Central call center70,840  81,089  
(2)
148,031  149,197  
(2)
Proprietary website46,643  60,257  
(2)
99,582  110,655  
(2)
Third-party intermediaries39,851  83,744  97,671  152,841  
Travel agency global distribution systems2,687  11,098  9,177  20,712  
Total room revenues from owned hotels (1)
$219,851  $311,614  $474,315  $578,660  
_________________________________
(1)In addition to room revenues, the Company’s owned hotels earned $6.3 million and $13.1 million of other hotel revenues during the three and six months ended June 30, 2020, respectively, and $6.1 million and $11.4 million of other hotel revenues during the three and six months ended June 30, 2019.
(2)As a result of the correction of a classification error, for the three months ended June 30, 2019, $4.6 million of room revenues that were previously classified as revenues generated from property direct have been reclassified and reported as $3.0 million of revenues generated from central call center and $1.6 million of revenues generated from proprietary website. For the six months ended June 30, 2019, $8.3 million of room revenues that were previously classified as revenues generated from property direct have been reclassified and reported as $5.6 million of revenues generated from central call center and $2.7 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 corrections for consistent presentation.
The following table disaggregates room revenues from owned hotels by length of guest stay for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
1-6 nights$60,491  $121,052  $145,085  $222,476  
7-29 nights44,170  63,867  99,001  118,967  
30+ nights115,190  126,695  230,229  237,217  
Total room revenues from owned hotels (1)
$219,851  $311,614  $474,315  $578,660  
_________________________________
(1)In addition to room revenues, the Company’s owned hotels earned $6.3 million and $13.1 million of other hotel revenues during the three and six months ended June 30, 2020, respectively, and $6.1 million and $11.4 million of other hotel revenues during the three and six months ended June 30, 2019.
The following table disaggregates revenues from franchised and managed hotels for the three and six months ended June 30, 2020 and 2019 (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Management fees$208  $367  $443  $660  
Franchise fees1,010  1,080  2,054  2,012  
Indirect reimbursements (system service fees)1,157  1,400  2,347  2,584  
Direct reimbursements2,288  3,126  4,888  6,037  
Total revenues from franchised and managed hotels$4,663  $5,973  $9,732  $11,293  
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 June 30, 2020 and January 1, 2020, and the amount of outstanding January 1, 2020 contract liabilities recognized as revenue during the three and six months ended June 30, 2020 (in thousands):
Outstanding Contract LiabilitiesOutstanding Contract Liabilities as of January 1, 2020 Recognized as Revenue
As of June 30, 2020$19,283  
As of January 1, 202016,231  
For the three months ended June 30, 2020$559  
For the six months ended June 30, 2020$10,732  
Performance Obligations
As of June 30, 2020, $14.0 million of outstanding contract liabilities related to owned hotels and $5.3 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.