Segment Reporting

12 Months Ended

Dec. 31, 2025

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We operate in one reportable business segment within the hotel lodging industry: direct hotel investments. Direct hotel investments refers to owning hotel properties through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments; (i) offer similar products and services to their customers in the form of hotel rooms, food and beverage, and ancillary services: (ii) utilize third-party hotel management companies to deliver its products and services to its customers; (iii) are designed and operated to appeal to similar individuals, groups, leisure, and business customers; and (iv) have third-party hotel managers that utilize the same methods (direct hotel sales and various online booking portals) to distribute the Company’s products and services. As of December 31, 2025, 2024 and 2023, all of our hotel properties were in the U.S. and its territories. The Company’s chief operating decision maker (“CODM”) is its President and Chief Executive Officer.

Each hotel property derives revenue primarily from guestroom sales, food and beverage sales, and revenues from other lodging services and amenities. The accounting policies of each operating segment are the same as those described in the summary of significant accounting policies in note 2.

The CODM reviews and makes decisions on all aspects of the Company’s business using all available financial and non-financial data for each hotel individually. Capital allocation decisions to acquire, sell, enhance, redevelop, or perform renewal and replacement expenditures are determined on a hotel-by-hotel basis. Specifically, the CODM reviews the results of each hotel to assess the hotel’s profitability. The key measure the CODM uses to allocate resources and assess performance is individual hotel net income (loss) before interest expense, income taxes, depreciation, and amortization, adjusted to exclude certain items determined by management to not be reflective of its ongoing operating performance or incurred in the normal course of business (Hotel Adjusted EBITDA). The adjustments include gains and losses on hotel dispositions, impairment charges, pre-opening costs associated with extensive renovation projects, property-level legal settlements, restructuring, severance, and management transition costs, and other expenses identified by management to be non-recurring. The CODM does not regularly review asset information by segment.

The following tables include revenues, significant hotel operating expenses, and Hotel Adjusted EBITDA for the Company’s hotels, reconciled to the consolidated amounts included in the Company’s consolidated statements of operations (in thousands):

	Year Ended December 31,
	2025		2024		2023
REVENUE
Rooms	$	428,990	$	452,361	$	464,899
Food and beverage	179,538		181,250		185,331
Other hotel revenue	95,487		94,793		89,112
Total hotel revenue	$	704,015	$	728,404	$	739,342
EXPENSES
Hotel expenses:
Rooms	$	104,367	$	106,465	$	105,439
Food and beverage	141,846		145,901		144,544
Direct expenses	33,257		32,824		31,887
Indirect expenses:
Property, general and administration	60,126		62,214		59,714
Sales and marketing	47,909		49,331		48,998
Information and telecommunications systems	7,869		8,331		8,159
Repairs and maintenance	30,892		30,732		29,587
Energy	23,792		23,696		24,603
Lease expense	2,329		4,052		6,283
Ownership expenses	4,199		3,765		3,912
Incentive management fee	7,757		8,037		9,935
Management fees	21,452		22,837		22,839
Property taxes	19,231		23,745		21,343
Other taxes	1,185		1,571		1,171
Insurance	14,068		16,766		14,489
Total expenses	520,279		540,267		532,903
Hotel adjusted EBITDA	$	183,736	$	188,137	$	206,439
	Year Ended December 31,
	2025		2024		2023
Hotel adjusted EBITDA	$	183,736	$	188,137	$	206,439
Ownership expenses included in other hotel expenses	(5,847)		(2,882)		(4,834)
Ownership expenses included in property taxes, insurance and other	231		(426)		(1,626)
Management fees	(543)		(663)		(422)
Depreciation and amortization	(92,578)		(98,733)		(93,272)
Impairment charges	(54,492)		—		—
Advisory services fee	(29,186)		(30,487)		(31,089)
Corporate, general and administrative	(11,754)		(14,361)		(13,523)
Gain (loss) on disposition of assets and hotel properties	82,797		88,165		—
Equity in earnings (loss) of unconsolidated entities	(56)		(1,608)		(253)
Interest income	6,246		7,135		6,401
Other income (expense)	(1,572)		—		293
Interest expense and amortization of discounts and loan costs	(98,539)		(108,124)		(94,219)
Write-off of loan costs and exit fees	(1,833)		(6,111)		(3,489)
Gain (loss) on extinguishment of debt	(2,686)		(22)		2,318
Realized and unrealized gain (loss) on derivatives	(355)		585		(663)
Income tax (expense) benefit	(1,979)		(842)		(2,689)
Net income (loss)	$	(28,410)	$	19,763	$	(30,628)