Segment Reporting

3 Months Ended

Mar. 31, 2026

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 March 31, 2026 and 2025, 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 of the consolidated financial statements included in our 2025 Annual Report on Form 10-K.

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 condensed consolidated statements of operations (in thousands):

	Three Months Ended March 31,
	2026		2025
REVENUE
Rooms	$	128,801	$	136,092
Food and beverage	52,342		51,788
Other hotel revenue	27,840		27,940
Total hotel revenue	$	208,983	$	215,820
EXPENSES
Hotel expenses:
Rooms	$	24,878	$	28,219
Food and beverage	38,910		40,210
Direct expenses	10,010		9,459
Indirect expenses:
Property, general and administration	14,535		15,398
Sales and marketing	12,426		13,173
Information and telecommunications systems	2,007		2,075
Repairs and maintenance	6,867		7,772
Energy	6,429		5,859
Lease expense	543		554
Ownership expenses	1,076		982
Incentive management fee	5,142		4,229
Management fees	6,074		6,737
Property taxes	1,175		5,951
Other taxes	79		468
Insurance	3,369		3,993
Total expenses	133,520		145,079
Hotel adjusted EBITDA	$	75,463	$	70,741
	Three Months Ended March 31,
	2026		2025
Hotel adjusted EBITDA	$	75,463	$	70,741
Ownership expenses included in other hotel expenses	(843)		(875)
Ownership expenses included in property taxes, insurance and other	(29)		(53)
Management fees	(120)		(173)
Depreciation and amortization	(22,579)		(23,395)
Advisory services fee	(7,404)		(6,611)
Corporate general and administrative	(4,867)		(2,894)
Gain (loss) on disposition of assets and hotel properties	3		—
Equity in earnings (loss) of unconsolidated entities	(31)		—
Interest income	810		1,888
Interest expense and amortization of discounts and loan costs	(21,195)		(24,827)
Write-off of loan costs and exit fees	(5)		(1,464)
Realized and unrealized gain (loss) on derivatives	248		(198)
Income tax (expense) benefit	(1,417)		(1,467)
Net income (loss)	$	18,034	$	10,672