Business Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Business Segment Information

Note 12: Business Segment Information

As of June 30, 2021, we have two operating segments, our consolidated hotels and unconsolidated hotels. Our unconsolidated hotels operating segment does not meet the definition of a reportable segment, thus our consolidated hotels is our only reportable segment. We evaluate our consolidated hotels primarily based on hotel adjusted earnings (loss) before interest expense, taxes and depreciation and amortization (“EBITDA”). Hotel Adjusted EBITDA is calculated as EBITDA from hotel operations, adjusted to exclude:

Gains or losses on sales of assets for both consolidated and unconsolidated investments;

Costs associated with hotel acquisitions or dispositions expensed during the period;

Severance expense;

Share-based compensation expense;

Impairment losses and casualty gains or losses; and

Other items that we believe are not representative of our current or future operating performance.

The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and net loss to Hotel Adjusted EBITDA:

	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(in millions)
Revenues:
Total consolidated hotel revenue	$	311		$	39		$	468		$	619
Other revenues		12			3			20			22
Total revenues	$	323		$	42		$	488		$	641
Net loss	$	(114	)	$	(261	)	$	(305	)	$	(950	)
Other revenues		(12	)		(3	)		(20	)		(22	)
Depreciation and amortization expense		71			75			145			150
Corporate general and administrative expense(1)		16			14			34			28
Impairment loss and casualty gain, net		5			—			5			694
Other operating expenses		13			4			20			25
Gain on sales of assets, net		(6	)		(1	)		(6	)		(63	)
Interest income		—			(1	)		—			(2	)
Interest expense		66			50			129			90
Equity in losses from investments in affiliates		2			8			6			9
Income tax expense		—			3			1			13
Severance expense		—			—			—			2
Other loss, net		2			1			2			3
Other items		(1	)		3			(5	)		6
Hotel Adjusted EBITDA	$	42		$	(108	)	$	6		$	(17	)

(1)        Excludes severance expense.

The following table presents total assets for our consolidated hotels, reconciled to total assets:

	June 30, 2021		December 31, 2020
	(in millions)
Consolidated hotels	$	10,248	$	10,568
All other		18		19
Total assets	$	10,266	$	10,587