Business Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Business Segment Information

Note 10: Business Segment Information

As of June 30, 2022, 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 income (loss) to Hotel Adjusted EBITDA:

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(in millions)
Revenues:
Total consolidated hotel revenues	$	676		$	311		$	1,139		$	468
Other revenues		19			12			35			20
Total revenues	$	695		$	323		$	1,174		$	488
Net income (loss)	$	154		$	(114	)	$	98		$	(305	)
Other revenues		(19	)		(12	)		(35	)		(20	)
Depreciation and amortization expense		68			71			137			145
Corporate general and administrative expense		16			16			32			34
Casualty and impairment loss, net		1			5			1			5
Other operating expenses		18			13			34			20
Loss (gain) on sales of assets, net		1			(6	)		1			(6	)
Interest income		(1	)		—			(1	)		—
Interest expense		62			66			124			129
Equity in (earnings) losses from investments in affiliates		(5	)		2			(5	)		6
Income tax expense		1			—			1			1
Other (gain) loss, net		(92	)		2			(97	)		2
Other items		4			(1	)		7			(5	)
Hotel Adjusted EBITDA	$	208		$	42		$	297		$	6

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

	June 30, 2022		December 31, 2021
	(in millions)
Consolidated hotels	$	9,693	$	9,724
All other		8		19
Total assets	$	9,701	$	9,743