Business Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Business Segment Information

Note 14: Business Segment Information

As of December 31, 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, presented herein, is calculated as EBITDA from hotel operations, adjusted to exclude the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and thus, excluded in management's analysis in making day-to-day operating decisions and evaluations of our operating performance against other companies within our industry:

•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:

	Year Ended December 31,
	2022			2021			2020
	(in millions)
Revenues:
Total consolidated hotel revenue	$	2,426		$	1,311		$	823
Other revenues		75			51			29
Total revenues	$	2,501		$	1,362		$	852
Net income (loss)	$	173		$	(452	)	$	(1,444	)
Other revenues		(75	)		(51	)		(29	)
Casualty and impairment loss, net		6			9			696
Depreciation and amortization expense		269			281			298
Corporate general and administrative expense(1)		63			62			61
Acquisition costs		—			—			10
Other operating expenses		72			49			36
(Gain) loss on sales of assets, net		(13	)		5			(62	)
Interest income		(13	)		(1	)		(2	)
Interest expense		247			258			213
Equity in (earnings) losses from investments in affiliates		(15	)		7			22
Income tax expense (benefit)		—			2			(6	)
Other (gain) loss, net		(96	)		7			15
Severance expense		—			—			33
Other items		12			1			12
Hotel Adjusted EBITDA	$	630		$	177		$	(147	)

(1) Excludes severance expense.

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

	December 31,
	2022		2021
	(in millions)
Consolidated hotels	$	9,726	$	9,724
All other		5		19
Total assets	$	9,731	$	9,743