Business Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Business Segment Information

Note 10: Business Segment Information

As of March 31, 2023, 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 from 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:

	Three Months Ended March 31,
	2023			2022
	(in millions)
Revenues:
Total consolidated hotel revenues	$	628		$	463
Other revenues		20			16
Total revenues	$	648		$	479
Net income (loss)	$	33		$	(56	)
Other revenues		(20	)		(16	)
Depreciation and amortization expense		64			69
Corporate general and administrative expense		16			16
Casualty loss		1			—
Other operating expenses		20			16
Gain on sales of assets, net		(15	)		—
Interest income		(10	)		—
Interest expense		60			62
Equity in earnings from investments in affiliates		(4	)		—
Income tax expense		2			—
Other gain, net		(1	)		(5	)
Other items		6			3
Hotel Adjusted EBITDA	$	152		$	89

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

	March 31, 2023		December 31, 2022
	(in millions)
Consolidated hotels	$	9,549	$	9,726
All other		4		5
Total assets	$	9,553	$	9,731