Business Segment Information

3 Months Ended

Mar. 31, 2019

Note 12: Business Segment Information

As of March 31, 2019, 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 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;

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Gains or losses on foreign currency transactions;

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Share-based compensation expense;

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Non-cash impairment losses; and

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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 Hotel Adjusted EBITDA to net income:

	Three Months Ended March 31,
	2019			2018
	(in millions)
Revenues:
Total consolidated hotel revenue	$	641		$	651
Other revenues		18			17
Total revenues	$	659		$	668

Hotel Adjusted EBITDA	$	181		$	174
Other revenues		18			17
Depreciation and amortization expense		(62	)		(70	)
Corporate general and administrative expense		(17	)		(16	)
Other expenses		(20	)		(17	)
Gain on sales of assets, net		31			89
Interest income		1			1
Interest expense		(32	)		(31	)
Equity in earnings from investments in affiliates		5			4
Gain on foreign currency transactions		—			1
Income tax expense		(7	)		—
Other gain, net		1			—
Other items		(2	)		(3	)
Net income	$	97		$	149

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

	March 31, 2019		December 31, 2018
	(in millions)
Consolidated hotels	$	9,327	$	9,305
All other		67		58
Total	$	9,394	$	9,363