Geographic and Business Segment Information

12 Months Ended

Dec. 31, 2019

Geographic and Business Segment Information

Note 15: Geographic and Business Segment Information

As of December 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;

•

Gains or losses on foreign currency transactions;

•

Transition expense related to our establishment as an independent, publicly traded company;

•

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

•

Severance expense;

•

Share-based compensation expense;

•

Casualty gains or losses and impairment 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 Hotel Adjusted EBITDA to net income:

	Year Ended December 31,
	2019			2018			2017
	(in millions)
Revenues:
Total consolidated hotel revenue	$	2,767		$	2,665		$	2,727
Other revenues		77			72			64
Total revenues	$	2,844		$	2,737		$	2,791

Hotel Adjusted EBITDA	$	802		$	761		$	758
Other revenues		77			72			64
Casualty gain (loss) and impairment loss, net		18			1			(26	)
Depreciation and amortization expense		(264	)		(277	)		(288	)
Corporate general and administrative expense		(62	)		(65	)		(68	)
Acquisition costs		(70	)		—			—
Other operating expenses		(78	)		(73	)		(63	)
Gain on sales of assets, net		19			96			1
Interest income		6			6			2
Interest expense		(140	)		(127	)		(124	)
Equity in earnings from investments in affiliates		14			18			40
Loss on foreign currency transactions		(1	)		(3	)		(4	)
Income tax (expense) benefit		(35	)		(23	)		2,346
Other gain, net		46			102			—
Other items		(16	)		(11	)		(7	)
Net income	$	316		$	477		$	2,631

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

	December 31,
	2019		2018
	(in millions)
Consolidated hotels	$	11,236	$	9,305
All other		54		58
Total	$	11,290	$	9,363

The following table presents total revenues and property and equipment, net for each of the geographical areas in which we operate:

	As of and for the Year Ended December 31,
	2019				2018				2017
	Revenues		Property and Equipment, net		Revenues		Property and Equipment, net		Revenues		Property and Equipment, net
	(in millions)
United States⁽¹⁾⁽²⁾	$	2,804	$	9,594	$	2,676	$	7,906	$	2,618	$	8,089
All other		40		—		61		69		173		222
	$	2,844	$	9,594	$	2,737	$	7,975	$	2,791	$	8,311

⁽¹⁾

Includes revenues of $11 million, $14 million and $13 million for the years ended December 31, 2019, 2018 and 2017 from our laundry operations which is not part of our segment. Also includes property and equipment, net of $5 million as of December 31, 2019, 2018 and 2017, respectively, from our laundry operations.

⁽²⁾	Excludes $62 million and $31 million of property and equipment, net classified as held for sale as of December 31, 2019 and 2017, respectively.