Business Segment Information

3 Months Ended

Mar. 31, 2020

Note 12: Business Segment Information

As of March 31, 2020, 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;

•

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

•

Severance expense;

•

Share-based compensation expense;

•

Casualty gains or losses;

•

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:

	Three Months Ended March 31,
	2020			2019
	(in millions)
Revenues:
Total consolidated hotel revenue	$	580		$	641
Other revenues		19			18
Total revenues	$	599		$	659

Hotel Adjusted EBITDA	$	91		$	181
Other revenues		19			18
Depreciation and amortization expense		(75	)		(62	)
Corporate general and administrative expense		(16	)		(17	)
Casualty gain and impairment loss, net		(694	)		—
Other operating expenses		(21	)		(20	)
Gain on sales of assets, net		62			31
Interest income		1			1
Interest expense		(40	)		(32	)
Equity in (losses) earnings from investments in affiliates		(1	)		5
Loss on foreign currency transactions		(2	)		—
Income tax expense		(10	)		(7	)
Other gain, net		—			1
Other items		(3	)		(2	)
Net (loss) income	$	(689	)	$	97

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

	March 31, 2020		December 31, 2019
	(in millions)
Consolidated hotels	$	11,228	$	11,236
All other		49		54
Total	$	11,277	$	11,290