Business Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segment Information

Note 12: Business Segment Information

As of September 30, 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 (loss) 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;

• 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 (loss) income:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(in millions)
Revenues:
Total consolidated hotel revenue	$	95		$	650		$	714		$	1,975
Other revenues		3			22			25			59
Total revenues	$	98		$	672		$	739		$	2,034
Hotel Adjusted EBITDA	$	(76	)	$	183		$	(93	)	$	573
Other revenues		3			22			25			59
Depreciation and amortization expense		(75	)		(61	)		(225	)		(184	)
Corporate general and administrative expense		(13	)		(14	)		(40	)		(46	)
Impairment and casualty loss, net		(2	)		(8	)		(696	)		(8	)
Acquisition costs		(9	)		(59	)		(10	)		(65	)
Other operating expenses		(6	)		(23	)		(31	)		(61	)
(Loss) gain on sales of assets, net		(1	)		1			62			20
Interest income		—			2			2			5
Interest expense		(59	)		(33	)		(149	)		(98	)
Equity in (losses) earnings from investments in affiliates		(7	)		3			(16	)		18
Income tax expense		(1	)		—			(14	)		(12	)
Other loss, net		(3	)		(1	)		(6	)		(1	)
Severance expense		(24	)		—			(26	)		(2	)
Other items		(3	)		(3	)		(9	)		(8	)
Net (loss) income	$	(276	)	$	9		$	(1,226	)	$	190

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

	September 30, 2020		December 31, 2019
	(in millions)
Consolidated hotels	$	10,828	$	11,236
All other		25		54
Total assets	$	10,853	$	11,290