Segment Reporting

6 Months Ended

Jun. 30, 2026

Segment Reporting

Segment Reporting

Note 8 – Segment Reporting

The Company’s business consists of acquiring and owning a diverse portfolio of hospitality properties, primarily, select-service, extended-stay and compact full-service hotel properties throughout the United States operating in a single segment. The Company’s President and Chief Executive Officer is its chief operating decision maker (“CODM”) responsible for managing and allocating resources for the Company at a consolidated level.

The CODM uses consolidated net income (loss) to assess the segment’s overall performance, with specific focus on the segment revenue and expenses associated with the Company’s hotel operations. The table below includes information about the Company’s segment, including significant segment expenses, and a reconciliation to net income (loss).

	Three Months Ended June 30				Six Months Ended June 30,
	2026		2025		2026		2025
Revenue:
Total revenue	$	8,899,581	$	9,172,720	$	14,051,294	$	15,019,694
Operating expenses:
Rooms		1,541,186		1,545,287		2,782,441		2,913,270
Food and beverage		526,797		435,986		884,889		774,378
Other property operating expenses		2,976,063		2,941,912		5,588,111		5,494,973
Property management fees to affiliates		265,989		275,311		419,299		450,973
Other segment expenses (1)		1,526,922		1,567,614		3,038,327		3,176,664
Operating income:		2,062,624		2,406,610		1,338,227		2,209,436
Non-operating expenses:
Interest expense, net		(1,070,069)		(1,001,140)		(2,154,819)		(1,954,494)
Income tax (expense) benefit		(5,000)		7,732		(6,600)		224,619
Segment and consolidated net income (loss)	$	987,555	$	1,413,202	$	(823,192)	$	479,561

(1) Other segment expenses include corporate general and administrative, other fees to affiliates and depreciation and amortization.