v3.26.1
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information

15. Segment Information

 

The Company’s chief operating decision maker (“CODM”) is the President and Chief Executive Officer.

 

The CODM separately evaluates the performance of each of the Company’s hotel properties and each hotel property is an operating segment. However, because each of the hotels has similar economic characteristics, facilities, and services, the hotel properties have been aggregated into a single reportable segment.

 

The hotel segment revenues are derived from the operation of hotel properties. The hotel segment generates room revenue by renting hotel rooms to customers at the Company’s hotel properties. The hotel segment generates food and beverage revenue from the sale of food and beverage to customers at the Company’s hotel properties. The hotel segment generates other revenue from parking fees, resort fees, gift shop sales and other guest service fees at the Company’s hotel properties.

 

The CODM assesses performance for the hotel segment and decides how to allocate resources based on Hotel EBITDA, which is a non-GAAP financial measure. We define Hotel EBITDA as net income or loss excluding: (1) interest expense, (2) interest income, (3) income tax expense or benefit, (4) depreciation and amortization, (5) impairment of long-lived assets or investments, (6) gains and losses on disposal and/or sale of assets, (7) gains and losses on involuntary conversions of assets, (8) realized and unrealized gains and losses on derivative instruments not included in other comprehensive income, (9) other income at the properties, (10) loss on early debt extinguishment, (11) Paycheck Protection Program (PPP) debt forgiveness, (12) gain on exercise of development right, (13) corporate general and administrative expense, and (14) other income.

 

The following table presents information about profit or loss for the hotel segment:

 

 

 

 

For the Years Ended December 31,

 

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

$

114,400,434

 

 

$

119,079,903

 

 

$

114,748,834

 

Food and beverage department

 

 

 

36,458,606

 

 

 

36,626,906

 

 

 

35,231,959

 

Other operating departments

 

 

 

25,528,188

 

 

 

26,187,478

 

 

 

23,857,264

 

Total revenue

 

 

 

176,387,228

 

 

 

181,894,287

 

 

 

173,838,057

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

 

26,732,018

 

 

 

27,376,330

 

 

 

26,177,539

 

Food and beverage department

 

 

 

25,606,512

 

 

 

25,429,218

 

 

 

24,211,133

 

Other operating departments

 

 

 

9,184,742

 

 

 

9,428,889

 

 

 

9,031,960

 

Indirect

 

 

 

72,412,162

 

 

 

72,847,022

 

 

 

69,629,724

 

Total hotel operating expenses

 

 

 

133,935,434

 

 

 

135,081,459

 

 

 

129,050,356

 

 

 

 

 

 

 

 

 

 

 

 

Hotel EBITDA

 

 

$

42,451,794

 

 

$

46,812,828

 

 

$

44,787,701

 

 

 

The following table provides a reconciliation of the hotel segment profit and loss to the Company’s consolidated totals:

 

 

 

Year Ended

 

 

Year Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Net (loss) income

 

$

(7,779,133

)

 

$

1,179,854

 

 

$

3,809,711

 

Interest expense

 

 

24,799,871

 

 

 

20,882,681

 

 

 

17,588,091

 

Interest income

 

 

(252,961

)

 

 

(692,756

)

 

 

(802,183

)

Income tax expense (benefit)

 

 

50,120

 

 

 

132,491

 

 

 

(304,947

)

Depreciation and amortization

 

 

19,658,902

 

 

 

19,380,906

 

 

 

18,788,748

 

Impairment of investment in hotel properties, net

 

 

1,310,308

 

 

 

-

 

 

 

-

 

Realized and unrealized (gain) loss on hedging activities

 

 

(131,803

)

 

 

(104,211

)

 

 

737,682

 

Loss on early debt extinguishment

 

 

463,195

 

 

 

241,878

 

 

 

—

 

Gain on disposal of assets

 

 

—

 

 

 

(4,400

)

 

 

(4,700

)

PPP loan forgiveness

 

 

—

 

 

 

—

 

 

 

(275,494

)

Other income

 

 

(467,599

)

 

 

(489,267

)

 

 

(456,388

)

Net gain on involuntary conversion of assets

 

 

(3,985,417

)

 

 

(502,808

)

 

 

(1,371,041

)

Corporate general and administrative expenses

 

 

8,786,311

 

 

 

6,788,460

 

 

 

7,078,222

 

Hotel EBITDA

 

$

42,451,794

 

 

$

46,812,828

 

 

$

44,787,701

 

 

A measure of segment assets is not currently provided to the CODM and has therefore not been included herein.