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Receivables and Allowance for Credit Losses
 12 Months Ended
Dec. 31, 2021
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract]  
Receivables and Allowance for Credit Losses Receivables and Allowance for Credit Losses
Notes Receivable
The composition of notes receivable balances based on the level of security credit quality indicator and the allowances for credit losses is as follows:
December 31,
(in thousands)20212020
Senior$108,370 $104,716 
Subordinated27,801 33,234 
Unsecured1,512 1,367 
Total notes receivable137,683 139,317 
Total allowance for notes receivable credit losses16,779 19,484 
Total notes receivable, net of allowance$120,904 $119,833 
Current portion, net of allowance$54,453 $24,048 
Long-term portion, net of allowance$66,451 $95,785 
Amortized cost basis by year of origination and level of security credit quality indicator are as follows:
(in thousands)202120202019PriorTotal
Senior$2,166 $— $29,004 $77,200 $108,370 
Subordinated— — 2,826 24,975 27,801 
Unsecured— — — 1,512 1,512 
Total notes receivable$2,166 $— $31,830 $103,687 $137,683 
The adoption of Topic 326 required a cumulative-effect adjustment to the consolidated balance sheet as of the beginning of the first reporting period in which the guidance was effective. As of the adoption date of January 1, 2020, the Company established an incremental credit allowance on its notes receivable loans of $8.3 million.
The following table summarizes the activity related to the Company’s notes receivable allowance for credit losses, including the impacts of adopting Topic 326:
December 31,
(in thousands)202120202019
Beginning balance$19,484 $4,556 $4,685 
Reserves established from adoption of Topic 326— 8,348 — 
Provisions for credit losses709 7,634 — 
Write-offs(3,414)(1,054)(129)
Ending balance$16,779 $19,484 $4,556 
The provisions recorded in the year ended December 31, 2021 primarily result from changes in the classification of certain loans as collateral-dependent and associated revisions to their allowances. The write-offs for the year ended December 31, 2021 are associated with a loan that was settled in exchange for an operating hotel on October 1, 2021; refer to acquisition disclosures in Note 24. Allowances for credit losses attributable to collateral-dependent loans are $6.3 million and $7.8 million as of December 31, 2021 and December 31, 2020, respectively.
As of December 31, 2021, two loans with senior and/or subordinated tranches met the definition of collateral-dependent and are collateralized by the membership interests in the borrowing entities and either the associated land parcels or an operating hotel. The Company used a DCF technique to project cash flows or a market approach via quoted market prices to value the underlying collateral. The Company reviewed the borrower's financial statements, economic trends, industry projections for the market, and comparable sales capitalization rates, which represent significant inputs to the cash flow projections. These nonrecurring fair value measurements are classified as level three of the fair value measurement hierarchy, as there are unobservable inputs which are significant to the overall fair value. Based on these analyses, the fair value of collateral secures the carrying value of each loan to a significant extent.
During the first quarter of 2021, a loan with senior and subordinated tranches, that met the definition of collateral-dependent as of December 31, 2020, was restructured and as a result, no longer meets the classification of collateral-dependent as of December 31, 2021.
As a result of the COVID-19 pandemic, the Company extended interest deferral terms on certain notes receivable. The Company considers loans to be past due when payments are not made when due in accordance with then current loan provisions or terms extended to borrowers, including loans with concessions or interest deferral. Although the Company considers loans to be past due if payments are not received on the due date, the Company does not suspend the accrual of interest until those payments are more than 30 days past due. The Company applies payments received for loans on non-accrual status first to interest and then to principal. The Company does not resume interest accrual until all delinquent payments are received based on then current loan provisions. The amortized cost basis of notes receivable on non-accrual status was $44.1 million and $28.9 million at December 31, 2021 and 2020, respectively.

The Company has identified loans totaling approximately $7.5 million and $13.1 million, respectively, with stated interest rates that are less than market rate, representing a total discount of $0.3 million and $0.8 million as of the years ended December 31, 2021 and 2020, respectively. These discounts are reflected as a reduction of the outstanding loan amounts and are amortized over the life of the related loan.
The past due status by credit quality indicator of the notes receivable amortized cost basis are as follows:
(in thousands)1-30 days
Past Due		30-89 days
Past Due		> 90 days
Past Due		Total
Past Due		CurrentTotal Notes Receivable
As of December 31, 2021
Senior$— $— $— $— $108,370 $108,370 
Subordinated— — 2,209 2,209 25,592 27,801 
       Unsecured— — — — 1,512 1,512 
$— $— $2,209 $2,209 $135,474 $137,683 
As of December 31, 2020
Senior$— $— $15,200 $15,200 $89,516 $104,716 
Subordinated— — 2,209 2,209 31,025 33,234 
       Unsecured— — — — 1,367 1,367 
$— $— $17,409 $17,409 $121,908 $139,317 
The Company evaluated its off-balance-sheet credit exposure for loan commitments and determined the likelihood of having to perform is remote as of December 31, 2021. Refer to Note 23.
Variable Interest through Notes Issued
The Company has issued notes receivables to certain entities that have created variable interests in these borrowers totaling $120.2 million and $119.3 million at December 31, 2021 and 2020, respectively. The Company has determined that it is not the primary beneficiary of these VIEs. These loans have stated fixed and/or variable interest amounts. For collateral-dependent loans, the Company has no exposure to the borrowing VIE beyond the note receivable and limited commitments addressed in Note 23.
Accounts Receivable
Accounts receivable consist primarily of franchise and related fees due from hotel franchisees and are recorded at the invoiced amount.
During the year ended December 31, 2020, the Company recorded provisions for credit losses on accounts receivable of $15.6 million in SG&A expenses and $26.0 million in marketing and reservation system expenses, in consideration of the economic and credit conditions resulting from the COVID-19 pandemic and estimates of other expected credit losses. During the year ended December 31, 2021, the Company recorded reversals of provisions for credit losses on accounts receivable of $4.4 million in SG&A expenses and $7.3 million in marketing and reservation system expenses, after considering improved collection patterns and economic and credit conditions. During the years ended December 31, 2020 and December 31, 2021, the Company recorded write-offs, net of recoveries, through the accounts receivable allowance for credit losses of $0.6 million and $13.5 million, respectively.