Reportable Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

The Hotel Franchising reportable segment includes the Company's hotel franchising operations consisting of its fourteen brands. The fourteen brands are aggregated within this segment considering their similar economic characteristics, types of customers, distribution channels and regulatory business environments. Revenues from the hotel franchising business include royalty fees, initial franchise and relicensing fees, marketing and reservation system fees, procurement services revenue and other hotel franchising related revenue. The Company is obligated under its hotel franchise agreements to provide marketing and reservation services appropriate for the operation of its systems. The revenues received from franchisees that are used to pay for part of the Company's ongoing operations are included in hotel franchising revenues and are offset by the related expenses paid for marketing and reservation system activities to calculate hotel franchising operating income. Equity in earnings or losses from hotel franchising related investment in affiliates is allocated to the Company's hotel franchising segment.

The Company evaluates its hotel franchising segment based primarily on the results of the segment without allocating corporate expenses, indirect general and administrative expenses, interest expense, interest income, other gains and losses or income taxes, which are included in the Corporate & Other column. Corporate & Other revenues include owned hotel revenues, rental income related to an office building owned by the Company, and revenues related to the Company's SaaS technology solutions division which provide cloud-based property management software to non-franchised hoteliers.

Intersegment revenue adjustment is from the elimination of Hotel Franchising revenue which include royalty and marketing and reservation system fees charged to our owned hotels against franchise fee expense recognized by our owned hotels in Corporate & Other operating income (loss).

Our President and Chief Executive Officer, who is our chief operating decision maker, does not use assets by operating segment when assessing performance or making operating segment resource allocations decisions and therefore assets by segment are not disclosed below.

The following table presents the financial information for the Company's segments:

	Three Months Ended June 30, 2022								Three Months Ended June 30, 2021
(in thousands)	Hotel Franchising		Corporate & Other		Intersegment Eliminations		Consolidated		Hotel Franchising		Corporate & Other		Intersegment Eliminations		Consolidated
Revenues	$	349,857	$	19,411	$	(1,294)	$	367,974	$	268,092	$	10,932	$	(680)	$	278,344
Operating income (loss)	$	165,448	$	(8,099)	$	—	$	157,349	$	132,600	$	(13,576)	$	—	$	119,024
Income (loss) before income taxes	$	165,405	$	(23,279)	$	—	$	142,126	$	134,025	$	(22,171)	$	—	$	111,854
	Six Months Ended June 30, 2022								Six Months Ended June 30, 2021
(in thousands)	Hotel Franchising		Corporate & Other		Intersegment Eliminations		Consolidated		Hotel Franchising		Corporate & Other		Intersegment Eliminations		Consolidated
Revenues	$	594,228	$	33,671	$	(2,198)	$	625,701	$	445,310	$	16,972	$	(991)	$	461,291
Operating income (loss)	$	272,768	$	(16,022)	$	—	$	256,746	$	190,753	$	(27,731)	$	—	$	163,022
Income (loss) before income taxes	$	272,969	$	(43,108)	$	—	$	229,861	$	185,936	$	(45,372)	$	—	$	140,564