Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Contract Liabilities

Contract liabilities relate to (i) advance consideration received, such as initial franchise fees paid when a franchise agreement is executed and system implementation fees paid at time of installation, for services considered to be part of the brand intellectual property performance obligation and (ii) amounts received when loyalty points are issued, but for which revenue is not yet recognized since the related loyalties points have not been redeemed.

Deferred revenues from initial fees and system implementation fees are typically recognized over a five- to ten-year period, unless the franchise agreement is terminated and the hotel exits the franchise system whereby remaining deferred amounts are recognized to revenue in the period of termination. Loyalty points are typically redeemed within three years of issuance.

Significant changes in the contract liabilities balances during the period December 31, 2022 to June 30, 2023 are as follows:

(in thousands)
Balance as of December 31, 2022	$	209,359
Increases to the contract liability balance due to cash received	60,029
Revenue recognized in the period	(61,597)
Balance as of June 30, 2023	$	207,791

Remaining Performance Obligations

The aggregate amount of transaction price allocated to unsatisfied or partially unsatisfied performance obligations is $207.8 million as of June 30, 2023. This amount represents fixed transaction price that will be recognized as revenue in future periods, which is captured in the consolidated balance sheet as current and non-current deferred revenue.

Based on practical expedient elections permitted by ASU 2014-09, Revenue From Contracts with Customers (Topic 606) and subsequent amendments ("Topic 606"), the Company does not disclose the value of unsatisfied performance obligations for (i) variable consideration subject to the sales or usage-based royalty constraint or comprising a component of a series (including franchise, partnership, qualified vendor, and software as a service ("SaaS") agreements), (ii) variable consideration for which we recognize revenue at the amount to which we have the right to invoice for services performed, or (iii) contracts with an expected original duration of one year or less.

Disaggregation of Revenue

	Three Months Ended						Three Months Ended
	June 30, 2023						June 30, 2022
(in thousands)	Over time		Point in time		Total		Over time		Point in time		Total
Royalty, licensing and management fees	$	136,654	$	3,845	$	140,499	$	121,449	$	—	$	121,449
Initial franchise fees	7,164		—		7,164		6,222		—		6,222
Platform and procurement services fees	27,997		804		28,801		20,744		1,059		21,803
Owned hotels	19,155		6,349		25,504		14,803		2,388		17,191
Other	11,148		—		11,148		11,927		—		11,927
Other revenues from franchised and managed properties	189,853		24,451		214,304		148,126		41,256		189,382
Total revenues	$	391,971	$	35,449	$	427,420	$	323,271	$	44,703	$	367,974
	Six Months Ended						Six Months Ended
	June 30, 2023						June 30, 2022
(in thousands)	Over time		Point in time		Total		Over time		Point in time		Total
Royalty, licensing and management fees	$	243,502	$	4,489	$	247,991	$	212,188	$	—	$	212,188
Initial franchise fees	15,046		—		15,046		14,624		—		14,624
Platform and procurement services fees	41,237		1,407		42,644		31,876		1,610		33,486
Owned hotels	36,047		11,789		47,836		24,843		4,385		29,228
Other	21,775		—		21,775		20,156		—		20,156
Other revenues from franchised and managed properties	345,934		38,986		384,920		260,382		55,637		316,019
Total revenues	$	703,541	$	56,671	$	760,212	$	564,069	$	61,632	$	625,701

Owned hotels point in time revenues represent goods and services purchased independently of the hotel stay, such as food and beverage, incidentals, and parking fees. The remaining point in time revenues represent loyalty points redeemed by members for benefits (with both franchisees and third-party partners), net of the cost of redemptions.

As presented in Note 11, the Corporate & Other segment revenue amounts represent $26.6 million and $19.4 million for the three months ended June 30, 2023 and 2022, respectively, and $52.6 million and $33.7 million for the six months ended June 30, 2023 and 2022, respectively, and are included in the Over time column of Other revenue and the Owned hotels revenue row. The remaining revenues relate to the Hotel Franchising & Management reportable segment.

Royalty, licensing and management fees and Other revenues from franchised and managed properties are presented net of intersegment revenues of $1.0 million and $1.3 million for the three months ended June 30, 2023 and 2022, respectively, and $3.3 million and $2.2 million for the six months ended June 30, 2023 and 2022, respectively.