Reportable Segment Information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

The Hotel Franchising & Management reportable segment includes the Company's hotel franchising operations consisting of its 22 brands and brand extensions and hotel management operations of 13 Radisson Hotels Americas hotels (inclusive of 3 owned hotels). The 22 brands and brand extensions and the hotel management operations are aggregated together within this reportable segment because of their similar economic characteristics, types of customers, distribution channels and regulatory business environments. The revenues from the hotel franchising and management business include royalty fees, initial franchise fees and relicensing fees, cost reimbursement revenues, procurement services revenue, base and incentive management fees, and other hotel franchising and management-related revenue. The Company provides certain services under its franchise and management agreements which result in direct and indirect reimbursements. The cost reimbursement revenues received from the franchisees are included in hotel franchising and management revenues and are offset by the related expenses in order to calculate hotel franchising and management operating income. The equity in the earnings or losses from the hotel franchising-related investment in affiliates is allocated to the Hotel Franchising & Management reportable segment.

The Company evaluates its Hotel Franchising & Management reportable 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, and income taxes, all of which are included in the Corporate & Other column. Corporate & Other revenues include owned hotel revenues and the revenues related to the Company's SaaS technology solutions division which provides cloud-based property management software to non-franchised hotel properties.

Intersegment Eliminations to revenues is the elimination of Hotel Franchising & Management revenue which includes royalty fees, management and cost reimbursement fees charged to our owned hotels against the franchise and management fee expense that is 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 when making operating segment resource allocation 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 September 30, 2023								Three Months Ended September 30, 2022
(in thousands)	Hotel Franchising & Management		Corporate & Other		Intersegment Eliminations		Consolidated		Hotel Franchising & Management		Corporate & Other		Intersegment Eliminations		Consolidated
Revenues	$	395,742	$	33,832	$	(4,017)	$	425,557	$	386,124	$	29,692	$	(1,550)	$	414,266
Operating income (loss)	$	167,459	$	(32,417)	$	—	$	135,042	$	161,084	$	(16,066)	$	—	$	145,018
Income (loss) before income taxes	$	169,260	$	(48,031)	$	—	$	121,229	$	162,162	$	(25,386)	$	—	$	136,776
	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
(in thousands)	Hotel Franchising & Management		Corporate & Other		Intersegment Eliminations		Consolidated		Hotel Franchising & Management		Corporate & Other		Intersegment Eliminations		Consolidated
Revenues	$	1,106,643	$	86,464	$	(7,338)	$	1,185,769	$	980,352	$	63,363	$	(3,748)	$	1,039,967
Operating income (loss)	$	422,881	$	(85,599)	$	—	$	337,282	$	433,852	$	(32,088)	$	—	$	401,764
Income (loss) before income taxes	$	424,804	$	(123,533)	$	—	$	301,271	$	435,131	$	(68,494)	$	—	$	366,637