Segment Reporting |
Segment Reporting
We operate in two business segments within the hotel lodging industry: direct hotel investments and hotel financing. Direct hotel investments refers to owning hotels through either acquisition or new development. We report operating results of direct hotel investments on an aggregate basis as substantially all of our hotel investments have similar economic characteristics and exhibit similar long-term financial performance. Hotel financing refers to owning subordinate hotel-related mortgages through acquisition or origination. We do not allocate corporate-level accounts to our operating segments, including corporate, general, and administrative expenses, non-operating interest income, interest expense and amortization of loan costs, and income tax expense/benefit. Financial information related to our reportable segments was as follows (in thousands): | | | | | | | | | | | | | | | | | | Direct Hotel Investments | | Hotel Financing | | Corporate | | Consolidated | Three Months Ended June 30, 2013: | | | | | | | | Total revenue | $ | 258,539 |
| | $ | — |
| | $ | — |
| | $ | 258,539 |
| | | | | | | | | Total hotel operating expenses | 156,733 |
| | — |
| | — |
| | 156,733 |
| Property taxes, insurance, and other | 11,663 |
| | — |
| | — |
| | 11,663 |
| Depreciation and amortization | 32,842 |
| | — |
| | — |
| | 32,842 |
| Impairment charges | — |
| | (99 | ) | | — |
| | (99 | ) | Transaction costs | 1,170 |
| | — |
| | — |
| | 1,170 |
| Corporate, general, and administrative | — |
| | — |
| | 14,699 |
| | 14,699 |
| Total expenses (income) | 202,408 |
| | (99 | ) | | 14,699 |
| | 217,008 |
| Operating income (loss) | 56,131 |
| | 99 |
| | (14,699 | ) | | 41,531 |
| Equity in earnings of unconsolidated joint ventures | 2,367 |
| | — |
| | — |
| | 2,367 |
| Interest income | — |
| | — |
| | 13 |
| | 13 |
| Other income | — |
| | — |
| | 310 |
| | 310 |
| Interest expense and amortization of loan costs | — |
| | — |
| | (36,026 | ) | | (36,026 | ) | Unrealized loss on marketable securities | — |
| | — |
| | (919 | ) | | (919 | ) | Unrealized gain on derivatives | — |
| | — |
| | 789 |
| | 789 |
| Income (loss) from continuing operations before income taxes | 58,498 |
| | 99 |
| | (50,532 | ) | | 8,065 |
| Income tax expense |
|
| |
|
| | (465 | ) | | (465 | ) | Income (loss) from continuing operations | $ | 58,498 |
| | $ | 99 |
| | $ | (50,997 | ) | | $ | 7,600 |
| | | | | | | | | As of June 30, 2013: | | | | | | | | Total assets | $ | 3,285,389 |
| | $ | 3,773 |
| | $ | 302,996 |
| | $ | 3,592,158 |
|
| | | | | | | | | | | | | | | | | | Direct Hotel Investments | | Hotel Financing | | Corporate | | Consolidated | Three Months Ended June 30, 2012: | | | | | | | | Total revenue | $ | 240,778 |
| | $ | — |
| | $ | — |
| | $ | 240,778 |
| | | | | | | | | Total hotel operating expenses | 149,815 |
| | — |
| | — |
| | 149,815 |
| Property taxes, insurance, and other | 10,138 |
| | — |
| | — |
| | 10,138 |
| Depreciation and amortization | 33,477 |
| | — |
| | — |
| | 33,477 |
| Impairment charges | — |
| | (95 | ) | | — |
| | (95 | ) | Corporate, general, and administrative | — |
| | — |
| | 11,930 |
| | 11,930 |
| Total expenses (income) | 193,430 |
| | (95 | ) | | 11,930 |
| | 205,265 |
| Operating income (loss) | 47,348 |
| | 95 |
| | (11,930 | ) | | 35,513 |
| Equity in earnings of unconsolidated joint ventures | 23 |
| | — |
| | — |
| | 23 |
| Interest income | — |
| | — |
| | 22 |
| | 22 |
| Other income | — |
| | — |
| | 6,703 |
| | 6,703 |
| Interest expense and amortization of loan costs | — |
| | — |
| | (36,284 | ) | | (36,284 | ) | Unrealized gain on marketable securities | — |
| | — |
| | 1,628 |
| | 1,628 |
| Unrealized loss on derivatives | — |
| | — |
| | (7,458 | ) | | (7,458 | ) | Income (loss) from continuing operations before income taxes | 47,371 |
| | 95 |
| | (47,319 | ) | | 147 |
| Income tax expense | — |
| | — |
| | (1,366 | ) | | (1,366 | ) | Income (loss) from continuing operations | $ | 47,371 |
| | $ | 95 |
| | $ | (48,685 | ) | | $ | (1,219 | ) | | | | | | | | | As of June 30, 2012: | | | | | | | | Total assets | $ | 3,279,468 |
| | $ | 3,632 |
| | $ | 241,579 |
| | $ | 3,524,679 |
|
| | | | | | | | | | | | | | | | | | Direct Hotel Investments | | Hotel Financing | | Corporate | | Consolidated | Six Months Ended June 30, 2013: | | | | | | | | Total revenue | $ | 490,481 |
| | $ | — |
| | $ | — |
| | $ | 490,481 |
| | | | | | | | | Total hotel operating expenses | 304,249 |
| | — |
| | — |
| | 304,249 |
| Property taxes, insurance, and other | 23,911 |
| | — |
| | — |
| | 23,911 |
| Depreciation and amortization | 65,322 |
| | — |
| | — |
| | 65,322 |
| Impairment charges | — |
| | (195 | ) | | — |
| | (195 | ) | Transaction costs | 1,170 |
| | — |
| | — |
| | 1,170 |
| Corporate, general, and administrative | — |
| | — |
| | 29,215 |
| | 29,215 |
| Total expenses (income) | 394,652 |
| | (195 | ) | | 29,215 |
| | 423,672 |
| Operating income (loss) | 95,829 |
| | 195 |
| | (29,215 | ) | | 66,809 |
| Equity in loss of unconsolidated joint ventures | (4,521 | ) | | — |
| | — |
| | (4,521 | ) | Interest income | — |
| | — |
| | 49 |
| | 49 |
| Other income | — |
| | — |
| | 6,132 |
| | 6,132 |
| Interest expense and amortization of loan costs | — |
| | — |
| | (71,406 | ) | | (71,406 | ) | Write-off of loan costs and exit fees | — |
| | — |
| | (1,971 | ) | | (1,971 | ) | Unrealized gain on marketable securities | — |
| | — |
| | 1,782 |
| | 1,782 |
| Unrealized loss on derivatives | — |
| | — |
| | (6,360 | ) | | (6,360 | ) | Income (loss) from continuing operations before income taxes | 91,308 |
| | 195 |
| | (100,989 | ) | | (9,486 | ) | Income tax expense | — |
| | — |
| | (1,069 | ) | | (1,069 | ) | Income (loss) from continuing operations | $ | 91,308 |
| | $ | 195 |
| | $ | (102,058 | ) | | $ | (10,555 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | Direct Hotel Investments | | Hotel Financing | | Corporate | | Consolidated | Six Months Ended June 30, 2012: | | | | | | | | Total revenue | $ | 457,833 |
| | $ | — |
| | $ | — |
| | $ | 457,833 |
| | | | | | | | | Total hotel operating expenses | 289,499 |
| | — |
| | — |
| | 289,499 |
| Property taxes, insurance, and other | 21,850 |
| | — |
| | — |
| | 21,850 |
| Depreciation and amortization | 67,133 |
| | — |
| | — |
| | 67,133 |
| Impairment charges | — |
| | (187 | ) | | — |
| | (187 | ) | Corporate, general, and administrative | — |
| | — |
| | 22,176 |
| | 22,176 |
| Total expenses (income) | 378,482 |
| | (187 | ) | | 22,176 |
| | 400,471 |
| Operating income (loss) | 79,351 |
| | 187 |
| | (22,176 | ) | | 57,362 |
| Equity in loss of unconsolidated joint ventures | (10,281 | ) | | — |
| | — |
| | (10,281 | ) | Interest income | — |
| | — |
| | 54 |
| | 54 |
| Other income | — |
| | — |
| | 14,317 |
| | 14,317 |
| Interest expense and amortization of loan costs | — |
| | — |
| | (71,160 | ) | | (71,160 | ) | Unrealized gain on marketable securities | — |
| | — |
| | 3,413 |
| | 3,413 |
| Unrealized loss on derivatives | — |
| | — |
| | (17,399 | ) | | (17,399 | ) | Income (loss) from continuing operations before income taxes | 69,070 |
| | 187 |
| | (92,951 | ) | | (23,694 | ) | Income tax expense | — |
| | — |
| | (2,245 | ) | | (2,245 | ) | Income (loss) from continuing operations | $ | 69,070 |
| | $ | 187 |
| | $ | (95,196 | ) | | $ | (25,939 | ) | | | | | | | | |
|