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Business Segments
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment information Business segments
We consider each one of our owned resorts to be an operating segment, none of which meets the threshold for a reportable segment. We also allocate resources and assess operating performance based on individual resorts. Our operating segments meet the aggregation criteria and thus, we report four separate reportable segments by geography: (i) Yucatán Peninsula, (ii) Pacific Coast, (iii) Dominican Republic, and (iv) Jamaica. For the years ended December 31, 2021, 2020 and 2019, we have excluded the immaterial amounts of management fees, cost reimbursements and other from our segment reporting.
Our operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by our Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, all of whom represent our chief operating decision maker (“CODM”). Financial information for each reportable segment is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources.
The performance of our business is evaluated primarily on adjusted earnings before interest expense, income tax benefit, and depreciation and amortization expense (“Adjusted EBITDA”), which should not be considered an alternative to net loss or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. The performance of our segments is evaluated on Adjusted EBITDA before corporate expenses and management fees (“Owned Resort EBITDA”).
We define Adjusted EBITDA as net loss, determined in accordance with U.S. GAAP, for the period presented, before interest expense, income tax benefit, and depreciation and amortization expense, further adjusted to exclude the following items: (a) impairment loss; (b) loss on sale of assets; (c) other expense; (d) repairs from hurricanes and tropical storms; (e) contract termination costs; (f) pre-opening expense; (g) share-based compensation; (h) other tax expense; (i) transaction expense; and (j) severance expense.
There are limitations to using financial measures such as Adjusted EBITDA and Owned Resort EBITDA. For example, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named financial measures that other companies publish to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income or loss generated by our business or discretionary cash available for investment in our business and investors should carefully consider our U.S. GAAP results presented in our Consolidated Financial Statements.
The following table presents segment Owned Net Revenue, defined as total revenue less compulsory tips paid to employees, cost reimbursements, management fees and other miscellaneous revenue not derived from segment operations, and a reconciliation to total revenue for the years ended December 31, 2021, 2020 and 2019 ($ in thousands):
Year Ended December 31,
202120202019
Owned net revenue (1)
Yucatán Peninsula$188,911 $109,629 $235,788 
Pacific Coast76,811 33,065 85,219 
Dominican Republic149,774 49,898 90,783 
Jamaica97,036 69,173 193,558 
Segment owned net revenue512,532 261,765 605,348 
Other974 367 23 
Management fees2,291 807 1,820 
Cost reimbursements5,806 2,189 6,412 
Compulsory tips13,036 8,061 22,874 
Total revenue$534,639 $273,189 $636,477 
________
(1) We recognized $3.0 million in business interruption insurance recoveries for the year ended December 31, 2020 related to the suspension of operations from the COVID-19 pandemic.
The following table presents segment Owned Resort EBITDA, Adjusted EBITDA and a reconciliation to net loss for the years ended December 31, 2021, 2020 and 2019 ($ in thousands):
Year Ended December 31,
202120202019
Owned Resort EBITDA
Yucatán Peninsula$59,538 $17,783 $82,534 
Pacific Coast23,776 4,281 31,618 
Dominican Republic38,141 (6,694)16,596 
Jamaica14,826 (1,284)55,175 
Segment Owned Resort EBITDA136,281 14,086 185,923 
Other corporate(39,401)(36,066)(37,049)
Management fees2,291 807 1,820 
Adjusted EBITDA99,171 (21,173)150,694 
Interest expense(71,378)(81,942)(44,087)
Depreciation and amortization(81,508)(92,570)(101,897)
Impairment loss(24,011)(55,619)(6,168)
Loss on sale of assets(676)(2,021)— 
Other expense
(1,471)(1,164)(3,200)
Repairs from hurricanes and tropical storms(475)(1,542)— 
Contract termination fees(400)— — 
Pre-opening expense— — (1,452)
Share-based compensation(13,163)(10,158)(8,845)
Other tax expense(617)(613)(577)
Transaction expense(1,321)(2,497)(6,175)
Severance expense(1,756)(3,844)(515)
Non-service cost components of net periodic pension cost (benefit) (1)
520 (200)645 
Net loss before tax(97,085)(273,343)(21,577)
Income tax benefit7,403 10,973 17,220 
Net loss$(89,682)$(262,370)$(4,357)
________
(1) Represents the non-service cost components of net periodic pension cost or benefit recorded within other expense in the Consolidated Statements of Operations. We include these costs in Adjusted EBITDA as they are considered part of our ongoing resort operations.
The following table presents segment property and equipment, gross and a reconciliation to total property and equipment, net as of December 31, 2021 and 2020 ($ in thousands):
As of December 31,
20212020
Segment property and equipment, gross
Yucatán Peninsula (1)
$667,618 $799,849 
Pacific Coast288,309 288,328 
Dominican Republic684,187 678,900 
Jamaica408,107 406,047 
Total segment property and equipment, gross2,048,221 2,173,124 
Corporate property and equipment, gross4,802 4,505 
Accumulated depreciation(468,449)(450,246)
Total property and equipment, net$1,584,574 $1,727,383 
________
(1)    Property and equipment of the Dreams Puerto Aventuras resort is included within assets held for sale in the Consolidated Balance Sheet as of December 31, 2020.
The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the years ended December 31, 2021, 2020 and 2019 ($ in thousands):
Year Ended December 31,
202120202019
Segment capital expenditures
Yucatán Peninsula$4,957 $4,487 $28,495 
Pacific Coast1,138 1,345 3,144 
Dominican Republic3,417 9,966 178,599 
Jamaica4,210 3,112 5,178 
Total segment capital expenditures (1)
13,722 18,910 215,416 
Corporate353 160 14,512 
Total capital expenditures (1)
$14,075 $19,070 $229,928 
________
(1) Represents gross additions to property and equipment excluding our finance leases.