Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2. Revenue Recognition

We report hotel operating revenues for managed hotels in our condensed consolidated statements of comprehensive income (loss). We generally recognize hotel operating revenues, consisting primarily of room and food and beverage sales, when goods and services are provided.

We report rental income for leased properties in our condensed consolidated statements of comprehensive income (loss). We recognize rental income from operating leases on a straight line basis over the term of the lease agreements. We increased rental income by $2,767 and reduced rental income by $1,712 for the three months ended June 30, 2023 and 2022, respectively, and increased rental income by $319 and reduced rental income by $3,685 for the six months ended June 30, 2023 and 2022, respectively, to record scheduled rent changes under certain of our leases on a straight line basis. Due from related persons included $7,522 of straight line rent receivables related to our TravelCenters of America Inc., or TA, leases at December 31, 2022. TA was no longer a related party as of June 30, 2023. Other assets, net, includes $40,887 and $32,247 of straight line rent receivables at June 30, 2023 and December 31, 2022, respectively. See Notes 5 and 10 for further information regarding our TA leases.

Certain of our lease agreements require additional percentage rent if gross revenues of our properties exceed certain thresholds defined in our lease agreements. We determine percentage rent due to us under our leases monthly, quarterly or annually, as applicable, depending on the specific lease terms, and recognize it when all contingencies are met and the rent is earned. We recorded percentage rent of $4,449 and $385 for the three months ended June 30, 2023 and 2022, respectively, and $4,792 and $1,141 for the six months ended June 30, 2023 and 2022, respectively. We had no deferred estimated percentage rent for either the three or six months ended June 30, 2023. We had deferred estimated percentage rent of $2,839 and $5,338 for the three and six months ended June 30, 2022, respectively. See Note 5 for further information on this deferred estimated percentage rent.