0001437749-26-015470
SEC filingRevenue declined 1.6% to $67.5M, while operating income fell 80.2% to $1.6M, resulting in a net loss of $4.3M compared to a prior-year profit.
Revenue decreased 1.6% to $67.5 million from $68.6 million in the prior year. The decline was primarily due to the sales of four hotels, partially offset by the acquisition of six hotels and an increase in RevPAR. The portfolio transformation continues to shape revenue dynamics.
Net loss was $4.3 million, compared to net income of $1.5 million in the prior year. The change was primarily due to the absence of prior-year gains on hotel sales and higher other charges. Diluted EPS was -$0.13, compared to -$0.01.
Net cash provided by operating activities increased to $13.3 million from $4.2 million, reflecting improved working capital management. The company believes its existing cash balances and credit facility availability are adequate to fund operations, interest, and dividends.
Management expects that inflationary pressures on costs such as labor, construction, and insurance may continue to affect expenses. The company will assess interest rate risk on variable rate financing and evaluate hedging opportunities.