Annual Report 2019

142 Annual Report 2019 Miramar Hotel and Investment Company, Limited Notes to the Financial Statements 9 Revenue and segment reporting The Group manages its businesses by segments which are organised by business lines. In a manner consistent with the way in which information is reported internally to the Group’s board and senior executive management for the purposes of resource allocation and performance assessment, the Group has identified the following five reportable segments. Property rental : The leasing of office and retail premises to generate rental income and to gain from the appreciation in properties’ values in the long term Hotels and serviced apartments : The operating of hotels and serviced apartments and provision of hotel management services Food and beverage operation : The operation of restaurants Travel operation : The operation of travel agency services Others : Other businesses The principal activities of the Group are property rental, hotels and serviced apartments, food and beverage operation and travel operation. Revenue represents income from property rental, hotels and serviced apartments, food and beverage, travel and other operations. (a) Segment results Revenue and expense are allocated to the reportable segments with reference to sales generated by those segments and the expenses incurred by those segments. The measure used for reporting segment results is “adjusted EBITDA” i.e. “adjusted earnings before interest, taxes, depreciation and amortisation”. To arrive at adjusted EBITDA, the Group’s earnings are further adjusted for items not specifically attributed to individual segments, such as share of profits less losses of associates, other non-operating items and other corporate expenses.