Document and Entity Information
Document and Entity Information Document - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document Information | |||
Entity Registrant Name | Hyatt Hotels Corp | ||
Entity Central Index Key | 1,468,174 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Trading Symbol | h | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,156.9 | ||
Common Class A | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 48,102,805 | ||
Common Class B | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 70,618,737 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES: | |||
Owned and leased hotels | $ 2,192 | $ 2,108 | $ 2,079 |
Management and franchise fees | 505 | 448 | 427 |
Other revenues | 70 | 40 | 36 |
Other revenues from managed and franchised properties | 1,918 | 1,833 | 1,786 |
Total revenues | 4,685 | 4,429 | 4,328 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | |||
Owned and leased hotels | 1,674 | 1,610 | 1,562 |
Depreciation and amortization | 366 | 342 | 320 |
Other direct costs | 46 | 30 | 29 |
Selling, general, and administrative | 379 | 315 | 308 |
Other costs from managed and franchised properties | 1,918 | 1,833 | 1,786 |
Direct and selling, general, and administrative expenses | 4,383 | 4,130 | 4,005 |
Net gains and interest income from marketable securities held to fund operating programs | 47 | 19 | 4 |
Equity earnings (losses) from unconsolidated hospitality ventures | 220 | 68 | (64) |
Interest expense | (80) | (76) | (68) |
Gains (losses) on sales of real estate | 51 | (23) | 9 |
Asset impairments | 0 | 0 | (5) |
Other income (loss), net | 33 | 2 | (5) |
INCOME BEFORE INCOME TAXES | 573 | 289 | 194 |
PROVISION FOR INCOME TAXES | (323) | (85) | (70) |
NET INCOME | 250 | 204 | 124 |
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1) | 0 | 0 |
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 249 | $ 204 | $ 124 |
EARNINGS PER SHARE—Basic | |||
Net Income - basic (in dollars per share) | $ 2 | $ 1.53 | $ 0.87 |
Net income attributable to Hyatt Hotels Corporation - Basic (in dollars per share)) | 1.99 | 1.53 | 0.87 |
EARNINGS PER SHARE—Diluted | |||
Net Income - diluted (in dollars per share) | 1.98 | 1.52 | 0.86 |
Net income attributable to Hyatt Hotels Corporation - Diluted (in dollars per share) | $ 1.97 | $ 1.52 | $ 0.86 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 250 | $ 204 | $ 124 |
Other Comprehensive Income (Loss), Net of Taxes, Portion Attributable to Parent [Abstract] | |||
Foreign currency translation adjustments, net of tax expense (benefit) of $1, $-, and $(2) for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively | 56 | (42) | (102) |
Unrealized gains (losses) on available-for-sale securities, net of tax expense (benefit) of $23, $(4), and $21 for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively | 35 | (6) | 33 |
Unrecognized pension cost, net of tax benefit of $- for each of the years ended December 31, 2017, December 31, 2016, and December 31, 2015 | 0 | 0 | (2) |
Unrealized gains on derivative activity, net of tax expense of $-, $1, and $1 for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively | 1 | 1 | 1 |
Other comprehensive income (loss) | 92 | (47) | (70) |
COMPREHENSIVE INCOME | 342 | 157 | 54 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1) | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 341 | $ 157 | $ 54 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income Parentheticals - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, net of tax (benefit) expense | $ 1 | $ 0 | $ (2) |
Unrealized gains (losses) on available-for-sale securities, net of tax (benefit) expense | 23 | (4) | 21 |
Unrecognized pension cost, net of tax benefit | 0 | 0 | 0 |
Unrealized gains on derivative activity, net of tax expense | $ 0 | $ 1 | $ 1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 503 | $ 482 |
Restricted cash | 234 | 76 |
Short-term investments | 49 | 56 |
Receivables, net of allowances of $21 and $18 at December 31, 2017 and December 31, 2016, respectively | 350 | 304 |
Inventories | 14 | 28 |
Prepaids and other assets | 153 | 153 |
Prepaid income taxes | 24 | 40 |
Total current assets | 1,327 | 1,139 |
Investments | 211 | 186 |
Property and equipment, net | 4,034 | 4,270 |
Financing receivables, net of allowances | 19 | 19 |
Goodwill | 150 | 125 |
Intangibles, net | 683 | 599 |
Deferred tax assets | 242 | 313 |
Other assets | 1,006 | 1,098 |
TOTAL ASSETS | 7,672 | 7,749 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 11 | 119 |
Accounts payable | 175 | 162 |
Accrued expenses and other current liabilities | 635 | 514 |
Accrued compensation and benefits | 145 | 129 |
Total current liabilities | 966 | 924 |
Long-term debt | 1,440 | 1,445 |
Other long-term liabilities | 1,725 | 1,472 |
Total liabilities | 4,131 | 3,841 |
Commitments and contingencies | ||
Redeemable noncontrolling interest in preferred shares of a subsidiary | 10 | 0 |
EQUITY: | ||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding as of December 31, 2017 and December 31, 2016 | 0 | 0 |
Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 48,231,149 issued and outstanding at December 31, 2017, and Class B common stock, $0.01 par value per share, 402,748,249 shares authorized, 70,753,837 shares issued and outstanding at December 31, 2017. Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 39,952,061 issued and outstanding at December 31, 2016, and Class B common stock, $0.01 par value per share, 422,857,621 shares authorized, 90, | 1 | 1 |
Additional paid-in capital | 967 | 1,686 |
Retained earnings | 2,742 | 2,493 |
Accumulated other comprehensive loss | (185) | (277) |
Total stockholders’ equity | 3,525 | 3,903 |
Noncontrolling interests in consolidated subsidiaries | 6 | 5 |
Total equity | 3,531 | 3,908 |
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY | $ 7,672 | $ 7,749 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Allowance for doubtful accounts receivable, current | $ 21 | $ 18 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares, outstanding (in shares) | 48,231,149 | 39,952,061 |
Common stock, shares, issued (in shares) | 48,231,149 | 39,952,061 |
Common Class B | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 402,748,249 | 422,857,621 |
Common stock, shares, outstanding (in shares) | 70,753,837 | 90,863,209 |
Common stock, shares, issued (in shares) | 70,753,837 | 90,863,209 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 250 | $ 204 | $ 124 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 366 | 342 | 320 |
Amortization of share awards | 32 | 26 | 26 |
Deferred income taxes | 47 | (3) | (103) |
Equity (earnings) losses from unconsolidated hospitality ventures | (220) | (68) | 64 |
(Gains) losses on sales of real estate | (51) | 23 | (9) |
Realized losses from marketable securities | 40 | 6 | 0 |
Distributions from unconsolidated hospitality ventures | 29 | 35 | 36 |
Other | 1 | (44) | 55 |
Increase (decrease) in cash attributable to changes in assets and liabilities | |||
Restricted cash | 13 | (4) | 78 |
Receivables, net | (37) | (14) | 29 |
Inventories | 12 | 2 | 1 |
Prepaid income taxes | 14 | 21 | (16) |
Accounts payable, accrued expenses, and other current liabilities | 95 | 7 | (7) |
Accrued compensation and benefits | 22 | 7 | 5 |
Other long-term liabilities | 24 | 10 | 1 |
Other, net | (17) | (61) | (66) |
Net cash provided by operating activities | 620 | 489 | 538 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of marketable securities and short-term investments | (469) | (464) | (530) |
Proceeds from marketable securities and short-term investments | 480 | 457 | 521 |
Contributions to investments | (89) | (107) | (37) |
Return of investments | 425 | 132 | 19 |
Acquisitions, net of cash acquired | (259) | (492) | (3) |
Capital expenditures | (298) | (211) | (269) |
Issuance of financing receivables | 0 | (38) | (8) |
Proceeds from financing receivables | 0 | 38 | 28 |
Proceeds from sales of real estate, net of cash disposed | 663 | 289 | 88 |
Sales proceeds transferred to escrow as restricted cash | (474) | 0 | 0 |
Sales proceeds transferred from escrow to cash and cash equivalents | 300 | 29 | 143 |
Pre-condemnation proceeds | 15 | 0 | 0 |
Other investing activities | (28) | (13) | 1 |
Net cash provided by (used in) investing activities | 266 | (380) | (47) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from debt, net of issuance costs of $-, $4, and $-, respectively | 670 | 620 | 12 |
Repayments of debt | (782) | (438) | (5) |
Repurchase of common stock | (743) | (272) | (715) |
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary | 9 | 0 | 0 |
Other financing activities | (12) | (6) | (7) |
Net cash used in financing activities | (858) | (96) | (715) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (7) | 12 | (4) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 21 | 25 | (228) |
CASH AND CASH EQUIVALENTS—BEGINNING OF YEAR | 482 | 457 | 685 |
CASH AND CASH EQUIVALENTS—END OF PERIOD | 503 | 482 | 457 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid during the period for interest | 80 | 75 | 69 |
Cash paid during the period for income taxes | 175 | 95 | 145 |
Non-cash investing and financing activities are as follows: | |||
Non-cash contributions to investments | 5 | 13 | 17 |
Non-cash management and franchise agreement intangibles | 3 | 47 | 3 |
Change in accrued capital expenditures | $ 9 | $ 2 | $ 6 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Debt issuance cost | $ 0 | $ 4 | $ 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Treasury Stock Amount | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Subsidiaries | Excludes accretion income on redeemable preferred shares | Excludes accretion income on redeemable preferred sharesRetained Earnings | Excludes accretion income on redeemable preferred sharesAccumulated Other Comprehensive Loss |
Balance, beginning of period at Dec. 31, 2014 | $ 4,631 | $ 2 | $ 2,621 | $ 2,165 | $ (1) | $ (160) | $ 4 | |||
Total comprehensive income | 54 | 124 | (70) | 0 | ||||||
Repurchase of common stock | (715) | (1) | (714) | |||||||
Directors compensation | 2 | 2 | ||||||||
Employee stock plan issuance | 3 | 3 | ||||||||
Share-based payment activity | 20 | 19 | 1 | |||||||
Balance, end of period at Dec. 31, 2015 | 3,995 | 1 | 1,931 | 2,289 | 0 | (230) | 4 | |||
Total comprehensive income | 157 | 204 | (47) | |||||||
Contributions from noncontrolling interests | 1 | 1 | ||||||||
Repurchase of common stock | (272) | (272) | ||||||||
Directors compensation | 2 | 2 | ||||||||
Employee stock plan issuance | 3 | 3 | ||||||||
Share-based payment activity | 22 | 22 | ||||||||
Balance, end of period at Dec. 31, 2016 | 3,908 | 1 | 1,686 | 2,493 | 0 | (277) | 5 | |||
Total comprehensive income | 342 | $ 341 | $ 249 | $ 92 | ||||||
Contributions from noncontrolling interests | 1 | 1 | ||||||||
Repurchase of common stock | (743) | (743) | ||||||||
Directors compensation | 2 | 2 | ||||||||
Employee stock plan issuance | 4 | 4 | ||||||||
Share-based payment activity | 18 | 18 | ||||||||
Balance, end of period at Dec. 31, 2017 | $ 3,531 | $ 1 | $ 967 | $ 2,742 | $ 0 | $ (185) | $ 6 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Hyatt Hotels Corporation, a Delaware corporation, and its consolidated subsidiaries (collectively "Hyatt Hotels Corporation") provide hospitality and other services on a worldwide basis through the development, ownership, operation, management, franchising, and licensing of hospitality and wellness related businesses. We develop, own, operate, manage, franchise, license, or provide services to a portfolio of properties consisting of full service hotels, select service hotels, resorts, and other properties, including branded spas and fitness studios, and timeshare, fractional, and other forms of residential or vacation properties. At December 31, 2017 , (i) we operated or franchised 331 full service hotels, comprising 128,051 rooms throughout the world, (ii) we operated or franchised 388 select service hotels, comprising 54,862 rooms, of which 343 hotels are located in the United States, and (iii) our portfolio of properties included 6 franchised all inclusive Hyatt-branded resorts, comprising 2,401 rooms, and 3 destination wellness resorts, comprising 399 rooms. At December 31, 2017 , our portfolio of properties operated in 58 countries around the world. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation —Our consolidated financial statements present the results of operations, financial position, and cash flows of Hyatt Hotels Corporation and its majority owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates —We are required to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying Notes. Actual results could differ materially from such estimated amounts. Revenue Recognition —Our revenues are primarily derived from the following sources and are generally recognized when services have been rendered: • Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased properties and are recognized when rooms are occupied and services have been rendered. Sales and occupancy taxes are recorded on a net basis in our consolidated statements of income . • Management and franchise fees earned from hotels managed and franchised worldwide: – Management fees primarily consist of a base fee, which is generally computed as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Base fee revenues are recognized when earned in accordance with the terms of the contract. We recognize incentive fees that would be due as if the contract were to terminate at that date, exclusive of any termination fees payable or receivable by us. – Realized gains from the sale of hotel real estate assets where we maintain substantial continuing involvement in the form of a long- term management contract are deferred and recognized as management fee revenue over the term of the underlying management contract. – Franchise fees consist of an initial application fee and continuing royalty fees calculated based on a percentage of gross room revenues and in certain circumstances, food and beverage revenues. Fees are recognized as they are earned and become due from the franchisee and when all material services have been substantially performed or satisfied by the franchisor. • Other revenues include revenues from our co-branded credit card and exhale. We recognize revenue from our co-branded credit card upon: (1) the sale of points to our third-party partner and (2) the fulfillment or expiration of a card member's promotional awards. • Other revenues from managed and franchised properties represent the reimbursement of costs incurred on behalf of the owners of hotel properties we manage and franchise. These costs relate primarily to payroll costs at managed properties where we are the employer, as well as reservations, sales, marketing, technology, and loyalty program costs at managed and franchised properties. Since the reimbursements are made based upon the costs incurred with no added margin, these revenues and corresponding expenses have no effect on our net income. Cash Equivalents —We consider all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Restricted Cash —We had restricted cash of $234 million and $76 million at December 31, 2017 and December 31, 2016 , respectively, which includes: • $207 million at December 31, 2017 related to sale proceeds from the disposition of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch pursuant to a like-kind exchange (see Note 7 ); • $12 million and $14 million , respectively, related to debt service on bonds acquired in connection with the acquisition of the entity that owned Grand Hyatt San Antonio (see Note 9 ); in addition, we have $11 million recorded in other assets in both periods; • $9 million related to our captive insurance subsidiary for minimum capital and surplus requirements in accordance with local insurance regulations (see Note 14 ); and • $40 million at December 31, 2016 related to sales proceeds from the 2014 dispositions of two Canadian hotels, as the Canadian tax regulations required a portion of the proceeds be classified as restricted until completion of regulatory review. The remaining restricted cash balances of $6 million and $13 million at December 31, 2017 and December 31, 2016 , respectively, relate to escrow deposits and other arrangements. These amounts are invested in interest- bearing accounts. Investments —We have investments in unconsolidated hospitality ventures recorded under the equity and cost methods. These investments are an integral part of our business and are strategically and operationally important to our overall results. When we receive a distribution from an investment, we determine whether it is a return on our investment or a return of our investment based on the underlying nature of the distribution. We assess investments in unconsolidated hospitality ventures for impairment quarterly. When there is indication a loss in value has occurred, we evaluate the carrying value in comparison to the estimated fair value of the investment. Fair value is based upon internally developed discounted cash flow models, third-party appraisals, and if appropriate, current estimated net sales proceeds from pending offers. The principal factors used in the discounted cash flow analysis requiring judgment are the projected future cash flows, the discount rate, and the capitalization rate assumptions. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. If the estimated fair value is less than carrying value, we use our judgment to determine if the decline in value is other than temporary. In determining this, we consider factors including, but not limited to, the length of time and extent of the decline, loss of value as a percentage of the cost, financial condition and near-term financial projections, our intent and ability to recover the lost value, and current economic conditions. Impairments deemed other than temporary are charged to equity earnings (losses) from unconsolidated hospitality ventures or other income (loss), net on our consolidated statements of income. For additional information about investments, see Note 3 . Marketable Securities —Our investments in marketable securities consist of various types of mutual funds, preferred shares, interest bearing money market funds, time deposits, common stock, and fixed income securities, including U.S. government obligations, obligations of other government agencies, corporate debt, mortgage-backed and asset-backed securities, and municipal and provincial notes and bonds and are classified as either trading, AFS, or HTM. • Trading securities—recorded at fair value based on listed market prices or dealer price quotations where available. Realized gains and losses on trading securities are reflected in net gains and interest income from marketable securities held to fund operating programs on our consolidated statements of income. • AFS securities—recorded at fair value as described in Note 4. Unrealized gains and losses on AFS securities are reported as part of accumulated other comprehensive loss on our consolidated balance sheets. Realized gains and losses on AFS securities are recognized in other income (loss), net on our consolidated statements of income. • HTM securities—debt security investments which we have the ability to hold until maturity and are recorded at amortized cost. AFS and HTM securities are assessed for impairment quarterly. To determine if an impairment is other than temporary, we consider the duration and severity of the loss position, the strength of the underlying collateral, the term to maturity, credit rating, and our intent to sell. For debt securities that are deemed other than temporarily impaired and there is no intent to sell, impairments are separated into the amount related to the credit loss, which is typically recorded in other income (loss), net on our consolidated statements of income and the amount related to all other factors, which is recorded in accumulated other comprehensive loss on our consolidated balance sheets. For debt securities that are deemed other than temporarily impaired and there is intent to sell, impairments in their entirety are recorded on our consolidated statements of income . For additional information about marketable securities, see Note 4 . Foreign Currency —The functional currency of our consolidated entities located outside the United States of America is generally the local currency. The assets and liabilities of these entities are translated into U.S. dollars at year- end exchange rates, and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in earnings. Gains and losses from foreign exchange rate changes related to intercompany receivables and payables of a long- term nature are generally included in accumulated other comprehensive loss. Gains and losses from foreign exchange rate movement related to intercompany receivables and payables that are not long- term are included in earnings. Financing Receivables —Financing arrangements represent contractual rights to receive money either on demand or on fixed or determinable dates and are recognized on our consolidated balance sheets at amortized cost. We recognize interest income as earned and provide an allowance for cancellations and defaults. Our financing receivables are composed of individual unsecured loans and other types of unsecured financing arrangements provided to hotel owners. These financing receivables generally have stated maturities and interest rates, however, the repayment terms vary and may be dependent upon future cash flows of the hotel. On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We determine our financing to hotel owners to be non-performing if interest or principal is greater than 90 days past due based on the contractual terms of the individual financing receivables, if an impairment charge is recorded for a loan, or if a provision is established for our other financing arrangements. If we consider a financing receivable to be non-performing, we place the financing receivable on non-accrual status. We individually assess all loans within financing receivables for impairment quarterly. This assessment is based on an analysis of several factors including current economic conditions and industry trends, as well as the specific risk characteristics of these loans including capital structure, loan performance, market factors, and the underlying hotel performance. When it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement or if projected future cash flows available for repayment of unsecured receivables indicate there is a collection risk, we measure the impairment based on the present value of projected future cash flows discounted at the loan’s effective interest rate. For impaired loans, we establish a specific loan loss reserve for the difference between the recorded investment in the loan and the estimated fair value. In addition to loans, we include other types of financing arrangements in unsecured financing to hotel owners which we do not assess individually for impairment. We regularly evaluate our reserves for these other financing arrangements. We write off financing to hotel owners when we determine the receivables are uncollectible and when all commercially reasonable means of recovering the receivable balances have been exhausted. We recognize interest income when received for impaired loans and financing receivables on non-accrual status which is recorded to other income (loss), net in our consolidated statements of income. Accrual of interest income is resumed when the receivable becomes contractually current and collection doubts are removed. For additional information about financing receivables, see Note 6 . Accounts Receivable —Our accounts receivable primarily consist of trade receivables due from guests for services rendered at our owned and leased properties and from hotel owners with whom we have management and franchise agreements for services rendered and for reimbursements of costs incurred on behalf of managed and franchised properties. We record an accounts receivable reserve when losses are probable, based on an assessment of past collection activity and current business conditions. Inventories —Inventories are comprised of operating supplies and equipment that have a period of consumption of two years or less, and food and beverage items at our owned and leased hotels which are generally valued at the lower of cost ( first- in, first- out) or net realizable value. At December 31, 2016, inventories also included two luxury villas and the associated land at Andaz Maui at Wailea Resort which were carried at the lower of cost or net realizable value. Property and Equipment and Definite- Lived Intangibles —Property and equipment and definite-lived intangibles are stated at cost, including interest incurred during development and construction periods, less accumulated depreciation and amortization. Depreciation and amortization are recognized over the estimated useful lives of the assets, primarily on the straight- line method. Useful lives assigned to property and equipment are as follows: Buildings and improvements 10-50 years Leasehold improvements The shorter of the lease term or useful life of asset Furniture and equipment 3-20 years Computers 3-7 years Useful lives assigned to definite-lived intangibles are as follows: Management and franchise agreement intangibles Initial term of management or franchise agreement Lease related intangibles Lease term Advanced booking intangibles Period of the advanced bookings We assess property and equipment and definite-lived intangibles for impairment quarterly. When events or circumstances indicate the carrying amount may not be recoverable, we evaluate the net book value of the assets for impairment by comparison to the projected undiscounted future cash flows of the assets. The principal factor used in the undiscounted cash flow analysis requiring judgment is the projected future operating cash flows, which are based on historical data, various internal estimates, and a variety of external resources, and are developed as part of our routine, long-term planning process. If the projected undiscounted future cash flows are less than the net book value of the assets, the fair value is determined based upon internally developed discounted cash flows of the assets, third-party appraisals or broker valuations, and if appropriate, current estimated net sales proceeds from pending offers. The principal factors used in the discounted cash flow analysis requiring judgment are the projected future operating cash flows, the discount rates, and the capitalization rate assumptions. The excess of the net book value over the estimated fair value is charged to asset impairments within our consolidated statements of income. We evaluate the carrying value of our property and equipment and definite-lived intangibles based on our plans, at the time, for such assets and consider qualitative factors such as future development in the surrounding area, status of local competition, and any significant adverse changes in the business climate. Changes to our plans, including a decision to dispose of or change the intended use of an asset, may have a material impact on the carrying value of the asset. For additional information about property and equipment and definite-lived intangibles, see Notes 5 and 8 , respectively. Acquisitions —Assets acquired and liabilities assumed in business combinations are recorded on our consolidated balance sheets at the respective acquisition dates based upon their estimated fair values, see Note 7 . The results of operations of businesses acquired have been included in our consolidated statements of income since their respective dates of acquisition. In certain circumstances, the purchase price allocations are based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision when we receive final information, including appraisals and other analyses. Under the supervision of management, independent third-party valuation specialists estimate the fair value of our properties or businesses acquired using various recognized valuation methods including the income approach, the cost approach, and the sales comparison approach, which are primarily based on Level Three assumptions. Assumptions utilized in determining the fair value under these approaches include, but are not limited to, historical financial results when applicable, projected cash flows, discount rates, capitalization rates, current market conditions, and comparable transactions. The fair value is then allocated to tangible and intangible assets with any remaining value assigned to goodwill, if applicable. Various assumptions are used when determining the value to allocate to each identifiable asset, including discount rates, capitalization rates, royalty rates, timing of future cash flows, and a variety of external sources. When we acquire the remaining ownership interest in or the property from an unconsolidated hospitality venture in a step acquisition, we estimate the fair value of our equity interest using the assumed cash proceeds we would receive from sale to a third party at a market sales price, which is determined using the aforementioned fair value methodologies and assumptions. Goodwill —Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As required, we evaluate goodwill for impairment annually, and do so during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. Goodwill impairment is determined by comparing the fair value of a reporting unit to its carrying amount. We evaluate the fair value of the reporting unit either by performing a qualitative or quantitative assessment. In any given year, we can elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If it is not more likely than not that the fair value is in excess of the carrying value, or we elect to bypass the qualitative assessment, we proceed to the quantitative assessment. When determining fair value, we utilize internally developed discounted future cash flow models, third-party appraisals or broker valuations and, if appropriate, current estimated net sales proceeds from pending offers. Under the discounted cash flow approach, we utilize various assumptions requiring judgment, including projected future cash flows, discount rates, and capitalization rates. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long- term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we record an impairment charge based on the amount by which the reporting unit’s carrying value exceeded its fair value, limited to the carrying amount of goodwill. The identified loss is recorded to asset impairments within our consolidated statements of income. For additional information about goodwill, see Note 8 . Indefinite-Lived Intangible Assets —We have certain indefinite-lived brand intangibles that were acquired through various business combinations. At the time of each respective acquisition, fair value was estimated using a relief from royalty methodology. As required, we evaluate indefinite-lived intangible assets for impairment annually, and do so during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. We use the relief from royalty method to estimate the fair value. When determining fair value, we utilize internally developed discounted future cash flow models, which include various assumptions requiring judgment, including projected future cash flows and market royalty rates. Our estimates of projected cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we record an impairment charge. The excess of the carrying value over the fair value is recorded to asset impairments within our consolidated statements of income. For additional information about indefinite-lived intangible assets, see Note 8 . Guarantees —We enter into performance guarantees related to certain hotels we manage. We also enter into debt repayment guarantees or other guarantees with respect to unconsolidated hospitality ventures, certain managed or franchised hotels, and other properties. We record a liability for the fair value of these guarantees at their inception date. In order to estimate the fair value, we use a Monte Carlo simulation to model the probability of possible outcomes. The valuation methodology requires that we make certain assumptions and judgments regarding: discount rates, volatility, hotel operating results, and hotel property sales prices. The fair value is not re-valued due to future changes in assumptions. The corresponding offset depends on the circumstances in which the guarantee was issued and is recorded to investments, intangibles, or expense. We amortize the liability for the fair value of a guarantee into income over the term of the guarantee using a systematic and rational, risk-based approach. Guarantees related to our managed or franchised hotels and other properties are amortized into income in other income (loss), net in our consolidated statements of income. Guarantees related to our unconsolidated hospitality ventures are amortized into equity earnings (losses) from unconsolidated hospitality ventures in our consolidated statements of income. On a quarterly basis, we evaluate the likelihood of funding under a guarantee. To the extent we determine an obligation to fund is both probable and estimable based upon performance during the period, we record a separate contingent liability in other income (loss), net or equity earnings (losses) from unconsolidated hospitality ventures. For additional information about guarantees, see Note 14 . Income Taxes —We account for income taxes to recognize the amount of taxes payable or refundable for the current year and the amount of deferred tax assets and liabilities resulting from the future tax consequences of differences between the financial statements and tax basis of the respective assets and liabilities. We recognize the financial statement effect of a tax position when, based on the technical merits of the uncertain tax position, it is more likely than not to be sustained on a review by taxing authorities. We review these estimates and make changes to recorded amounts of uncertain tax positions as facts and circumstances warrant. For additional information about income taxes, see Note 13 . Fair Value —We apply the provisions of fair value measurement to various financial instruments, which we measure at fair value on a recurring basis, and to various financial and nonfinancial assets and liabilities, which we measure at fair value on a nonrecurring basis. We disclose the fair value of our financial assets and liabilities based on observable market information where available, or on market participant assumptions. These assumptions are subjective in nature, involve matters of judgment, and, therefore, fair values cannot always be determined with precision. When determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy are as follows: Level One—Fair values based on unadjusted quoted prices in active markets for identical assets and liabilities; Level Two—Fair values based on quoted market prices for similar assets and liabilities in active markets, quoted prices in inactive markets for identical assets and liabilities, and inputs other than quoted market prices that are observable for the asset or liability; and Level Three—Fair values based on inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Valuation techniques could include the use of discounted cash flow models and similar techniques. We typically utilize the market approach and income approach for valuing our financial instruments. The market approach utilizes prices and information generated by market transactions involving identical or similar assets and liabilities and the income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). For instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the classification within the fair value hierarchy has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short- term nature of these items and their close proximity to maturity. The carrying value of restricted cash approximates fair value. The fair value of marketable securities is discussed in Note 4 ; the fair value of financing receivables is discussed in Note 6 ; the fair value of long- term debt is discussed in Note 9 ; and the fair value of our guarantee liabilities is discussed in Note 14 . Stock-Based Compensation —As part of our LTIP, we award SARs, RSUs, Performance Shares ("PSs"), and PSUs to certain employees and directors: • SARs —Each vested SAR gives the holder the right to the difference between the value of one share of our Class A common stock at the exercise date and the value of one share of our Class A common stock at the grant date. Vested SARs can be exercised over their life as determined in accordance with the LTIP. All SARs have a 10 -year contractual term, are settled in shares of our Class A common stock, and are accounted for as equity instruments. We record the compensation expense for SARs on a straight-line basis from the date of grant through the requisite service period. The exercise price of these SARs is the fair value of our common stock at the grant date, based on a valuation of the Company prior to the IPO, or the closing share price on the date of grant (as applicable). We recognize the effect of forfeitures for SARs as they occur. • RSUs —Each vested RSU will generally be settled by delivery of a single share of our Class A common stock and therefore is accounted for as an equity instrument. In certain situations, we also grant a limited number of cash-settled RSUs, which are recorded as a liability instrument. The cash-settled RSUs represent an insignificant portion of certain previous grants. The value of the RSUs is based upon the fair value of our common stock at the grant date, based upon a valuation of the Company prior to IPO, or the closing stock price of our Class A common stock for the December 2009 award and all subsequent awards. Awards issued prior to our November 2009 IPO are deferred in nature and will be settled once all tranches of the award have fully vested or otherwise as provided in the relevant agreements, while all awards issued in December 2009 and later will be settled as each individual tranche vests under the relevant agreements. We record compensation expense over the requisite service period of the individual grant and record the effect of forfeitures as they occur. • PSs —The Company has granted PSs to certain executive officers. The number of PSs that will ultimately vest with no further restrictions on transfer depends upon the performance of the Company at the end of the applicable three-year performance period relative to the applicable performance target. The PSs vest in full if the maximum performance metric is achieved and are generally subject to continued employment through the applicable performance period. At the end of the performance period, the PSs that do not vest will be forfeited. The PSs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. PSs will be settled in shares of our Class A common stock. • PSUs —The Company has granted PSUs to certain executive officers. PSUs vest and are settled in Class A common stock based upon the performance of the Company through the end of the applicable three-year performance period relative to the applicable performance target and are generally subject to continued employment through the applicable performance period. The PSUs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. For additional information about stock-based compensation, see Note 16. Loyalty Program —We operate the World of Hyatt loyalty program for the benefit of the Hyatt portfolio of properties owned, operated, managed, franchised, or licensed by us during the period of their participation in the loyalty program. The loyalty program is primarily funded through contributions from eligible revenues from loyalty program members and we use these funds for the payment of operating expenses and redemption of member awards associated with the loyalty program. We charge the cost of operating the loyalty program, including the estimated cost of award redemption, to the properties based on members’ qualified expenditures. Due to the requirement under the loyalty program that the properties reimburse us for the program’s operating costs, we recognize this revenue from properties through other revenues from managed and franchised properties at the time such costs are incurred and expensed. We defer revenue received from the properties equal to the actuarially determined estimate of our future redemption obligation. Upon the redemption of points, we recognize the previously deferred revenue through other revenues from managed and franchised properties and recognize the corresponding expense relating to the cost of the awards redeemed through other costs from managed and franchised properties. Revenue is recognized by the properties when the points are redeemed, and expenses are recognized when the points are earned by the members. We actuarially determine the estimate of the future redemption obligation based on statistical formulas that project the timing of future point redemption based on historical experience, including an estimate of the breakage for points that will never be redeemed, and an estimate of the points that will eventually be redeemed. Actual expenditures for the program may differ from the actuarially determined liability. The loyalty program is financed by payments from the properties and returns on marketable securities. We invest amounts received from the properties in marketable securities which are included in other current and noncurrent assets (see Note 4 ). The noncurrent liabilities of the loyalty program are included in other long-term liabilities (see Note 12 ). Assets and liabilities of the loyalty program are as follows: December 31, 2017 December 31, 2016 Current assets $ 171 $ 150 Noncurrent assets 298 296 Total assets $ 469 $ 446 Current liabilities $ 171 $ 150 Noncurrent liabilities 298 296 Total liabilities $ 469 $ 446 The current liabilities include $152 million and $139 million recorded in accrued expenses and other current liabilitie |
Equity and Cost Method Investme
Equity and Cost Method Investments | 12 Months Ended |
Dec. 31, 2017 | |
Equity And Cost Method Investments [Abstract] | |
Equity and Cost Method Investments | EQUITY AND COST METHOD INVESTMENTS December 31, 2017 December 31, 2016 Equity method investments $ 184 $ 180 Cost method investments 27 6 Total investments $ 211 $ 186 Of our total investment balance at December 31, 2017 and December 31, 2016 , $190 million and $186 million , respectively, were recorded in our owned and leased hotels segment. The carrying values and ownership percentages of our unconsolidated investments in hospitality ventures accounted for under the equity method were as follows: Ownership interests Investment balance December 31, 2017 December 31, 2016 Juniper Hotels Private Limited 50.0 % $ 26 $ 37 Macae Partners SARL 70.0 % 17 7 San Jose Hotel Partners, LLC 40.0 % 16 15 Four One Five, LLC 44.7 % 16 15 Hotel Am Belvedere GmbH & Co KG 50.0 % 15 12 Hotel Hoyo Uno, S. de R.L. de C.V. 40.0 % 15 13 Rio Preto Partners SARL 70.0 % 13 14 Desarrolladora Hotelera Acueducto, S. de R.L. de C.V. 50.0 % 13 13 HH Nashville JV Holdings, LLC 50.0 % 12 7 Glendale Hotel Properties, LLC 50.0 % 11 — Playa Hotels & Resorts BV — % — 23 Other 30 24 Total $ 184 $ 180 The following tables present summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method: Years Ended December 31, 2017 2016 2015 Total revenues $ 832 $ 1,229 $ 1,079 Gross operating profit 289 398 312 Income from continuing operations 54 160 33 Net income 54 160 33 December 31, 2017 December 31, 2016 Current assets $ 215 $ 443 Noncurrent assets 1,308 2,701 Total assets $ 1,523 $ 3,144 Current liabilities $ 156 $ 385 Noncurrent liabilities 1,224 2,037 Total liabilities $ 1,380 $ 2,422 During 2017, we had the following activity: • In conjunction with the sale of Avendra, an equity method investment within our Americas management and franchising segment, to Aramark, we received net proceeds of approximately $217 million . We recorded a gain of $217 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. • We sold our ownership interest in an equity method investment within our owned and leased hotels segment for which we received proceeds of $8 million . We recorded a gain of $3 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. • Two unconsolidated hospitality ventures, which are classified as equity method investments within our owned and leased hotels segment, sold two Hyatt Place hotels. We received proceeds of $4 million and recorded a gain of $3 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. During 2016, we had the following activity: • We purchased our partners' interests in Andaz Maui at Wailea Resort. The transaction was accounted for as a step acquisition, and we recorded a gain of $14 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. See Note 7 for further discussion of our acquisition. • We sold our ownership interest in an equity method investment within our owned and leased hotels segment for which we received proceeds of $4 million . We recorded a gain of $3 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. • Two unconsolidated hospitality ventures, which are classified as equity method investments within our owned and leased hotels segment, sold five Hyatt Place hotels, for which we received combined proceeds of $15 million . We recorded gains of $7 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. During 2015, we had the following activity: • Unconsolidated hospitality ventures, which are classified as equity method investments within our owned and leased hotels segment, sold two Hyatt Place hotels for which we received proceeds of $16 million . We recorded gains of $13 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. • We sold an entity which held an interest in one of our foreign currency denominated equity method investments within our owned and leased hotels segment, for which we received proceeds of $3 million . In connection with the sale, we released $21 million of accumulated foreign currency translation losses to equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. During 2017 , 2016 , and 2015 , we recorded $3 million , $9 million , and $0 , respectively, in impairment charges in equity earnings (losses) from unconsolidated hospitality ventures. The impairment charges in 2017 relate to one unconsolidated hospitality venture which is accounted for as an equity method investment. The impairment charges in 2016 relate to four unconsolidated hospitality ventures which are accounted for as equity method investments. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities | MARKETABLE SECURITIES We hold marketable securities to fund certain operating programs and for investment purposes. Additionally, we periodically transfer available cash and cash equivalents to purchase marketable securities for investment purposes. Marketable Securities Held to Fund Operating Programs —Marketable securities held to fund operating programs, which are recorded at fair value and included on our consolidated balance sheets, were as follows: December 31, 2017 December 31, 2016 Loyalty program (Note 2) $ 403 $ 394 Deferred compensation plans held in rabbi trusts (Note 11) 402 352 Captive insurance companies 111 65 Total marketable securities held to fund operating programs $ 916 $ 811 Less current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets (156 ) (109 ) Marketable securities held to fund operating programs included in other assets $ 760 $ 702 Net gains and interest income from marketable securities held to fund operating programs on our consolidated statements of income included realized and unrealized gains and losses and interest income related to the following: Years Ended December 31, 2017 2016 2015 Loyalty program $ 2 $ 2 $ 1 Deferred compensation plans held in rabbi trusts 45 17 3 Total net gains and interest income from marketable securities held to fund operating programs $ 47 $ 19 $ 4 Our captive insurance companies hold marketable securities which are classified as AFS debt securities and are invested in U.S. government agencies, time deposits, and corporate debt securities. We classify these investments as current or long-term, based on their contractual maturity dates, which range from 2018 through 2022. Marketable Securities Held for Investment Purposes —Marketable securities held for investment purposes, which are recorded at fair value and included on our consolidated balance sheets, were as follows: December 31, 2017 December 31, 2016 Interest bearing money market funds $ 26 $ 106 Time deposits 37 45 Preferred shares — 290 Common shares 131 — Total marketable securities held for investment purposes $ 194 $ 441 Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (63 ) (151 ) Marketable securities held for investment purposes included in other assets $ 131 $ 290 Preferred shares— During the year ended December 31, 2013, we invested $271 million in Playa for convertible redeemable preferred shares which were classified as an AFS debt security. The fair value of the preferred shares was: 2017 2016 Fair value at January 1 $ 290 $ 335 Gross unrealized gains — 19 Gross unrealized losses (54 ) (29 ) Realized losses (40 ) (6 ) Interest income 94 12 Cash redemption (290 ) (41 ) Fair value at December 31 $ — $ 290 In October 2016, Playa redeemed 3,458,530 of our preferred shares plus accrued and unpaid paid in kind ("PIK") dividends thereon for $41 million . In March 2017, Playa completed a business combination with Pace Holdings Corporation ("Pace"), and our preferred shares plus accrued and unpaid PIK dividends were redeemed in full for $290 million . Upon redemption, we recorded $94 million of interest income and $40 million of realized losses in other income (loss), net on our consolidated statements of income. The realized losses were the result of a difference between the fair value of the initial investment and the contractual redemption price of $8.40 per share. Prior to the redemption, the preferred shares were classified as a Level Three fair value measurement. At December 31, 2016, as a result of Playa's potential Pace business combination or potential future Playa IPO, we utilized a hybrid of the option-pricing model and the probability-weighted expected return method, to estimate the fair value of Playa's preferred shares. The hybrid model included various scenarios, such as the successful completion of the Pace business combination, potential future Playa IPO with assumptions around conversion and redemption, as well as a scenario using the option-pricing model. We assigned a probability to each scenario to arrive at the estimated fair value at December 31, 2016. Our scenarios included assumptions regarding (i) the successful completion of the Pace business combination, (ii) a potential range of IPO prices and size of the offering, and (iii) conversion of up to $50 million of our preferred shares into common shares of Playa. The option-pricing model scenario included assumptions regarding the expected term, risk-free interest rate over the expected term, volatility, dividend yield, and enterprise value. Financial forecasts were used in the computation of the enterprise value using the income approach, based on assumed revenue growth rates and operating margin levels. The risks associated with achieving these forecasts were assessed in selecting the appropriate weighted-average cost of capital. The option-pricing scenarios included various assumptions as follows: December 31, 2016 Expected term 1 year Risk-free interest rate 0.85 % Volatility 46.5 % Dividend yield 12.0 % Common shares —Prior to the Playa business combination, we accounted for our common share investment in Playa as an equity method investment. As a result of the Playa business combination, Playa N.V. is publicly traded on the NASDAQ and our ownership percentage was diluted to 11.57% . As we no longer have the ability to significantly influence Playa N.V., our investment was recharacterized as an AFS equity security in March 2017. The fair value of the common shares is classified as Level One in the fair value hierarchy as we are able to obtain market available pricing information. The remeasurement of our investment at fair value resulted in unrealized gains recorded in other comprehensive income of $112 million at December 31, 2017 . In conjunction with the Playa business combination, we also received 1,738,806 of founders' warrants to purchase 579,602 additional shares of Playa N.V.'s common stock and 237,110 of earn-out warrants. During the year ended December 31, 2017 , we completed a non-cash exchange of the founders' warrants for additional common shares in Playa N.V. HTM Debt Securities —At December 31, 2017 and December 31, 2016 , we had investments in HTM debt securities of $47 million and $27 million , respectively, which are investments in third-party entities that own certain of our hotels and are recorded within other assets in our consolidated balance sheets. The securities are mandatorily redeemable between 2020 and 2025. The amortized cost of our investments approximate fair value. We estimated the fair value of our investments using internally developed discounted cash flow models based on current market inputs for similar types of arrangements. Based upon the lack of available market data, our investments are classified as Level Three within the fair value hierarchy. The primary sensitivity in these calculations is based on the selection of appropriate discount rates. Fluctuations in these assumptions could result in different estimates of fair value. Fair Value —We measured the following financial assets at fair value on a recurring basis: December 31, 2017 Cash and cash equivalents Short-term investments Prepaids and other assets Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest bearing money market funds $ 75 $ 75 $ — $ — $ — Mutual funds 402 — — — 402 Common Shares 131 — — — 131 Level Two - Significant Other Observable Inputs Time deposits 50 — 39 — 11 U.S. government obligations 158 — — 38 120 U.S. government agencies 47 — 2 7 38 Corporate debt securities 179 — 8 33 138 Mortgage-backed securities 25 — — 6 19 Asset-backed securities 40 — — 10 30 Municipal and provincial notes and bonds 3 — — 1 2 Total $ 1,110 $ 75 $ 49 $ 95 $ 891 December 31, 2016 Cash and cash equivalents Short-term investments Prepaids and other assets Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest bearing money market funds $ 114 $ 114 $ — $ — $ — Mutual funds 352 — — — 352 Level Two - Significant Other Observable Inputs Time deposits 59 — 46 — 13 U.S. government obligations 142 — — 33 109 U.S. government agencies 53 — 9 8 36 Corporate debt securities 181 — 1 35 145 Mortgage-backed securities 22 — — 5 17 Asset-backed securities 34 — — 8 26 Municipal and provincial notes and bonds 5 — — 1 4 Level Three - Significant Unobservable Inputs Preferred shares 290 — — — 290 Total $ 1,252 $ 114 $ 56 $ 90 $ 992 During the years ended December 31, 2017 and December 31, 2016 , there were no transfers between levels of the fair value hierarchy. Our policy is to recognize transfers in and transfers out as of the end of each quarterly reporting period. We do not have non- financial assets or non- financial liabilities required to be measured at fair value on a recurring basis. We invest a portion of our cash into short- term interest bearing money market funds that have a maturity of less than 90 days. Consequently, the balances are recorded in cash and cash equivalents. The funds are held with open- ended registered investment companies, and the fair value of the funds is classified as Level One as we are able to obtain market available pricing information on an ongoing basis. The fair value of our mutual funds is classified as Level One as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Time deposits are recorded at par value, which approximates fair value, and are classified as Level Two. The remaining securities, other than our investment in preferred shares, are classified as Level Two due to the use and weighting of multiple market inputs being considered in the final price of the security. Market inputs include quoted market prices from active markets for identical securities, quoted market prices for identical securities in inactive markets, and quoted market prices in active and inactive markets for similar securities. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET December 31, 2017 December 31, 2016 Land $ 916 $ 901 Buildings 3,880 4,125 Leasehold improvements 210 202 Furniture, equipment, and computers 1,204 1,316 Construction in progress 122 90 6,332 6,634 Accumulated depreciation (2,298 ) (2,364 ) Total property and equipment, net $ 4,034 $ 4,270 Years Ended December 31, 2017 2016 2015 Depreciation expense $ 335 $ 315 $ 289 The net book value of capital leased assets at December 31, 2017 and December 31, 2016 was $10 million and $12 million , respectively, which is net of accumulated depreciation of $12 million and $10 million , respectively. Interest capitalized as a cost of property and equipment was $4 million , $3 million , and $6 million for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively. |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables | FINANCING RECEIVABLES December 31, 2017 December 31, 2016 Unsecured financing to hotel owners $ 127 $ 119 Less allowance for losses (108 ) (100 ) Financing receivables, net of allowances $ 19 $ 19 During the year ended December 31, 2015, we settled all of our outstanding secured financing receivables to hotel owners, resulting in net cash proceeds of $26 million and a net recovery of $8 million , which was recognized in other income (loss), net on our consolidated statements of income during the year ended December 31, 2015. Allowance for Losses and Impairments — The following table summarizes the activity in our unsecured financing receivables allowance: 2017 2016 Allowance at January 1 $ 100 $ 98 Provisions 6 10 Write-offs — (8 ) Other adjustments 2 — Allowance at December 31 $ 108 $ 100 Credit Monitoring — Our unsecured financing receivables were as follows: December 31, 2017 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 13 $ — $ 13 $ — Impaired loans (1) 59 (59 ) — 59 Total loans 72 (59 ) 13 59 Other financing arrangements 55 (49 ) 6 49 Total unsecured financing receivables $ 127 $ (108 ) $ 19 $ 108 (1) The unpaid principal balance was $44 million and the average recorded loan balance was $58 million at December 31, 2017 . December 31, 2016 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 13 $ — $ 13 $ — Impaired loans (2) 56 (56 ) — 56 Total loans 69 (56 ) 13 56 Other financing arrangements 50 (44 ) 6 44 Total unsecured financing receivables $ 119 $ (100 ) $ 19 $ 100 (2) The unpaid principal balance was $43 million and the average recorded loan balance was $57 million at December 31, 2016 . Fair Value — We estimated the fair value of financing receivables, which are classified as Level Three in the fair value hierarchy, to be approximately $20 million and $19 million at December 31, 2017 and December 31, 2016 , respectively. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | ACQUISITIONS AND DISPOSITIONS Acquisitions Exhale —During the year ended December 31, 2017 , we acquired the equity of exhale from an unrelated third party for a purchase price of $16 million , net of $1 million cash acquired. Assets acquired and recorded within corporate and other primarily include a $9 million brand indefinite-lived intangible and $4 million of goodwill, of which $3 million is deductible for tax purposes. Miraval —During the year ended December 31, 2017 , we acquired Miraval from an unrelated third party. The transaction included the Miraval Life in Balance Spa brand, Miraval Arizona Resort & Spa in Tucson, Arizona, Travaasa Resort in Austin, Texas, and the option to acquire Cranwell Spa & Golf Resort ("Cranwell") in Lenox, Massachusetts. We subsequently exercised our option and acquired approximately 95% of Cranwell during the year ended December 31, 2017 . Total cash consideration for Miraval was $237 million . The following table summarizes the fair value of the identifiable net assets acquired in the acquisition of Miraval, which is recorded within corporate and other: Current assets, net of cash acquired $ 1 Property and equipment 173 Indefinite-lived intangibles (1) 37 Management agreement intangibles (2) 14 Goodwill (3) 19 Other definite-lived intangibles (4) 7 Total assets $ 251 Current liabilities $ 12 Deferred tax liabilities 3 Total liabilities 15 Total net assets acquired attributable to Hyatt Hotels Corporation 236 Total net assets acquired attributable to noncontrolling interests 1 Total net assets acquired $ 237 (1) Includes an intangible attributable to the Miraval brand. (2) Amortized over a useful life of 20 years. (3) The goodwill, of which $8 million is deductible for tax purposes, is attributable to Miraval's reputation as a renowned provider of wellness and mindfulness experiences, the extension of the Hyatt brand beyond traditional hotel stays, and the establishment of deferred tax liabilities. (4) Amortized over useful lives ranging from two to seven years. In conjunction with the acquisition of Miraval, a consolidated hospitality venture for which we are a managing partner (the "Miraval Venture") issued $9 million of redeemable preferred shares to unrelated third-party investors. The preferred shares are non-voting, except as required by applicable law and certain contractual approval rights, and have liquidation preference over all other classes of securities within the Miraval Venture. The redeemable preferred shares earn a return of 12% and a redemption premium that increases over time depending on the length of time the redeemable preferred shares are outstanding. The shares are classified as a redeemable noncontrolling interest in preferred shares of a subsidiary, which are presented between liabilities and equity on our consolidated balance sheets and carried at the current redemption value. Andaz Maui at Wailea Resort —We previously held an equity method investment with a 65.7% interest and had a $180 million investment in the entities that own Andaz Maui at Wailea Resort. During the year ended December 31, 2016 , we purchased the remaining 34.3% for a net purchase price of approximately $136 million , net of $12 million of cash acquired. This transaction was accounted for as a step acquisition and we recorded a gain of $14 million in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. The purchase of the remaining 34.3% interest was structured and identified as replacement property in a potential reverse like-kind exchange, but the allowable period to complete the exchange expired during 2017. In conjunction with the acquisition, the outstanding debt at the unconsolidated hospitality venture was repaid in full and we were released from our debt repayment guarantee obligation, see Note 14 . The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed, which are recorded in our owned and leased hotels segment at the date of acquisition: Cash and cash equivalents $ 12 Receivables 3 Inventories 13 Prepaids and other assets 1 Property and equipment 323 Total assets $ 352 Current liabilities $ 10 Total liabilities 10 Total net assets acquired $ 342 Land Held for Development —During the year ended December 31, 2016 , we acquired land of $25 million from an unrelated third party with the intent to develop a hotel in Philadelphia. Royal Palms Resort and Spa —During the year ended December 31, 2016 , we acquired Royal Palms Resort and Spa in Phoenix, Arizona, from an unrelated third party for a net purchase price of approximately $86 million , net of $2 million of proration adjustments. Due to the iconic nature of the hotel, we retained the Royal Palms Resort and Spa name and added the hotel to The Unbound Collection by Hyatt. Of the $88 million purchase price, assets acquired and recorded in our owned and leased hotels segment consist of $75 million of property and equipment, a $9 million indefinite-lived brand intangible, and $1 million of advanced bookings intangibles. We also recorded $3 million of management agreement intangibles in our Americas management and franchising segment, which are being amortized over a useful life of 20 years. The Confidante Miami Beach —During the year ended December 31, 2016 , we acquired Thompson Miami Beach for a purchase price of approximately $238 million , from a seller indirectly owned by a limited partnership affiliated with the brother of our Executive Chairman. Of the $238 million purchase price, assets acquired consist of $228 million of property and equipment, which was recorded in our owned and leased hotels segment, and $10 million of management agreement intangibles, which were recorded in our Americas management and franchising segment and are being amortized over a useful life of 20 years. We rebranded this hotel as The Confidante Miami Beach and added the hotel to The Unbound Collection by Hyatt. Dispositions Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course —During the year ended December 31, 2017 , we sold Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course to an unrelated third party for $58 million , net of closing costs and proration adjustments, and entered into a long-term franchise agreement with the owner of the property. The sale resulted in a pre-tax gain of $17 million , which was recognized in gains (losses) on sales of real estate on our consolidated statements of income during the year ended December 31, 2017 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa —During the year ended December 31, 2017 , we sold Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa to an unrelated third party as a portfolio for $296 million , net of proration adjustments and closing costs, and entered into a long-term management agreement for each property upon sale. The sale resulted in a pre-tax gain of $160 million , which was deferred and is being recognized in management and franchise fees over the term of the management agreements within our Americas management and franchising segment. The operating results and financial position of these hotels prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Grand Cypress —During the year ended December 31, 2017 , we sold Hyatt Regency Grand Cypress to an unrelated third party for $202 million , net of closing costs and proration adjustments, and entered into a long-term management agreement with the owner of the property. The sale resulted in a pre-tax gain of $26 million , which was deferred and is being recognized in management and franchise fees over the term of the management agreement within our Americas management and franchising segment. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Louisville —During the year ended December 31, 2017 , we sold Hyatt Regency Louisville to an unrelated third party for $65 million , net of closing costs and proration adjustments, and entered into a long-term franchise agreement with the owner of the property. The sale resulted in a pre-tax gain of $35 million , which was recognized in gains (losses) on sales of real estate on our consolidated statements of income during the year ended December 31, 2017 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Land Held for Development —During the year ended December 31, 2017 , we sold land and construction in progress for $29 million to an unconsolidated hospitality venture in which we have a 50% ownership interest, with the intent to complete development of a hotel in Glendale, California. Hyatt Regency Birmingham (U.K.) —During the year ended December 31, 2016 , we sold the shares of the company that owns Hyatt Regency Birmingham (U.K.) to an unrelated third party for approximately $49 million , net of closing costs and proration adjustments, and entered into a long-term management agreement with the owner of the property. The sale resulted in a pre-tax gain of $17 million , which was deferred and is being recognized in management and franchise fees over the term of the management agreement, within our EAME/SW Asia management and franchising segment. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Andaz 5th Avenue —During the year ended December 31, 2016 , we sold Andaz 5th Avenue to an unrelated third party for $240 million , net of $10 million of closing costs and proration adjustments, and entered into a long-term management agreement with the owner of the property. The sale resulted in a pre-tax loss of $23 million which was recognized in gains (losses) on sales of real estate on our consolidated statements of income during the year ended December 31, 2016 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Indianapolis —During the year ended December 31, 2015 , we sold Hyatt Regency Indianapolis for $69 million , net of closing costs, to an unrelated third party, and entered into a long-term franchise agreement with the owner of the property. The sale resulted in a pre-tax gain of $8 million , which was recognized in gains (losses) on sales of real estate on our consolidated statements of income during the year ended December 31, 2015 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Land Held for Development —During the year ended December 31, 2015 , we sold land and construction in progress for $14 million to an unconsolidated hospitality venture in which Hyatt has a 40% ownership interest. A Hyatt House Hotel —During the year ended December 31, 2015 , we sold a select service property for $5 million , net of closing costs, to an unrelated third party resulting in a pre-tax gain of $1 million which was recognized in gains (losses) on sales of real estate on our consolidated statements of income during the year ended December 31, 2015 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Like- Kind Exchange Agreements Periodically, we enter into like-kind exchange agreements upon the disposition or acquisition of certain hotels. Pursuant to the terms of these agreements, the proceeds from the sales are placed into an escrow account administered by a qualified intermediary. The proceeds are recorded as restricted cash on our consolidated balance sheets and released (i) if they are utilized as part of a like-kind exchange agreement, (ii) if we do not identify a suitable replacement property within 45 days after the agreement date, or (iii) when a like-kind exchange agreement is not completed within the remaining allowable time period. In conjunction with the sale of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch during the year ended December 31, 2017 , proceeds of $207 million were held as restricted for use in a potential like-kind exchange. In conjunction with the sales of Hyatt Regency Grand Cypress and Hyatt Regency Louisville during the year ended December 31, 2017 , proceeds were initially held as restricted for use in a potential like-kind exchange. However, since suitable replacement properties were not identified within the specified 180 and 45 day periods, respectively, the proceeds from these sales were subsequently released. The purchases of Royal Palms Resort and Spa and The Confidante Miami Beach during the year ended December 31, 2016 were initially structured and identified as replacement property in potential reverse like-kind exchange agreements, but the allowable periods to complete an exchange expired during the first quarter of 2017 and the fourth quarter of 2016, respectively. In conjunction with the sale of five Hyatt Place properties during the year ended December 31, 2014 , we entered into like-kind exchange agreements with a qualified intermediary. Pursuant to the like-kind exchange agreements, the combined net proceeds of $51 million from the sales of these hotels were placed into an escrow account administered by a qualified intermediary. During the year ended December 31, 2015 , the qualified intermediary released the net proceeds as the identified replacement property was not acquired to complete the exchange. In conjunction with the sale of 38 select service properties during the year ended December 31, 2014 , we entered into like-kind exchange agreements with a qualified intermediary for 27 of the select service hotels. In the fourth quarter of 2014, we classified net proceeds of $403 million from the sale of these 27 properties as restricted cash. Of this total, the qualified intermediary utilized net proceeds of $311 million related to 21 of the select service hotels to acquire Park Hyatt New York. During the year ended December 31, 2015 , the qualified intermediary utilized the remaining $92 million of net proceeds related to the other six hotels to complete a like-kind exchange in conjunction with the acquisition of Hyatt Regency Lost Pines Resort and Spa. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET Owned and Leased Hotels Americas Management and Franchising Corporate and Other Total Balance at January 1, 2016 Goodwill $ 191 $ 33 $ — $ 224 Accumulated impairment losses (95 ) — — (95 ) Goodwill, net $ 96 $ 33 $ — $ 129 Activity during the year Foreign exchange (1) (4 ) — — (4 ) Balance at December 31, 2016 Goodwill 187 33 — 220 Accumulated impairment losses (95 ) — — (95 ) Goodwill, net $ 92 $ 33 $ — $ 125 Activity during the year Additions — — 23 23 Foreign exchange (1) 2 — — 2 Balance at December 31, 2017 Goodwill 189 33 23 245 Accumulated impairment losses (95 ) — — (95 ) Goodwill, net $ 94 $ 33 $ 23 $ 150 (1) Foreign exchange translation adjustments related to the goodwill associated with Hyatt Regency Mexico City. December 31, 2017 Weighted average useful lives December 31, 2016 Management and franchise agreement intangibles $ 653 24 $ 589 Lease related intangibles 127 110 115 Brand and other indefinite-lived intangibles 53 — 16 Advanced booking intangibles 9 6 11 Other definite-lived intangibles 9 11 6 851 737 Accumulated amortization (168 ) (138 ) Intangibles, net $ 683 $ 599 Years Ended December 31, 2017 2016 2015 Amortization expense $ 31 $ 27 $ 31 We estimate amortization expense for definite-lived intangibles as follows: Years Ending December 31, 2018 $ 33 2019 32 2020 33 2021 32 2022 32 During the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 , we did no t record any impairment charges. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT December 31, 2017 December 31, 2016 $196 million senior unsecured notes maturing in 2019—6.875% $ 196 $ 196 $250 million senior unsecured notes maturing in 2021—5.375% 250 250 $350 million senior unsecured notes maturing in 2023—3.375% 350 350 $400 million senior unsecured notes maturing in 2026—4.850% 400 400 Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A 130 130 Contract Revenue Bonds, Senior Taxable Series 2005B 55 59 Floating average rate construction loan 70 79 Revolving credit facility — 100 Other 1 1 Long-term debt before capital lease obligations 1,452 1,565 Capital lease obligations 13 15 Total long-term debt 1,465 1,580 Less current maturities (11 ) (119 ) Less unamortized discounts and deferred financing fees (14 ) (16 ) Total long-term debt, net of current maturities $ 1,440 $ 1,445 Under existing agreements, maturities of debt for the next five years and thereafter are as follows: Years Ending December 31, 2018 $ 11 2019 207 2020 12 2021 262 2022 12 Thereafter 961 Total $ 1,465 Senior Notes —At December 31, 2017 and December 31, 2016 , we had various series of senior unsecured notes, as further defined below, (the "Senior Notes"). Interest on the Senior Notes is payable semi-annually. We may redeem all or a portion of the Senior Notes at any time at 100% of the principal amount of the Senior Notes redeemed together with the accrued and unpaid interest, plus a make- whole amount, if any. The amount of any make- whole payment depends, in part, on the yield of U.S. Treasury securities with a comparable maturity to the Senior Notes at the date of redemption. A summary of the terms of the Senior Notes, by year of issuance, is as follows: • In 2009, we issued $250 million of 6.875% senior notes due 2019, at an issue price of 99.864% (the "2019 Notes"). Following a cash tender offer during the year ended December 31, 2013, $196 million aggregate principal amount of 2019 Notes remains outstanding. • In 2011, we issued $250 million of 5.375% senior notes due 2021, at an issue price of 99.846% (the "2021 Notes"). • In 2013, we issued $350 million of 3.375% senior notes due 2023 at an issue price of 99.498% (the "2023 Notes"). • In 2016, we issued $400 million of 4.850% senior notes due 2026, at an issue price of 99.920% (the "2026 Notes"). We received net proceeds of $396 million from the sale of the 2026 Notes, after deducting discounts and offering expenses of approximately $4 million . We used a portion of the net proceeds to pay for the redemption of the 2016 Notes (as described below), with the remaining proceeds intended to be used for general corporate purposes. • During the year ended December 31, 2016 , we fully redeemed $250 million of 3.875% senior notes due 2016 (the "2016 Notes"), which represented the aggregate principal amount outstanding. The redemption price, which was calculated in accordance with the terms of the 2016 Notes and included principal and accrued interest plus a make-whole premium, was $254 million . The make-whole premium was recorded within other income (loss), net on our consolidated statements of income, see Note 20 . Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A and Contract Revenue Bonds, Senior Taxable Series 2005B —During the year ended December 31, 2013, we acquired our partner's interest in the entity that owned Grand Hyatt San Antonio, and as a result, we consolidated $198 million of bonds, net of the $9 million bond discount, which is being amortized over the life of the bonds. The construction was financed in part by The City of San Antonio, Texas Convention Center Hotel Finance Corporation ("Texas Corporation"), a non-profit local government corporation created by the City of San Antonio, Texas for the purpose of providing financing for a portion of the costs of constructing the hotel. On June 8, 2005, the Texas Corporation issued $130 million of original principal amount Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A ("Series 2005A Bonds") and $78 million of original principal amount Contract Revenue Bonds, Senior Taxable Series 2005B ("Series 2005B Bonds"). The Series 2005A Bonds mature between 2034 and 2039, with interest ranging from 4.75% to 5.00% and the remaining Series 2005B Bonds mature between 2020 and 2028, with interest ranging from 5.1% to 5.31% . The loan payments are required to be funded solely from net operating revenues of Grand Hyatt San Antonio and in the event that net operating revenues are not sufficient to pay debt service, the Texas Corporation under certain circumstances will be required to provide certain tax revenue to pay debt service on the 2005 Series bonds. The indenture allows for optional early redemption of the Series 2005B bonds subject to make-whole payments at any time with consent from the Texas Corporation and beginning in 2015 for the Series 2005A Bonds. Interest is payable semi-annually. Floating Average Rate Construction Loan —During the year ended December 31, 2012, we obtained a secured construction loan with Banco Nacional de Desenvolvimento Econômico e Social - BNDES ("BNDES") in order to develop Grand Hyatt Rio de Janeiro. The loan is split into four separate sub-loans with different interest rates for each such sub-loan. All four sub-loans mature in 2023, with options to extend the maturity up to 2031 for sub-loans (a) and (b), subject to the fulfillment of certain conditions. Borrowings under the four sub-loans bear interest at the following rates, depending on the applicable sub-loan (a) the variable rate published by BNDES plus 2.92% , (b) the Brazilian Long Term Interest Rate - TJLP plus 3.92% , (c) 2.5% and (d) the Brazilian Long Term Interest Rate - TJLP, with the interest rates referred to in sub-loans (a) and (b) subject to reduction upon the delivery of certain certifications. On sub-loans (b) and (d), when the TJLP rate exceeds 6% , the amount corresponding to the TJLP portion above 6% is required to be capitalized daily. At December 31, 2017 , the weighted average interest rates for the sub-loans we have drawn upon is 7.93% . The outstanding balance of the sub-loan subject to the interest rate described in (a) above is subject to adjustment on a daily basis based on BNDES’s calculation of the weighted average of exchange rate variations related to foreign currency funds raised by BNDES in foreign currency. At December 31, 2017 and December 31, 2016 , we had Brazilian Real ("BRL") 231 million , or $70 million , and BRL 258 million , or $79 million , outstanding, respectively. Revolving Credit Facility —At January 6, 2014, we entered into a Second Amended and Restated Credit Agreement with a syndicate of lenders that amended and restated our prior revolving credit facility and provides for a $1.5 billion senior unsecured revolving credit facility that matures in January 2019 (see Note 21). Interest rates on outstanding borrowings are either LIBOR- based or based on an alternate base rate, with margins in each case based on our credit rating or, in certain circumstances, our credit rating and leverage ratio. During the year ended December 31, 2017 , we had borrowings of $670 million and repayments of $770 million on our revolving credit facility, resulting in no outstanding balance and an available line of credit of $1.5 billion at December 31, 2017 . At December 31, 2017 , we had various letter of credit agreements that did not reduce our available capacity under the revolving credit facility. The weighted average interest rate on these borrowings was 2.18% at December 31, 2017 . At December 31, 2016 , we had $100 million outstanding. The Company had $309 million and $230 million of letters of credit issued through additional banks at December 31, 2017 and December 31, 2016 , respectively. Senior Secured Term Loan —During the year ended December 31, 2016 , we repaid the senior secured term loan of $64 million related to Hyatt Regency Lost Pines Resort and Spa. Fair Value —We estimated the fair value of debt, excluding capital leases, which consists of our Senior Notes, bonds, and other long-term debt. Our Senior Notes and bonds are classified as Level Two due to the use and weighting of multiple market inputs in the final price of the security. We estimated the fair value of other debt instruments using discounted cash flow analysis based on current market inputs for similar types of arrangements. Based upon the lack of availability of market data, we have classified our revolving credit facility and other debt instruments as Level Three. The primary sensitivity in these calculations is based on the selection of appropriate discount rates. Fluctuations in these assumptions will result in different estimates of fair value. December 31, 2017 Carrying value Fair value Quoted prices in active markets for identical assets (level one) Significant other observable inputs (level two) Significant unobservable inputs (level three) Debt (1) $ 1,452 $ 1,546 $ — $ 1,459 $ 87 (1) Excludes capital lease obligations of $13 million and unamortized discounts and deferred financing fees of $14 million . December 31, 2016 Carrying value Fair value Quoted prices in active markets for identical assets (level one) Significant other observable inputs (level two) Significant unobservable inputs (level three) Debt (2) $ 1,565 $ 1,642 $ — $ 1,450 $ 192 (2) Excludes capital lease obligations of $15 million and unamortized discounts and deferred financing fees of $16 million . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | LEASES We lease hotels and equipment under a combination of operating and capital leases, which generally require us to pay taxes, maintenance, and insurance. Most of the leases contain renewal options, which enable us to retain use of the facilities in desirable operating areas. The operating leases for the majority of our leased hotels require the calculation of rental payments to be based on a percentage of the operating profit of the hotel, as defined by contract. As a result, future lease payments related to these leases are contingent upon operating results and are not included in the table below. Corporate Office Space —During the year ended December 31, 2017, we relocated our corporate headquarters in Chicago, Illinois under a lease that expires in 2034. The future minimum lease payments for our corporate office space and leased hotels due in each of the next five years and thereafter are as follows: Years Ending December 31, Operating leases Capital leases 2018 $ 36 $ 2 2019 42 2 2020 39 2 2021 36 2 2022 35 2 Thereafter 441 7 Total minimum lease payments $ 629 $ 17 Less amount representing interest 4 Present value of minimum lease payments $ 13 A summary of rent expense from continuing operations for all operating leases is as follows: Years Ended December 31, 2017 2016 2015 Minimum rentals $ 42 $ 37 $ 34 Contingent rentals 52 53 53 Total $ 94 $ 90 $ 87 We lease retail space at our owned hotel locations under operating leases. We recorded rental income of $27 million , $25 million , and $28 million within owned and leased hotels revenues on our consolidated statements of income for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively. The future minimum lease receipts scheduled to be received in each of the next five years and thereafter are as follows: Years Ending December 31, 2018 $ 23 2019 16 2020 15 2021 13 2022 13 Thereafter 59 Total minimum lease receipts $ 139 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Benefit Plans —We sponsor supplemental executive retirement plans consisting of funded and unfunded defined benefit plans for certain former executives. Retirement benefits are based primarily on the former employees’ salary, as defined, and are payable upon satisfaction of certain service and age requirements as defined by the plans. The accumulated benefit obligation related to the unfunded U.S. plan was $21 million at December 31, 2017 and December 31, 2016 , of which $20 million was classified as a long-term liability. At December 31, 2017 , we expect benefits of $1 million to be paid annually over the next 10 years. Defined Contribution Plans —We provide retirement benefits to certain eligible employees under the Retirement Savings Plan (a qualified plan under Internal Revenue Code Section 401(k)), the FRP, and other similar plans. For the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 , we recorded expenses of $39 million , $36 million , and $35 million , respectively, related to the Retirement Savings Plan based on a percentage of eligible employee contributions on stipulated amounts. The majority of these contributions relate to hotel property level employees, which are reimbursable to us and are included in the other revenues from managed and franchised properties and other costs from managed and franchised properties on our consolidated statements of income. Deferred Compensation Plans —We provide nonqualified deferred compensation for certain employees through the DCP. Contributions and investment elections are determined by the employees, and we provide contributions to certain eligible employees according to pre-established formulas. The DCP is fully funded through a rabbi trust, therefore changes in the underlying securities impact the deferred compensation liability, which is recorded in other long-term liabilities (see Note 12 ) and the corresponding marketable securities assets (see Note 4 ). Employee Stock Purchase Program —We provide the Hyatt Hotels Corporation ESPP, which qualifies under Section 423 of the Internal Revenue Code. The ESPP provides eligible employees the opportunity to purchase shares of the Company’s common stock on a quarterly basis through payroll deductions at a price equal to 95% of the fair value on the last trading day of each quarter. Approximately 69,000 shares and 76,000 shares were issued under the ESPP during 2017 and 2016 , respectively. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES December 31, 2017 December 31, 2016 Deferred gains on sales of hotel properties $ 523 $ 363 Deferred compensation plans (see Note 11) 402 352 Loyalty program liability (see Note 2) 298 296 Other accrued income taxes (see Note 13) 107 100 Guarantee liabilities (see Note 14) 104 124 Deferred income taxes (see Note 13) 62 57 Other 229 180 Total $ 1,725 $ 1,472 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our tax provision includes federal, state, local, and foreign income taxes. Years Ended December 31, 2017 2016 2015 U.S. income before tax $ 500 $ 180 $ 119 Foreign income before tax 73 109 75 Income before income taxes $ 573 $ 289 $ 194 The provision (benefit) for income taxes from continuing operations is comprised of the following: Years Ended December 31, 2017 2016 2015 Current: Federal $ 201 $ 66 $ 134 State 45 15 18 Foreign 30 7 21 Total Current $ 276 $ 88 $ 173 Deferred: Federal $ 48 $ (12 ) $ (78 ) State (14 ) (2 ) (20 ) Foreign 13 11 (5 ) Total Deferred $ 47 $ (3 ) $ (103 ) Total $ 323 $ 85 $ 70 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Act"). The Tax Act made broad and significant changes to the U.S. tax code that affects the year ended December 31, 2017, including, but not limited to, the requirement to pay a one-time transition tax ("deemed repatriation tax") on all undistributed earnings of foreign subsidiaries and bonus depreciation that will allow for full expensing of qualified property. The Tax Act also establishes new tax laws that will affect future periods, including, but not limited to: (1) reducing the U.S. federal corporate tax rate; (2) limiting deductible interest expense; (3) modifying the tax treatment of like-kind exchanges; (4) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (5) imposing a new provision designed to tax global intangible low-tax income ("GILTI"); (6) creating the base erosion anti-abuse tax, a new minimum tax; (7) limiting the use of net operating loss carryforwards created in tax years beginning after December 31, 2017; (8) modifying the limitations on the use of foreign tax credits ("FTCs") to reduce our U.S. income tax liability; and (9) further restricting the deductibility of certain executive compensation and fringe benefits. The following is a reconciliation of the statutory federal income tax rate to the effective tax rate from continuing operations: Years Ended December 31, 2017 2016 2015 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes—net of federal tax benefit 3.4 3.4 3.5 Impact of foreign operations (excluding unconsolidated hospitality ventures losses) (6.8 ) (5.4 ) (13.8 ) Tax Act deferred rate change 16.9 — — Tax Act deemed repatriation tax 2.3 — — Change in valuation allowances 3.8 3.6 3.1 Foreign unconsolidated hospitality ventures 1.1 1.2 10.0 Playa foreign tax credit benefit (1.3 ) (2.6 ) — Tax contingencies 1.3 (5.2 ) (1.5 ) Equity based compensation 0.7 0.4 (0.5 ) General business credits (0.4 ) (0.8 ) (1.9 ) Other 0.3 (0.1 ) 2.3 Effective income tax rate 56.3 % 29.5 % 36.2 % We have not completed our accounting for the income tax effects of the Tax Act and we recorded the following provisional estimates in accordance with SAB 118 at December 31, 2017 : • The Tax Act reduces the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. We recorded a provisional expense of $97 million with a corresponding decrease to our net deferred tax assets. Our estimated impact may be affected by other analyses related to the Tax Act which are not complete, including, but not limited to, our calculation of deemed repatriation of deferred foreign income. • We estimated the deemed repatriation tax, including state tax impacts, and recorded a provisional expense of $13 million . The deemed repatriation tax is a tax on previously untaxed earnings and profits of certain foreign subsidiaries. To determine the amount of the tax, we must determine, in addition to other factors, the amount of earnings and profits subject to U.S. tax for the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. We are continuing to gather additional information to more precisely compute the amount of deemed repatriation tax, inclusive of state tax implications, which may be impacted by further legislative technical corrections, amendments, and/or revised earnings and profits computations. • We must assess whether our valuation allowances are affected by various aspects of the Tax Act (e.g., deemed repatriation of deferred foreign income, GILTI inclusions, and new categories of FTCs). Therefore, any corresponding changes in our valuation allowances are also provisional. We recorded a provisional valuation allowance of $15 million related to FTCs that are not expected to be utilized in the future as a result of our interpretation of the Tax Act. • Under U.S. GAAP, we are allowed to make an accounting policy election to treat taxes due as a current period expense when incurred or to factor such amounts into our measurement of our deferred taxes. Our accounting policy election with respect to the new GILTI rules will depend, in part, on completing an analysis of our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and the expected impact. Whether we expect to have future U.S. inclusions in taxable income related to GILTI depends not only on our current structure and estimated future global results, but also on our intent and ability to modify our structure and/or our business. We are not yet able to reasonably estimate the effect of this provision of the Tax Act. As a result, we have not made adjustments related to potential GILTI tax in our financial statements and have not made a policy election. At December 31, 2017, we have not made a change to our assertion that undistributed net earnings with respect to certain foreign subsidiaries are indefinitely reinvested outside the United States. All undistributed net earnings have been taxed in the U.S. as a result of the Tax Act, and consistent with our assertion, the Company intends to limit any future distributions to previously taxed income for which relevant taxes have been recorded. However, we are continuing to analyze the impact of the Tax Act on our assertion, and thus the recording of related deferred taxes is provisional as of December 31, 2017. Additional items that impacted the 2017 effective tax rate include certain foreign net operating losses generated in the current year that are not expected to be utilized in the future. These losses were partially offset by the benefit related to the rate differential of foreign operations and the recognition of foreign tax credits in the amount of $10 million generated by distributions from certain foreign subsidiaries. Significant items affecting the 2016 effective tax rate include benefits related to the rate differential of foreign operations, foreign tax credit benefits associated with the Playa foreign unconsolidated hospitality venture, and a $15 million benefit (including $4 million of interest and penalties) primarily related to the reversal of uncertain tax positions for certain foreign filing positions. These benefits are partially offset by the impact of certain foreign net operating losses generated that are not expected to be utilized in the future. Significant items affecting the 2015 effective tax rate include a benefit related to the impact of global transfer pricing changes implemented during 2015 to better align the Company’s transfer pricing with the Company’s global business operating model. This benefit is offset by the effect of certain foreign unconsolidated hospitality venture losses that are not fully benefited. The impact of tax contingencies includes a benefit of $10 million (including $5 million of interest and penalties) due to statute expirations with respect to state and foreign tax filing positions and an expense of $7 million due to an uncertain tax position recorded during 2015 related to transfer pricing positions. The components of the net deferred tax assets and deferred tax liabilities are comprised of the following: December 31, 2017 December 31, 2016 Deferred tax assets related to: Employee benefits $ 128 $ 202 Foreign and state net operating losses and credit carryforwards 65 46 Investments 36 55 Allowance for uncollectible assets 31 36 Deferred gains on sales of hotel properties 132 134 Loyalty program 58 81 Interest and state benefits 1 2 Unrealized losses 2 5 Other 40 54 Valuation allowance (51 ) (27 ) Total deferred tax asset $ 442 $ 588 Deferred tax liabilities related to: Property and equipment $ (157 ) $ (224 ) Investments (19 ) (28 ) Intangibles (32 ) (14 ) Unrealized gains (35 ) (39 ) Prepaid expenses (8 ) (12 ) Other (11 ) (15 ) Total deferred tax liabilities $ (262 ) $ (332 ) Net deferred tax assets $ 180 $ 256 Recognized in the balance sheet as: Deferred tax assets—noncurrent $ 242 $ 313 Deferred tax liabilities—noncurrent (62 ) (57 ) Total $ 180 $ 256 During the year ended December 31, 2017 , significant changes to our deferred tax assets and liabilities include the $97 million decrease to all U.S. deferred tax assets and liabilities as a result of the Tax Act, as discussed above. Other significant changes to our deferred assets and liabilities include a $64 million increase as a result of an increase in deferred gains related to the sales of hotels in 2017. At December 31, 2017 , we have $45 million of deferred tax assets related to foreign and state net operating losses and $20 million related to federal and state credits. We have recorded a valuation allowance of $51 million for certain deferred tax assets related to net operating losses and credits that we do not believe are more likely than not to be realized. These operating losses ( $25 million deferred tax asset) are primarily foreign, do not expire, and may be carried forward indefinitely. The remaining losses expire over time through 2037. At December 31, 2017 and December 31, 2016 , total unrecognized tax benefits were $94 million and $86 million , respectively, of which $33 million and $5 million , respectively, would impact the effective tax rate if recognized. It is reasonably possible that a reduction of up to $3 million of unrecognized tax benefits could occur within 12 months resulting from the expiration of certain tax statutes of limitations. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 Unrecognized tax benefits—beginning balance $ 86 $ 110 Total increases—current period tax positions 11 2 Total decreases—prior period tax positions (1 ) (21 ) Lapse of statute of limitations (3 ) (5 ) Foreign currency fluctuation 1 — Unrecognized tax benefits—ending balance $ 94 $ 86 In 2017, the $8 million net increase in uncertain tax positions is primarily related to an accrual for the U.S. tax treatment of the loyalty program. The $3 million decrease with respect to lapse of statute of limitations is due to various foreign tax filing positions. In 2016, the $24 million decrease in uncertain tax positions primarily related to the reversal of uncertain tax positions for certain filing positions in foreign jurisdictions. The $5 million decrease with respect to lapse of statute of limitations was due to various state and foreign tax filing positions. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Total gross accrued interest and penalties were $14 million at both December 31, 2017 and December 31, 2016 . The amount of interest and penalties recognized as a component of income tax expense in 2017 was insignificant, comprised primarily of a benefit of $3 million resulting from the release of interest and penalties related to certain foreign tax positions and an additional interest and penalty accrual of $2 million on federal, state, and foreign tax matters. The amount of interest and penalties recognized as a component of income tax expense in 2016 was a benefit of $4 million . This amount is comprised of a benefit of $9 million resulting from the release of interest and penalties related to certain foreign tax positions and an additional interest and penalty accrual of $5 million on federal, state, and foreign tax matters. We are subject to audits by federal, state, and foreign tax authorities. U.S. tax years 2012, 2013, and 2014 are currently under field examination by the IRS. During the first quarter of 2017, the IRS issued a "Notice of Deficiency" for our 2009 through 2011 tax years. We disagree with the IRS’ assessment as it relates to the inclusion of loyalty program contributions as taxable income to the Company. In the second quarter of 2017, we filed a petition with the U.S. Tax Court for redetermination of the tax liability asserted by the IRS related to the loyalty program. If the IRS’ position is upheld, it would result in an income tax liability of $126 million (including $31 million of estimated interest, net of federal benefit) for these tax years that would be partially offset by a deferred tax asset. Future tax benefits will be recognized at the reduced U.S. corporate income tax rate, therefore, $60 million of the liability and related interest would have an impact on the effective tax rate if recognized. We believe we have an adequate liability recorded in connection with this matter. The statute of limitations for U.S. tax years 2005, 2006, 2007, and 2008 remain open for the computational impacts of net operating losses and general business credit carrybacks to those years which could be impacted by the final resolution of tax years 2009-2011. We have several state and foreign audits pending. State income tax returns are generally subject to examination for a period of three to five years after filing of the return. However, the state impact of any federal changes remains subject to examination by various states for a period generally up to one year after formal notification to the states of the federal changes. The statute of limitations for the foreign jurisdictions ranges from three to ten years after filing the applicable tax return. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES In the ordinary course of business, we enter into various commitments, guarantees, surety bonds, and letter of credit agreements, which are discussed below: Commitments —At December 31, 2017 , we are committed, under certain conditions, to lend or invest up to $452 million , net of any related letters of credit, in various business ventures. Performance Guarantees —Certain of our contractual agreements with third-party owners require us to guarantee payments to the owners if specified levels of operating profit are not achieved by their hotels, see Note 2 . Our most significant performance guarantee relates to four managed hotels in France that we began managing in the second quarter of 2013, which has a term of seven years, with approximately two and one-half years remaining. This guarantee has a maximum cap, but does not have an annual cap. The remaining maximum exposure related to our performance guarantees at December 31, 2017 was $323 million , of which €224 million ( $269 million using exchange rates at December 31, 2017 ) related to the four managed hotels in France. We had total net performance guarantee liabilities of $71 million and $79 million at December 31, 2017 and December 31, 2016 , respectively, which included $45 million and $55 million recorded in other long-term liabilities and $26 million and $24 million in accrued expenses and other current liabilities on our consolidated balance sheets, respectively. The four managed hotels in France Other performance guarantees All performance guarantees 2017 2016 2017 2016 2017 2016 Beginning balance, January 1 $ 66 $ 93 $ 13 $ 4 $ 79 $ 97 Initial guarantee obligation liability — — 3 9 3 9 Amortization of initial guarantee obligation liability into income (15 ) (33 ) (4 ) (1 ) (19 ) (34 ) Performance guarantee expense (income), net 76 64 1 (1 ) 77 63 Net (payments) receipts during the year (78 ) (57 ) — 2 (78 ) (55 ) Foreign currency exchange, net 9 (1 ) — — 9 (1 ) Ending balance, December 31 $ 58 $ 66 $ 13 $ 13 $ 71 $ 79 Additionally, we enter into certain management contracts where we have the right, but not an obligation, to make payments to certain hotel owners if their hotels do not achieve specified levels of operating profit. If we choose not to fund the shortfall, the hotel owner has the option to terminate the management contract. At December 31, 2017 and December 31, 2016 , there were no amounts recorded on our consolidated balance sheets related to these performance test clauses. Debt Repayment and Other Guarantees —We enter into various debt repayment and other guarantees in order to assist hotel owners in obtaining third-party financing or to obtain more favorable borrowing terms. Included within debt repayment and other guarantees are the following: Property description Maximum potential future payments Maximum exposure net of recoverability from third parties Other long-term liabilities recorded at December 31, 2017 Other long-term liabilities recorded at December 31, 2016 Year of guarantee expiration Hotel property in Washington State (1), (3), (4), (5) $ 215 $ — $ 26 $ 35 2020 Hotel properties in India (2), (3) 188 188 17 21 2020 Hotel and residential properties in Brazil (1), (4) 97 40 4 3 various, through 2021 Hotel property in Massachusetts (6) 107 107 1 — 2020 Hotel properties in California (1) 31 13 6 6 various, through 2021 Hotel property in Minnesota 25 25 2 2 2021 Hotel property in Arizona (1), (4) 25 — 1 2 2019 Other (1) 20 14 2 — various, through 2021 Total $ 708 $ 387 $ 59 $ 69 (1) We have agreements with our unconsolidated hospitality venture partner, the respective hotel owners, or other third parties to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash, financing receivable, or HTM debt security. (2) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at December 31, 2017 . We have the contractual right to recover amounts funded from the unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $94 million , taking into account our partner’s 50% ownership interest in the unconsolidated hospitality venture. (3) Under certain events or conditions, we have the right to force the sale of the property(ies) in order to recover amounts funded. (4) If certain funding thresholds are met or if certain events occur, we have the ability to assume control of the property. This right only exists for the residential property in Brazil. (5) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction using the funds available from the outstanding loan. Any additional funds paid by us are subject to recovery through a HTM debt security. (6) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction and any additional funds paid by us are not recoverable. At December 31, 2017 , we are not aware of, nor have we received notification that hotel owners are not current on their debt service obligations, where we have provided a debt repayment guarantee. Guarantee Liabilities Fair Value —We estimated the fair value of our guarantees to be $177 million and $231 million at December 31, 2017 and December 31, 2016 , respectively. Due to the lack of readily available market data, we have classified our guarantees as Level Three in the fair value hierarchy. Insurance —We obtain commercial insurance for potential losses for general liability, workers' compensation, automobile liability, employment practices, crime, property, cyber risk, and other miscellaneous coverages. A portion of the risk is retained on a self-insurance basis primarily through U.S. based and licensed captive insurance companies that are wholly owned subsidiaries of Hyatt and generally insure our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. Losses estimated to be paid within 12 months are $32 million and $30 million at December 31, 2017 and December 31, 2016 , respectively, and are classified within accrued expenses and other current liabilities on our consolidated balance sheets, while losses expected to be payable in future periods are $69 million and $62 million at December 31, 2017 and December 31, 2016 , respectively, and are included in other long-term liabilities on our consolidated balance sheets. At December 31, 2017 , standby letters of credit of $7 million were issued to provide collateral for the estimated claims, which are guaranteed by us. Collective Bargaining Agreements —At December 31, 2017 , approximately 25% of our U.S. based employees were covered by various collective bargaining agreements, generally providing for basic pay rates, working hours, other conditions of employment, and orderly settlement of labor disputes. Certain employees are covered by union sponsored multi-employer pension and health plans pursuant to agreements between us and various unions. Generally, labor relations have been maintained in a normal and satisfactory manner, and we believe our employee relations are good. Surety Bonds —Surety bonds issued on our behalf were $25 million at December 31, 2017 and primarily relate to workers’ compensation, taxes, licenses, and utilities related to our lodging operations. Letters of Credit —Letters of credit outstanding on our behalf at December 31, 2017 were $309 million , which relate to our ongoing operations, hotel properties under development in the U.S., including one unconsolidated hospitality venture, collateral for estimated insurance claims, and securitization of our performance under our debt repayment guarantee associated with the hotel properties in India, which is only called upon if we default on our guarantee. The letters of credit outstanding do not reduce the available capacity under our revolving credit facility (see Note 9 ). Capital Expenditures —As part of our ongoing business operations, significant expenditures are required to complete renovation projects that have been approved. Other— We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender’s recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof. In conjunction with financing obtained for our unconsolidated hospitality ventures, certain managed hotels and other properties, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions or actions of the other unconsolidated hospitality venture partners, respective hotel owners, or other third parties. As a result of certain dispositions, we have agreed to provide customary indemnifications to third- party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. We are subject, from time to time, to various claims and contingencies related to lawsuits, taxes, and environmental matters, as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. Although the ultimate liability for these matters cannot be determined at this point, based on information currently available, we do not expect the ultimate resolution of such claims and litigation will have a material effect on our consolidated financial statements. |
Stockholders' Equity and Compre
Stockholders' Equity and Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity and Comprehensive Loss | STOCKHOLDERS’ EQUITY AND COMPREHENSIVE LOSS Common Stock— At December 31, 2017 , Pritzker family business interests beneficially owned, in the aggregate, approximately 96.8% of our Class B common stock and less than 0.1% of our Class A common stock, representing approximately 57.6% of the outstanding shares of our common stock and approximately 90.6% of the total voting power of our outstanding common stock. As a result, consistent with the voting agreements contained in the Amended and Restated Global Hyatt Agreement and Amended and Restated Foreign Global Hyatt Agreement, Pritzker family business interests are able to exert a significant degree of influence or actual control over our management and affairs and over matters requiring stockholder approval, including the election of directors and other significant corporate transactions. While the voting agreements are in effect, they may provide our board of directors with effective control over matters requiring stockholder approval. Because of our dual class ownership structure, Pritzker family business interests will continue to exert a significant degree of influence or actual control over matters requiring stockholder approval, even if they own less than 50% of the outstanding shares of our common stock. Pursuant to the Amended and Restated Global Hyatt Agreement and Amended and Restated Foreign Global Hyatt Agreement, the Pritzker family business interests have agreed to certain voting agreements and to certain limitations with respect to the sale of shares of our common stock. In addition, other stockholders beneficially own, in the aggregate, approximately 3.2% of our outstanding Class B common stock representing approximately 1.9% of the outstanding shares of our common stock and approximately 3.0% of the total voting power of our outstanding common stock. Pursuant to the 2007 Stockholders’ Agreement, these entities have also agreed to certain voting agreements and to certain limitations with respect to the sale of shares of our common stock. Share Repurchase — During 2017, 2016, and 2015, our board of directors authorized the repurchase of up to $ 1,250 million , $ 500 million , and $ 400 million , respectively, of our common stock. These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan, at prices we deem appropriate and subject to market conditions, applicable law, and other factors deemed relevant in our sole discretion. The common stock repurchase program applies to our Class A common stock and our Class B common stock. The common stock repurchase program does not obligate us to repurchase any dollar amount or number of shares of common stock and the program may be suspended or discontinued at any time. During the year ended December 31, 2017 , we entered into various ASR programs with third-party financial institutions to repurchase Class A shares as follows: Total number of shares repurchased (1) Weighted-average price per share Total cash paid March 2017 5,393,669 $ 55.62 $ 300 August 2017 1,666,484 $ 60.01 $ 100 November 2017 (2) 1,152,904 $ 69.39 $ 100 (1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share for the year ended December 31, 2017 , see Note 19. (2) This initial delivery of shares repurchased represents the minimum number of shares that we may receive under the agreement and was accounted for as a reduction to stockholders' equity on our consolidated balance sheets. At December 31, 2017 , the remaining shares yet to be delivered totaled $20 million , which were accounted for as an equity-classified forward contract, and were settled subsequent to December 31, 2017 for 244,260 shares. Overall, we repurchased 1,397,164 shares at a weighted-average price per share of $71.57 . During 2017 and 2016, we repurchased 12,186,308 and 5,631,557 shares of common stock, respectively. The shares of common stock were repurchased at a weighted average price of $59.34 and $48.37 per share, respectively, for an aggregate purchase price of $723 million and $272 million , respectively, excluding related insignificant expenses in both periods. The shares repurchased during 2017 represented approximately 9% of our total shares of common stock outstanding at December 31, 2016. The shares repurchased during 2016 represented approximately 4% of our total shares of common stock outstanding at December 31, 2015. The shares of Class A common stock repurchased on the open market were retired and returned to the status of authorized and unissued shares, while the shares of Class B common stock repurchased were retired and the total number of authorized Class B shares was reduced by the number of shares repurchased, see Note 17. At December 31, 2017 , we had $864 million remaining under the share repurchase authorization. Accumulated Other Comprehensive Loss Balance at January 1, 2017 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at December 31, 2017 Foreign currency translation adjustments $ (299 ) $ 56 $ — $ (243 ) Unrealized gains on AFS securities 33 35 — 68 Unrecognized pension cost (7 ) — — (7 ) Unrealized gains (losses) on derivative instruments (4 ) 1 — (3 ) Accumulated other comprehensive income (loss) $ (277 ) $ 92 $ — $ (185 ) Balance at January 1, 2016 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss (a) Balance at December 31, 2016 Foreign currency translation adjustments $ (257 ) $ (45 ) $ 3 $ (299 ) Unrealized gains (losses) on AFS securities 39 (6 ) — 33 Unrecognized pension cost (7 ) — — (7 ) Unrealized gains (losses) on derivative instruments (5 ) 1 — (4 ) Accumulated other comprehensive income (loss) $ (230 ) $ (50 ) $ 3 $ (277 ) (a) The amount reclassified from accumulated other comprehensive loss related to the sale of the shares of the company that owns Hyatt Regency Birmingham (U.K.) and was recorded within other long-term liabilities on our consolidated balance sheets. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION As part of our LTIP, we award SARs, RSUs, PSUs, and PSs to certain employees, see Note 2. Under the LTIP, we are authorized to issue up to 14,375,000 shares. Compensation expense and unearned compensation presented below exclude amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as this expense has been and will continue to be reimbursed by our third-party hotel owners and is recorded within other revenues from managed and franchised properties and other costs from managed and franchised properties on our consolidated statements of income. Stock-based compensation expense (income) included in selling, general, and administration expense on our consolidated statements of income related to these awards was as follows: Years Ended December 31, 2017 2016 2015 SARs $ 11 $ 10 $ 9 RSUs 16 15 17 PSUs and PSs 2 — (3 ) The expected income tax benefit to be realized at the time of vest related to these awards for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 was as follows: Years Ended December 31, 2017 2016 2015 SARs $ 3 $ 4 $ 3 RSUs 4 5 5 PSUs and PSs 1 — (1 ) SARs —The following table sets forth a summary of the SAR grants in 2017 , 2016 , and 2015 : Grant Date Granted Value at date of grant Vesting period Vesting start month September 2017 20,139 $ 18.62 25 % annually September 2018 March 2017 605,601 16.35 25 % annually March 2018 March 2016 45,710 14.22 33 % annually March 2017 March 2016 878,714 14.54 25 % annually March 2017 March 2015 380,604 20.64 25 % annually March 2016 March 2015 41,373 24.17 50 % annually March 2018 February 2015 39,401 25.38 100 % at vest March 2018 The weighted average grant date fair value for the awards granted in 2017 , 2016 , and 2015 was $16.42 , $14.52 , and $21.36 , respectively. The fair value of each SAR was estimated based on the date of grant using the Black- Scholes- Merton option- pricing model with the following weighted average assumptions: 2017 2016 2015 Exercise price $ 52.93 $ 47.36 $ 56.57 Expected life in years 6.24 6.23 6.31 Risk-free interest rate 2.11 % 1.55 % 1.63 % Expected volatility 26.56 % 27.72 % 35.39 % Annual dividend yield — % — % — % Due to a lack of historical exercise information, the expected life was estimated based on the midpoint between the vesting period and the contractual life of each SAR. The risk-free interest rate was based on U.S. Treasury instruments with similar expected life. We calculate volatility using our trading history over a time period consistent with our expected term assumption. A summary of employee SAR activity is presented below: SAR units Weighted average exercise price (in whole dollars) Weighted average remaining contractual term Outstanding at December 31, 2016: 4,453,987 $ 47.88 5.25 Granted 625,740 52.93 Exercised (764,417 ) 42.66 Forfeited or expired (715,355 ) 61.83 Outstanding at December 31, 2017: 3,599,955 $ 47.09 6.30 Exercisable at December 31, 2017: 2,003,976 $ 43.88 4.67 During the year ended December 31, 2017 , the intrinsic value of exercised SARs was $24 million . The total intrinsic value of SARs outstanding at December 31, 2017 was $95 million and the total intrinsic value for exercisable SARs was $59 million at December 31, 2017 . RSUs —The following table sets forth a summary of the employee RSU grants: Grant Date RSUs Value Total value Vesting period December 2017 9,238 $ 70.35 $ 1 various September 2017 22,357 61.50 1 various September 2017 43,151 60.48 3 various May 2017 1,390 57.51 — 4 years March 2017 416,404 52.65 22 various December 2016 40,633 56.60 2 4 years March 2016 444,629 47.36 21 4 years December 2015 4,089 48.90 — 4 years September 2015 3,898 51.30 — 3 years September 2015 8,576 51.30 — 4 years May 2015 23,746 58.95 1 4 years March 2015 380,939 56.27 21 4 years February 2015 29,278 59.77 2 4 years The weighted average grant date fair value for the awards granted in 2017 , 2016 , and 2015 was $54.08 , $48.13 , and $56.43 , respectively. The liability and related expense for granted cash- settled RSUs are insignificant at and for the year ended December 31, 2017 . A summary of the status of the nonvested employee RSU awards outstanding under the LTIP is presented below: Restricted Stock Units Weighted average grant date fair value Nonvested at December 31, 2016: 1,016,177 $ 50.15 Granted 492,540 54.08 Vested (378,432 ) 48.97 Forfeited or canceled (100,701 ) 52.59 Nonvested at December 31, 2017: 1,029,584 $ 52.22 The total intrinsic value of nonvested RSUs at December 31, 2017 was $76 million . PSUs and PSs —The following table sets forth a summary of PSU and PS grants: Year Granted Granted Weighted average grant date fair value Performance period Performance period start date 2017 PSUs 102,115 $ 52.65 3 years January 1, 2017 2016 PSUs 111,620 $ 47.36 3 years January 1, 2016 2015 PSs 146,902 $ 56.27 3 years January 1, 2015 There were 168,095 shares forfeited during the year ended December 31, 2017 . At December 31, 2017 , the total intrinsic value of nonvested PSs and PSUs if target performance is achieved was $11 million . Unearned Compensation —Our total unearned compensation for our stock- based compensation programs at December 31, 2017 is as follows and is expected to be recorded as stock-based compensation expense: 2018 2019 2020 2021 Total SARs $ 2 $ 2 $ 1 $ — $ 5 RSUs 8 5 2 1 16 PSUs and PSs 3 1 — — 4 Total $ 13 $ 8 $ 3 $ 1 $ 25 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS In addition to those included elsewhere in the Notes to our consolidated financial statements, related- party transactions entered into by us are summarized as follows: Leases — Since 2005, we leased space for our corporate headquarters at the Hyatt Center in Chicago, Illinois. A subsidiary of the Company held a master lease for a portion of the Hyatt Center and entered into sublease agreements with certain related parties. Following the relocation of our corporate headquarters during the year ended December 31, 2017, we terminated the sublease agreements and terminated the master lease. Legal Services —A partner in a law firm that provided services to us throughout 2017 , 2016 , and 2015 is the brother- in- law of our Executive Chairman. We incurred legal fees with this firm of $3 million , $2 million , and $6 million for each of the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively. At December 31, 2017 and December 31, 2016 , we had insignificant amounts due to the law firm. Equity Method Investments —We have equity method investments in entities that own properties for which we receive management or franchise fees. We recorded fees of $24 million , $30 million , and $26 million for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 , respectively. At December 31, 2017 and December 31, 2016 , we had receivables due from these properties of $11 million and $7 million , respectively. In addition, in some cases we provide loans (see Note 6 ) or guarantees (see Note 14 ) to these entities. During the three years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 , we recorded income related to these guarantees of $5 million , $5 million , and $2 million , respectively. Our ownership interest in these unconsolidated hospitality ventures varies from 24% to 70% . See Note 3 for further details regarding these investments. Class B Share Repurchase —During 2017 , we repurchased 3,089,437 shares of Class B common stock for a weighted average price of $63.30 per share, for an aggregate purchase price of approximately $196 million . The shares repurchased represented approximately 2% of our total shares of common stock outstanding at December 31, 2016 . During 2016 , we repurchased 1,881,636 shares of Class B common stock at a weighted average price of $53.15 per share, for an aggregate purchase price of approximately $100 million . The shares repurchased represented approximately 1% of our total shares of common stock outstanding at December 31, 2015 . The shares of Class B common stock were repurchased in privately negotiated transactions from trusts for the benefit of certain Pritzker family members and limited partnerships owned indirectly by trusts for the benefit of certain Pritzker family members and were retired, thereby reducing the total number of shares outstanding and reducing the shares of Class B common stock authorized and outstanding by the repurchased share amount. Class B Share Conversion —During the years ended December 31, 2017 and December 31, 2016 , 17,019,935 shares and 16,884,117 shares, respectively, of Class B common stock were converted on a share-for-share basis into shares of our Class A common stock, $0.01 par value per share. The shares of Class B common stock that were converted into shares of Class A common stock have been retired, thereby reducing the shares of Class B common stock authorized and outstanding. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker to assess performance and make decisions regarding the allocation of resources. Our chief operating decision maker is our President and Chief Executive Officer. We define our reportable segments as follows: • Owned and leased hotels —This segment derives its earnings from owned and leased hotel properties located predominantly in the United States, but also in certain international locations and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card and are eliminated in consolidation. • Americas management and franchising —This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in the United States, Latin America, Canada, and the Caribbean. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to payroll costs at managed properties where the Company is the employer, as well as reservations, sales, marketing, loyalty program, and technology costs. These revenues and costs are recorded within other revenues from managed and franchised properties and other costs from managed and franchised properties, respectively. The intersegment revenues relate to management fees earned from the Company’s owned hotels and are eliminated in consolidation. • ASPAC management and franchising —This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Southeast Asia, as well as Greater China, Australia, South Korea, Japan, and Micronesia. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, sales, marketing, and technology costs. These revenues and costs are recorded within other revenues from managed and franchised properties and other costs from managed and franchised properties, respectively. The intersegment revenues relate to management fees earned from the Company’s owned hotels and are eliminated in consolidation. • EAME/SW Asia management and franchising —This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Europe, Africa, the Middle East, India, Central Asia, and Nepal. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, sales, marketing, and technology costs. These revenues and costs are recorded within other revenues from managed and franchised properties and other costs from managed and franchised properties, respectively. The intersegment revenues relate to management fees earned from the Company’s owned hotels and are eliminated in consolidation. Our chief operating decision maker evaluates performance based on each segment’s revenue and Adjusted EBITDA. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define Adjusted EBITDA as net income attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated hospitality ventures Adjusted EBITDA based on our ownership percentage of each venture, adjusted to exclude interest expense; provision for income taxes; depreciation and amortization; equity earnings (losses) from unconsolidated hospitality ventures; stock-based compensation expense; gains (losses) on sales of real estate; asset impairments; and other (income) loss, net. The table below shows summarized consolidated financial information by segment. Included within corporate and other are the results of Miraval, exhale, Hyatt Residence Club license fees, results related to our co- branded credit card, and unallocated corporate expenses. Years Ended December 31, 2017 2016 2015 Owned and leased hotels Owned and leased hotels revenues $ 2,137 $ 2,119 $ 2,079 Other revenues 13 — — Intersegment revenues (a) 9 11 — Adjusted EBITDA 490 516 493 Depreciation and amortization 295 285 277 Capital expenditures 195 200 225 Americas management and franchising Management and franchise fees revenues 403 371 354 Other revenues from managed and franchised properties 1,730 1,670 1,641 Intersegment revenues (a) 74 75 74 Adjusted EBITDA 350 318 300 Depreciation and amortization 19 18 19 Capital expenditures — — — ASPAC management and franchising Management and franchise fees revenues 112 96 91 Other revenues from managed and franchised properties 114 98 87 Intersegment revenues (a) 2 2 2 Adjusted EBITDA 70 57 55 Depreciation and amortization 2 1 1 Capital expenditures 1 1 1 EAME/SW Asia management and franchising Management and franchise fees revenues 72 65 67 Other revenues from managed and franchised properties 74 65 58 Intersegment revenues (a) 10 10 13 Adjusted EBITDA 40 33 33 Depreciation and amortization 5 5 5 Capital expenditures 1 1 — Corporate and other Revenues 125 43 40 Adjusted EBITDA (137 ) (139 ) (131 ) Depreciation and amortization 45 33 18 Capital expenditures 101 9 43 Eliminations (a) Revenues (95 ) (98 ) (89 ) Adjusted EBITDA 3 — — TOTAL Revenues $ 4,685 $ 4,429 $ 4,328 Adjusted EBITDA 816 785 750 Depreciation and amortization 366 342 320 Capital expenditures 298 211 269 (a) Intersegment revenues are included in the management and franchise fees revenues and owned and leased hotels revenues and eliminated in Eliminations. The table below presents summarized consolidated balance sheet information by segment: Total Assets December 31, 2017 December 31, 2016 Owned and leased hotels $ 4,842 $ 5,393 Americas management and franchising 524 564 ASPAC management and franchising 121 128 EAME/SW Asia management and franchising 196 186 Corporate and other 1,989 1,478 TOTAL $ 7,672 $ 7,749 The following tables present revenues and property and equipment, net, intangibles, net, and goodwill by geographical region: Years Ended December 31, 2017 2016 2015 Revenues: United States $ 3,771 $ 3,571 $ 3,494 All foreign 914 858 834 Total $ 4,685 $ 4,429 $ 4,328 December 31, 2017 December 31, 2016 Property and equipment, net, Intangibles, net, and Goodwill: United States $ 3,743 $ 3,915 All foreign 1,124 1,079 Total $ 4,867 $ 4,994 The table below provides a reconciliation of our net income attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA: Years Ended December 31, 2017 2016 2015 Net income attributable to Hyatt Hotels Corporation $ 249 $ 204 $ 124 Interest expense 80 76 68 Provision for income taxes 323 85 70 Depreciation and amortization 366 342 320 EBITDA 1,018 707 582 Equity (earnings) losses from unconsolidated hospitality ventures (220 ) (68 ) 64 Stock-based compensation expense 29 25 23 (Gains) losses on sales of real estate (51 ) 23 (9 ) Asset impairments — — 5 Other (income) loss, net (33 ) (2 ) 5 Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA 73 100 80 Adjusted EBITDA $ 816 $ 785 $ 750 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The calculation of basic and diluted earnings per share, including a reconciliation of the numerator and denominator, are as follows: Years Ended December 31, 2017 2016 2015 Numerator: Net income $ 250 $ 204 $ 124 Net income and accretion attributable to noncontrolling interests (1 ) — — Net income attributable to Hyatt Hotels Corporation $ 249 $ 204 $ 124 Denominator: Basic weighted average shares outstanding 124,836,917 132,930,578 142,814,868 Share-based compensation and equity-classified forward contract 1,509,986 1,008,753 1,184,455 Diluted weighted average shares outstanding 126,346,903 133,939,331 143,999,323 Basic Earnings Per Share: Net income $ 2.00 $ 1.53 $ 0.87 Net income and accretion attributable to noncontrolling interests (0.01 ) — — Net income attributable to Hyatt Hotels Corporation $ 1.99 $ 1.53 $ 0.87 Diluted Earnings Per Share: Net income $ 1.98 $ 1.52 $ 0.86 Net income and accretion attributable to noncontrolling interests (0.01 ) — — Net income attributable to Hyatt Hotels Corporation $ 1.97 $ 1.52 $ 0.86 The computations of diluted net income per share for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 do not include the following shares of Class A common stock assumed to be issued as stock- settled SARs and RSUs because they are anti- dilutive. Years Ended December 31, 2017 2016 2015 SARs 21,400 74,500 1,500 RSUs 100 900 — |
Other Income (Loss), Net
Other Income (Loss), Net | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income (Loss), Net | OTHER INCOME (LOSS), NET Years Ended December 31, 2017 2016 2015 Interest income (Note 4) 101 19 8 Depreciation recovery 27 25 12 Performance guarantee liability amortization (Note 14) 19 34 12 Pre-condemnation income 18 — — Debt repayment guarantee liability amortization (Note 14) 10 3 — Foreign currency (losses) gains, net (2 ) 1 (14 ) Cease use liability (21 ) — — Realized losses (Note 4) (40 ) (6 ) — Performance guarantee expense, net (Note 14) (77 ) (63 ) (27 ) Other (2 ) (11 ) 4 Other income (loss), net $ 33 $ 2 $ (5 ) During the year ended December 31, 2017 , we relocated our corporate headquarters and recognized a corresponding cease use liability of $21 million . During the year ending December 31, 2017 , we recognized approximately $18 million primarily related to pre-condemnation income for relinquishment of subterranean space at an owned hotel. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENT On January 10, 2018, we refinanced our $1.5 billion senior unsecured revolving credit facility with a syndicate of lenders, extending the maturity of the facility to January 2023. The revolving credit facility is intended to provide financing for working capital and general corporate purposes, including commercial paper back-up and permitted investments and acquisitions. On February 14, 2018, we announced that our board of directors declared a cash dividend of $0.15 per share of Class A common stock and Class B common stock for the first quarter of 2018, payable on March 29, 2018 to the Company’s shareholders of record on March 22, 2018. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth the historical unaudited quarterly financial data. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. For the Three Months Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Consolidated statements of income data: Owned and leased hotels $ 525 $ 518 $ 577 $ 572 $ 514 $ 519 $ 559 $ 516 Management and franchise fees 131 122 130 122 116 110 115 107 Other revenues 17 16 15 22 9 11 11 9 Other revenues from managed and franchised properties 511 463 473 471 448 448 480 457 Total revenues 1,184 1,119 1,195 1,187 1,087 1,088 1,165 1,089 Direct and selling, general, and administrative expenses 1,124 1,062 1,090 1,107 1,027 1,019 1,063 1,021 Net income 76 17 87 70 41 62 67 34 Net income attributable to Hyatt Hotels Corporation $ 76 $ 16 $ 87 $ 70 $ 41 $ 62 $ 67 $ 34 Net income per common share, basic $ 0.63 $ 0.14 $ 0.69 $ 0.54 $ 0.31 $ 0.48 $ 0.50 $ 0.25 Net income per common share, diluted $ 0.62 $ 0.14 $ 0.68 $ 0.54 $ 0.31 $ 0.47 $ 0.49 $ 0.25 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2017 , December 31, 2016 , and December 31, 2015 (In millions of dollars) Column A Column B Column C Column D Column E Description Balance at beginning of period Additions charged to revenues, costs and expenses Additions charged to other accounts Deductions Balance at end of period Year Ended December 31, 2017: Trade receivables—allowance for doubtful accounts $ 18 $ 8 $ — $ (5 ) $ 21 Financing receivables—allowance for losses 100 6 2 A — 108 Deferred tax assets—valuation allowance 27 24 B — — 51 Year Ended December 31, 2016: Trade receivables—allowance for doubtful accounts 15 6 — (3 ) 18 Financing receivables—allowance for losses 98 10 — (8 ) 100 Deferred tax assets—valuation allowance 17 10 — — 27 Year Ended December 31, 2015: Trade receivables—allowance for doubtful accounts 13 5 — (3 ) 15 Financing receivables—allowance for losses 100 10 (2 ) A (10 ) 98 Deferred tax assets—valuation allowance 15 2 — — 17 A —This amount represents currency translation on foreign currency denominated notes receivable. B —This amount represents the allowance related to our foreign tax credit carryforward balance. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation —Our consolidated financial statements present the results of operations, financial position, and cash flows of Hyatt Hotels Corporation and its majority owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates —We are required to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying Notes. Actual results could differ materially from such estimated amounts. |
Revenue Recognition | Revenue Recognition —Our revenues are primarily derived from the following sources and are generally recognized when services have been rendered: • Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased properties and are recognized when rooms are occupied and services have been rendered. Sales and occupancy taxes are recorded on a net basis in our consolidated statements of income . • Management and franchise fees earned from hotels managed and franchised worldwide: – Management fees primarily consist of a base fee, which is generally computed as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Base fee revenues are recognized when earned in accordance with the terms of the contract. We recognize incentive fees that would be due as if the contract were to terminate at that date, exclusive of any termination fees payable or receivable by us. – Realized gains from the sale of hotel real estate assets where we maintain substantial continuing involvement in the form of a long- term management contract are deferred and recognized as management fee revenue over the term of the underlying management contract. – Franchise fees consist of an initial application fee and continuing royalty fees calculated based on a percentage of gross room revenues and in certain circumstances, food and beverage revenues. Fees are recognized as they are earned and become due from the franchisee and when all material services have been substantially performed or satisfied by the franchisor. • Other revenues include revenues from our co-branded credit card and exhale. We recognize revenue from our co-branded credit card upon: (1) the sale of points to our third-party partner and (2) the fulfillment or expiration of a card member's promotional awards. • Other revenues from managed and franchised properties represent the reimbursement of costs incurred on behalf of the owners of hotel properties we manage and franchise. These costs relate primarily to payroll costs at managed properties where we are the employer, as well as reservations, sales, marketing, technology, and loyalty program costs at managed and franchised properties. Since the reimbursements are made based upon the costs incurred with no added margin, these revenues and corresponding expenses have no effect on our net income. |
Cash Equivalents | Cash Equivalents —We consider all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. |
Restricted Cash | Restricted Cash —We had restricted cash of $234 million and $76 million at December 31, 2017 and December 31, 2016 , respectively, which includes: • $207 million at December 31, 2017 related to sale proceeds from the disposition of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch pursuant to a like-kind exchange (see Note 7 ); • $12 million and $14 million , respectively, related to debt service on bonds acquired in connection with the acquisition of the entity that owned Grand Hyatt San Antonio (see Note 9 ); in addition, we have $11 million recorded in other assets in both periods; • $9 million related to our captive insurance subsidiary for minimum capital and surplus requirements in accordance with local insurance regulations (see Note 14 ); and • $40 million at December 31, 2016 related to sales proceeds from the 2014 dispositions of two Canadian hotels, as the Canadian tax regulations required a portion of the proceeds be classified as restricted until completion of regulatory review. The remaining restricted cash balances of $6 million and $13 million at December 31, 2017 and December 31, 2016 , respectively, relate to escrow deposits and other arrangements. These amounts are invested in interest- bearing accounts. |
Investments | Investments —We have investments in unconsolidated hospitality ventures recorded under the equity and cost methods. These investments are an integral part of our business and are strategically and operationally important to our overall results. When we receive a distribution from an investment, we determine whether it is a return on our investment or a return of our investment based on the underlying nature of the distribution. We assess investments in unconsolidated hospitality ventures for impairment quarterly. When there is indication a loss in value has occurred, we evaluate the carrying value in comparison to the estimated fair value of the investment. Fair value is based upon internally developed discounted cash flow models, third-party appraisals, and if appropriate, current estimated net sales proceeds from pending offers. The principal factors used in the discounted cash flow analysis requiring judgment are the projected future cash flows, the discount rate, and the capitalization rate assumptions. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. If the estimated fair value is less than carrying value, we use our judgment to determine if the decline in value is other than temporary. In determining this, we consider factors including, but not limited to, the length of time and extent of the decline, loss of value as a percentage of the cost, financial condition and near-term financial projections, our intent and ability to recover the lost value, and current economic conditions. Impairments deemed other than temporary are charged to equity earnings (losses) from unconsolidated hospitality ventures or other income (loss), net on our consolidated statements of income. |
Marketable Securities | Marketable Securities —Our investments in marketable securities consist of various types of mutual funds, preferred shares, interest bearing money market funds, time deposits, common stock, and fixed income securities, including U.S. government obligations, obligations of other government agencies, corporate debt, mortgage-backed and asset-backed securities, and municipal and provincial notes and bonds and are classified as either trading, AFS, or HTM. • Trading securities—recorded at fair value based on listed market prices or dealer price quotations where available. Realized gains and losses on trading securities are reflected in net gains and interest income from marketable securities held to fund operating programs on our consolidated statements of income. • AFS securities—recorded at fair value as described in Note 4. Unrealized gains and losses on AFS securities are reported as part of accumulated other comprehensive loss on our consolidated balance sheets. Realized gains and losses on AFS securities are recognized in other income (loss), net on our consolidated statements of income. • HTM securities—debt security investments which we have the ability to hold until maturity and are recorded at amortized cost. AFS and HTM securities are assessed for impairment quarterly. To determine if an impairment is other than temporary, we consider the duration and severity of the loss position, the strength of the underlying collateral, the term to maturity, credit rating, and our intent to sell. For debt securities that are deemed other than temporarily impaired and there is no intent to sell, impairments are separated into the amount related to the credit loss, which is typically recorded in other income (loss), net on our consolidated statements of income and the amount related to all other factors, which is recorded in accumulated other comprehensive loss on our consolidated balance sheets. For debt securities that are deemed other than temporarily impaired and there is intent to sell, impairments in their entirety are recorded on our consolidated statements of income . |
Foreign Currency | Foreign Currency —The functional currency of our consolidated entities located outside the United States of America is generally the local currency. The assets and liabilities of these entities are translated into U.S. dollars at year- end exchange rates, and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in earnings. Gains and losses from foreign exchange rate changes related to intercompany receivables and payables of a long- term nature are generally included in accumulated other comprehensive loss. Gains and losses from foreign exchange rate movement related to intercompany receivables and payables that are not long- term are included in earnings. |
Financing Receivables | Financing Receivables —Financing arrangements represent contractual rights to receive money either on demand or on fixed or determinable dates and are recognized on our consolidated balance sheets at amortized cost. We recognize interest income as earned and provide an allowance for cancellations and defaults. Our financing receivables are composed of individual unsecured loans and other types of unsecured financing arrangements provided to hotel owners. These financing receivables generally have stated maturities and interest rates, however, the repayment terms vary and may be dependent upon future cash flows of the hotel. |
Financing Receivables - Non-performing Loans | On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We determine our financing to hotel owners to be non-performing if interest or principal is greater than 90 days past due based on the contractual terms of the individual financing receivables, if an impairment charge is recorded for a loan, or if a provision is established for our other financing arrangements. If we consider a financing receivable to be non-performing, we place the financing receivable on non-accrual status. |
Financing Receivables - Impaired Loans | We individually assess all loans within financing receivables for impairment quarterly. This assessment is based on an analysis of several factors including current economic conditions and industry trends, as well as the specific risk characteristics of these loans including capital structure, loan performance, market factors, and the underlying hotel performance. When it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement or if projected future cash flows available for repayment of unsecured receivables indicate there is a collection risk, we measure the impairment based on the present value of projected future cash flows discounted at the loan’s effective interest rate. For impaired loans, we establish a specific loan loss reserve for the difference between the recorded investment in the loan and the estimated fair value. In addition to loans, we include other types of financing arrangements in unsecured financing to hotel owners which we do not assess individually for impairment. We regularly evaluate our reserves for these other financing arrangements. We write off financing to hotel owners when we determine the receivables are uncollectible and when all commercially reasonable means of recovering the receivable balances have been exhausted. |
Financing Receivables - Non-accrual Status | We recognize interest income when received for impaired loans and financing receivables on non-accrual status which is recorded to other income (loss), net in our consolidated statements of income. Accrual of interest income is resumed when the receivable becomes contractually current and collection doubts are removed. If we consider a financing receivable to be non-performing, we place the financing receivable on non-accrual status. |
Accounts Receivable | Accounts Receivable —Our accounts receivable primarily consist of trade receivables due from guests for services rendered at our owned and leased properties and from hotel owners with whom we have management and franchise agreements for services rendered and for reimbursements of costs incurred on behalf of managed and franchised properties. We record an accounts receivable reserve when losses are probable, based on an assessment of past collection activity and current business conditions. |
Inventories | Inventories —Inventories are comprised of operating supplies and equipment that have a period of consumption of two years or less, and food and beverage items at our owned and leased hotels which are generally valued at the lower of cost ( first- in, first- out) or net realizable value. At December 31, 2016, inventories also included two luxury villas and the associated land at Andaz Maui at Wailea Resort which were carried at the lower of cost or net realizable value. |
Property and Equipment and Definite-Lived Intangibles | Property and Equipment and Definite- Lived Intangibles —Property and equipment and definite-lived intangibles are stated at cost, including interest incurred during development and construction periods, less accumulated depreciation and amortization. Depreciation and amortization are recognized over the estimated useful lives of the assets, primarily on the straight- line method. Useful lives assigned to property and equipment are as follows: Buildings and improvements 10-50 years Leasehold improvements The shorter of the lease term or useful life of asset Furniture and equipment 3-20 years Computers 3-7 years Useful lives assigned to definite-lived intangibles are as follows: Management and franchise agreement intangibles Initial term of management or franchise agreement Lease related intangibles Lease term Advanced booking intangibles Period of the advanced bookings We assess property and equipment and definite-lived intangibles for impairment quarterly. When events or circumstances indicate the carrying amount may not be recoverable, we evaluate the net book value of the assets for impairment by comparison to the projected undiscounted future cash flows of the assets. The principal factor used in the undiscounted cash flow analysis requiring judgment is the projected future operating cash flows, which are based on historical data, various internal estimates, and a variety of external resources, and are developed as part of our routine, long-term planning process. If the projected undiscounted future cash flows are less than the net book value of the assets, the fair value is determined based upon internally developed discounted cash flows of the assets, third-party appraisals or broker valuations, and if appropriate, current estimated net sales proceeds from pending offers. The principal factors used in the discounted cash flow analysis requiring judgment are the projected future operating cash flows, the discount rates, and the capitalization rate assumptions. The excess of the net book value over the estimated fair value is charged to asset impairments within our consolidated statements of income. We evaluate the carrying value of our property and equipment and definite-lived intangibles based on our plans, at the time, for such assets and consider qualitative factors such as future development in the surrounding area, status of local competition, and any significant adverse changes in the business climate. Changes to our plans, including a decision to dispose of or change the intended use of an asset, may have a material impact on the carrying value of the asset. |
Acquisitions | Acquisitions —Assets acquired and liabilities assumed in business combinations are recorded on our consolidated balance sheets at the respective acquisition dates based upon their estimated fair values, see Note 7 . The results of operations of businesses acquired have been included in our consolidated statements of income since their respective dates of acquisition. In certain circumstances, the purchase price allocations are based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision when we receive final information, including appraisals and other analyses. Under the supervision of management, independent third-party valuation specialists estimate the fair value of our properties or businesses acquired using various recognized valuation methods including the income approach, the cost approach, and the sales comparison approach, which are primarily based on Level Three assumptions. Assumptions utilized in determining the fair value under these approaches include, but are not limited to, historical financial results when applicable, projected cash flows, discount rates, capitalization rates, current market conditions, and comparable transactions. The fair value is then allocated to tangible and intangible assets with any remaining value assigned to goodwill, if applicable. Various assumptions are used when determining the value to allocate to each identifiable asset, including discount rates, capitalization rates, royalty rates, timing of future cash flows, and a variety of external sources. When we acquire the remaining ownership interest in or the property from an unconsolidated hospitality venture in a step acquisition, we estimate the fair value of our equity interest using the assumed cash proceeds we would receive from sale to a third party at a market sales price, which is determined using the aforementioned fair value methodologies and assumptions. |
Goodwill | Goodwill —Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As required, we evaluate goodwill for impairment annually, and do so during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. Goodwill impairment is determined by comparing the fair value of a reporting unit to its carrying amount. We evaluate the fair value of the reporting unit either by performing a qualitative or quantitative assessment. In any given year, we can elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If it is not more likely than not that the fair value is in excess of the carrying value, or we elect to bypass the qualitative assessment, we proceed to the quantitative assessment. When determining fair value, we utilize internally developed discounted future cash flow models, third-party appraisals or broker valuations and, if appropriate, current estimated net sales proceeds from pending offers. Under the discounted cash flow approach, we utilize various assumptions requiring judgment, including projected future cash flows, discount rates, and capitalization rates. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long- term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we record an impairment charge based on the amount by which the reporting unit’s carrying value exceeded its fair value, limited to the carrying amount of goodwill. The identified loss is recorded to asset impairments within our consolidated statements of income. |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Assets —We have certain indefinite-lived brand intangibles that were acquired through various business combinations. At the time of each respective acquisition, fair value was estimated using a relief from royalty methodology. As required, we evaluate indefinite-lived intangible assets for impairment annually, and do so during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. We use the relief from royalty method to estimate the fair value. When determining fair value, we utilize internally developed discounted future cash flow models, which include various assumptions requiring judgment, including projected future cash flows and market royalty rates. Our estimates of projected cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we record an impairment charge. The excess of the carrying value over the fair value is recorded to asset impairments within our consolidated statements of income. |
Guarantees | Guarantees —We enter into performance guarantees related to certain hotels we manage. We also enter into debt repayment guarantees or other guarantees with respect to unconsolidated hospitality ventures, certain managed or franchised hotels, and other properties. We record a liability for the fair value of these guarantees at their inception date. In order to estimate the fair value, we use a Monte Carlo simulation to model the probability of possible outcomes. The valuation methodology requires that we make certain assumptions and judgments regarding: discount rates, volatility, hotel operating results, and hotel property sales prices. The fair value is not re-valued due to future changes in assumptions. The corresponding offset depends on the circumstances in which the guarantee was issued and is recorded to investments, intangibles, or expense. We amortize the liability for the fair value of a guarantee into income over the term of the guarantee using a systematic and rational, risk-based approach. Guarantees related to our managed or franchised hotels and other properties are amortized into income in other income (loss), net in our consolidated statements of income. Guarantees related to our unconsolidated hospitality ventures are amortized into equity earnings (losses) from unconsolidated hospitality ventures in our consolidated statements of income. On a quarterly basis, we evaluate the likelihood of funding under a guarantee. To the extent we determine an obligation to fund is both probable and estimable based upon performance during the period, we record a separate contingent liability in other income (loss), net or equity earnings (losses) from unconsolidated hospitality ventures. |
Income Taxes | Income Taxes —We account for income taxes to recognize the amount of taxes payable or refundable for the current year and the amount of deferred tax assets and liabilities resulting from the future tax consequences of differences between the financial statements and tax basis of the respective assets and liabilities. We recognize the financial statement effect of a tax position when, based on the technical merits of the uncertain tax position, it is more likely than not to be sustained on a review by taxing authorities. We review these estimates and make changes to recorded amounts of uncertain tax positions as facts and circumstances warrant. |
Fair Value | Fair Value —We apply the provisions of fair value measurement to various financial instruments, which we measure at fair value on a recurring basis, and to various financial and nonfinancial assets and liabilities, which we measure at fair value on a nonrecurring basis. We disclose the fair value of our financial assets and liabilities based on observable market information where available, or on market participant assumptions. These assumptions are subjective in nature, involve matters of judgment, and, therefore, fair values cannot always be determined with precision. When determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy are as follows: Level One—Fair values based on unadjusted quoted prices in active markets for identical assets and liabilities; Level Two—Fair values based on quoted market prices for similar assets and liabilities in active markets, quoted prices in inactive markets for identical assets and liabilities, and inputs other than quoted market prices that are observable for the asset or liability; and Level Three—Fair values based on inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Valuation techniques could include the use of discounted cash flow models and similar techniques. We typically utilize the market approach and income approach for valuing our financial instruments. The market approach utilizes prices and information generated by market transactions involving identical or similar assets and liabilities and the income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). For instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the classification within the fair value hierarchy has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy. The carrying values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short- term nature of these items and their close proximity to maturity. The carrying value of restricted cash approximates fair value. |
Stock-Based Compensation | Stock-Based Compensation —As part of our LTIP, we award SARs, RSUs, Performance Shares ("PSs"), and PSUs to certain employees and directors: • SARs —Each vested SAR gives the holder the right to the difference between the value of one share of our Class A common stock at the exercise date and the value of one share of our Class A common stock at the grant date. Vested SARs can be exercised over their life as determined in accordance with the LTIP. All SARs have a 10 -year contractual term, are settled in shares of our Class A common stock, and are accounted for as equity instruments. We record the compensation expense for SARs on a straight-line basis from the date of grant through the requisite service period. The exercise price of these SARs is the fair value of our common stock at the grant date, based on a valuation of the Company prior to the IPO, or the closing share price on the date of grant (as applicable). We recognize the effect of forfeitures for SARs as they occur. • RSUs —Each vested RSU will generally be settled by delivery of a single share of our Class A common stock and therefore is accounted for as an equity instrument. In certain situations, we also grant a limited number of cash-settled RSUs, which are recorded as a liability instrument. The cash-settled RSUs represent an insignificant portion of certain previous grants. The value of the RSUs is based upon the fair value of our common stock at the grant date, based upon a valuation of the Company prior to IPO, or the closing stock price of our Class A common stock for the December 2009 award and all subsequent awards. Awards issued prior to our November 2009 IPO are deferred in nature and will be settled once all tranches of the award have fully vested or otherwise as provided in the relevant agreements, while all awards issued in December 2009 and later will be settled as each individual tranche vests under the relevant agreements. We record compensation expense over the requisite service period of the individual grant and record the effect of forfeitures as they occur. • PSs —The Company has granted PSs to certain executive officers. The number of PSs that will ultimately vest with no further restrictions on transfer depends upon the performance of the Company at the end of the applicable three-year performance period relative to the applicable performance target. The PSs vest in full if the maximum performance metric is achieved and are generally subject to continued employment through the applicable performance period. At the end of the performance period, the PSs that do not vest will be forfeited. The PSs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. PSs will be settled in shares of our Class A common stock. • PSUs —The Company has granted PSUs to certain executive officers. PSUs vest and are settled in Class A common stock based upon the performance of the Company through the end of the applicable three-year performance period relative to the applicable performance target and are generally subject to continued employment through the applicable performance period. The PSUs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. |
Loyalty Program | Loyalty Program —We operate the World of Hyatt loyalty program for the benefit of the Hyatt portfolio of properties owned, operated, managed, franchised, or licensed by us during the period of their participation in the loyalty program. The loyalty program is primarily funded through contributions from eligible revenues from loyalty program members and we use these funds for the payment of operating expenses and redemption of member awards associated with the loyalty program. We charge the cost of operating the loyalty program, including the estimated cost of award redemption, to the properties based on members’ qualified expenditures. Due to the requirement under the loyalty program that the properties reimburse us for the program’s operating costs, we recognize this revenue from properties through other revenues from managed and franchised properties at the time such costs are incurred and expensed. We defer revenue received from the properties equal to the actuarially determined estimate of our future redemption obligation. Upon the redemption of points, we recognize the previously deferred revenue through other revenues from managed and franchised properties and recognize the corresponding expense relating to the cost of the awards redeemed through other costs from managed and franchised properties. Revenue is recognized by the properties when the points are redeemed, and expenses are recognized when the points are earned by the members. We actuarially determine the estimate of the future redemption obligation based on statistical formulas that project the timing of future point redemption based on historical experience, including an estimate of the breakage for points that will never be redeemed, and an estimate of the points that will eventually be redeemed. Actual expenditures for the program may differ from the actuarially determined liability. The loyalty program is financed by payments from the properties and returns on marketable securities. We invest amounts received from the properties in marketable securities which are included in other current and noncurrent assets (see Note 4 ). The noncurrent liabilities of the loyalty program are included in other long-term liabilities (see Note 12 ). |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") released Accounting Standards Update No. 2016-09 ("ASU 2016-09"), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The provisions of ASU 2016-09 were effective for interim periods and fiscal years beginning after December 15, 2016. We adopted ASU 2016-09 on January 1, 2017, which resulted in recognition of excess tax benefits from share-based payment transactions on our consolidated statements of income and within operating activities on our consolidated statements of cash flows, on a prospective basis. ASU 2016-09 did not materially impact our consolidated financial statements and prior periods have not been adjusted. In January 2017, the FASB released Accounting Standards Update No. 2017-04 ("ASU 2017-04"), Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . ASU 2017-04 eliminates Step 2 from the impairment test which requires entities to determine the implied fair value of goodwill to measure if any impairment charge is necessary. Instead, entities will record an impairment charge based on the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The provisions of ASU 2017-04 are to be applied on a prospective basis and are effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. We adopted ASU 2017-04 during the year ended December 31, 2017 in conjunction with our annual goodwill impairment testing. ASU 2017-04 did not materially impact our consolidated financial statements and prior periods have not been adjusted. Future Adoption of Accounting Standards In May 2014, the FASB released Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition , and provides a single, comprehensive revenue recognition model for contracts with customers. Subsequently, the FASB issued several related ASUs which further clarify the application of the standard. In August 2015, the FASB released Accounting Standards Update No. 2015-14 ("ASU 2015-14"), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . ASU 2015-14 delays the effective date of ASU 2014-09 by one year, making it effective for interim periods and fiscal years beginning after December 15, 2017, with early adoption permitted as of the original effective date under ASU 2014-09. ASU 2014-09 requires entities to recognize revenue when a customer obtains control of a good or a service. Revenues are recognized in an amount that reflects the consideration expected to be received in return for the goods or services. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standard permits the use of either the full retrospective or modified retrospective (cumulative effect) transition method. We expect to adopt ASU 2014-09, and all related ASUs, utilizing the full retrospective transition method on January 1, 2018. While we continue to evaluate possible impacts on our consolidated financial statements, ASU 2014-09 and the related ASUs are currently expected to impact either the amount or timing of revenue recognition as follows: • Under existing guidance, gains on sales of real estate are deferred when we maintain substantial continuing involvement and are amortized into management and franchise fee revenues. Upon adoption of ASU 2014-09, gains on sales of real estate will be recognized when control of the property transfers to the buyer within gains (losses) on sales of real estate on our consolidated statements of income. As a result, we expect a reduction in management and franchise fee income in future periods, but in periods in which we dispose of a property, we expect to recognize the gain upon sale which would increase net income in the period of sale. Any remaining unamortized deferred gains at the date of adoption will be included as an adjustment to retained earnings. For the years ended December 31, 2017 and December 31, 2016, we recognized $25 million and $21 million , respectively, of management and franchise fee revenues related to the amortization of these deferred gains on our consolidated statements of income. • Under existing guidance, amortization of certain management and franchise agreement intangibles is recorded within depreciation and amortization on our consolidated statements of income. Upon adoption of ASU 2014-09, certain management and franchise agreement intangibles will meet the definition of consideration paid to a customer and therefore, the amortization will be recorded as contra-revenue within management and franchise fee revenues on our consolidated statements of income following the same timing and recognition pattern as existing guidance. For the years ended December 31, 2017 and December 31, 2016, we recognized $18 million and $16 million , respectively, of amortization expense related to management and franchise agreement intangibles that will meet the definition of consideration paid to a customer upon adoption of ASU 2014-09. As a result, we expect an equal and offsetting reduction in both revenues and amortization expense in future periods, such that there is no impact to net income. • Under existing guidance, incentive fees are recognized in the amount that would be due as if the contract were to terminate at that time. Under ASU 2014-09, variable consideration is included in the transaction price only if it is probable that a significant reversal in the cumulative amount of revenue recognized would not occur when the uncertainty associated with the variable consideration is subsequently resolved. This may result in a different pattern of quarterly recognition for incentive fees for certain contracts. We do not anticipate a material impact to incentive fee recognition on a full-year basis. • Under existing guidance, franchise application fees are recognized at a point in time. Upon adoption of ASU 2014-09, franchise application fees will be recognized over the initial term of the franchise agreement. We do not expect this change to materially impact our consolidated financial statements. • Under existing guidance, revenues include the reimbursement of costs incurred to operate our sales, reservations, technology, and marketing programs on behalf of the owners of managed and franchised properties and are recognized when costs are incurred with no added margins. Upon adoption of ASU 2014-09, we anticipate that the timing of revenue recognition may no longer align with the timing of expense recognition primarily in interim periods. However we do not anticipate a material impact to our consolidated statements of income on a full-year basis. • Under existing guidance, revenues related to loyalty program award redemptions are deferred and recognized on a gross basis upon redemption. Upon adoption of ASU 2014-09, we anticipate recognizing revenue related to the loyalty program upon redemption, net of any reward reimbursement paid to a third party. We are still evaluating additional quantitative impacts of the new standard on our consolidated statements of income. We do not expect the standard to materially affect the amount or timing of revenue recognition for royalty fees from our franchised properties, base management fees from our managed properties, technical services fees, termination fees, or revenues from hotel guest transactions at our owned and leased properties. In January 2016, the FASB released Accounting Standards Update No. 2016-01 ("ASU 2016-01"), Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 revises the accounting for equity investments, excluding those accounted for under the equity method, and the presentation and disclosure requirements for financial instruments. The provisions of ASU 2016-01 are effective for interim periods and fiscal years beginning after December 15, 2017. ASU 2016-01 supersedes the guidance to classify equity securities with readily determinable fair values into different categories (trading versus AFS). All equity securities will be measured at fair value on a recurring basis unless an equity security does not have a readily determinable fair value. Equity securities without a readily determinable fair value will be remeasured at fair value only in periods in which an observable price change is available or upon identification of an impairment. All changes in fair value will be recognized in net income on our consolidated statements of income. Upon adoption, the unrealized gains (losses), net of tax, on our AFS equity securities, specifically on our investment in Playa Hotels & Resorts N.V. ("Playa N.V.") (see Note 4), will be reclassified from accumulated other comprehensive loss to retained earnings. The reclassification is estimated to be approximately $70 million at January 1, 2018. Subsequent changes in fair value will be recognized in net income on our consolidated statements of income. We do not expect that other requirements of ASU 2016-01 will have a material impact on our consolidated financial statements. In February 2016, the FASB released Accounting Standards Update No. 2016-02 ("ASU 2016-02"), Leases (Topic 842) . ASU 2016-02 requires lessees to record lease contracts on the balance sheet by recognizing a right-of-use asset and lease liability. The provisions of ASU 2016-02 are to be applied using a modified retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted. The leases for a majority of our hotels include contingent lease payments, which will be excluded from the impact of ASU 2016-02, see Note 10. We are currently evaluating the impact of adopting ASU 2016-02 and expect this ASU may have a material effect. In June 2016, the FASB released Accounting Standards Update No. 2016-13 ("ASU 2016-13"), Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 replaces the existing impairment model for most financial assets from an incurred loss impairment model to a current expected credit loss model, which requires an entity to recognize an impairment allowance equal to its current estimate of all contractual cash flows the entity does not expect to collect. ASU 2016-13 also requires credit losses relating to AFS debt securities to be recorded through an allowance for credit losses. The provisions of ASU 2016-13 are to be applied using a modified retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2016-13 . In October 2016, the FASB released Accounting Standards Update No. 2016-16 ("ASU 2016-16"), Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The provisions of ASU 2016-16 are effective for interim periods and fiscal years beginning after December 15, 2017, with early adoption permitted. ASU 2016-16 requires an entity to adopt the amendments on a modified retrospective basis, recognizing the effects in retained earnings at the beginning of the year of adoption. Upon adoption, we do not expect ASU 2016-16 to have a material impact on our consolidated financial statements. In November 2016, the FASB released Accounting Standards Update No. 2016-18 ("ASU 2016-18"), Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) . Currently, transfers between cash and cash equivalents and restricted cash are included within operating and investing activities on our consolidated statements of cash flows. ASU 2016-18 requires amounts generally described as restricted cash to be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statements of cash flows. The provisions of ASU 2016-18 are effective for interim periods and fiscal years beginning after December 15, 2017, and are to be applied on a retrospective basis with early adoption permitted. Upon adoption, our restricted cash balances of $234 million and $76 million at December 31, 2017 and December 31, 2016 , respectively, will be included in cash, cash equivalents, and restricted cash on our consolidated statements of cash flows. In January 2017, the FASB released Accounting Standards Update No. 2017-01 ("ASU 2017-01"), Business Combinations (Topic 805): Clarifying the Definition of a Business . ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Generally, our acquisitions of individual hotels are accounted for as business combinations, however, upon adoption of ASU 2017-01, there is an increased likelihood that certain acquisitions of individual hotels will be accounted for as asset acquisitions. The provisions of ASU 2017-01 are effective for interim periods and fiscal years beginning after December 15, 2017. This standard is effective on a prospective basis, and therefore does not affect the accounting treatment for any previous transactions. We will evaluate the other impacts of adopting ASU 2017-01 based on facts and circumstances prospectively as transactions occur. |
Employee Benefit Plans | Defined Contribution Plans —We provide retirement benefits to certain eligible employees under the Retirement Savings Plan (a qualified plan under Internal Revenue Code Section 401(k)), the FRP, and other similar plans. For the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 , we recorded expenses of $39 million , $36 million , and $35 million , respectively, related to the Retirement Savings Plan based on a percentage of eligible employee contributions on stipulated amounts. The majority of these contributions relate to hotel property level employees, which are reimbursable to us and are included in the other revenues from managed and franchised properties and other costs from managed and franchised properties on our consolidated statements of income. Deferred Compensation Plans —We provide nonqualified deferred compensation for certain employees through the DCP. Contributions and investment elections are determined by the employees, and we provide contributions to certain eligible employees according to pre-established formulas. Defined Benefit Plans —We sponsor supplemental executive retirement plans consisting of funded and unfunded defined benefit plans for certain former executives. Retirement benefits are based primarily on the former employees’ salary, as defined, and are payable upon satisfaction of certain service and age requirements as defined by the plans. Employee Stock Purchase Program —We provide the Hyatt Hotels Corporation ESPP, which qualifies under Section 423 of the Internal Revenue Code. The ESPP provides eligible employees the opportunity to purchase shares of the Company’s common stock on a quarterly basis through payroll deductions at a price equal to 95% of the fair value on the last trading day of each quarter. |
Self Insurance Reserve | We obtain commercial insurance for potential losses for general liability, workers' compensation, automobile liability, employment practices, crime, property, cyber risk, and other miscellaneous coverages. A portion of the risk is retained on a self-insurance basis primarily through U.S. based and licensed captive insurance companies that are wholly owned subsidiaries of Hyatt and generally insure our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. |
Commitments and Contingencies | We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender’s recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof. In conjunction with financing obtained for our unconsolidated hospitality ventures, certain managed hotels and other properties, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions or actions of the other unconsolidated hospitality venture partners, respective hotel owners, or other third parties. As a result of certain dispositions, we have agreed to provide customary indemnifications to third- party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. We are subject, from time to time, to various claims and contingencies related to lawsuits, taxes, and environmental matters, as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. Although the ultimate liability for these matters cannot be determined at this point, based on information currently available, we do not expect the ultimate resolution of such claims and litigation will have a material effect on our consolidated financial statements. |
Segment Reporting | Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker to assess performance and make decisions regarding the allocation of resources. Our chief operating decision maker is our President and Chief Executive Officer. We define our reportable segments as follows: • Owned and leased hotels —This segment derives its earnings from owned and leased hotel properties located predominantly in the United States, but also in certain international locations and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card and are eliminated in consolidation. • Americas management and franchising —This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in the United States, Latin America, Canada, and the Caribbean. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to payroll costs at managed properties where the Company is the employer, as well as reservations, sales, marketing, loyalty program, and technology costs. These revenues and costs are recorded within other revenues from managed and franchised properties and other costs from managed and franchised properties, respectively. The intersegment revenues relate to management fees earned from the Company’s owned hotels and are eliminated in consolidation. • ASPAC management and franchising —This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Southeast Asia, as well as Greater China, Australia, South Korea, Japan, and Micronesia. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, sales, marketing, and technology costs. These revenues and costs are recorded within other revenues from managed and franchised properties and other costs from managed and franchised properties, respectively. The intersegment revenues relate to management fees earned from the Company’s owned hotels and are eliminated in consolidation. • EAME/SW Asia management and franchising —This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Europe, Africa, the Middle East, India, Central Asia, and Nepal. This segment’s revenues also include the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin. These costs relate primarily to reservations, sales, marketing, and technology costs. These revenues and costs are recorded within other revenues from managed and franchised properties and other costs from managed and franchised properties, respectively. The intersegment revenues relate to management fees earned from the Company’s owned hotels and are eliminated in consolidation. Our chief operating decision maker evaluates performance based on each segment’s revenue and Adjusted EBITDA. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define Adjusted EBITDA as net income attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated hospitality ventures Adjusted EBITDA based on our ownership percentage of each venture, adjusted to exclude interest expense; provision for income taxes; depreciation and amortization; equity earnings (losses) from unconsolidated hospitality ventures; stock-based compensation expense; gains (losses) on sales of real estate; asset impairments; and other (income) loss, net. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Property and Equipment Useful Lives | Useful lives assigned to property and equipment are as follows: Buildings and improvements 10-50 years Leasehold improvements The shorter of the lease term or useful life of asset Furniture and equipment 3-20 years Computers 3-7 years |
Schedule of Definite-Lived Intangible Assets | Useful lives assigned to definite-lived intangibles are as follows: Management and franchise agreement intangibles Initial term of management or franchise agreement Lease related intangibles Lease term Advanced booking intangibles Period of the advanced bookings |
Schedule of Loyalty Program Assets and Liabilities | Assets and liabilities of the loyalty program are as follows: December 31, 2017 December 31, 2016 Current assets $ 171 $ 150 Noncurrent assets 298 296 Total assets $ 469 $ 446 Current liabilities $ 171 $ 150 Noncurrent liabilities 298 296 Total liabilities $ 469 $ 446 |
Equity and Cost Method Invest35
Equity and Cost Method Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity And Cost Method Investments [Abstract] | |
Equity and Cost Method Investment Balances | December 31, 2017 December 31, 2016 Equity method investments $ 184 $ 180 Cost method investments 27 6 Total investments $ 211 $ 186 |
Schedule of Equity Method Investments | The carrying values and ownership percentages of our unconsolidated investments in hospitality ventures accounted for under the equity method were as follows: Ownership interests Investment balance December 31, 2017 December 31, 2016 Juniper Hotels Private Limited 50.0 % $ 26 $ 37 Macae Partners SARL 70.0 % 17 7 San Jose Hotel Partners, LLC 40.0 % 16 15 Four One Five, LLC 44.7 % 16 15 Hotel Am Belvedere GmbH & Co KG 50.0 % 15 12 Hotel Hoyo Uno, S. de R.L. de C.V. 40.0 % 15 13 Rio Preto Partners SARL 70.0 % 13 14 Desarrolladora Hotelera Acueducto, S. de R.L. de C.V. 50.0 % 13 13 HH Nashville JV Holdings, LLC 50.0 % 12 7 Glendale Hotel Properties, LLC 50.0 % 11 — Playa Hotels & Resorts BV — % — 23 Other 30 24 Total $ 184 $ 180 |
Summarized Financial Information | The following tables present summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method: Years Ended December 31, 2017 2016 2015 Total revenues $ 832 $ 1,229 $ 1,079 Gross operating profit 289 398 312 Income from continuing operations 54 160 33 Net income 54 160 33 December 31, 2017 December 31, 2016 Current assets $ 215 $ 443 Noncurrent assets 1,308 2,701 Total assets $ 1,523 $ 3,144 Current liabilities $ 156 $ 385 Noncurrent liabilities 1,224 2,037 Total liabilities $ 1,380 $ 2,422 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Securities [Abstract] | |
Marketable Securities Held to Fund Operating Programs | Marketable securities held to fund operating programs, which are recorded at fair value and included on our consolidated balance sheets, were as follows: December 31, 2017 December 31, 2016 Loyalty program (Note 2) $ 403 $ 394 Deferred compensation plans held in rabbi trusts (Note 11) 402 352 Captive insurance companies 111 65 Total marketable securities held to fund operating programs $ 916 $ 811 Less current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets (156 ) (109 ) Marketable securities held to fund operating programs included in other assets $ 760 $ 702 |
Net Gains and Interest Income on Marketable Securities Held to Fund Operating Programs | Net gains and interest income from marketable securities held to fund operating programs on our consolidated statements of income included realized and unrealized gains and losses and interest income related to the following: Years Ended December 31, 2017 2016 2015 Loyalty program $ 2 $ 2 $ 1 Deferred compensation plans held in rabbi trusts 45 17 3 Total net gains and interest income from marketable securities held to fund operating programs $ 47 $ 19 $ 4 |
Marketable Securities Held for Investment Purposes | Marketable securities held for investment purposes, which are recorded at fair value and included on our consolidated balance sheets, were as follows: December 31, 2017 December 31, 2016 Interest bearing money market funds $ 26 $ 106 Time deposits 37 45 Preferred shares — 290 Common shares 131 — Total marketable securities held for investment purposes $ 194 $ 441 Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (63 ) (151 ) Marketable securities held for investment purposes included in other assets $ 131 $ 290 |
Available-for-sale Securities | Preferred shares— During the year ended December 31, 2013, we invested $271 million in Playa for convertible redeemable preferred shares which were classified as an AFS debt security. The fair value of the preferred shares was: 2017 2016 Fair value at January 1 $ 290 $ 335 Gross unrealized gains — 19 Gross unrealized losses (54 ) (29 ) Realized losses (40 ) (6 ) Interest income 94 12 Cash redemption (290 ) (41 ) Fair value at December 31 $ — $ 290 |
Option-Pricing Scenarios Included in Assumptions | The option-pricing scenarios included various assumptions as follows: December 31, 2016 Expected term 1 year Risk-free interest rate 0.85 % Volatility 46.5 % Dividend yield 12.0 % |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value —We measured the following financial assets at fair value on a recurring basis: December 31, 2017 Cash and cash equivalents Short-term investments Prepaids and other assets Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest bearing money market funds $ 75 $ 75 $ — $ — $ — Mutual funds 402 — — — 402 Common Shares 131 — — — 131 Level Two - Significant Other Observable Inputs Time deposits 50 — 39 — 11 U.S. government obligations 158 — — 38 120 U.S. government agencies 47 — 2 7 38 Corporate debt securities 179 — 8 33 138 Mortgage-backed securities 25 — — 6 19 Asset-backed securities 40 — — 10 30 Municipal and provincial notes and bonds 3 — — 1 2 Total $ 1,110 $ 75 $ 49 $ 95 $ 891 December 31, 2016 Cash and cash equivalents Short-term investments Prepaids and other assets Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest bearing money market funds $ 114 $ 114 $ — $ — $ — Mutual funds 352 — — — 352 Level Two - Significant Other Observable Inputs Time deposits 59 — 46 — 13 U.S. government obligations 142 — — 33 109 U.S. government agencies 53 — 9 8 36 Corporate debt securities 181 — 1 35 145 Mortgage-backed securities 22 — — 5 17 Asset-backed securities 34 — — 8 26 Municipal and provincial notes and bonds 5 — — 1 4 Level Three - Significant Unobservable Inputs Preferred shares 290 — — — 290 Total $ 1,252 $ 114 $ 56 $ 90 $ 992 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2017 December 31, 2016 Land $ 916 $ 901 Buildings 3,880 4,125 Leasehold improvements 210 202 Furniture, equipment, and computers 1,204 1,316 Construction in progress 122 90 6,332 6,634 Accumulated depreciation (2,298 ) (2,364 ) Total property and equipment, net $ 4,034 $ 4,270 |
Depreciation | Years Ended December 31, 2017 2016 2015 Depreciation expense $ 335 $ 315 $ 289 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables | December 31, 2017 December 31, 2016 Unsecured financing to hotel owners $ 127 $ 119 Less allowance for losses (108 ) (100 ) Financing receivables, net of allowances $ 19 $ 19 |
Allowance for Losses and Impairments | The following table summarizes the activity in our unsecured financing receivables allowance: 2017 2016 Allowance at January 1 $ 100 $ 98 Provisions 6 10 Write-offs — (8 ) Other adjustments 2 — Allowance at December 31 $ 108 $ 100 |
Credit Monitoring | Our unsecured financing receivables were as follows: December 31, 2017 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 13 $ — $ 13 $ — Impaired loans (1) 59 (59 ) — 59 Total loans 72 (59 ) 13 59 Other financing arrangements 55 (49 ) 6 49 Total unsecured financing receivables $ 127 $ (108 ) $ 19 $ 108 (1) The unpaid principal balance was $44 million and the average recorded loan balance was $58 million at December 31, 2017 . December 31, 2016 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 13 $ — $ 13 $ — Impaired loans (2) 56 (56 ) — 56 Total loans 69 (56 ) 13 56 Other financing arrangements 50 (44 ) 6 44 Total unsecured financing receivables $ 119 $ (100 ) $ 19 $ 100 (2) The unpaid principal balance was $43 million and the average recorded loan balance was $57 million at December 31, 2016 . |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Miraval Group | |
Business Acquisition | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the identifiable net assets acquired in the acquisition of Miraval, which is recorded within corporate and other: Current assets, net of cash acquired $ 1 Property and equipment 173 Indefinite-lived intangibles (1) 37 Management agreement intangibles (2) 14 Goodwill (3) 19 Other definite-lived intangibles (4) 7 Total assets $ 251 Current liabilities $ 12 Deferred tax liabilities 3 Total liabilities 15 Total net assets acquired attributable to Hyatt Hotels Corporation 236 Total net assets acquired attributable to noncontrolling interests 1 Total net assets acquired $ 237 (1) Includes an intangible attributable to the Miraval brand. (2) Amortized over a useful life of 20 years. (3) The goodwill, of which $8 million is deductible for tax purposes, is attributable to Miraval's reputation as a renowned provider of wellness and mindfulness experiences, the extension of the Hyatt brand beyond traditional hotel stays, and the establishment of deferred tax liabilities. (4) Amortized over useful lives ranging from two to seven years. |
Andaz Maui at Wailea Resort | |
Business Acquisition | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed, which are recorded in our owned and leased hotels segment at the date of acquisition: Cash and cash equivalents $ 12 Receivables 3 Inventories 13 Prepaids and other assets 1 Property and equipment 323 Total assets $ 352 Current liabilities $ 10 Total liabilities 10 Total net assets acquired $ 342 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Owned and Leased Hotels Americas Management and Franchising Corporate and Other Total Balance at January 1, 2016 Goodwill $ 191 $ 33 $ — $ 224 Accumulated impairment losses (95 ) — — (95 ) Goodwill, net $ 96 $ 33 $ — $ 129 Activity during the year Foreign exchange (1) (4 ) — — (4 ) Balance at December 31, 2016 Goodwill 187 33 — 220 Accumulated impairment losses (95 ) — — (95 ) Goodwill, net $ 92 $ 33 $ — $ 125 Activity during the year Additions — — 23 23 Foreign exchange (1) 2 — — 2 Balance at December 31, 2017 Goodwill 189 33 23 245 Accumulated impairment losses (95 ) — — (95 ) Goodwill, net $ 94 $ 33 $ 23 $ 150 (1) Foreign exchange translation adjustments related to the goodwill associated with Hyatt Regency Mexico City. |
Schedule of Intangible Assets by Major Class | December 31, 2017 Weighted average useful lives December 31, 2016 Management and franchise agreement intangibles $ 653 24 $ 589 Lease related intangibles 127 110 115 Brand and other indefinite-lived intangibles 53 — 16 Advanced booking intangibles 9 6 11 Other definite-lived intangibles 9 11 6 851 737 Accumulated amortization (168 ) (138 ) Intangibles, net $ 683 $ 599 |
Schedule of Intangible Asset Amortization Expense | Years Ended December 31, 2017 2016 2015 Amortization expense $ 31 $ 27 $ 31 |
Schedule of Definite-Lived Intangible Assets, Future Amortization Expense | We estimate amortization expense for definite-lived intangibles as follows: Years Ending December 31, 2018 $ 33 2019 32 2020 33 2021 32 2022 32 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, 2017 December 31, 2016 $196 million senior unsecured notes maturing in 2019—6.875% $ 196 $ 196 $250 million senior unsecured notes maturing in 2021—5.375% 250 250 $350 million senior unsecured notes maturing in 2023—3.375% 350 350 $400 million senior unsecured notes maturing in 2026—4.850% 400 400 Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A 130 130 Contract Revenue Bonds, Senior Taxable Series 2005B 55 59 Floating average rate construction loan 70 79 Revolving credit facility — 100 Other 1 1 Long-term debt before capital lease obligations 1,452 1,565 Capital lease obligations 13 15 Total long-term debt 1,465 1,580 Less current maturities (11 ) (119 ) Less unamortized discounts and deferred financing fees (14 ) (16 ) Total long-term debt, net of current maturities $ 1,440 $ 1,445 |
Schedule of Maturities of Long-term Debt | Under existing agreements, maturities of debt for the next five years and thereafter are as follows: Years Ending December 31, 2018 $ 11 2019 207 2020 12 2021 262 2022 12 Thereafter 961 Total $ 1,465 |
Fair Value | December 31, 2017 Carrying value Fair value Quoted prices in active markets for identical assets (level one) Significant other observable inputs (level two) Significant unobservable inputs (level three) Debt (1) $ 1,452 $ 1,546 $ — $ 1,459 $ 87 (1) Excludes capital lease obligations of $13 million and unamortized discounts and deferred financing fees of $14 million . December 31, 2016 Carrying value Fair value Quoted prices in active markets for identical assets (level one) Significant other observable inputs (level two) Significant unobservable inputs (level three) Debt (2) $ 1,565 $ 1,642 $ — $ 1,450 $ 192 (2) Excludes capital lease obligations of $15 million and unamortized discounts and deferred financing fees of $16 million . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Lease Payments | The future minimum lease payments for our corporate office space and leased hotels due in each of the next five years and thereafter are as follows: Years Ending December 31, Operating leases Capital leases 2018 $ 36 $ 2 2019 42 2 2020 39 2 2021 36 2 2022 35 2 Thereafter 441 7 Total minimum lease payments $ 629 $ 17 Less amount representing interest 4 Present value of minimum lease payments $ 13 |
Schedule of Rent Expense | A summary of rent expense from continuing operations for all operating leases is as follows: Years Ended December 31, 2017 2016 2015 Minimum rentals $ 42 $ 37 $ 34 Contingent rentals 52 53 53 Total $ 94 $ 90 $ 87 |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease receipts scheduled to be received in each of the next five years and thereafter are as follows: Years Ending December 31, 2018 $ 23 2019 16 2020 15 2021 13 2022 13 Thereafter 59 Total minimum lease receipts $ 139 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | December 31, 2017 December 31, 2016 Deferred gains on sales of hotel properties $ 523 $ 363 Deferred compensation plans (see Note 11) 402 352 Loyalty program liability (see Note 2) 298 296 Other accrued income taxes (see Note 13) 107 100 Guarantee liabilities (see Note 14) 104 124 Deferred income taxes (see Note 13) 62 57 Other 229 180 Total $ 1,725 $ 1,472 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Our tax provision includes federal, state, local, and foreign income taxes. Years Ended December 31, 2017 2016 2015 U.S. income before tax $ 500 $ 180 $ 119 Foreign income before tax 73 109 75 Income before income taxes $ 573 $ 289 $ 194 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes from continuing operations is comprised of the following: Years Ended December 31, 2017 2016 2015 Current: Federal $ 201 $ 66 $ 134 State 45 15 18 Foreign 30 7 21 Total Current $ 276 $ 88 $ 173 Deferred: Federal $ 48 $ (12 ) $ (78 ) State (14 ) (2 ) (20 ) Foreign 13 11 (5 ) Total Deferred $ 47 $ (3 ) $ (103 ) Total $ 323 $ 85 $ 70 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory federal income tax rate to the effective tax rate from continuing operations: Years Ended December 31, 2017 2016 2015 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes—net of federal tax benefit 3.4 3.4 3.5 Impact of foreign operations (excluding unconsolidated hospitality ventures losses) (6.8 ) (5.4 ) (13.8 ) Tax Act deferred rate change 16.9 — — Tax Act deemed repatriation tax 2.3 — — Change in valuation allowances 3.8 3.6 3.1 Foreign unconsolidated hospitality ventures 1.1 1.2 10.0 Playa foreign tax credit benefit (1.3 ) (2.6 ) — Tax contingencies 1.3 (5.2 ) (1.5 ) Equity based compensation 0.7 0.4 (0.5 ) General business credits (0.4 ) (0.8 ) (1.9 ) Other 0.3 (0.1 ) 2.3 Effective income tax rate 56.3 % 29.5 % 36.2 % |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax assets and deferred tax liabilities are comprised of the following: December 31, 2017 December 31, 2016 Deferred tax assets related to: Employee benefits $ 128 $ 202 Foreign and state net operating losses and credit carryforwards 65 46 Investments 36 55 Allowance for uncollectible assets 31 36 Deferred gains on sales of hotel properties 132 134 Loyalty program 58 81 Interest and state benefits 1 2 Unrealized losses 2 5 Other 40 54 Valuation allowance (51 ) (27 ) Total deferred tax asset $ 442 $ 588 Deferred tax liabilities related to: Property and equipment $ (157 ) $ (224 ) Investments (19 ) (28 ) Intangibles (32 ) (14 ) Unrealized gains (35 ) (39 ) Prepaid expenses (8 ) (12 ) Other (11 ) (15 ) Total deferred tax liabilities $ (262 ) $ (332 ) Net deferred tax assets $ 180 $ 256 Recognized in the balance sheet as: Deferred tax assets—noncurrent $ 242 $ 313 Deferred tax liabilities—noncurrent (62 ) (57 ) Total $ 180 $ 256 |
Unrecognized Tax Benefits Reconciliation | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 Unrecognized tax benefits—beginning balance $ 86 $ 110 Total increases—current period tax positions 11 2 Total decreases—prior period tax positions (1 ) (21 ) Lapse of statute of limitations (3 ) (5 ) Foreign currency fluctuation 1 — Unrecognized tax benefits—ending balance $ 94 $ 86 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The four managed hotels in France Other performance guarantees All performance guarantees 2017 2016 2017 2016 2017 2016 Beginning balance, January 1 $ 66 $ 93 $ 13 $ 4 $ 79 $ 97 Initial guarantee obligation liability — — 3 9 3 9 Amortization of initial guarantee obligation liability into income (15 ) (33 ) (4 ) (1 ) (19 ) (34 ) Performance guarantee expense (income), net 76 64 1 (1 ) 77 63 Net (payments) receipts during the year (78 ) (57 ) — 2 (78 ) (55 ) Foreign currency exchange, net 9 (1 ) — — 9 (1 ) Ending balance, December 31 $ 58 $ 66 $ 13 $ 13 $ 71 $ 79 |
Debt Repayment and Other Guarantees | Included within debt repayment and other guarantees are the following: Property description Maximum potential future payments Maximum exposure net of recoverability from third parties Other long-term liabilities recorded at December 31, 2017 Other long-term liabilities recorded at December 31, 2016 Year of guarantee expiration Hotel property in Washington State (1), (3), (4), (5) $ 215 $ — $ 26 $ 35 2020 Hotel properties in India (2), (3) 188 188 17 21 2020 Hotel and residential properties in Brazil (1), (4) 97 40 4 3 various, through 2021 Hotel property in Massachusetts (6) 107 107 1 — 2020 Hotel properties in California (1) 31 13 6 6 various, through 2021 Hotel property in Minnesota 25 25 2 2 2021 Hotel property in Arizona (1), (4) 25 — 1 2 2019 Other (1) 20 14 2 — various, through 2021 Total $ 708 $ 387 $ 59 $ 69 (1) We have agreements with our unconsolidated hospitality venture partner, the respective hotel owners, or other third parties to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash, financing receivable, or HTM debt security. (2) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at December 31, 2017 . We have the contractual right to recover amounts funded from the unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $94 million , taking into account our partner’s 50% ownership interest in the unconsolidated hospitality venture. (3) Under certain events or conditions, we have the right to force the sale of the property(ies) in order to recover amounts funded. (4) If certain funding thresholds are met or if certain events occur, we have the ability to assume control of the property. This right only exists for the residential property in Brazil. (5) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction using the funds available from the outstanding loan. Any additional funds paid by us are subject to recovery through a HTM debt security. (6) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction and any additional funds paid by us are not recoverable. |
Stockholders' Equity and Comp46
Stockholders' Equity and Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accelerated Shares Repurchased | During the year ended December 31, 2017 , we entered into various ASR programs with third-party financial institutions to repurchase Class A shares as follows: Total number of shares repurchased (1) Weighted-average price per share Total cash paid March 2017 5,393,669 $ 55.62 $ 300 August 2017 1,666,484 $ 60.01 $ 100 November 2017 (2) 1,152,904 $ 69.39 $ 100 (1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share for the year ended December 31, 2017 , see Note 19. (2) This initial delivery of shares repurchased represents the minimum number of shares that we may receive under the agreement and was accounted for as a reduction to stockholders' equity on our consolidated balance sheets. At December 31, 2017 , the remaining shares yet to be delivered totaled $20 million , which were accounted for as an equity-classified forward contract, and were settled subsequent to December 31, 2017 for 244,260 shares. Overall, we repurchased 1,397,164 shares at a weighted-average price per share of $71.57 . |
Schedule of Accumulated Other Comprehensive Loss | Balance at January 1, 2017 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at December 31, 2017 Foreign currency translation adjustments $ (299 ) $ 56 $ — $ (243 ) Unrealized gains on AFS securities 33 35 — 68 Unrecognized pension cost (7 ) — — (7 ) Unrealized gains (losses) on derivative instruments (4 ) 1 — (3 ) Accumulated other comprehensive income (loss) $ (277 ) $ 92 $ — $ (185 ) Balance at January 1, 2016 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss (a) Balance at December 31, 2016 Foreign currency translation adjustments $ (257 ) $ (45 ) $ 3 $ (299 ) Unrealized gains (losses) on AFS securities 39 (6 ) — 33 Unrecognized pension cost (7 ) — — (7 ) Unrealized gains (losses) on derivative instruments (5 ) 1 — (4 ) Accumulated other comprehensive income (loss) $ (230 ) $ (50 ) $ 3 $ (277 ) (a) The amount reclassified from accumulated other comprehensive loss related to the sale of the shares of the company that owns Hyatt Regency Birmingham (U.K.) and was recorded within other long-term liabilities on our consolidated balance sheets. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation [Abstract] | |
Compensation Expense Related to Long-term Incentive Plan | Stock-based compensation expense (income) included in selling, general, and administration expense on our consolidated statements of income related to these awards was as follows: Years Ended December 31, 2017 2016 2015 SARs $ 11 $ 10 $ 9 RSUs 16 15 17 PSUs and PSs 2 — (3 ) |
Income Tax Benefit Share Based Compensation | The expected income tax benefit to be realized at the time of vest related to these awards for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 was as follows: Years Ended December 31, 2017 2016 2015 SARs $ 3 $ 4 $ 3 RSUs 4 5 5 PSUs and PSs 1 — (1 ) |
Stock Appreciation Rights by Grant Date | The following table sets forth a summary of the SAR grants in 2017 , 2016 , and 2015 : Grant Date Granted Value at date of grant Vesting period Vesting start month September 2017 20,139 $ 18.62 25 % annually September 2018 March 2017 605,601 16.35 25 % annually March 2018 March 2016 45,710 14.22 33 % annually March 2017 March 2016 878,714 14.54 25 % annually March 2017 March 2015 380,604 20.64 25 % annually March 2016 March 2015 41,373 24.17 50 % annually March 2018 February 2015 39,401 25.38 100 % at vest March 2018 |
Schedule of Share-based Payment Award SAR Valuation Assumptions | The fair value of each SAR was estimated based on the date of grant using the Black- Scholes- Merton option- pricing model with the following weighted average assumptions: 2017 2016 2015 Exercise price $ 52.93 $ 47.36 $ 56.57 Expected life in years 6.24 6.23 6.31 Risk-free interest rate 2.11 % 1.55 % 1.63 % Expected volatility 26.56 % 27.72 % 35.39 % Annual dividend yield — % — % — % |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | A summary of employee SAR activity is presented below: SAR units Weighted average exercise price (in whole dollars) Weighted average remaining contractual term Outstanding at December 31, 2016: 4,453,987 $ 47.88 5.25 Granted 625,740 52.93 Exercised (764,417 ) 42.66 Forfeited or expired (715,355 ) 61.83 Outstanding at December 31, 2017: 3,599,955 $ 47.09 6.30 Exercisable at December 31, 2017: 2,003,976 $ 43.88 4.67 |
Restricted Stock Units by Grant Date | The following table sets forth a summary of the employee RSU grants: Grant Date RSUs Value Total value Vesting period December 2017 9,238 $ 70.35 $ 1 various September 2017 22,357 61.50 1 various September 2017 43,151 60.48 3 various May 2017 1,390 57.51 — 4 years March 2017 416,404 52.65 22 various December 2016 40,633 56.60 2 4 years March 2016 444,629 47.36 21 4 years December 2015 4,089 48.90 — 4 years September 2015 3,898 51.30 — 3 years September 2015 8,576 51.30 — 4 years May 2015 23,746 58.95 1 4 years March 2015 380,939 56.27 21 4 years February 2015 29,278 59.77 2 4 years |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the status of the nonvested employee RSU awards outstanding under the LTIP is presented below: Restricted Stock Units Weighted average grant date fair value Nonvested at December 31, 2016: 1,016,177 $ 50.15 Granted 492,540 54.08 Vested (378,432 ) 48.97 Forfeited or canceled (100,701 ) 52.59 Nonvested at December 31, 2017: 1,029,584 $ 52.22 |
Performance Vesting Restricted Stock | The following table sets forth a summary of PSU and PS grants: Year Granted Granted Weighted average grant date fair value Performance period Performance period start date 2017 PSUs 102,115 $ 52.65 3 years January 1, 2017 2016 PSUs 111,620 $ 47.36 3 years January 1, 2016 2015 PSs 146,902 $ 56.27 3 years January 1, 2015 |
Unearned Compensation Future Compensation Expense | Our total unearned compensation for our stock- based compensation programs at December 31, 2017 is as follows and is expected to be recorded as stock-based compensation expense: 2018 2019 2020 2021 Total SARs $ 2 $ 2 $ 1 $ — $ 5 RSUs 8 5 2 1 16 PSUs and PSs 3 1 — — 4 Total $ 13 $ 8 $ 3 $ 1 $ 25 |
Segment and Geographic Inform48
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summarized Consolidated Financial Information by Segment | The table below shows summarized consolidated financial information by segment. Included within corporate and other are the results of Miraval, exhale, Hyatt Residence Club license fees, results related to our co- branded credit card, and unallocated corporate expenses. Years Ended December 31, 2017 2016 2015 Owned and leased hotels Owned and leased hotels revenues $ 2,137 $ 2,119 $ 2,079 Other revenues 13 — — Intersegment revenues (a) 9 11 — Adjusted EBITDA 490 516 493 Depreciation and amortization 295 285 277 Capital expenditures 195 200 225 Americas management and franchising Management and franchise fees revenues 403 371 354 Other revenues from managed and franchised properties 1,730 1,670 1,641 Intersegment revenues (a) 74 75 74 Adjusted EBITDA 350 318 300 Depreciation and amortization 19 18 19 Capital expenditures — — — ASPAC management and franchising Management and franchise fees revenues 112 96 91 Other revenues from managed and franchised properties 114 98 87 Intersegment revenues (a) 2 2 2 Adjusted EBITDA 70 57 55 Depreciation and amortization 2 1 1 Capital expenditures 1 1 1 EAME/SW Asia management and franchising Management and franchise fees revenues 72 65 67 Other revenues from managed and franchised properties 74 65 58 Intersegment revenues (a) 10 10 13 Adjusted EBITDA 40 33 33 Depreciation and amortization 5 5 5 Capital expenditures 1 1 — Corporate and other Revenues 125 43 40 Adjusted EBITDA (137 ) (139 ) (131 ) Depreciation and amortization 45 33 18 Capital expenditures 101 9 43 Eliminations (a) Revenues (95 ) (98 ) (89 ) Adjusted EBITDA 3 — — TOTAL Revenues $ 4,685 $ 4,429 $ 4,328 Adjusted EBITDA 816 785 750 Depreciation and amortization 366 342 320 Capital expenditures 298 211 269 (a) Intersegment revenues are included in the management and franchise fees revenues and owned and leased hotels revenues and eliminated in Eliminations. |
Reconciliation of Assets from Segment to Consolidated | The table below presents summarized consolidated balance sheet information by segment: Total Assets December 31, 2017 December 31, 2016 Owned and leased hotels $ 4,842 $ 5,393 Americas management and franchising 524 564 ASPAC management and franchising 121 128 EAME/SW Asia management and franchising 196 186 Corporate and other 1,989 1,478 TOTAL $ 7,672 $ 7,749 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables present revenues and property and equipment, net, intangibles, net, and goodwill by geographical region: Years Ended December 31, 2017 2016 2015 Revenues: United States $ 3,771 $ 3,571 $ 3,494 All foreign 914 858 834 Total $ 4,685 $ 4,429 $ 4,328 December 31, 2017 December 31, 2016 Property and equipment, net, Intangibles, net, and Goodwill: United States $ 3,743 $ 3,915 All foreign 1,124 1,079 Total $ 4,867 $ 4,994 |
Reconciliation of Consolidated Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation | The table below provides a reconciliation of our net income attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA: Years Ended December 31, 2017 2016 2015 Net income attributable to Hyatt Hotels Corporation $ 249 $ 204 $ 124 Interest expense 80 76 68 Provision for income taxes 323 85 70 Depreciation and amortization 366 342 320 EBITDA 1,018 707 582 Equity (earnings) losses from unconsolidated hospitality ventures (220 ) (68 ) 64 Stock-based compensation expense 29 25 23 (Gains) losses on sales of real estate (51 ) 23 (9 ) Asset impairments — — 5 Other (income) loss, net (33 ) (2 ) 5 Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA 73 100 80 Adjusted EBITDA $ 816 $ 785 $ 750 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of the Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted earnings per share, including a reconciliation of the numerator and denominator, are as follows: Years Ended December 31, 2017 2016 2015 Numerator: Net income $ 250 $ 204 $ 124 Net income and accretion attributable to noncontrolling interests (1 ) — — Net income attributable to Hyatt Hotels Corporation $ 249 $ 204 $ 124 Denominator: Basic weighted average shares outstanding 124,836,917 132,930,578 142,814,868 Share-based compensation and equity-classified forward contract 1,509,986 1,008,753 1,184,455 Diluted weighted average shares outstanding 126,346,903 133,939,331 143,999,323 Basic Earnings Per Share: Net income $ 2.00 $ 1.53 $ 0.87 Net income and accretion attributable to noncontrolling interests (0.01 ) — — Net income attributable to Hyatt Hotels Corporation $ 1.99 $ 1.53 $ 0.87 Diluted Earnings Per Share: Net income $ 1.98 $ 1.52 $ 0.86 Net income and accretion attributable to noncontrolling interests (0.01 ) — — Net income attributable to Hyatt Hotels Corporation $ 1.97 $ 1.52 $ 0.86 |
Anti-dilutive Shares Issued | The computations of diluted net income per share for the years ended December 31, 2017 , December 31, 2016 , and December 31, 2015 do not include the following shares of Class A common stock assumed to be issued as stock- settled SARs and RSUs because they are anti- dilutive. Years Ended December 31, 2017 2016 2015 SARs 21,400 74,500 1,500 RSUs 100 900 — |
Other Income (Loss), Net (Table
Other Income (Loss), Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other income (loss), net | Years Ended December 31, 2017 2016 2015 Interest income (Note 4) 101 19 8 Depreciation recovery 27 25 12 Performance guarantee liability amortization (Note 14) 19 34 12 Pre-condemnation income 18 — — Debt repayment guarantee liability amortization (Note 14) 10 3 — Foreign currency (losses) gains, net (2 ) 1 (14 ) Cease use liability (21 ) — — Realized losses (Note 4) (40 ) (6 ) — Performance guarantee expense, net (Note 14) (77 ) (63 ) (27 ) Other (2 ) (11 ) 4 Other income (loss), net $ 33 $ 2 $ (5 ) |
Quarterly Financial Informati51
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth the historical unaudited quarterly financial data. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. For the Three Months Ended December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Consolidated statements of income data: Owned and leased hotels $ 525 $ 518 $ 577 $ 572 $ 514 $ 519 $ 559 $ 516 Management and franchise fees 131 122 130 122 116 110 115 107 Other revenues 17 16 15 22 9 11 11 9 Other revenues from managed and franchised properties 511 463 473 471 448 448 480 457 Total revenues 1,184 1,119 1,195 1,187 1,087 1,088 1,165 1,089 Direct and selling, general, and administrative expenses 1,124 1,062 1,090 1,107 1,027 1,019 1,063 1,021 Net income 76 17 87 70 41 62 67 34 Net income attributable to Hyatt Hotels Corporation $ 76 $ 16 $ 87 $ 70 $ 41 $ 62 $ 67 $ 34 Net income per common share, basic $ 0.63 $ 0.14 $ 0.69 $ 0.54 $ 0.31 $ 0.48 $ 0.50 $ 0.25 Net income per common share, diluted $ 0.62 $ 0.14 $ 0.68 $ 0.54 $ 0.31 $ 0.47 $ 0.49 $ 0.25 |
Organization (Details)
Organization (Details) | Dec. 31, 2017hotelcountryroom |
Organization | |
Number of countries in which entity operates (number of countries) | country | 58 |
Full service | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 331 |
Number of rooms operated or franchised (number of rooms) | room | 128,051 |
Select service | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 388 |
Number of rooms operated or franchised (number of rooms) | room | 54,862 |
Select service | United States | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 343 |
All inclusive | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 6 |
Number of rooms operated or franchised (number of rooms) | 2,401 |
Wellness resorts | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 3 |
Number of rooms operated or franchised (number of rooms) | room | 399 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)hotel | Dec. 31, 2015USD ($) | Dec. 31, 2014hotel | |
Accounting Policies | ||||
Restricted cash | $ 234 | $ 76 | ||
Inventory supplies and equipment, maximum consumption period | 2 years | |||
Number of hotels included in inventory | hotel | 2 | |||
Accrued expenses and other current liabilities | $ 635 | $ 514 | ||
Management fees revenue on deferred gains | 25 | 21 | ||
Amortization expense | 31 | 27 | $ 31 | |
Captive insurance subsidiary | ||||
Accounting Policies | ||||
Restricted cash | 9 | 9 | ||
Other restricted cash | ||||
Accounting Policies | ||||
Restricted cash | 6 | 13 | ||
Grand Hyatt San Antonio | ||||
Accounting Policies | ||||
Restricted cash | 12 | 14 | ||
Restricted cash and cash equivalents, noncurrent | 11 | 11 | ||
Loyalty program | ||||
Accounting Policies | ||||
Accrued expenses and other current liabilities | 152 | 139 | ||
Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch | Disposal group, disposed of by sale | ||||
Accounting Policies | ||||
Restricted cash | 207 | |||
Canadian Hotels | Disposal group, disposed of by sale | ||||
Accounting Policies | ||||
Restricted cash | 40 | |||
Number of hotels sold | hotel | 2 | |||
Management and franchise agreement intangibles | ||||
Accounting Policies | ||||
Amortization expense | $ 18 | $ 16 | ||
Stock appreciation rights (SARs) | ||||
Accounting Policies | ||||
Share-based compensation contractual term | 10 years | |||
Pro Forma | Accounting Standards Update 2016-01 | ||||
Accounting Policies | ||||
Reclassification of unrealized gains (losses), net of tax, on AFS equity securities | $ 70 | |||
Pro Forma | Retained Earnings | Accounting Standards Update 2016-01 | ||||
Accounting Policies | ||||
Reclassification of unrealized gains (losses), net of tax, on AFS equity securities | $ 69 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | Buildings and improvements | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 10 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 3 years |
Minimum | Computers | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 3 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 50 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 20 years |
Maximum | Computers | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 7 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies (Loyalty Program) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Balance Sheet Statements, Captions | ||
Current assets | $ 1,327 | $ 1,139 |
TOTAL ASSETS | 7,672 | 7,749 |
Current liabilities | 966 | 924 |
Total liabilities | 4,131 | 3,841 |
Loyalty program | ||
Condensed Balance Sheet Statements, Captions | ||
Current assets | 171 | 150 |
Noncurrent assets | 298 | 296 |
TOTAL ASSETS | 469 | 446 |
Current liabilities | 171 | 150 |
Noncurrent liabilities | 298 | 296 |
Total liabilities | $ 469 | $ 446 |
Equity and Cost Method Invest56
Equity and Cost Method Investments (Equity and Cost Method Investment Balances) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Equity And Cost Method Investments [Abstract] | ||
Equity method investments | $ 184 | $ 180 |
Cost method investments | 27 | 6 |
Total investments | $ 211 | $ 186 |
Equity and Cost Method Invest57
Equity and Cost Method Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)hotel | Dec. 31, 2016USD ($)hotel | Dec. 31, 2015USD ($)hotel | |
Schedule of Equity and Cost Method Investments | |||
Investments | $ 211 | $ 186 | |
Equity method investment, other than temporary impairment | 3 | 9 | $ 0 |
Andaz Maui at Wailea Resort | |||
Schedule of Equity and Cost Method Investments | |||
Step acquisition, remeasurement gain | 14 | ||
Avendra LLC | |||
Schedule of Equity and Cost Method Investments | |||
Equity method investment, net sales proceeds | 217 | ||
Equity method investment, realized gain on sale | 217 | ||
An Equity Method Investment | |||
Schedule of Equity and Cost Method Investments | |||
Equity method investment, net sales proceeds | 8 | 4 | |
Equity method investment, realized gain on sale | 3 | 3 | |
Hyatt Place Hotels | |||
Schedule of Equity and Cost Method Investments | |||
Equity method investment, net sales proceeds | 4 | 15 | 16 |
Equity method investment, realized gain on sale | $ 3 | $ 7 | $ 13 |
Equity method investments, number of hotels operated or franchised selling properties | hotel | 2 | 2 | |
Number of hotels operated or franchised sold | hotel | 2 | 5 | 2 |
Foreign Currency Denominated Investment | |||
Schedule of Equity and Cost Method Investments | |||
Equity method investment, net sales proceeds | $ 3 | ||
Amount reclassified from accumulated other comprehensive loss | $ 21 | ||
Owned and leased hotels | |||
Schedule of Equity and Cost Method Investments | |||
Investments | $ 190 | $ 186 |
Equity and Cost Method Invest58
Equity and Cost Method Investments (Carrying Value and Ownership Percentages of Equity Method Investments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Equity Method Investments | ||
Investment balance | $ 184 | $ 180 |
Juniper Hotels Private Limited | ||
Schedule of Equity Method Investments | ||
Ownership interests | 50.00% | |
Investment balance | $ 26 | 37 |
Macae Partners SARL | ||
Schedule of Equity Method Investments | ||
Ownership interests | 70.00% | |
Investment balance | $ 17 | 7 |
Four One Five, LLC | ||
Schedule of Equity Method Investments | ||
Ownership interests | 40.00% | |
Investment balance | $ 16 | 15 |
Four One Five, LLC | ||
Schedule of Equity Method Investments | ||
Ownership interests | 44.70% | |
Investment balance | $ 16 | 15 |
Hotel Am Belvedere GmbH & Co KG | ||
Schedule of Equity Method Investments | ||
Ownership interests | 50.00% | |
Investment balance | $ 15 | 12 |
Hotel Hoyo Uno, S. de R.L. de C.V. | ||
Schedule of Equity Method Investments | ||
Ownership interests | 40.00% | |
Investment balance | $ 15 | 13 |
Rio Preto Partners SARL | ||
Schedule of Equity Method Investments | ||
Ownership interests | 70.00% | |
Investment balance | $ 13 | 14 |
Desarrolladora Hotelera Acueducto, S. de R.L. de C.V. | ||
Schedule of Equity Method Investments | ||
Ownership interests | 50.00% | |
Investment balance | $ 13 | 13 |
HH Nashville JV Holdings, LLC | ||
Schedule of Equity Method Investments | ||
Ownership interests | 50.00% | |
Investment balance | $ 12 | 7 |
Glendale Hotel Properties, LLC | ||
Schedule of Equity Method Investments | ||
Ownership interests | 50.00% | |
Investment balance | $ 11 | 0 |
Playa Hotels & Resorts BV | ||
Schedule of Equity Method Investments | ||
Ownership interests | 0.00% | |
Investment balance | $ 0 | 23 |
Other | ||
Schedule of Equity Method Investments | ||
Investment balance | $ 30 | $ 24 |
Equity and Cost Method Invest59
Equity and Cost Method Investments (Summarized Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity And Cost Method Investments [Abstract] | |||
Total revenues | $ 832 | $ 1,229 | $ 1,079 |
Gross operating profit | 289 | 398 | 312 |
Income from continuing operations | 54 | 160 | 33 |
Net income | 54 | 160 | $ 33 |
Current assets | 215 | 443 | |
Noncurrent assets | 1,308 | 2,701 | |
Total assets | 1,523 | 3,144 | |
Current liabilities | 156 | 385 | |
Noncurrent liabilities | 1,224 | 2,037 | |
Total liabilities | $ 1,380 | $ 2,422 |
Marketable Securities (Marketab
Marketable Securities (Marketable Securities Held to Fund Operating Programs) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loyalty program | ||
Schedule of Investments | ||
Total marketable securities | $ 403 | $ 394 |
Deferred compensation plans held in rabbi trusts | ||
Schedule of Investments | ||
Total marketable securities | 402 | 352 |
Captive insurance companies | ||
Schedule of Investments | ||
Total marketable securities | 111 | 65 |
Held to fund operating programs | ||
Schedule of Investments | ||
Total marketable securities | 916 | 811 |
Less current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets | (156) | (109) |
Marketable securities held to fund operating programs included in other assets | $ 760 | $ 702 |
Marketable Securities (Gain on
Marketable Securities (Gain on Investments Held to Fund Operating Programs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain on Investments | |||
Net gains and interest income from marketable securities held to fund operating programs | $ 47 | $ 19 | $ 4 |
Loyalty program | |||
Gain on Investments | |||
Net gains and interest income from marketable securities held to fund operating programs | 2 | 2 | 1 |
Deferred compensation plans held in rabbi trusts | |||
Gain on Investments | |||
Net gains and interest income from marketable securities held to fund operating programs | $ 45 | $ 17 | $ 3 |
Marketable Securities (Market62
Marketable Securities (Marketable Securities Held for Investment Purposes) (Details) - Held for Investment Purposes - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Investments | ||
Interest bearing money market funds | $ 26 | $ 106 |
Time deposits | 37 | 45 |
Preferred shares | 0 | 290 |
Common shares | 131 | 0 |
Total marketable securities | 194 | 441 |
Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments | (63) | (151) |
Marketable securities held for investment purposes included in other assets | $ 131 | $ 290 |
Marketable Securities (Narrativ
Marketable Securities (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2017 | Mar. 31, 2017 | Oct. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||||
Interest income | $ 101 | $ 19 | $ 8 | ||||
Realized losses from marketable securities | 40 | 6 | $ 0 | ||||
Held-to-maturity securities | $ 47 | 47 | 27 | ||||
Playa Hotels & Resorts BV | Preferred shares | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||||
Available-for-sale securities, amortized cost basis | $ 271 | ||||||
Stock redeemed or called during period, shares (in shares) | 3,458,530 | ||||||
Proceeds from redemption of preferred shares | $ 290 | $ 41 | 290 | 41 | |||
Interest income | 94 | 94 | 12 | ||||
Realized losses from marketable securities | $ 40 | $ 40 | 6 | ||||
Redeemable convertible preferred shares redemption, price per share (in dollars per share) | $ 8.40 | ||||||
Playa Hotels & Resorts BV | Common Shares | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||||
Ownership percentage | 11.57% | ||||||
Unrealized gains recorded in other comprehensive income | $ 112 | ||||||
Maximum | Playa Hotels & Resorts BV | Preferred shares | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||||
Preferred stock, conversion commitment | $ 50 | ||||||
Pace Holdings Corporation | Playa Hotels & Resorts BV | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||||
Number of warrants received (in shares) | 1,738,806 | ||||||
Warrants received, common share conversion (in shares) | 579,602 | ||||||
Warrants received, warrant earn-out conversion (in shares) | 237,110 |
Marketable Securities (Investme
Marketable Securities (Investments Classified as Available for Sale) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Oct. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Realized losses | $ (40) | $ (6) | $ 0 | ||
Interest income | 101 | 19 | 8 | ||
Preferred shares | Playa Hotels & Resorts BV | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||||
Fair value, beginning balance | 290 | 335 | |||
Gross unrealized gains | 0 | 19 | |||
Gross unrealized losses | (54) | (29) | |||
Realized losses | $ (40) | (40) | (6) | ||
Interest income | 94 | 94 | 12 | ||
Cash redemption | $ (290) | $ (41) | (290) | (41) | |
Fair value, ending balance | $ 0 | $ 290 | $ 335 |
Marketable Securities (Inputs,
Marketable Securities (Inputs, Assets, and Quantitative Information) (Details) - Playa Hotels & Resorts BV - Preferred shares | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Inputs, Assets, Quantitative Information | |
Expected term | 1 year |
Risk-free Interest Rate | 0.85% |
Volatility | 46.50% |
Dividend Yield | 12.00% |
Marketable Securities (Assets a
Marketable Securities (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | $ 1,110 | $ 1,252 |
Level One - Quoted Prices in Active Markets for Identical Assets | Interest bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 75 | 114 |
Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 402 | 352 |
Level One - Quoted Prices in Active Markets for Identical Assets | Common Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 131 | |
Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 50 | 59 |
Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 158 | 142 |
Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 47 | 53 |
Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 179 | 181 |
Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 25 | 22 |
Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 40 | 34 |
Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 3 | 5 |
Significant unobservable inputs (level three) | Preferred shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 290 | |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 75 | 114 |
Cash and Cash Equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Interest bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 75 | 114 |
Cash and Cash Equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Common Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | |
Cash and Cash Equivalents | Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and Cash Equivalents | Significant unobservable inputs (level three) | Preferred shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | |
Short-term Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 49 | 56 |
Short-term Investments | Level One - Quoted Prices in Active Markets for Identical Assets | Interest bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term Investments | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term Investments | Level One - Quoted Prices in Active Markets for Identical Assets | Common Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | |
Short-term Investments | Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 39 | 46 |
Short-term Investments | Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term Investments | Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 2 | 9 |
Short-term Investments | Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 8 | 1 |
Short-term Investments | Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term Investments | Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term Investments | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term Investments | Significant unobservable inputs (level three) | Preferred shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | |
Prepaids and Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 95 | 90 |
Prepaids and Other Assets | Level One - Quoted Prices in Active Markets for Identical Assets | Interest bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Prepaids and Other Assets | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Prepaids and Other Assets | Level One - Quoted Prices in Active Markets for Identical Assets | Common Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | |
Prepaids and Other Assets | Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Prepaids and Other Assets | Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 38 | 33 |
Prepaids and Other Assets | Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 7 | 8 |
Prepaids and Other Assets | Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 33 | 35 |
Prepaids and Other Assets | Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 6 | 5 |
Prepaids and Other Assets | Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 10 | 8 |
Prepaids and Other Assets | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 1 | 1 |
Prepaids and Other Assets | Significant unobservable inputs (level three) | Preferred shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 891 | 992 |
Other Assets | Level One - Quoted Prices in Active Markets for Identical Assets | Interest bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Other Assets | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 402 | 352 |
Other Assets | Level One - Quoted Prices in Active Markets for Identical Assets | Common Shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 131 | |
Other Assets | Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 11 | 13 |
Other Assets | Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 120 | 109 |
Other Assets | Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 38 | 36 |
Other Assets | Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 138 | 145 |
Other Assets | Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 19 | 17 |
Other Assets | Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 30 | 26 |
Other Assets | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | $ 2 | 4 |
Other Assets | Significant unobservable inputs (level three) | Preferred shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | $ 290 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 916 | $ 901 |
Buildings | 3,880 | 4,125 |
Leasehold improvements | 210 | 202 |
Furniture, equipment, and computers | 1,204 | 1,316 |
Construction in progress | 122 | 90 |
Property and equipment, gross | 6,332 | 6,634 |
Accumulated depreciation | (2,298) | (2,364) |
Total property and equipment, net | $ 4,034 | $ 4,270 |
Property and Equipment, Net (68
Property and Equipment, Net (Depreciation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 335 | $ 315 | $ 289 |
Property and Equipment, Net (Na
Property and Equipment, Net (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Capital leases, net | $ 10 | $ 12 | |
Capital leases, accumulated depreciation | 12 | 10 | |
Interest costs, capitalized during period | $ 4 | $ 3 | $ 6 |
Financing Receivables (Schedule
Financing Receivables (Schedule of Financing Receivables) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans, and Financing Receivable | |||
Financing receivables, net of allowances | $ 19 | $ 19 | |
Unsecured Financing | |||
Accounts, Notes, Loans, and Financing Receivable | |||
Unsecured financing to hotel owners | 127 | 119 | |
Less allowance for losses | (108) | (100) | $ (98) |
Financing receivables, net of allowances | $ 19 | $ 19 |
Financing Receivables (Narrativ
Financing Receivables (Narrative) (Details) - Secured financing $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Secured Financing Receivables | |
Proceeds from secured debt | $ 26 |
Finance receivables net recovery | $ 8 |
Financing Receivables (Allowanc
Financing Receivables (Allowance For Credit Losses) (Details) - Unsecured Financing - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Losses and Impairments | ||
Allowance beginning balance | $ 100 | $ 98 |
Provisions | 6 | 10 |
Write-offs | 0 | (8) |
Other adjustments | 2 | 0 |
Allowance ending balance | $ 108 | $ 100 |
Financing Receivables (Credit M
Financing Receivables (Credit Monitoring) (Details) - Unsecured Financing - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | $ 127 | $ 119 | |
Related allowance | (108) | (100) | $ (98) |
Net financing receivables | 19 | 19 | |
Gross receivables on non-accrual status | 108 | 100 | |
Loans | |||
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | 13 | 13 | |
Related allowance | 0 | 0 | |
Net financing receivables | 13 | 13 | |
Gross receivables on non-accrual status | 0 | 0 | |
Impaired loans | |||
Total Unsecured Financing Receivables | |||
Impaired loans | 59 | 56 | |
Impaired loans, allowance | (59) | (56) | |
Net financing receivables | 0 | 0 | |
Gross receivables on non-accrual status | 59 | 56 | |
Impaired financing receivables, unpaid principal balance | 44 | 43 | |
Impaired financing receivables, average recorded investment | 58 | 57 | |
Total loans | |||
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | 72 | 69 | |
Related allowance | (59) | (56) | |
Net financing receivables | 13 | 13 | |
Gross receivables on non-accrual status | 59 | 56 | |
Other financing arrangements | |||
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | 55 | 50 | |
Related allowance | (49) | (44) | |
Net financing receivables | 6 | 6 | |
Gross receivables on non-accrual status | $ 49 | $ 44 |
Financing Receivables (Fair Val
Financing Receivables (Fair Value Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Unsecured Financing | ||
Total Unsecured Financing Receivables | ||
Level three financing receivables | $ 20 | $ 19 |
Acquisitions and Dispositions75
Acquisitions and Dispositions (Acquisitions Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition | |||
Cash consideration transferred | $ 259 | $ 492 | $ 3 |
Goodwill | $ 150 | 125 | $ 129 |
Advanced booking intangibles | |||
Business Acquisition | |||
Weighted average useful life | 6 years | ||
Management and franchise agreement intangibles | |||
Business Acquisition | |||
Weighted average useful life | 24 years | ||
exhale | |||
Business Acquisition | |||
Cash consideration transferred | $ 16 | ||
Cash acquired | 1 | ||
Indefinite-lived Intangibles | 9 | ||
Goodwill | 4 | ||
Goodwill expected to be tax deductible | $ 3 | ||
Cranwell Spa and Golf Resort | |||
Business Acquisition | |||
Business acquisition, remaining interest percent acquired in acquisition | 95.00% | ||
Miraval Group | |||
Business Acquisition | |||
Cash consideration transferred | $ 237 | ||
Indefinite-lived Intangibles | 37 | ||
Goodwill | 19 | ||
Goodwill expected to be tax deductible | 8 | ||
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary | $ 9 | ||
Redeemable preferred shares, preferred return | 12.00% | ||
Property and equipment acquired | $ 173 | ||
Andaz Maui at Wailea Resort | |||
Business Acquisition | |||
Cash consideration transferred | $ 136 | ||
Business acquisition, remaining interest percent acquired in acquisition | 34.30% | ||
Business acquisition, percentage of equity in acquiree before acquisition | 65.70% | ||
Business acquisition, fair value in acquiree before acquisition | $ 180 | ||
Cash and cash equivalents | 12 | ||
Step acquisition, remeasurement gain | 14 | ||
Property and equipment acquired | 323 | ||
Land held for development | |||
Business Acquisition | |||
Payments to acquire land | 25 | ||
Royal Palms Resort and Spa | |||
Business Acquisition | |||
Cash consideration transferred | 86 | ||
Closing costs and proration adjustments | 2 | ||
Purchase price | 88 | ||
Property and equipment acquired | 75 | ||
Royal Palms Resort and Spa | Brand intangibles | |||
Business Acquisition | |||
Indefinite-lived Intangibles | 9 | ||
Royal Palms Resort and Spa | Advanced booking intangibles | |||
Business Acquisition | |||
Definite-lived intangibles | 1 | ||
Royal Palms Resort and Spa | Management and franchise agreement intangibles | |||
Business Acquisition | |||
Definite-lived intangibles | $ 3 | ||
Weighted average useful life | 20 years | ||
The Confidante | |||
Business Acquisition | |||
Purchase price | $ 238 | ||
The Confidante | Management and franchise agreement intangibles | |||
Business Acquisition | |||
Weighted average useful life | 20 years | ||
Confidante Miami Beach [Member] | |||
Business Acquisition | |||
Property and equipment acquired | $ 228 | ||
Confidante Miami Beach [Member] | Management and franchise agreement intangibles | |||
Business Acquisition | |||
Definite-lived intangibles | $ 10 |
Acquisitions and Dispositions76
Acquisitions and Dispositions (Identifiable Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition | |||
Goodwill | $ 150 | $ 125 | $ 129 |
Other definite-lived intangibles | |||
Business Acquisition | |||
Weighted average useful life | 11 years | ||
Miraval Group | |||
Business Acquisition | |||
Current assets, net of cash acquired | $ 1 | ||
Property and equipment | 173 | ||
Indefinite-lived Intangibles | 37 | ||
Goodwill | 19 | ||
Total assets | 251 | ||
Current liabilities | 12 | ||
Deferred tax liabilities | 3 | ||
Total liabilities | 15 | ||
Total net assets acquired attributable to Hyatt Hotels Corporation | 236 | ||
Total net assets acquired attributable to noncontrolling interests | 1 | ||
Total net assets acquired | 237 | ||
Goodwill expected to be tax deductible | 8 | ||
Miraval Group | Management agreement intangibles | |||
Business Acquisition | |||
Definite-lived intangibles | $ 14 | ||
Weighted average useful life | 20 years | ||
Miraval Group | Other definite-lived intangibles | |||
Business Acquisition | |||
Definite-lived intangibles | $ 7 | ||
Miraval Group | Other definite-lived intangibles | Minimum | |||
Business Acquisition | |||
Weighted average useful life | 2 years | ||
Miraval Group | Other definite-lived intangibles | Maximum | |||
Business Acquisition | |||
Weighted average useful life | 7 years | ||
Andaz Maui at Wailea Resort | |||
Business Acquisition | |||
Cash and cash equivalents | 12 | ||
Receivables | 3 | ||
Inventories | 13 | ||
Prepaids and other assets | 1 | ||
Property and equipment | 323 | ||
Total assets | 352 | ||
Current liabilities | 10 | ||
Total liabilities | 10 | ||
Total net assets acquired | $ 342 |
Acquisitions and Dispositions77
Acquisitions and Dispositions (Dispositions Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | $ 663 | $ 289 | $ 88 |
Gains (losses) on sales of real estate | 51 | (23) | 9 |
Deferred gains on sales of hotel properties | 523 | 363 | |
Disposal group, disposed of by sale | Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | 58 | ||
Gains (losses) on sales of real estate | 17 | ||
Disposal group, disposed of by sale | Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | 296 | ||
Deferred gains on sales of hotel properties | 160 | ||
Disposal group, disposed of by sale | Hyatt Regency Grand Cypress | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | 202 | ||
Deferred gains on sales of hotel properties | 26 | ||
Disposal group, disposed of by sale | Hyatt Regency Louisville | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | 65 | ||
Gains (losses) on sales of real estate | 35 | ||
Disposal group, disposed of by sale | Land and Construction in Progress, Sold in 2017 | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate and other | $ 29 | ||
Equity method investment, ownership percentage | 50.00% | ||
Disposal group, disposed of by sale | Hyatt Regency Birmingham | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | 49 | ||
Deferred gains on sales of hotel properties | 17 | ||
Disposal group, disposed of by sale | Andaz 5th Avenue | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | 240 | ||
Closing costs and proration adjustments | 10 | ||
Gains (losses) on sales of real estate | $ (23) | ||
Disposal group, disposed of by sale | Hyatt Regency Indianapolis | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | 69 | ||
Gains (losses) on sales of real estate | 8 | ||
Disposal group, disposed of by sale | Land and Construction in Progress, Sold in 2017 | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate and other | $ 14 | ||
Equity method investment, ownership percentage | 40.00% | ||
Disposal group, disposed of by sale | A Hyatt House Hotel | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | $ 5 | ||
Gains (losses) on sales of real estate | $ 1 |
Acquisitions and Dispositions78
Acquisitions and Dispositions (Like-Kind Exchanges Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014USD ($)hotel | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)hotel | Dec. 31, 2014USD ($)hotel | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Like-kind exchange, period for replacement property | 45 days | ||||
Sales proceeds transferred to escrow as restricted cash | $ 474 | $ 0 | $ 0 | ||
Sales proceeds transferred from escrow to cash and cash equivalents | 300 | $ 29 | 143 | ||
Hyatt Place 2014 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Number of hotels sold | hotel | 5 | ||||
Sales proceeds transferred to escrow as restricted cash | $ 51 | ||||
Sales proceeds transferred from escrow to cash and cash equivalents | 51 | ||||
Hyatt Place, Hyatt House 2014 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Sales proceeds transferred to escrow as restricted cash | $ 403 | ||||
Sales proceeds transferred from escrow to cash and cash equivalents | $ 311 | $ 92 | |||
Select service | Hyatt Place, Hyatt House 2014 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Number of hotels sold | hotel | 38 | ||||
Like-kind exchange | Select service | Hyatt Place, Hyatt House 2014 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Number of hotels sold | hotel | 27 | ||||
Like-kind exchange released from restricted cash | Select service | Hyatt Place, Hyatt House 2014 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Number of hotels sold | hotel | 21 | ||||
Like-kind exchange remaining in restricted cash | Select service | Hyatt Place, Hyatt House 2014 | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Number of hotels sold | hotel | 6 | ||||
Disposal group, disposed of by sale | Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Sales proceeds transferred to escrow as restricted cash | $ 207 | ||||
Disposal group, disposed of by sale | Hyatt Regency Grand Cypress | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Like-kind exchange, period for replacement property | 180 days | ||||
Sales proceeds transferred to escrow as restricted cash | $ 202 | ||||
Disposal group, disposed of by sale | Hyatt Regency Louisville | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||
Like-kind exchange, period for replacement property | 45 days | ||||
Sales proceeds transferred to escrow as restricted cash | $ 65 |
Goodwill and Intangible Asset79
Goodwill and Intangible Assets, Net (Goodwill Changes Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Goodwill, beginning balance | $ 220 | $ 224 |
Accumulated impairment losses, beginning balance | (95) | (95) |
Goodwill, net, beginning balance | 125 | 129 |
Additions | 23 | |
Foreign exchange (1) | 2 | (4) |
Goodwill, ending balance | 245 | 220 |
Accumulated impairment losses, ending balance | (95) | (95) |
Goodwill, net, ending balance | 150 | 125 |
Owned and Leased Hotels | ||
Goodwill | ||
Goodwill, beginning balance | 187 | 191 |
Accumulated impairment losses, beginning balance | (95) | (95) |
Goodwill, net, beginning balance | 92 | 96 |
Additions | 0 | |
Foreign exchange (1) | 2 | (4) |
Goodwill, ending balance | 189 | 187 |
Accumulated impairment losses, ending balance | (95) | (95) |
Goodwill, net, ending balance | 94 | 92 |
Americas Management and Franchising | ||
Goodwill | ||
Goodwill, beginning balance | 33 | 33 |
Accumulated impairment losses, beginning balance | 0 | 0 |
Goodwill, net, beginning balance | 33 | 33 |
Additions | 0 | |
Foreign exchange (1) | 0 | 0 |
Goodwill, ending balance | 33 | 33 |
Accumulated impairment losses, ending balance | 0 | 0 |
Goodwill, net, ending balance | 33 | 33 |
Corporate and Other | ||
Goodwill | ||
Goodwill, beginning balance | 0 | 0 |
Accumulated impairment losses, beginning balance | 0 | 0 |
Goodwill, net, beginning balance | 0 | 0 |
Additions | 23 | |
Foreign exchange (1) | 0 | 0 |
Goodwill, ending balance | 23 | 0 |
Accumulated impairment losses, ending balance | 0 | 0 |
Goodwill, net, ending balance | $ 23 | $ 0 |
Goodwill and Intangible Asset80
Goodwill and Intangible Assets, Net (Intangible Assets Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Intangible Asset by Major Class | ||
Intangible assets, gross | $ 851 | $ 737 |
Accumulated amortization | (168) | (138) |
Intangibles, net | 683 | 599 |
Management and franchise agreement intangibles | ||
Schedule of Intangible Asset by Major Class | ||
Intangible assets, gross | $ 653 | 589 |
Weighted average useful lives | 24 years | |
Lease related intangibles | ||
Schedule of Intangible Asset by Major Class | ||
Intangible assets, gross | $ 127 | 115 |
Weighted average useful lives | 110 years | |
Advanced booking intangibles | ||
Schedule of Intangible Asset by Major Class | ||
Intangible assets, gross | $ 9 | 11 |
Weighted average useful lives | 6 years | |
Other definite-lived intangibles | ||
Schedule of Intangible Asset by Major Class | ||
Intangible assets, gross | $ 9 | 6 |
Weighted average useful lives | 11 years | |
Brand and other indefinite-lived intangibles | ||
Schedule of Intangible Asset by Major Class | ||
Intangible assets, gross | $ 53 | $ 16 |
Goodwill and Intangible Asset81
Goodwill and Intangible Assets, Net (Amortization Expense Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 31 | $ 27 | $ 31 |
Goodwill and Intangible Asset82
Goodwill and Intangible Assets, Net (Future Amortization Table) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Estimate Amortization Expense For Definite-lived Intangibles | |
2,018 | $ 33 |
2,019 | 32 |
2,020 | 33 |
2,021 | 32 |
2,022 | $ 32 |
Goodwill and Intangible Asset83
Goodwill and Intangible Assets, Net (Impairment Charges) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) BRL in Millions, $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2017BRL | Dec. 31, 2016USD ($) | Dec. 31, 2016BRL | Dec. 31, 2013USD ($) | Dec. 31, 2011 | Dec. 31, 2009 |
Debt Instrument | |||||||
Long-term debt gross | $ 1,452 | $ 1,565 | |||||
Revolving credit facility | 0 | 100 | |||||
Other | 1 | 1 | |||||
Capital lease obligations | 13 | 15 | |||||
Total long-term debt | 1,465 | 1,580 | |||||
Less current maturities | (11) | (119) | |||||
Less unamortized discounts and deferred financing fees | 14 | 16 | |||||
Total long-term debt, net of current maturities | 1,440 | 1,445 | |||||
$196 million senior unsecured notes maturing in 2019—6.875% | |||||||
Debt Instrument | |||||||
Senior unsecured notes | 196 | 196 | $ 196 | ||||
Debt instrument, face amount | $ 196 | ||||||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% | 6.875% | ||||
$250 million senior unsecured notes maturing in 2021—5.375% | |||||||
Debt Instrument | |||||||
Senior unsecured notes | $ 250 | 250 | |||||
Debt instrument, face amount | $ 250 | ||||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | 5.375% | ||||
$350 million senior unsecured notes maturing in 2023—3.375% | |||||||
Debt Instrument | |||||||
Senior unsecured notes | $ 350 | 350 | |||||
Debt instrument, face amount | $ 350 | ||||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | 3.375% | ||||
$400 million senior unsecured notes maturing in 2026—4.850% | |||||||
Debt Instrument | |||||||
Senior unsecured notes | $ 400 | $ 400 | |||||
Debt instrument, face amount | $ 400 | ||||||
Debt instrument, interest rate, stated percentage | 4.85% | 4.85% | 4.85% | 4.85% | |||
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | Contract Revenue Bonds | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 130 | $ 130 | |||||
Contract Revenue Bonds, Senior Taxable Series 2005B | Contract Revenue Bonds | |||||||
Debt Instrument | |||||||
Long-term debt gross | 55 | 59 | |||||
Floating average rate construction loan | |||||||
Debt Instrument | |||||||
Floating average rate construction loan | $ 70 | BRL 231 | $ 79 | BRL 258 |
Debt (Schedule of Maturities) (
Debt (Schedule of Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Maturities of Debt | ||
2,018 | $ 11 | |
2,019 | 207 | |
2,020 | 12 | |
2,021 | 262 | |
2,022 | 12 | |
Thereafter | 961 | |
Total long-term debt | $ 1,465 | $ 1,580 |
Debt (Senior Notes Narrative) (
Debt (Senior Notes Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2009 | |
Debt Instrument | ||||||
Debt issuance cost | $ 0 | $ 4 | $ 0 | |||
$196 million senior unsecured notes maturing in 2019—6.875% | ||||||
Debt Instrument | ||||||
Senior notes | $ 250 | |||||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% | ||||
Issue price percentage | 99.864% | |||||
Senior unsecured notes | $ 196 | 196 | $ 196 | |||
$250 million senior unsecured notes maturing in 2021—5.375% | ||||||
Debt Instrument | ||||||
Senior notes | $ 250 | |||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | ||||
Issue price percentage | 99.846% | |||||
Senior unsecured notes | $ 250 | 250 | ||||
$350 million senior unsecured notes maturing in 2023—3.375% | ||||||
Debt Instrument | ||||||
Senior notes | $ 350 | |||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | ||||
Issue price percentage | 99.498% | |||||
Senior unsecured notes | $ 350 | 350 | ||||
$400 million senior unsecured notes maturing in 2026—4.850% | ||||||
Debt Instrument | ||||||
Senior notes | $ 400 | |||||
Debt instrument, interest rate, stated percentage | 4.85% | 4.85% | ||||
Issue price percentage | 99.92% | |||||
Senior unsecured notes | $ 400 | $ 400 | ||||
Proceeds from issuance of debt, net of issuance costs | 396 | |||||
Debt issuance cost | 4 | |||||
$250 million senior unsecured notes maturing in 2016—3.875% | ||||||
Debt Instrument | ||||||
Senior notes | $ 250 | |||||
Debt instrument, interest rate, stated percentage | 3.875% | |||||
Make-whole premium | $ 254 | |||||
Senior Notes | ||||||
Debt Instrument | ||||||
Debt instrument, redemption price, percentage | 100.00% |
Debt (Contract Revenue Bonds Na
Debt (Contract Revenue Bonds Narrative) (Details) - Contract Revenue Bonds - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2013 | Jun. 08, 2005 |
Debt Instrument | |||
Long-term debt | $ 198 | ||
Debt instrument, unamortized discount | $ 9 | ||
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | |||
Debt Instrument | |||
Long-term debt | $ 130 | ||
Contract Revenue Bonds, Senior Taxable Series 2005B | |||
Debt Instrument | |||
Long-term debt | $ 78 | ||
Minimum | Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | |||
Debt Instrument | |||
Debt instrument, interest rate, stated percentage | 4.75% | ||
Minimum | Contract Revenue Bonds, Senior Taxable Series 2005B | |||
Debt Instrument | |||
Debt instrument, interest rate, stated percentage | 5.10% | ||
Maximum | Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | |||
Debt Instrument | |||
Debt instrument, interest rate, stated percentage | 5.00% | ||
Maximum | Contract Revenue Bonds, Senior Taxable Series 2005B | |||
Debt Instrument | |||
Debt instrument, interest rate, stated percentage | 5.31% |
Debt (Floating Average Rate Con
Debt (Floating Average Rate Construction Loan Narrative) (Details) - Floating average rate construction loan BRL in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)sub-loan | Dec. 31, 2017BRLsub-loan | Dec. 31, 2016USD ($) | Dec. 31, 2016BRL | |
Debt Instrument | ||||
Number of loans | 4 | 4 | ||
Debt, weighted average interest rate | 7.93% | 7.93% | ||
Floating average rate construction loan | $ 70 | BRL 231 | $ 79 | BRL 258 |
Subloan (a) | ||||
Debt Instrument | ||||
Debt instrument, basis spread on variable rate | 2.92% | |||
Subloan (b) | ||||
Debt Instrument | ||||
Debt instrument, basis spread on variable rate | 3.92% | |||
Subloan (c) | ||||
Debt Instrument | ||||
Debt instrument, interest rate, stated percentage | 2.50% | 2.50% | ||
Brazilian long-term interest rate | Sub Loans (b) and (d) | ||||
Debt Instrument | ||||
Debt instrument, variable interest rate percent, threshold for daily capitalization | 6.00% |
Debt (Revolving Credit Facility
Debt (Revolving Credit Facility Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Jan. 06, 2014 | |
Debt Instrument | |||
Revolving credit facility | $ 0 | $ 100 | |
Revolving credit facility | |||
Debt Instrument | |||
Proceeds from revolving credit facility during period | 670 | ||
Repayments of revolving credit facility | 770 | ||
Revolving credit facility | 0 | 100 | |
Revolving credit facility, remaining borrowing capacity | $ 1,500 | ||
Revolving credit facility, weighted average interest rate | 2.18% | ||
Line of credit | Revolving credit facility | |||
Debt Instrument | |||
Line of credit facility, maximum borrowing capacity | $ 1,500 | ||
Additional non-revolving credit facility banks | |||
Debt Instrument | |||
Letters of credit outstanding | $ 309 | $ 230 |
Debt (Senior Secured Term Loans
Debt (Senior Secured Term Loans) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Hyatt Regency Lost Pines Resort & Spa | |
Extinguishment of Debt | |
Repayments of senior secured term debt | $ 64 |
Debt (Fair Value) (Details)
Debt (Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument | ||
Capital lease obligations | $ 13 | $ 15 |
Unamortized discounts and deferred financing fees | 14 | 16 |
Quoted prices in active markets for identical assets (level one) | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | 0 | 0 |
Significant other observable inputs (level two) | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | 1,459 | 1,450 |
Significant unobservable inputs (level three) | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | 87 | 192 |
Carrying value | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | 1,452 | 1,565 |
Fair value | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | $ 1,546 | $ 1,642 |
Leases (Future Minimum Operatin
Leases (Future Minimum Operating Lease Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 36 |
2,019 | 42 |
2,020 | 39 |
2,021 | 36 |
2,022 | 35 |
Thereafter | 441 |
Total minimum lease payments | $ 629 |
Leases (Future Minimum Capital
Leases (Future Minimum Capital Lease Payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 2 |
2,019 | 2 |
2,020 | 2 |
2,021 | 2 |
2,022 | 2 |
Thereafter | 7 |
Total minimum lease payments | 17 |
Less amount representing interest | 4 |
Present value of minimum lease payments | $ 13 |
Leases (Rent Expense) (Details)
Leases (Rent Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Minimum rentals | $ 42 | $ 37 | $ 34 |
Contingent rentals | 52 | 53 | 53 |
Total | $ 94 | $ 90 | $ 87 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Owned and leased hotels | |||
Operating Leased Assets | |||
Rental income | $ 27 | $ 25 | $ 28 |
Leases (Retail Lease Receipts)
Leases (Retail Lease Receipts) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,018 | $ 23 |
2,019 | 16 |
2,020 | 15 |
2,021 | 13 |
2,022 | 13 |
Thereafter | 59 |
Total minimum lease receipts | $ 139 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Benefit Plans) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 21 | $ 21 |
Accrued long-term benefit liability | 20 | $ 20 |
Expected benefits to be paid annually over the next 10 years | $ 1 |
Employee Benefit Plans (Defin98
Employee Benefit Plans (Defined Contribution Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Defined contribution plans | $ 39 | $ 36 | $ 35 |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employee Stock Purchase Program) (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Price per share for the ESPP (percentage) | 95.00% | |
Stock issued during period, shares, ESPP (in shares) | 69 | 76 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Liabilities, Noncurrent [Abstract] | ||
Deferred gains on sales of hotel properties | $ 523 | $ 363 |
Deferred compensation plans (see Note 11) | 402 | 352 |
Loyalty program liability (see Note 2) | 298 | 296 |
Other accrued income taxes (see Note 13) | 107 | 100 |
Guarantee liabilities (see Note 14) | 104 | 124 |
Deferred income taxes (see Note 13) | 62 | 57 |
Other | 229 | 180 |
Total | $ 1,725 | $ 1,472 |
Income Taxes (Domestic and Fore
Income Taxes (Domestic and Foreign Components of Pretax Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. income before tax | $ 500 | $ 180 | $ 119 |
Foreign income before tax | 73 | 109 | 75 |
INCOME BEFORE INCOME TAXES | $ 573 | $ 289 | $ 194 |
Income Taxes (Provision (Benefi
Income Taxes (Provision (Benefit) for Income Taxes from Continuing Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 201 | $ 66 | $ 134 |
Current State | 45 | 15 | 18 |
Current Foreign | 30 | 7 | 21 |
Total Current | 276 | 88 | 173 |
Deferred Federal | 48 | (12) | (78) |
Deferred State | (14) | (2) | (20) |
Deferred Foreign | 13 | 11 | (5) |
Total Deferred | 47 | (3) | (103) |
Total | $ 323 | $ 85 | $ 70 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes—net of federal tax benefit | 3.40% | 3.40% | 3.50% |
Impact of foreign operations (excluding unconsolidated hospitality ventures losses) | (6.80%) | (5.40%) | (13.80%) |
Tax Act deferred rate change | 16.90% | 0.00% | 0.00% |
Tax Act deemed repatriation tax | 2.30% | 0.00% | 0.00% |
Change in valuation allowances | 3.80% | 3.60% | 3.10% |
Foreign unconsolidated hospitality ventures | 1.10% | 1.20% | 10.00% |
Playa foreign tax credit benefit | (1.30%) | (2.60%) | (0.00%) |
Tax contingencies | 1.30% | (5.20%) | (1.50%) |
Equity based compensation | 0.70% | 0.40% | (0.50%) |
General business credits | (0.40%) | (0.80%) | (1.90%) |
Other | 0.30% | (0.10%) | 2.30% |
Effective income tax rate | 56.30% | 29.50% | 36.20% |
Income Taxes (Effective Tax 104
Income Taxes (Effective Tax Rate Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency | |||
Tax Act, incomplete accounting, provisional income tax expense (benefit) | $ 97 | ||
Tax Act, incomplete accounting, transition tax for foreign earnings | 13 | ||
Foreign tax credit, valuation allowance | 15 | ||
Effective income tax rate reconciliation, foreign tax credit, amount | 10 | ||
Unrecognized tax benefits, increase resulting from current period tax positions | $ 11 | $ 2 | |
Reversal of uncertain tax position | |||
Income Tax Contingency | |||
Effective income tax rate reconciliation, tax contingency, amount | 15 | ||
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | $ (4) | ||
Statute expiration on state tax filing positions | |||
Income Tax Contingency | |||
Effective income tax rate reconciliation, tax contingency, amount | $ 10 | ||
Statute expiration on state tax filing positions | |||
Income Tax Contingency | |||
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | (5) | ||
Transfer pricing positions | |||
Income Tax Contingency | |||
Unrecognized tax benefits, increase resulting from current period tax positions | $ 7 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets related to: | ||
Employee benefits | $ 128 | $ 202 |
Foreign and state net operating losses and credit carryforwards | 65 | 46 |
Investments | 36 | 55 |
Allowance for uncollectible assets | 31 | 36 |
Deferred gains on sales of hotel properties | 132 | 134 |
Loyalty program | 58 | 81 |
Interest and state benefits | 1 | 2 |
Unrealized losses | 2 | 5 |
Other | 40 | 54 |
Valuation allowance | (51) | (27) |
Total deferred tax asset | 442 | 588 |
Deferred tax liabilities related to: | ||
Property and equipment | (157) | (224) |
Investments | (19) | (28) |
Intangibles | (32) | (14) |
Unrealized gains | (35) | (39) |
Prepaid expenses | (8) | (12) |
Other | (11) | (15) |
Total deferred tax liabilities | (262) | (332) |
Net deferred tax assets | 180 | 256 |
Deferred tax assets—noncurrent | 242 | 313 |
Deferred tax liabilities—noncurrent | $ (62) | $ (57) |
Income Taxes (Unrecognized Taxe
Income Taxes (Unrecognized Taxes Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency | |||
Tax Act, deferred tax assets and liabilities | $ (97) | ||
Deferred tax assets, operating loss carryforwards | 65 | $ 46 | |
Operating loss carryforwards, valuation allowance | 51 | ||
Deferred tax assets, operating loss carryforwards, not subject to expiration | 25 | ||
Unrecognized tax benefits | 94 | 86 | $ 110 |
Amount of unrecognized tax benefits that would impact effective tax rate if recognized | 33 | 5 | |
Significant change in unrecognized tax benefits is reasonably possible | 3 | ||
Unrecognized tax benefits, increase resulting from current period tax positions | 11 | 2 | |
Unrecognized tax benefits, lapse of statute of limitations | 3 | 5 | |
Unrecognized tax benefits, period increase (decrease) | (24) | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 14 | 14 | |
Income tax examination, penalties and interest expense (benefit) | 0 | (4) | |
Deferred gains on sale of property | |||
Income Tax Contingency | |||
Deferred tax assets, deferred gains on sale of hotels | 64 | ||
Statute expiration on state and foreign tax filing positions | |||
Income Tax Contingency | |||
Income tax benefit resulting from release of interest and penalties | 3 | 9 | |
Federal, state and foreign | |||
Income Tax Contingency | |||
Income tax examination, penalties and interest expense (benefit) | 2 | $ 5 | |
State and foreign | |||
Income Tax Contingency | |||
Deferred tax assets, operating loss carryforwards | 45 | ||
Federal and state | |||
Income Tax Contingency | |||
Deferred tax assets, tax credit carryforwards | 20 | ||
Domestic tax authority | |||
Income Tax Contingency | |||
Unrecognized tax benefits, increase resulting from current period tax positions | 8 | ||
Possible settlement with taxing authority | |||
Income Tax Contingency | |||
Amount of unrecognized tax benefits that would impact effective tax rate if recognized | 60 | ||
Estimated income tax liability based on taxing authority's assessment | 126 | ||
Estimated interest, net of federal tax benefit, included in taxing authority assessment | $ 31 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits Rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Unrecognized Tax Benefits | ||
Unrecognized tax benefits—beginning balance | $ 86 | $ 110 |
Total increases—current period tax positions | 11 | 2 |
Total decreases—prior period tax positions | (1) | (21) |
Lapse of statute of limitations | (3) | (5) |
Foreign currency fluctuation | 1 | 0 |
Unrecognized tax benefits—ending balance | $ 94 | $ 86 |
Commitments and Contingencie108
Commitments and Contingencies (Commitments, Guarantees Narrative) (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Loss Contingencies | ||||
Commitment to loan or investment | $ 452,000,000 | |||
Performance guarantees | ||||
Loss Contingencies | ||||
Remaining maximum exposure | 323,000,000 | |||
Guarantor obligations, liability (asset), current carrying value | 71,000,000 | $ 79,000,000 | $ 97,000,000 | |
Performance Test Clause Guarantee | ||||
Loss Contingencies | ||||
Guarantor obligations, liability (asset), current carrying value | $ 0 | 0 | ||
The four managed hotels in France | Performance guarantees | ||||
Loss Contingencies | ||||
Performance guarantee initial term | 7 years | |||
Remaining performance guarantee term | 2 years 6 months | |||
Remaining maximum exposure | $ 269,000,000 | € 224 | ||
Guarantor obligations, liability (asset), current carrying value | 58,000,000 | 66,000,000 | $ 93,000,000 | |
Other long-term liabilities | Performance guarantees | ||||
Loss Contingencies | ||||
Guarantor obligations, liability (asset), current carrying value | 45,000,000 | 55,000,000 | ||
Accrued expenses and other current liabilities | Performance guarantees | ||||
Loss Contingencies | ||||
Guarantor obligations, liability (asset), current carrying value | $ 26,000,000 | $ 24,000,000 |
Commitments and Contingencie109
Commitments and Contingencies (Schedule of Guarantor Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Guarantor Obligations | |||
Amortization of initial guarantee obligation liability into income | $ (19) | $ (34) | $ (12) |
Performance guarantee expense (income), net | 77 | 63 | 27 |
Foreign currency exchange, net | (2) | 1 | (14) |
Performance guarantees | |||
Guarantor Obligations | |||
Beginning Balance | 79 | 97 | |
Initial guarantee obligation liability | 3 | 9 | |
Amortization of initial guarantee obligation liability into income | (19) | (34) | |
Performance guarantee expense (income), net | 77 | 63 | |
Net (payments) receipts during the year | (78) | (55) | |
Foreign currency exchange, net | 9 | (1) | |
Ending Balance | 71 | 79 | 97 |
The four managed hotels in France | Performance guarantees | |||
Guarantor Obligations | |||
Beginning Balance | 66 | 93 | |
Initial guarantee obligation liability | 0 | 0 | |
Amortization of initial guarantee obligation liability into income | (15) | (33) | |
Performance guarantee expense (income), net | 76 | 64 | |
Net (payments) receipts during the year | (78) | (57) | |
Foreign currency exchange, net | 9 | (1) | |
Ending Balance | 58 | 66 | 93 |
Other performance guarantees | Performance guarantees | |||
Guarantor Obligations | |||
Beginning Balance | 13 | 4 | |
Initial guarantee obligation liability | 3 | 9 | |
Amortization of initial guarantee obligation liability into income | (4) | (1) | |
Performance guarantee expense (income), net | 1 | (1) | |
Net (payments) receipts during the year | 0 | 2 | |
Foreign currency exchange, net | 0 | 0 | |
Ending Balance | $ 13 | $ 13 | $ 4 |
Commitments and Contingencie110
Commitments and Contingencies (Debt Repayment and Other Guarantee) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies | ||
Guarantor obligations, carrying value, noncurrent | $ 104 | $ 124 |
Debt repayment and other guarantees | ||
Loss Contingencies | ||
Maximum potential future payments | 708 | |
Maximum exposure net of recoverability from third parties | 387 | |
Guarantor obligations, carrying value, noncurrent | 59 | 69 |
Debt repayment and other guarantees | Hotel property in Washington State | ||
Loss Contingencies | ||
Maximum potential future payments | 215 | |
Maximum exposure net of recoverability from third parties | 0 | |
Guarantor obligations, carrying value, noncurrent | 26 | 35 |
Debt repayment and other guarantees | Hotel properties in India | ||
Loss Contingencies | ||
Maximum potential future payments | 188 | |
Maximum exposure net of recoverability from third parties | 188 | |
Guarantor obligations, carrying value, noncurrent | 17 | 21 |
Debt repayment and other guarantees | Hotel and residential properties in Brazil | ||
Loss Contingencies | ||
Maximum potential future payments | 97 | |
Maximum exposure net of recoverability from third parties | 40 | |
Guarantor obligations, carrying value, noncurrent | 4 | 3 |
Debt repayment and other guarantees | Hotel property in Massachusetts | ||
Loss Contingencies | ||
Maximum potential future payments | 107 | |
Maximum exposure net of recoverability from third parties | 107 | |
Guarantor obligations, carrying value, noncurrent | 1 | 0 |
Debt repayment and other guarantees | Hotel properties in California | ||
Loss Contingencies | ||
Maximum potential future payments | 31 | |
Maximum exposure net of recoverability from third parties | 13 | |
Guarantor obligations, carrying value, noncurrent | 6 | 6 |
Debt repayment and other guarantees | Hotel property in Minnesota | ||
Loss Contingencies | ||
Maximum potential future payments | 25 | |
Maximum exposure net of recoverability from third parties | 25 | |
Guarantor obligations, carrying value, noncurrent | 2 | 2 |
Debt repayment and other guarantees | Hotel property in Arizona | ||
Loss Contingencies | ||
Maximum potential future payments | 25 | |
Maximum exposure net of recoverability from third parties | 0 | |
Guarantor obligations, carrying value, noncurrent | 1 | 2 |
Debt repayment and other guarantees | Other | ||
Loss Contingencies | ||
Maximum potential future payments | 20 | |
Maximum exposure net of recoverability from third parties | 14 | |
Guarantor obligations, carrying value, noncurrent | 2 | $ 0 |
Joint venture | Debt repayment and other guarantees | Hotel properties in India | ||
Loss Contingencies | ||
Maximum exposure net of recoverability from third parties | $ 94 | |
Equity method investment, ownership percentage | 50.00% |
Commitments and Contingencie111
Commitments and Contingencies (Additional Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies | ||
Guarantees, fair value disclosure | $ 177 | $ 231 |
Self Insurance reserve, current | 32 | 30 |
Self insurance reserve, noncurrent | 69 | 62 |
Surety bonds | 25 | |
Self Insurance Collateral | ||
Loss Contingencies | ||
Letters of credit outstanding, amount | $ 7 | |
United States | ||
Loss Contingencies | ||
Multiemployer plans, collective-bargaining arrangement, percentage of participants | 25.00% | |
Additional non-revolving credit facility banks | ||
Loss Contingencies | ||
Letters of credit outstanding, amount | $ 309 | $ 230 |
Stockholders' Equity and Com112
Stockholders' Equity and Comprehensive Loss (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Repurchase | |||
Stock repurchase program, authorized amount | $ 1,250,000,000 | $ 500,000,000 | $ 400,000,000 |
Stock repurchase program, remaining authorized repurchase amount | $ 864,000,000 | ||
Stock repurchased and retired during period (in shares) | 12,186,308 | 5,631,557 | |
Stock repurchased and retired during period | $ 723,000,000 | $ 272,000,000 | |
Percent repurchased (percentage) | 9.00% | 4.00% | |
Weighted average | |||
Share Repurchase | |||
Stock repurchased and retired during period (in dollars per share) | $ 59.34 | $ 48.37 | |
Pritzker Family Business Interests | |||
Common Stock | |||
Percent of Class B Common Stock owned (percentage) | 96.80% | ||
Percent of outstanding shares of Common Stock (percentage) | 57.60% | ||
Percent of total voting power, Common Stock (percentage) | 90.60% | ||
Pritzker Family Business Interests | Maximum | |||
Common Stock | |||
Percent of Class A Common Stock owned (percentage) | 0.10% | ||
Other Business Interests With Significant Ownership Percentage | |||
Common Stock | |||
Percent of Class B Common Stock owned (percentage) | 3.20% | ||
Percent of outstanding shares of Common Stock (percentage) | 1.90% | ||
Percent of total voting power, Common Stock (percentage) | 3.00% |
Stockholders' Equity and Com113
Stockholders' Equity and Comprehensive Loss (Schedule of Shares Repurchased) (Details) - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 4 Months Ended | 12 Months Ended | ||
Feb. 15, 2018 | Feb. 15, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Repurchases | |||||
Stock repurchased and retired during period (in shares) | 12,186,308 | 5,631,557 | |||
Payment for shares repurchased | $ 743 | $ 272 | $ 715 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 864 | ||||
Weighted average | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in dollars per share) | $ 59.34 | $ 48.37 | |||
March 2017 ASR | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in shares) | 5,393,669 | ||||
Payment for shares repurchased | $ 300 | ||||
March 2017 ASR | Weighted average | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in dollars per share) | $ 55.62 | ||||
August 2017 ASR | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in shares) | 1,666,484 | ||||
Payment for shares repurchased | $ 100 | ||||
August 2017 ASR | Weighted average | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in dollars per share) | $ 60.01 | ||||
November 2017 ASR | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in shares) | 1,152,904 | ||||
Payment for shares repurchased under ASR agreement | $ 100 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 20 | ||||
November 2017 ASR | Weighted average | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in dollars per share) | $ 69.39 | ||||
Subsequent event | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in shares) | 1,397,164 | ||||
Stock repurchased and retired during period (in dollars per share) | $ 71.57 | ||||
Subsequent event | November 2017 ASR | |||||
Share Repurchases | |||||
Stock repurchased and retired during period (in shares) | 244,260 |
Stockholders' Equity and Com114
Stockholders' Equity and Comprehensive Loss (Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in AOCI | |||
Balance, beginning of period | $ 3,908 | $ 3,995 | $ 4,631 |
Balance, end of period | 3,531 | 3,908 | 3,995 |
Foreign currency translation adjustments | |||
Increase (Decrease) in AOCI | |||
Balance, beginning of period | (299) | (257) | |
Current period other comprehensive income (loss) before reclassification | 56 | (45) | |
Amount reclassified from accumulated other comprehensive loss | 0 | 3 | |
Balance, end of period | (243) | (299) | (257) |
Unrealized gains on AFS securities | |||
Increase (Decrease) in AOCI | |||
Balance, beginning of period | 33 | 39 | |
Current period other comprehensive income (loss) before reclassification | 35 | (6) | |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | |
Balance, end of period | 68 | 33 | 39 |
Unrecognized pension cost | |||
Increase (Decrease) in AOCI | |||
Balance, beginning of period | (7) | (7) | |
Current period other comprehensive income (loss) before reclassification | 0 | 0 | |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | |
Balance, end of period | (7) | (7) | (7) |
Unrealized gains (losses) on derivative instruments | |||
Increase (Decrease) in AOCI | |||
Balance, beginning of period | (4) | (5) | |
Current period other comprehensive income (loss) before reclassification | 1 | 1 | |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | |
Balance, end of period | (3) | (4) | (5) |
Accumulated other comprehensive income (loss) | |||
Increase (Decrease) in AOCI | |||
Balance, beginning of period | (277) | (230) | (160) |
Current period other comprehensive income (loss) before reclassification | 92 | (50) | |
Amount reclassified from accumulated other comprehensive loss | 0 | 3 | |
Balance, end of period | $ (185) | $ (277) | $ (230) |
Stock-Based Compensation (Compe
Stock-Based Compensation (Compensation Expense Related To Long-Term Incentive Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized for share based compensation (in shares) | 14,375,000 | ||
Compensation expense | $ 29 | $ 25 | $ 23 |
Stock appreciation rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation expense | 11 | 10 | 9 |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation expense | 16 | 15 | 17 |
PSUs and PSs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation expense | $ 2 | $ 0 | $ (3) |
Stock Based Compensation (Incom
Stock Based Compensation (Income Tax Benefit Share Based Compensation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock appreciation rights (SARs) | |||
Income Tax Benefit Share Based Compensation | |||
Employee service share-based compensation, tax benefit | $ 3 | $ 4 | $ 3 |
Restricted stock units (RSUs) | |||
Income Tax Benefit Share Based Compensation | |||
Employee service share-based compensation, tax benefit | 4 | 5 | 5 |
PSUs and PSs | |||
Income Tax Benefit Share Based Compensation | |||
Employee service share-based compensation, tax benefit | $ 1 | $ 0 | $ (1) |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Appreciation Rights by Grant Date) (Details) - Stock appreciation rights (SARs) - $ / shares | 1 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | 39,401 | 625,740 | ||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 25.38 | $ 16.42 | $ 14.52 | $ 21.36 | ||||
Vesting period | 100.00% | |||||||
Vesting start month | March 2,018 | |||||||
25% annually | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | 20,139 | 605,601 | 878,714 | 380,604 | ||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 18.62 | $ 16.35 | $ 14.54 | $ 20.64 | ||||
Vesting period | 25.00% | 25.00% | 25.00% | 25.00% | ||||
Vesting start month | September 2,018 | March 2,018 | March 2,017 | March 2,016 | ||||
33% annually | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | 45,710 | |||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 14.22 | |||||||
Vesting period | 33.00% | |||||||
Vesting start month | March 2,017 | |||||||
50% annually | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | 41,373 | |||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 24.17 | |||||||
Vesting period | 50.00% | |||||||
Vesting start month | March 2,018 |
Stock-Based Compensation (SAR V
Stock-Based Compensation (SAR Valuation Assumptions) (Details) - Stock appreciation rights (SARs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise Price (in dollars per share) | $ 52.93 | $ 47.36 | $ 56.57 |
Expected life in years | 6 years 2 months 27 days | 6 years 2 months 22 days | 6 years 3 months 22 days |
Risk-free interest rate | 2.11% | 1.55% | 1.63% |
Expected volatility | 26.56% | 27.72% | 35.39% |
Annual dividend yield | 0.00% | 0.00% | 0.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of SAR Activity) (Details) - Stock appreciation rights (SARs) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 4,453,987 | ||
Granted (in shares) | 39,401 | 625,740 | |
Exercised (in shares) | (764,417) | ||
Forfeited or expired (in shares) | (715,355) | ||
Ending balance (in shares) | 3,599,955 | 4,453,987 | |
Exercisable (in shares) | 2,003,976 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Exercise Price [Roll Forward] | |||
Beginning balance, weighted average exercise price (in dollars per share) | $ 47.88 | ||
Grants in period, weighted-average fair value at grant date (in dollars per share) | 52.93 | ||
Exercises in period, weighted average exercise price (in dollars per share) | 42.66 | ||
Forfeited or expired, weighted average exercise price (in dollars per share) | 61.83 | ||
Ending balance, weighted average exercise price (in dollars per share) | 47.09 | $ 47.88 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 43.88 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Outstanding, weighted average remaining contractual term | 6 years 3 months 18 days | 5 years 3 months | |
Exercisable, weighted average contractual term | 4 years 8 months 1 day | ||
Exercised intrinsic value | $ 24 | ||
Outstanding intrinsic value | 95 | ||
Exercisable intrinsic value | $ 59 |
Stock-Based Compensation (RSU A
Stock-Based Compensation (RSU Activity by Grant Date) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | May 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | May 31, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||
Stock-based compensation expense | $ 29,000,000 | $ 25,000,000 | $ 23,000,000 | |||||||||||
Restricted stock units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||
Granted (in shares) | 9,238 | 1,390 | 416,404 | 40,633 | 444,629 | 4,089 | 23,746 | 380,939 | 29,278 | 492,540 | ||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 70.35 | $ 57.51 | $ 52.65 | $ 56.60 | $ 47.36 | $ 48.90 | $ 58.95 | $ 56.27 | $ 59.77 | $ 54.08 | $ 48.13 | $ 56.43 | ||
Total value | $ 1,000,000 | $ 0 | $ 22,000,000 | $ 2,000,000 | $ 21,000,000 | $ 0 | $ 1,000,000 | $ 21,000,000 | $ 2,000,000 | |||||
Vesting period | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | 4 years | |||||||
Stock-based compensation expense | $ 16,000,000 | $ 15,000,000 | $ 17,000,000 | |||||||||||
Cash settled restricted stock units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||
Liability for cash-settled RSU's | $ 0 | 0 | ||||||||||||
Stock-based compensation expense | $ 0 | |||||||||||||
22,357 | Restricted stock units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||
Granted (in shares) | 22,357 | |||||||||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 61.50 | |||||||||||||
Total value | $ 1,000,000 | |||||||||||||
43,151 | Restricted stock units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||
Granted (in shares) | 43,151 | |||||||||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 60.48 | |||||||||||||
Total value | $ 3,000,000 | |||||||||||||
3,898 | Restricted stock units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||
Granted (in shares) | 3,898 | |||||||||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 51.30 | |||||||||||||
Total value | $ 0 | |||||||||||||
Vesting period | 3 years | |||||||||||||
8,576 | Restricted stock units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||
Granted (in shares) | 8,576 | |||||||||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 51.30 | |||||||||||||
Total value | $ 0 | |||||||||||||
Vesting period | 4 years |
Stock-Based Compensation (Su121
Stock-Based Compensation (Summary of RSU Activity) (Details) - Restricted stock units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | May 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | May 31, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||||||||
Beginning balance (in shares) | 1,016,177 | |||||||||||
Granted (in shares) | 9,238 | 1,390 | 416,404 | 40,633 | 444,629 | 4,089 | 23,746 | 380,939 | 29,278 | 492,540 | ||
Vested (in shares) | (378,432) | |||||||||||
Forfeited or canceled (in shares) | (100,701) | |||||||||||
Ending balance (in shares) | 1,029,584 | 1,016,177 | 1,029,584 | 1,016,177 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Date Fair Value [Roll Forward] | ||||||||||||
Beginning balance, nonvested weighted average (in dollars per share) | $ 50.15 | |||||||||||
Granted, weighted-average (in dollars per share) | $ 70.35 | $ 57.51 | $ 52.65 | $ 56.60 | $ 47.36 | $ 48.90 | $ 58.95 | $ 56.27 | $ 59.77 | 54.08 | $ 48.13 | $ 56.43 |
Vested, weighted average (in dollars per share) | 48.97 | |||||||||||
Forfeited or canceled, weighted average (in dollars per share) | 52.59 | |||||||||||
Ending balance, nonvested weighted average (in dollars per share) | $ 52.22 | $ 50.15 | $ 52.22 | $ 50.15 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||||||||||
Intrinsic value, nonvested | $ 76 | $ 76 |
Stock-Based Compensation (Su122
Stock-Based Compensation (Summary of PSU and PS Activity) (Details) - PSUs and PSs - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2017 | Jan. 01, 2016 | Jan. 01, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||
PSUs and PSs Granted (in shares) | 102,115 | 111,620 | 146,902 | |||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 52.65 | $ 47.36 | $ 56.27 | |||
Performance period | 3 years | 3 years | 3 years | |||
Performance period start date | January 1, 2017 | January 1, 2016 | January 1, 2015 | |||
Forfeited or canceled (in shares) | 168,095 | |||||
Intrinsic value | $ 11 |
Stock-Based Compensation (Unear
Stock-Based Compensation (Unearned Compensation) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | $ 25 |
Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 5 |
Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 16 |
PSUs and PSs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 4 |
2,018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 13 |
2018 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 2 |
2018 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 8 |
2018 | PSUs and PSs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 3 |
2,019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 8 |
2019 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 2 |
2019 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 5 |
2019 | PSUs and PSs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2,020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 3 |
2020 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2020 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 2 |
2020 | PSUs and PSs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 0 |
2,021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2021 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 0 |
2021 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2021 | PSUs and PSs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | $ 0 |
Related-Party Transactions (Leg
Related-Party Transactions (Legal Services Narrative) (Details) - Family member of management - Related party legal services - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction | |||
Legal services | $ 3 | $ 2 | $ 6 |
Due (to) from related party | $ 0 | $ 0 |
Related-Party Transactions (Equ
Related-Party Transactions (Equity Method Investments Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction | |||||||||||
Management and franchise fees revenues | $ 131 | $ 122 | $ 130 | $ 122 | $ 116 | $ 110 | $ 115 | $ 107 | $ 505 | $ 448 | $ 427 |
Minimum | |||||||||||
Related Party Transaction | |||||||||||
Equity method investment, ownership percentage | 24.00% | 24.00% | |||||||||
Maximum | |||||||||||
Related Party Transaction | |||||||||||
Equity method investment, ownership percentage | 70.00% | 70.00% | |||||||||
Equity method investments | |||||||||||
Related Party Transaction | |||||||||||
Management and franchise fees revenues | $ 24 | 30 | 26 | ||||||||
Due (to) from related party | $ 11 | $ 7 | 11 | 7 | |||||||
Guarantee fees | $ 5 | $ 5 | $ 2 |
Related-Party Transactions (Cla
Related-Party Transactions (Class B Shares Repurchased) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction | |||
Stock repurchased and retired during period (in shares) | 12,186,308 | 5,631,557 | |
Stock repurchased and retired during period | $ 743 | $ 272 | $ 715 |
Percent of stock outstanding repurchased during period | 9.00% | 4.00% | |
Common Class B | |||
Related Party Transaction | |||
Stock repurchased and retired during period (in shares) | 3,089,437 | 1,881,636 | |
Stock repurchased and retired during period (in dollars per share) | $ 63.30 | $ 53.15 | |
Stock repurchased and retired during period | $ 196 | $ 100 | |
Percent of stock outstanding repurchased during period | 2.00% | 1.00% |
Related-Party Transactions (127
Related-Party Transactions (Class B Share Conversion) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Common Class B | ||
Related Party Transaction | ||
Conversion of stock, shares converted (in shares) | 17,019,935 | 16,884,117 |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Class A | ||
Related Party Transaction | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Segment and Geographic Infor128
Segment and Geographic Information (Summarized Consolidated Financial Information by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information | |||||||||||
Owned and leased hotels revenues | $ 525 | $ 518 | $ 577 | $ 572 | $ 514 | $ 519 | $ 559 | $ 516 | $ 2,192 | $ 2,108 | $ 2,079 |
Other revenues | 17 | 16 | 15 | 22 | 9 | 11 | 11 | 9 | 70 | 40 | 36 |
Management and franchise fees revenues | 131 | 122 | 130 | 122 | 116 | 110 | 115 | 107 | 505 | 448 | 427 |
Other revenues from managed and franchised properties | 511 | 463 | 473 | 471 | 448 | 448 | 480 | 457 | 1,918 | 1,833 | 1,786 |
Revenues | $ 1,184 | $ 1,119 | $ 1,195 | $ 1,187 | $ 1,087 | $ 1,088 | $ 1,165 | $ 1,089 | 4,685 | 4,429 | 4,328 |
Adjusted EBITDA | 816 | 785 | 750 | ||||||||
Depreciation and amortization | 366 | 342 | 320 | ||||||||
Capital expenditures | 298 | 211 | 269 | ||||||||
Operating Segments | Owned and leased hotels | |||||||||||
Segment Reporting Information | |||||||||||
Owned and leased hotels revenues | 2,137 | 2,119 | 2,079 | ||||||||
Other revenues | 13 | 0 | 0 | ||||||||
Adjusted EBITDA | 490 | 516 | 493 | ||||||||
Depreciation and amortization | 295 | 285 | 277 | ||||||||
Capital expenditures | 195 | 200 | 225 | ||||||||
Operating Segments | Americas Management and Franchising | |||||||||||
Segment Reporting Information | |||||||||||
Management and franchise fees revenues | 403 | 371 | 354 | ||||||||
Other revenues from managed and franchised properties | 1,730 | 1,670 | 1,641 | ||||||||
Adjusted EBITDA | 350 | 318 | 300 | ||||||||
Depreciation and amortization | 19 | 18 | 19 | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Operating Segments | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Management and franchise fees revenues | 112 | 96 | 91 | ||||||||
Other revenues from managed and franchised properties | 114 | 98 | 87 | ||||||||
Adjusted EBITDA | 70 | 57 | 55 | ||||||||
Depreciation and amortization | 2 | 1 | 1 | ||||||||
Capital expenditures | 1 | 1 | 1 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Management and franchise fees revenues | 72 | 65 | 67 | ||||||||
Other revenues from managed and franchised properties | 74 | 65 | 58 | ||||||||
Adjusted EBITDA | 40 | 33 | 33 | ||||||||
Depreciation and amortization | 5 | 5 | 5 | ||||||||
Capital expenditures | 1 | 1 | 0 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | (95) | (98) | (89) | ||||||||
Adjusted EBITDA | 3 | 0 | 0 | ||||||||
Intersegment Eliminations | Owned and leased hotels | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 9 | 11 | 0 | ||||||||
Intersegment Eliminations | Americas Management and Franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 74 | 75 | 74 | ||||||||
Intersegment Eliminations | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 2 | 2 | 2 | ||||||||
Intersegment Eliminations | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 10 | 10 | 13 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information | |||||||||||
Revenues | 125 | 43 | 40 | ||||||||
Adjusted EBITDA | (137) | (139) | (131) | ||||||||
Depreciation and amortization | 45 | 33 | 18 | ||||||||
Capital expenditures | $ 101 | $ 9 | $ 43 |
Segment and Geographic Infor129
Segment and Geographic Information (Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Information | ||
Assets | $ 7,672 | $ 7,749 |
Operating Segments | Owned and leased hotels | ||
Segment Reporting Information | ||
Assets | 4,842 | 5,393 |
Operating Segments | Americas Management and Franchising | ||
Segment Reporting Information | ||
Assets | 524 | 564 |
Operating Segments | ASPAC management and franchising | ||
Segment Reporting Information | ||
Assets | 121 | 128 |
Operating Segments | EAME/SW Asia management and franchising | ||
Segment Reporting Information | ||
Assets | 196 | 186 |
Corporate and Other | ||
Segment Reporting Information | ||
Assets | $ 1,989 | $ 1,478 |
Segment and Geographic Infor130
Segment and Geographic Information (Schedule of Revenues from External Customers and Long-Lived Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Total revenues | $ 1,184 | $ 1,119 | $ 1,195 | $ 1,187 | $ 1,087 | $ 1,088 | $ 1,165 | $ 1,089 | $ 4,685 | $ 4,429 | $ 4,328 |
Property and equipment, net, intangibles, net and goodwill | 4,867 | 4,994 | 4,867 | 4,994 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Total revenues | 3,771 | 3,571 | 3,494 | ||||||||
Property and equipment, net, intangibles, net and goodwill | 3,743 | 3,915 | 3,743 | 3,915 | |||||||
All foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Total revenues | 914 | 858 | $ 834 | ||||||||
Property and equipment, net, intangibles, net and goodwill | $ 1,124 | $ 1,079 | $ 1,124 | $ 1,079 |
Segment and Geographic Infor131
Segment and Geographic Information (Reconciliation of Net Income attributable to Hyatt Hotels Corporation to EBITDA and a Reconciliation of EBITDA to Consolidated Adjusted EBITDA) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||||||||||
Net income attributable to Hyatt Hotels Corporation | $ 76 | $ 16 | $ 87 | $ 70 | $ 41 | $ 62 | $ 67 | $ 34 | $ 249 | $ 204 | $ 124 |
Interest expense | 80 | 76 | 68 | ||||||||
Provision for income taxes | 323 | 85 | 70 | ||||||||
Depreciation and amortization | 366 | 342 | 320 | ||||||||
EBITDA | 1,018 | 707 | 582 | ||||||||
Equity (earnings) losses from unconsolidated hospitality ventures | (220) | (68) | 64 | ||||||||
Stock-based compensation expense | 29 | 25 | 23 | ||||||||
(Gains) losses on sales of real estate | (51) | 23 | (9) | ||||||||
Asset impairments | 0 | 0 | 5 | ||||||||
Other (income) loss, net | (33) | (2) | 5 | ||||||||
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | 73 | 100 | 80 | ||||||||
Adjusted EBITDA | $ 816 | $ 785 | $ 750 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of the Calculation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income | $ 76 | $ 17 | $ 87 | $ 70 | $ 41 | $ 62 | $ 67 | $ 34 | $ 250 | $ 204 | $ 124 |
Net income and accretion attributable to noncontrolling interests | (1) | 0 | 0 | ||||||||
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 76 | $ 16 | $ 87 | $ 70 | $ 41 | $ 62 | $ 67 | $ 34 | $ 249 | $ 204 | $ 124 |
Denominator: | |||||||||||
Basic weighted average shares outstanding (in shares) | 124,836,917 | 132,930,578 | 142,814,868 | ||||||||
Share-based compensation and equity-classified forward contract (in shares) | 1,509,986 | 1,008,753 | 1,184,455 | ||||||||
Diluted weighted average shares outstanding (in shares) | 126,346,903 | 133,939,331 | 143,999,323 | ||||||||
EARNINGS PER SHARE—Basic | |||||||||||
Net Income - basic (in dollars per share) | $ 0.63 | $ 0.14 | $ 0.69 | $ 0.54 | $ 0.31 | $ 0.48 | $ 0.50 | $ 0.25 | $ 2 | $ 1.53 | $ 0.87 |
Net income and accretion attributable to noncontrolling interests - Basic (in dollars per share) | (0.01) | 0 | 0 | ||||||||
Net income attributable to Hyatt Hotels Corporation - Basic (in dollars per share) | 1.99 | 1.53 | 0.87 | ||||||||
EARNINGS PER SHARE—Diluted | |||||||||||
Net Income - diluted (in dollars per share) | $ 0.62 | $ 0.14 | $ 0.68 | $ 0.54 | $ 0.31 | $ 0.47 | $ 0.49 | $ 0.25 | 1.98 | 1.52 | 0.86 |
Net income and accretion attributable to noncontrolling interests - Diluted (in dollars per share) | (0.01) | 0 | 0 | ||||||||
Net income attributable to Hyatt Hotels Corporation - Diluted (in dollars per share) | $ 1.97 | $ 1.52 | $ 0.86 |
Earnings Per Share (Anti-diluti
Earnings Per Share (Anti-dilutive Shares Issued) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock appreciation rights (SARs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from the computations of earnings per share (in shares) | 21,400 | 74,500 | 1,500 |
Restricted stock units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from the computations of earnings per share (in shares) | 100 | 900 | 0 |
Other Income (Loss), Net (Recon
Other Income (Loss), Net (Reconciliation of Components in Other Income (Loss), Net) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Interest income (Note 4) | $ 101 | $ 19 | $ 8 |
Depreciation recovery | 27 | 25 | 12 |
Performance guarantee liability amortization (Note 14) | 19 | 34 | 12 |
Pre-condemnation income | 18 | 0 | 0 |
Debt repayment guarantee liability amortization (Note 14) | 10 | 3 | 0 |
Foreign currency (losses) gains, net | (2) | 1 | (14) |
Cease use liability | (21) | 0 | 0 |
Realized losses (Note 4) | (40) | (6) | 0 |
Performance guarantee expense, net (Note 14) | (77) | (63) | (27) |
Other | (2) | (11) | 4 |
Other income (loss), net | 33 | 2 | (5) |
Recorded cease use liability | 21 | ||
Pre-condemnation income | $ 18 | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Feb. 14, 2018 | Jan. 10, 2018 | Jan. 06, 2014 |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Cash dividends declared (in dollars per share) | $ 0.15 | ||
Revolving credit facility | Line of credit | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||
Revolving credit facility | Line of credit | Subsequent event | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 |
Quarterly Financial Informat136
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Owned and leased hotels | $ 525 | $ 518 | $ 577 | $ 572 | $ 514 | $ 519 | $ 559 | $ 516 | $ 2,192 | $ 2,108 | $ 2,079 |
Management and franchise fees | 131 | 122 | 130 | 122 | 116 | 110 | 115 | 107 | 505 | 448 | 427 |
Other revenues | 17 | 16 | 15 | 22 | 9 | 11 | 11 | 9 | 70 | 40 | 36 |
Other revenues from managed and franchised properties | 511 | 463 | 473 | 471 | 448 | 448 | 480 | 457 | 1,918 | 1,833 | 1,786 |
Total revenues | 1,184 | 1,119 | 1,195 | 1,187 | 1,087 | 1,088 | 1,165 | 1,089 | 4,685 | 4,429 | 4,328 |
Direct and selling, general, and administrative expenses | 1,124 | 1,062 | 1,090 | 1,107 | 1,027 | 1,019 | 1,063 | 1,021 | 4,383 | 4,130 | 4,005 |
Net income | 76 | 17 | 87 | 70 | 41 | 62 | 67 | 34 | 250 | 204 | 124 |
Net income attributable to Hyatt Hotels Corporation | $ 76 | $ 16 | $ 87 | $ 70 | $ 41 | $ 62 | $ 67 | $ 34 | $ 249 | $ 204 | $ 124 |
Net Income - basic (in dollars per share) | $ 0.63 | $ 0.14 | $ 0.69 | $ 0.54 | $ 0.31 | $ 0.48 | $ 0.50 | $ 0.25 | $ 2 | $ 1.53 | $ 0.87 |
Net Income - diluted (in dollars per share) | $ 0.62 | $ 0.14 | $ 0.68 | $ 0.54 | $ 0.31 | $ 0.47 | $ 0.49 | $ 0.25 | $ 1.98 | $ 1.52 | $ 0.86 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trade receivables—allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure | |||
Balance at beginning of period | $ 18 | $ 15 | $ 13 |
Additions charged to revenues, costs and expenses | 8 | 6 | 5 |
Additions charged to other accounts | 0 | 0 | 0 |
Deductions | (5) | (3) | (3) |
Balance at end of period | 21 | 18 | 15 |
Financing receivables—allowance for losses | |||
Valuation and Qualifying Accounts Disclosure | |||
Balance at beginning of period | 100 | 98 | 100 |
Additions charged to revenues, costs and expenses | 6 | 10 | 10 |
Additions charged to other accounts | 2 | 0 | (2) |
Deductions | 0 | (8) | (10) |
Balance at end of period | 108 | 100 | 98 |
Deferred tax assets—valuation allowance | |||
Valuation and Qualifying Accounts Disclosure | |||
Balance at beginning of period | 27 | 17 | 15 |
Additions charged to revenues, costs and expenses | 24 | 10 | 2 |
Additions charged to other accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at end of period | $ 51 | $ 27 | $ 17 |