Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-34521 | |
Entity Registrant Name | HYATT HOTELS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1480589 | |
Entity Address, Address Line One | 150 North Riverside Plaza | |
Entity Address, Address Line Two | 8th Floor | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | 312 | |
Local Phone Number | 750-1234 | |
Title of 12(b) Security | Class A common stock | |
Trading Symbol | H | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001468174 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 36,582,951 | |
Common Class B | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 66,163,274 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES: | ||||
Total revenues | $ 1,215 | $ 1,074 | $ 3,745 | $ 3,316 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||
Depreciation and amortization | 85 | 81 | 248 | 243 |
Other direct costs | 28 | 8 | 103 | 23 |
Selling, general, and administrative | 83 | 82 | 306 | 260 |
Direct and selling, general, and administrative expenses | 1,175 | 1,012 | 3,598 | 3,068 |
Net gains and interest income from marketable securities held to fund rabbi trusts | 0 | 10 | 41 | 19 |
Equity losses from unconsolidated hospitality ventures | (5) | (6) | (2) | (17) |
Interest expense | (19) | (19) | (58) | (57) |
Gains on sales of real estate | 373 | 239 | 374 | 769 |
Asset impairments | (9) | (21) | (13) | (21) |
Other income (loss), net | 25 | (9) | 104 | (22) |
INCOME BEFORE INCOME TAXES | 405 | 256 | 593 | 919 |
PROVISION FOR INCOME TAXES | (109) | (19) | (148) | (194) |
NET INCOME | 296 | 237 | 445 | 725 |
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 296 | $ 237 | $ 445 | $ 725 |
EARNINGS PER SHARE—Basic | ||||
Net income (in dollars per share) | $ 2.84 | $ 2.12 | $ 4.23 | $ 6.31 |
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | 2.84 | 2.12 | 4.23 | 6.31 |
EARNINGS PER SHARE—Diluted | ||||
Net income (in dollars per share) | 2.80 | 2.09 | 4.17 | 6.21 |
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | $ 2.80 | $ 2.09 | $ 4.17 | $ 6.21 |
Owned and leased hotels | ||||
REVENUES: | ||||
Total revenues | $ 430 | $ 450 | $ 1,390 | $ 1,450 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||
Owned and leased hotels | 346 | 354 | 1,070 | 1,095 |
Costs incurred on behalf of managed and franchised properties | 346 | 354 | 1,070 | 1,095 |
Management, franchise, and other fees | ||||
REVENUES: | ||||
Total revenues | 148 | 133 | 447 | 407 |
Amortization of management and franchise agreement assets constituting payments to customers | ||||
REVENUES: | ||||
Total revenues | (5) | (5) | (16) | (15) |
Net management, franchise, and other fees | ||||
REVENUES: | ||||
Total revenues | 143 | 128 | 431 | 392 |
Other revenues | ||||
REVENUES: | ||||
Total revenues | 25 | 7 | 98 | 27 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
REVENUES: | ||||
Total revenues | 617 | 489 | 1,826 | 1,447 |
Costs incurred on behalf of managed and franchised properties | ||||
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||
Owned and leased hotels | 633 | 487 | 1,871 | 1,447 |
Costs incurred on behalf of managed and franchised properties | $ 633 | $ 487 | $ 1,871 | $ 1,447 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 296 | $ 237 | $ 445 | $ 725 |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments, net of tax benefit of $(1) for the three and nine months ended September 30, 2019 and $- and $(1) for the three and nine months ended September 30, 2018, respectively | (27) | 71 | (27) | 48 |
Unrealized gains (losses) on derivative activity, net of tax benefit of $(3) and $(7) for the three and nine months ended September 30, 2019, respectively, and net of tax expense of $1 for the three and nine months ended September 30, 2018 | (9) | 3 | (21) | 3 |
Other comprehensive income (loss) | (36) | 74 | (48) | 51 |
COMPREHENSIVE INCOME | 260 | 311 | 397 | 776 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 260 | $ 311 | $ 397 | $ 776 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income - Parentheticals - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, net of tax (benefit) | $ (1) | $ 0 | $ (1) | $ (1) |
Unrealized gains on derivative activity, net of tax expense | $ (3) | $ 1 | $ (7) | $ 1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 660 | $ 570 | |
Restricted cash | 140 | [1] | 33 |
Short-term investments | 63 | 116 | |
Receivables, net of allowances of $30 and $26 at September 30, 2019 and December 31, 2018, respectively | 434 | 427 | |
Inventories | 12 | 14 | |
Prepaids and other assets | 129 | 149 | |
Prepaid income taxes | 21 | 36 | |
Assets held for sale | 17 | 0 | |
Total current assets | 1,476 | 1,345 | |
Equity method investments | 229 | 233 | |
Property and equipment, net | 3,519 | 3,608 | |
Financing receivables, net of allowances | 19 | 13 | |
Operating lease right-of-use assets | 488 | ||
Goodwill | 322 | 283 | |
Intangibles, net | 453 | 628 | |
Deferred tax assets | 147 | 180 | |
Other assets | 1,476 | 1,353 | |
TOTAL ASSETS | 8,129 | 7,643 | |
CURRENT LIABILITIES: | |||
Current maturities of long-term debt | 11 | 11 | |
Accounts payable | 144 | 151 | |
Accrued expenses and other current liabilities | 315 | 361 | |
Current contract liabilities | 404 | 388 | |
Accrued compensation and benefits | 137 | 150 | |
Current operating lease liabilities | 33 | ||
Total current liabilities | 1,044 | 1,061 | |
Long-term debt | 1,612 | 1,623 | |
Long-term contract liabilities | 471 | 442 | |
Long-term operating lease liabilities | 395 | ||
Other long-term liabilities | 846 | 840 | |
Total liabilities | 4,368 | 3,966 | |
Commitments and contingencies (see Note 13) | |||
EQUITY: | |||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding at September 30, 2019 and December 31, 2018 | 0 | 0 | |
Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 36,811,374 issued and outstanding at September 30, 2019, and Class B common stock, $0.01 par value per share, 398,432,856 shares authorized, 66,438,444 shares issued and outstanding at September 30, 2019. Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 39,507,817 issued and outstanding at December 31, 2018, and Class B common stock, $0.01 par value per share, 399,110,240 shares authorized, 6 | 1 | 1 | |
Additional paid-in capital | 0 | 50 | |
Retained earnings | 4,003 | 3,819 | |
Accumulated other comprehensive loss | (248) | (200) | |
Total stockholders' equity | 3,756 | 3,670 | |
Noncontrolling interests in consolidated subsidiaries | 5 | 7 | |
Total equity | 3,761 | 3,677 | |
TOTAL LIABILITIES AND EQUITY | $ 8,129 | $ 7,643 | |
[1] | Restricted cash generally represents sales proceeds pursuant to like-kind exchanges, captive insurance subsidiary requirements, debt service on bonds, escrow deposits, and other arrangements. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet - Parentheticals - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts receivable, current | $ 30 | $ 26 |
Preferred stock, par 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 stock, shares, issued (in shares) | 0 | |
Common Class A | ||
Common stock, par 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) | 36,811,374 | 39,507,817 |
Common stock, shares, issued (in shares) | 36,811,374 | 39,507,817 |
Common Class B | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 398,432,856 | 399,110,240 |
Common stock, shares, outstanding (in shares) | 66,438,444 | 67,115,828 |
Common stock, shares, issued (in shares) | 66,438,444 | 67,115,828 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 445 | $ 725 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Gains on sales of real estate | (374) | (769) |
Depreciation and amortization | 248 | 243 |
Release of contingent consideration liability | (29) | 0 |
Amortization of share awards | 32 | 28 |
Deferred income taxes | 32 | (7) |
Asset impairments | 13 | 43 |
Equity losses from unconsolidated hospitality ventures | 2 | 17 |
Amortization of management and franchise agreement assets constituting payments to customers | 16 | 15 |
Distributions from unconsolidated hospitality ventures | 10 | 10 |
Working capital changes and other | (121) | (173) |
Net cash provided by operating activities | 274 | 132 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities and short-term investments | (196) | (572) |
Proceeds from marketable securities and short-term investments | 255 | 426 |
Contributions to equity method and other investments | (39) | (52) |
Return of equity method and other investments | 26 | 24 |
Acquisitions, net of cash acquired | (18) | (263) |
Capital expenditures | (244) | (195) |
Proceeds from sales of real estate, net of cash disposed | 461 | 1,334 |
Proceeds from financing receivables | 46 | 0 |
Other investing activities | 7 | 10 |
Net cash provided by investing activities | 298 | 712 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from long-term debt, net of issuance costs $- and $4, respectively | 180 | 416 |
Debt issuance cost | 0 | 4 |
Repayments of debt | (187) | (230) |
Repurchases of common stock | (280) | (654) |
Contingent consideration paid | (24) | 0 |
Repayments of redeemable noncontrolling interest in preferred shares in a subsidiary | 0 | (10) |
Dividends paid | (60) | (52) |
Other financing activities | (9) | (13) |
Net cash used in financing activities | (380) | (543) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 6 | 3 |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 198 | 304 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR | 622 | 752 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD | 820 | 1,056 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Total cash, cash equivalents, and restricted cash | 622 | 752 |
Cash paid during the period for interest | 78 | 72 |
Cash paid during the period for income taxes | 52 | 267 |
Cash paid for amounts included in the measurement of operating lease liabilities | 38 | |
Non-cash investing and financing activities are as follows: | ||
Non-cash contributions to equity method investments | 8 | 53 |
Non-cash issuance of financing receivables | 1 | 45 |
Change in accrued capital expenditures | 11 | $ 7 |
Non-cash right-of-use assets obtained in exchange for operating lease liabilities | $ 8 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Subsidiaries |
Balance, beginning of period at Dec. 31, 2017 | $ 3,839 | $ 1 | $ 967 | $ 3,118 | $ (253) | $ 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 434 | 411 | 23 | |||
Repurchase of common stock | (75) | (75) | ||||
Employee stock plan issuance | 1 | 1 | ||||
Share-based payment activity | 13 | 13 | ||||
Cash dividends | (18) | (18) | ||||
Balance, end of period at Mar. 31, 2018 | 4,194 | 1 | 906 | 3,511 | (230) | 6 |
Balance, beginning of period at Dec. 31, 2017 | 3,839 | 1 | 967 | 3,118 | (253) | 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 776 | |||||
Cash dividends | (52) | |||||
Balance, end of period at Sep. 30, 2018 | 3,935 | 1 | 339 | 3,791 | (202) | 6 |
Balance, beginning of period at Mar. 31, 2018 | 4,194 | 1 | 906 | 3,511 | (230) | 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 31 | 77 | (46) | |||
Repurchase of common stock | (513) | (513) | ||||
Directors compensation | 2 | 2 | ||||
Employee stock plan issuance | 1 | 1 | ||||
Share-based payment activity | 3 | 3 | ||||
Cash dividends | (17) | (17) | ||||
Balance, end of period at Jun. 30, 2018 | 3,701 | 1 | 399 | 3,571 | (276) | 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 311 | 237 | 74 | |||
Repurchase of common stock | (66) | (66) | 0 | |||
Employee stock plan issuance | 1 | 1 | ||||
Share-based payment activity | 5 | 5 | ||||
Cash dividends | (17) | (17) | ||||
Balance, end of period at Sep. 30, 2018 | 3,935 | 1 | 339 | 3,791 | (202) | 6 |
Balance, beginning of period at Dec. 31, 2018 | 3,677 | 1 | 50 | 3,819 | (200) | 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 53 | 63 | (10) | |||
Noncontrolling interests | (1) | (1) | ||||
Repurchase of common stock | (102) | (71) | (31) | |||
Employee stock plan issuance | 1 | 1 | ||||
Share-based payment activity | 20 | 20 | ||||
Cash dividends | (20) | (20) | ||||
Balance, end of period at Mar. 31, 2019 | 3,628 | 1 | 0 | 3,831 | (210) | 6 |
Balance, beginning of period at Dec. 31, 2018 | 3,677 | 1 | 50 | 3,819 | (200) | 7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 397 | |||||
Cash dividends | (60) | |||||
Balance, end of period at Sep. 30, 2019 | 3,761 | 1 | 0 | 4,003 | (248) | 5 |
Balance, beginning of period at Mar. 31, 2019 | 3,628 | 1 | 0 | 3,831 | (210) | 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 84 | 86 | (2) | |||
Noncontrolling interests | (1) | (1) | ||||
Repurchase of common stock | (45) | (1) | (44) | |||
Directors compensation | 1 | 1 | ||||
Employee stock plan issuance | 1 | 1 | ||||
Share-based payment activity | (1) | (1) | ||||
Cash dividends | (20) | (20) | ||||
Balance, end of period at Jun. 30, 2019 | 3,647 | 1 | 0 | 3,853 | (212) | 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Total comprehensive income | 260 | 296 | (36) | |||
Repurchase of common stock | (133) | (7) | (126) | |||
Employee stock plan issuance | 2 | 2 | ||||
Share-based payment activity | 5 | 5 | ||||
Cash dividends | (20) | (20) | ||||
Balance, end of period at Sep. 30, 2019 | $ 3,761 | $ 1 | $ 0 | $ 4,003 | $ (248) | $ 5 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Stockholders' Equity - Parenthetical - $ / shares | Sep. 09, 2019 | Jun. 10, 2019 | Mar. 11, 2019 | Sep. 20, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||||||||||
Cash dividend (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
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, timeshare, fractional, and other forms of residential, vacation, and condominium ownership units. At September 30, 2019 , (i) we operated or franchised 434 full service hotels, comprising 151,995 rooms throughout the world, (ii) we operated or franchised 453 select service hotels, comprising 64,500 rooms, of which 390 hotels are located in the United States, and (iii) our portfolio included 6 franchised all-inclusive Hyatt-branded resorts, comprising 2,403 rooms, and 3 destination wellness resorts, comprising 410 rooms. At September 30, 2019 , our portfolio of properties operated in 63 countries around the world. Additionally, through strategic relationships, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and which operate under other tradenames or marks owned by such hotel or licensed by third parties. As used in these Notes and throughout this Quarterly Report on Form 10-Q , (i) the terms "Hyatt," "Company," "we," "us," or "our" mean Hyatt Hotels Corporation and its consolidated subsidiaries, (ii) the term "properties" refers to hotels, resorts, and other properties, including branded spas and fitness studios, and residential, vacation, and condominium ownership units that we develop, own, operate, manage, franchise, or to which we provide services or license our trademarks, (iii) "Hyatt portfolio of properties" or "portfolio of properties" refers to hotels and other properties that we develop, own, operate, manage, franchise, license, or provide services to, including under the Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination, Hyatt Regency, Hyatt, Hyatt Ziva, Hyatt Zilara, Thompson Hotels, Hyatt Centric, Caption by Hyatt, Joie de Vivre, Hyatt House, Hyatt Place, tommie, Hyatt Residence Club and Exhale brands, (iv) the term "worldwide hotel portfolio" includes our full and select service hotels, and (v) the term "worldwide property portfolio" includes our wellness and all-inclusive resorts, branded spas and fitness studios, and residential, vacation, and condominium ownership units in addition to our worldwide hotel portfolio. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q , and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete annual financial statements. As a result, this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the " 2018 Form 10-K "). We have eliminated all intercompany accounts and transactions in our condensed consolidated financial statements. We consolidate entities under our control, including entities where we are deemed to be the primary beneficiary. Management believes the accompanying condensed consolidated financial statements reflect all adjustments, which are all of a normal recurring nature, considered necessary for a fair presentation of the interim periods. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Adopted Accounting Standards Leases —In February 2016, the Financial Accounting Standards Board ("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 ("ROU") asset and lease liability with certain practical expedients available. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make fixed minimum lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of fixed minimum lease payments over the lease term, including optional periods for which it is reasonably certain the renewal option will be exercised. In July 2018, the FASB released Accounting Standards Update No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements , providing entities with an additional optional transition method. The provisions of ASU 2016-02, and all related ASUs, are effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted ASU 2016-02 utilizing the optional transition approach under ASU 2018-11 and applied the package of practical expedients beginning January 1, 2019. As a result of utilizing the optional transition method, our reporting for periods prior to January 1, 2019 continue to be reported in accordance with Leases (Topic 840) . We elected the following additional practical expedients: (i) for office space, land, and hotel leases, we do not separate the lease and nonlease components, which primarily relate to common area maintenance and utilities, (ii) we combine lease and nonlease components for those leases where we are the lessor, and (iii) we exclude all leases that are twelve months or less from the ROU assets and lease liabilities. For leases in place upon adoption, we used the remaining lease term as of January 1, 2019 in determining the incremental borrowing rate ("IBR"). For the initial measurement of the lease liabilities for leases commencing on or after January 1, 2019, the IBR at the lease commencement date was applied. For operating leases, the adoption of ASU 2016-02 resulted in the initial recognition of ROU assets of $512 million and related lease liabilities of $452 million on our condensed consolidated balance sheet at January 1, 2019. Upon adoption, we reclassified $103 million of intangibles, net related to below market leases and $49 million of deferred rent and other lease liabilities to the operating ROU assets. The net tax impact upon adoption was insignificant. The adoption of ASU 2016-02 did not significantly impact our accounting for finance leases or for those leases where we are the lessor. Additionally, the adoption of ASU 2016-02 did not materially affect our condensed consolidated statements of income or our condensed consolidated statements of cash flows. The impact on our condensed consolidated balance sheet upon adoption of ASU 2016-02 was as follows: December 31, 2018 January 1, 2019 Effect of the adoption of ASU 2016-02 As adjusted ASSETS Prepaids and other assets $ 149 $ (2 ) $ 147 Intangibles, net 628 (103 ) 525 Other assets 1,353 (7 ) 1,346 Operating lease right-of-use assets — 512 512 TOTAL ASSETS $ 7,643 $ 400 $ 8,043 LIABILITIES AND EQUITY Accounts payable $ 151 $ (1 ) $ 150 Accrued expenses and other current liabilities 361 (2 ) 359 Current operating lease liabilities — 34 34 Long-term operating lease liabilities — 418 418 Other long-term liabilities 840 (49 ) 791 Total liabilities 3,966 400 4,366 Total equity 3,677 — 3,677 TOTAL LIABILITIES AND EQUITY $ 7,643 $ 400 $ 8,043 Intangibles - Goodwill and Other - Internal-Use Software —In August 2018, the FASB released Accounting Standards Update No. 2018-15 ("ASU 2018-15"), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The provisions of ASU 2018-15 are to be applied using a prospective or retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We early adopted ASU 2018-15 on January 1, 2019 on a prospective basis which did not materially impact our condensed consolidated financial statements. Future Adoption of Accounting Standards Financial Instruments - Credit Losses —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 allowances for credit losses 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 available-for-sale ("AFS") debt securities to be recognized 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. While we continue to evaluate the impact of adopting ASU 2016-13, we do not expect a material impact upon adoption related to receivables at our owned and leased properties, AFS debt securities, and debt repayment guarantees. We are continuing to evaluate other potential impacts on our condensed consolidated financial statements, including the impact on our remaining receivables, held-to-maturity ("HTM") debt securities, and financing receivables. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues The following tables present our revenues disaggregated by the nature of the product or service: Three Months Ended September 30, 2019 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 259 $ — $ — $ — $ 4 $ (11 ) $ 252 Food and beverage 131 — — — 3 — 134 Other 35 — — — 9 — 44 Owned and leased hotels 425 — — — 16 (11 ) 430 Base management fees — 55 11 10 — (12 ) 64 Incentive management fees — 13 17 9 — (6 ) 33 Franchise fees — 36 1 — — — 37 Other fees — 2 3 2 1 — 8 License fees — — — — 6 — 6 Management, franchise, and other fees — 106 32 21 7 (18 ) 148 Amortization of management and franchise agreement assets constituting payments to customers — (4 ) — (1 ) — — (5 ) Net management, franchise, and other fees — 102 32 20 7 (18 ) 143 Other revenues — 16 — — 9 — 25 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 565 30 20 2 — 617 Total $ 425 $ 683 $ 62 $ 40 $ 34 $ (29 ) $ 1,215 Nine Months Ended September 30, 2019 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 804 $ — $ — $ — $ 17 $ (27 ) $ 794 Food and beverage 452 — — — 9 — 461 Other 108 — — — 27 — 135 Owned and leased hotels 1,364 — — — 53 (27 ) 1,390 Base management fees — 173 33 27 — (38 ) 195 Incentive management fees — 46 51 26 — (17 ) 106 Franchise fees — 104 3 — — — 107 Other fees — 3 9 5 4 — 21 License fees — — — — 18 — 18 Management, franchise, and other fees — 326 96 58 22 (55 ) 447 Amortization of management and franchise agreement assets constituting payments to customers — (11 ) (1 ) (4 ) — — (16 ) Net management, franchise, and other fees — 315 95 54 22 (55 ) 431 Other revenues — 71 — — 26 1 98 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,688 80 54 4 — 1,826 Total $ 1,364 $ 2,074 $ 175 $ 108 $ 105 $ (81 ) $ 3,745 Three Months Ended September 30, 2018 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 276 $ — $ — $ — $ 5 $ (7 ) $ 274 Food and beverage 133 — — — 2 — 135 Other 34 — — — 7 — 41 Owned and leased hotels 443 — — — 14 (7 ) 450 Base management fees — 48 11 9 — (13 ) 55 Incentive management fees — 14 16 10 — (7 ) 33 Franchise fees — 32 1 — — — 33 Other fees — 1 2 2 2 — 7 License fees — — — — 5 — 5 Management, franchise, and other fees — 95 30 21 7 (20 ) 133 Amortization of management and franchise agreement assets constituting payments to customers — (4 ) — (1 ) — — (5 ) Net management, franchise, and other fees — 91 30 20 7 (20 ) 128 Other revenues — — — — 5 2 7 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 447 24 16 2 — 489 Total $ 443 $ 538 $ 54 $ 36 $ 28 $ (25 ) $ 1,074 Nine Months Ended September 30, 2018 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 848 $ — $ — $ — $ 18 $ (26 ) $ 840 Food and beverage 474 — — — 7 — 481 Other 106 — — — 23 — 129 Owned and leased hotels 1,428 — — — 48 (26 ) 1,450 Base management fees — 150 32 25 — (40 ) 167 Incentive management fees — 47 50 29 — (21 ) 105 Franchise fees — 94 2 — — — 96 Other fees — 10 6 4 4 — 24 License fees — — — — 15 — 15 Management, franchise, and other fees — 301 90 58 19 (61 ) 407 Amortization of management and franchise agreement assets constituting payments to customers — (10 ) (1 ) (4 ) — — (15 ) Net management, franchise, and other fees — 291 89 54 19 (61 ) 392 Other revenues — — — — 22 5 27 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,328 67 49 3 — 1,447 Total $ 1,428 $ 1,619 $ 156 $ 103 $ 92 $ (82 ) $ 3,316 Contract Balances Our contract assets were $2 million and insignificant at September 30, 2019 and December 31, 2018 , respectively. At September 30, 2019 , the contract assets were included in receivables, net. As our profitability hurdles are generally calculated on a full-year basis, we expect our contract asset balance to be insignificant at year end. Contract liabilities are comprised of the following: September 30, 2019 December 31, 2018 Deferred revenue related to the loyalty program $ 657 $ 596 Advanced deposits 77 81 Initial fees received from franchise owners 39 35 Deferred revenue related to system-wide services 11 7 Other deferred revenue 91 111 Total contract liabilities $ 875 $ 830 The following table summarizes the activity in our contract liabilities: 2019 2018 Beginning balance, January 1 $ 830 $ 772 Cash received and other 490 433 Revenue recognized (459 ) (441 ) Ending balance, June 30 $ 861 $ 764 Cash received and other 265 223 Revenue recognized (251 ) (222 ) Ending balance, September 30 $ 875 $ 765 Revenue recognized during the three months ended September 30, 2019 and September 30, 2018 included in the contract liabilities balance at the beginning of each year was $80 million and $81 million , respectively. Revenue recognized during the nine months ended September 30, 2019 and September 30, 2018 included in the contract liabilities balance at the beginning of each year was $318 million and $299 million , respectively. This revenue primarily relates to the loyalty program, which is recognized net of redemption reimbursements paid to third parties, and advanced deposits. Revenue Allocated to Remaining Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted revenue expected to be recognized in future periods was approximately $130 million at September 30, 2019 , of which we expect to recognize approximately 20% as revenue over the next 12 months and the remainder thereafter. We did not estimate revenues expected to be recognized related to our unsatisfied performance obligations for the following: • Deferred revenue related to the loyalty program and revenue from base and incentive management fees as the revenue is allocated to a wholly unperformed performance obligation in a series; • Revenues related to royalty fees as they are considered sales-based royalty fees; • Revenues received for free nights granted through our co-branded credit cards as the awards are required to be redeemed within 12 months; and • |
Debt and Equity Securities
Debt and Equity Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt and Equity Securities | DEBT AND EQUITY SECURITIES Equity Method Investments Equity method investments were $229 million and $233 million at September 30, 2019 and December 31, 2018 , respectively. During the nine months ended September 30, 2019 , we recognized $8 million of gains in equity losses from unconsolidated hospitality ventures on our condensed consolidated statements of income resulting from sales activity related to certain equity method investments within our owned and leased hotels segment. During the three and nine months ended September 30, 2019 , we received $2 million and $25 million of sales proceeds, respectively. During the three and nine months ended September 30, 2019 , we recognized $6 million and $7 million of impairment charges, respectively, primarily related to one unconsolidated hospitality venture in equity losses from unconsolidated hospitality ventures on our condensed consolidated statements of income as the carrying value was in excess of fair value. The fair value was determined to be a Level Three fair value measure, and the impairment was deemed other-than-temporary. During the three and nine months ended September 30, 2018 , we recognized $1 million and $11 million of net gains, respectively, in equity losses from unconsolidated hospitality ventures on our condensed consolidated statements of income resulting from sales activity related to certain equity method investments within our owned and leased hotels segment. During the three and nine months ended September 30, 2018 , we received $7 million and $17 million of sales proceeds, respectively. During the nine months ended September 30, 2018 , we completed an asset acquisition of our partner's interest in certain unconsolidated hospitality ventures in Brazil for a net purchase price of approximately $4 million . During the nine months ended September 30, 2018 , we recognized $16 million of impairment charges related to these investments in equity losses from unconsolidated hospitality ventures on our condensed consolidated statements of income as the carrying value was in excess of fair value. The fair value was determined to be a Level Three fair value measure, and the impairment was deemed other-than-temporary. The following table presents summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total revenues $ 130 $ 135 $ 371 $ 399 Gross operating profit 51 53 139 141 Income (loss) from continuing operations 9 (12 ) (2 ) (15 ) Net income (loss) 9 (12 ) (2 ) (15 ) Marketable Securities We hold marketable securities with readily determinable fair values 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 condensed consolidated balance sheets, were as follows: September 30, 2019 December 31, 2018 Loyalty program (Note 9) $ 453 $ 397 Deferred compensation plans held in rabbi trusts (Note 9 and Note 11) 419 367 Captive insurance companies 136 133 Total marketable securities held to fund operating programs $ 1,008 $ 897 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 (205 ) (174 ) Marketable securities held to fund operating programs included in other assets $ 803 $ 723 Net realized and unrealized gains (losses) and interest income from marketable securities held to fund the loyalty program are recognized in other income (loss), net on our condensed consolidated statements of income: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Loyalty program (Note 19) $ 5 $ 1 $ 24 $ (2 ) Net realized and unrealized gains (losses) and interest income from marketable securities held to fund rabbi trusts are recognized in net gains and interest income from marketable securities held to fund rabbi trusts on our condensed consolidated statements of income: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Unrealized gains (losses) $ (2 ) $ 5 $ 35 $ 7 Realized gains 2 5 6 12 Net gains and interest income from marketable securities held to fund rabbi trusts $ — $ 10 $ 41 $ 19 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 2019 through 2024. Marketable Securities Held for Investment Purposes —Marketable securities held for investment purposes, which are recorded at fair value and included on our condensed consolidated balance sheets, were as follows: September 30, 2019 December 31, 2018 Interest-bearing money market funds $ 202 $ 14 Common shares of Playa N.V. (Note 9) 95 87 Time deposits 37 100 Total marketable securities held for investment purposes $ 334 $ 201 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (239 ) (114 ) Marketable securities held for investment purposes included in other assets $ 95 $ 87 We hold common shares of Playa Hotels & Resorts N.V. ("Playa N.V.") which are accounted for as an equity security with a readily determinable fair value as we do not have the ability to significantly influence the operations of the entity. 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 $1 million of unrealized gains and $14 million of unrealized losses for the three months ended September 30, 2019 and September 30, 2018 , respectively, and $8 million of unrealized gains and $14 million of unrealized losses for the nine months ended September 30, 2019 and September 30, 2018 , respectively, recognized in other income (loss), net on our condensed consolidated statements of income (see Note 19 ). We did no t sell any shares of common stock during the nine months ended September 30, 2019 . Other Investments HTM Debt Securities —At September 30, 2019 and December 31, 2018 , we held $56 million and $49 million , respectively, of investments in HTM debt securities, which are investments in third-party entities that own certain of our hotels and are recorded within other assets on our condensed consolidated balance sheets. The securities are mandatorily redeemable between 2020 and 2025. The amortized cost of our investments approximates 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 models is based on the selection of appropriate discount rates. Fluctuations in these assumptions could result in different estimates of fair value. Equity Securities Without a Readily Determinable Fair Value —At September 30, 2019 and December 31, 2018 , we held $9 million of investments in equity securities without a readily determinable fair value, which represent investments in entities where we do not have the ability to significantly influence the operations of the entity. These investments are recorded within other assets on our condensed consolidated balance sheets. Due to ongoing operating cash flow shortfalls in the business underlying an equity security during the nine months ended September 30, 2018, we recognized a $22 million impairment charge for our full investment balance in other income (loss), net on our condensed consolidated statements of income (see Note 19) as the carrying value was in excess of the fair value. The fair value was determined to be a Level Three fair value measure. During the three months ended September 30, 2018, the entity in which we held our investment disposed of its assets. Fair Value —We measured the following financial assets at fair value on a recurring basis: September 30, 2019 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 $ 308 $ 308 $ — $ — $ — Mutual funds 419 — — — 419 Common shares 95 — — — 95 Level Two - Significant Other Observable Inputs Time deposits 49 — 41 — 8 U.S. government obligations 195 — — 34 161 U.S. government agencies 58 — 2 7 49 Corporate debt securities 155 — 20 21 114 Mortgage-backed securities 23 — — 4 19 Asset-backed securities 38 — — 7 31 Municipal and provincial notes and bonds 2 — — — 2 Total $ 1,342 $ 308 $ 63 $ 73 $ 898 December 31, 2018 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 $ 88 $ 88 $ — $ — $ — Mutual funds 367 — — — 367 Common shares 87 — — — 87 Level Two - Significant Other Observable Inputs Time deposits 113 — 104 — 9 U.S. government obligations 169 — — 37 132 U.S. government agencies 52 — 2 7 43 Corporate debt securities 151 — 10 25 116 Mortgage-backed securities 23 — — 5 18 Asset-backed securities 46 — — 10 36 Municipal and provincial notes and bonds 2 — — — 2 Total $ 1,098 $ 88 $ 116 $ 84 $ 810 During the three and nine months ended September 30, 2019 and September 30, 2018 , there were no transfers between levels of the fair value hierarchy. We do not have non-financial assets or non-financial liabilities required to be measured at fair value on a recurring basis. |
Financing Receivables
Financing Receivables | 9 Months Ended |
Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables | FINANCING RECEIVABLES September 30, 2019 December 31, 2018 Unsecured financing to hotel owners $ 119 $ 159 Less: current portion of financing receivables, included in receivables, net — (45 ) Less: allowance for losses (100 ) (101 ) Total long-term financing receivables, net of allowances $ 19 $ 13 Allowance for Losses and Impairments —The following table summarizes the activity in our unsecured financing receivables allowance: 2019 2018 Allowance at January 1 $ 101 $ 108 Provisions 3 3 Other adjustments — (2 ) Write-offs (4 ) — Allowance at June 30 $ 100 $ 109 Provisions 1 2 Other adjustments (1 ) — Write-offs — (12 ) Allowance at September 30 $ 100 $ 99 Credit Monitoring —Our unsecured financing receivables were as follows: September 30, 2019 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 17 $ (1 ) $ 16 $ — Impaired loans (1) 44 (44 ) — 44 Total loans 61 (45 ) 16 44 Other financing arrangements 58 (55 ) 3 58 Total unsecured financing receivables $ 119 $ (100 ) $ 19 $ 102 (1) The unpaid principal balance was $34 million and the average recorded loan balance was $47 million at September 30, 2019 . December 31, 2018 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 58 $ — $ 58 $ — Impaired loans (2) 50 (50 ) — 50 Total loans 108 (50 ) 58 50 Other financing arrangements 51 (51 ) — 51 Total unsecured financing receivables $ 159 $ (101 ) $ 58 $ 101 (2) The unpaid principal balance was $36 million and the average recorded loan balance was $54 million at December 31, 2018 . 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 $59 million at September 30, 2019 and December 31, 2018 , respectively. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | ACQUISITIONS AND DISPOSITIONS Acquisitions Land —During the nine months ended September 30, 2019 , we acquired $15 million of land through an asset acquisition from an unrelated third party to develop a hotel in Austin, Texas and subsequently signed a purchase and sale agreement to sell the land and related construction in progress. At September 30, 2019, these assets are classified as held for sale within our owned and leased hotels segment on our condensed consolidated balance sheet, and the sale closed subsequent to September 30, 2019 . Two Roads Hospitality LLC —During the year ended December 31, 2018 , we acquired all of the outstanding equity interests of Two Roads Hospitality LLC ("Two Roads") in a business combination for a purchase price of $405 million . The transaction also included potential additional consideration including (i) up to $96 million if the sellers completed specific actions with respect to certain of the acquired management agreements within 120 days from the date of acquisition and (ii) up to $8 million in the event of the execution of certain potential new management agreements related to the development of certain potential new deals previously identified and generated by the sellers or affiliates of the sellers within one year of the closing of the transaction. One of the sellers is indirectly owned by a limited partnership affiliated with the brother of our Executive Chairman. We closed on the transaction on November 30, 2018 and paid cash of $415 million , net of $37 million cash acquired. Cash paid at closing was inclusive of a $36 million payment of the aforementioned additional consideration and $4 million of other purchase price adjustments. Related to the $68 million of potential additional consideration, we recorded a $57 million contingent liability in accrued expenses and other current liabilities on our condensed consolidated balance sheet at December 31, 2018 , which represented our estimate of the remaining expected consideration to be paid. Net assets acquired were determined as follows: Cash paid, net of cash acquired $ 415 Cash acquired 37 Contingent consideration liability 57 Net assets acquired at December 31, 2018 $ 509 Post-acquisition working capital adjustments (2 ) Net assets acquired at September 30, 2019 $ 507 As it relates to the $57 million contingent consideration liability recorded at December 31, 2018, of which $4 million remains at September 30, 2019 , the following occurred during the nine months ended September 30, 2019 : • The sellers completed the aforementioned specific actions with respect to certain management agreements, and we paid $24 million of additional consideration to the sellers. • For those management agreements where the specific actions were not completed or payment is no longer probable, we released $2 million and $29 million of the contingent liability to other income (loss), net on our condensed consolidated statements of income during the three and nine months ended September 30, 2019 , respectively (see Note 19). The acquisition includes management and license agreements for operating and pipeline hotels primarily across North America and Asia under five hospitality brands. Our condensed consolidated balance sheets at September 30, 2019 and December 31, 2018 reflect preliminary estimates of the fair value of the assets acquired and liabilities assumed. The fair values, which are classified as Level Three in the fair value hierarchy, are based on information that was available as of the date of acquisition and estimated using discounted future cash flow models and relief from royalty method, including revenue projections based on the expected contract terms and long-term growth rates. During 2019, the estimated fair values of assets and liabilities were revised as we refined our analysis of contract terms and renewal assumptions which affected the underlying cash flows in the valuation. This resulted in a $34 million reduction in intangibles, net with an offsetting increase in goodwill on our condensed consolidated balance sheet at September 30, 2019 . We continue to evaluate the underlying inputs and assumptions used in our valuation and accordingly, these estimates are subject to change during the one year measurement period. The following table summarizes the preliminary fair value of the identifiable net assets acquired at September 30, 2019 : Cash $ 32 Receivables 20 Other current assets 2 Equity method investment 2 Property and equipment 2 Indefinite-lived intangibles (1) 96 Management agreement intangibles (2), (5) 209 Goodwill (3) 194 Other assets (4) 25 Total assets $ 582 Advanced deposits $ 20 Other current liabilities 22 Other long-term liabilities (4) 33 Total liabilities 75 Total net assets acquired $ 507 (1) Includes intangibles attributable to the Destination, Alila, and Thompson brands. (2) Amortized over useful lives of 1 to 19 years , with a weighted-average useful life of approximately 12 years . (3) The goodwill, of which $152 million is tax deductible, is attributable to the growth opportunities Hyatt expects to realize by expanding into new markets and enhancing guest experiences through a distinctive collection of lifestyle brands and recorded in the Americas management and franchising segment. (4) Includes $13 million of prior year tax liabilities relating to certain foreign filing positions, including $4 million of interest and penalties. We recorded an offsetting indemnification asset which we expect to collect under contractual arrangements. (5) See Note 8 for impairment discussion. Hyatt Regency Phoenix —During the three months ended September 30, 2018, we completed an asset acquisition of Hyatt Regency Phoenix from an unrelated third party for a purchase price of approximately $139 million , net of $1 million of proration adjustments. Assets acquired and recorded in our owned and leased hotels segment consist primarily of $136 million of property and equipment. The purchase of Hyatt Regency Phoenix was designated as replacement property in a like-kind exchange (see "Like-Kind Exchange Agreements" below). Hyatt Regency Indian Wells Resort & Spa —During the three months ended September 30, 2018, we completed an asset acquisition of Hyatt Regency Indian Wells Resort & Spa from an unrelated third party for a net purchase price of approximately $120 million . Assets acquired and recorded in our owned and leased hotels segment consist primarily of $119 million of property and equipment. The purchase of Hyatt Regency Indian Wells Resort & Spa was designated as replacement property in a like-kind exchange (see "Like-Kind Exchange Agreements" below). Dispositions Hyatt Regency Atlanta —During the three months ended September 30, 2019 , we sold Hyatt Regency Atlanta to an unrelated third party for approximately $346 million , net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. We entered into a long-term management agreement for the property upon sale. The sale resulted in a $272 million pre-tax gain which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the three and nine months ended September 30, 2019 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Land and Lease Assignment —During the three months ended September 30, 2019 , we sold the property adjacent to Grand Hyatt San Francisco and assigned the related Apple store lease to an unrelated third party for approximately $115 million , net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. The sale resulted in a $101 million pre-tax gain which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the three and nine months ended September 30, 2019 . The operating results and financial position of this property prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Mexico City —During the three months ended September 30, 2018, we sold the shares of the entity which owns Hyatt Regency Mexico City, an investment in an unconsolidated hospitality venture, and adjacent land, a portion of which will be developed as Park Hyatt Mexico City, ("HRMC transaction") to an unrelated third party for approximately $405 million and accounted for the transaction as an asset disposition. We entered into long-term management agreements for the properties upon sale. We received $360 million of proceeds and issued $46 million of unsecured financing receivables which were repaid in full during the nine months ended September 30, 2019 (see Note 5). The sale resulted in a pre-tax gain of approximately $240 million which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the three and nine months ended September 30, 2018. In connection with the disposition, we recognized a $21 million goodwill impairment charge in asset impairments on our condensed consolidated statements of income during the three and nine months ended September 30, 2018. The assets disposed represented the entirety of the related reporting unit and therefore, no business operations remained to support the related goodwill, which was therefore impaired. The operating results and financial position prior to the sale remain within our owned and leased hotels segment. Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort and Spa —During the nine months ended September 30, 2018 , we sold Grand Hyatt San Francisco, Andaz Maui at Wailea Resort together with adjacent land, and Hyatt Regency Coconut Point Resort and Spa to an unrelated third party as a portfolio for approximately $992 million , net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. We entered into long-term management agreements for the properties upon sale. The sale resulted in a $531 million pre-tax gain which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the nine months ended September 30, 2018 . The operating results and financial position of these hotels prior to the sale remain within our owned and leased hotels segment. Although we concluded the disposal of these properties did not qualify as discontinued operations, the disposal was considered to be material. Pre-tax net income attributable to the three properties was $15 million during the nine months ended September 30, 2018 . Land Held for Development— A wholly owned subsidiary held undeveloped land in Los Cabos, Mexico. During the nine months ended September 30, 2018 , an unrelated third party invested in the subsidiary in exchange for a 50% ownership interest resulting in derecognition of the subsidiary. Our remaining interest was recorded at a fair value of $45 million as an equity method investment. Like-Kind Exchange Agreements Periodically, we enter into like-kind exchange agreements upon the disposition or acquisition of certain properties. Pursuant to the terms of these agreements, the proceeds from the sales are placed into an escrow account administered by a qualified intermediary and are unavailable for our use until released. The proceeds are recorded as restricted cash on our condensed 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 the property adjacent to Grand Hyatt San Francisco during the three months ended September 30, 2019 , $115 million of proceeds were held as restricted for use in a potential like-kind exchange. In conjunction with the sale of Hyatt Regency Coconut Point Resort and Spa during the nine months ended September 30, 2018 , $221 million of proceeds were held as restricted for use in a potential like-kind exchange. During the three months ended September 30, 2018 , $198 million of these proceeds were utilized to acquire Hyatt Regency Phoenix and Hyatt Regency Indian Wells Resort & Spa and the remaining $23 million were released. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES Lessee —We primarily lease land, buildings, office space, spas and fitness centers, and equipment. We determine if an arrangement is an operating or finance lease at inception. For our hotel management agreements, we apply judgment in order to determine whether the contract is accounted for as a lease or management agreement based on the specific facts and circumstances of each agreement. In evaluating whether an agreement constitutes a lease, we review the contractual terms to determine which party obtains both the economic benefits and control of the assets. In arrangements where we control the assets and obtain the economic benefits, we account for the contract as a lease. Certain of our leases include options to extend the lease term by 1 to 99 years . We include lease extension options in our operating ROU assets and lease liabilities when it is reasonably certain that we will exercise the options. The range of extension options included in our operating ROU assets and lease liabilities is approximately 1 to 20 years . Our lease agreements do not contain any significant residual value guarantees or restrictive covenants. As our leases do not provide an implicit borrowing rate, we use our estimated IBR to determine the present value of our lease payments and apply a portfolio approach. We apply judgment in estimating the IBR including factors related to currency risk and our credit risk. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when determining our IBR. Our operating leases may include the following terms: (i) fixed minimum lease payments, (ii) variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, (iii) lease payments equal to the greater of a minimum or variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, or (iv) lease payments adjusted for changes in an index or market value. Future lease payments that are contingent are not included in the measurement of the operating lease liability or in the future maturities table below. Total lease expense related to short-term leases and finance leases was insignificant for the three and nine months ended September 30, 2019 . A summary of operating lease expense is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Minimum rentals $ 12 $ 37 Contingent rentals 22 78 Total operating lease expense $ 34 $ 115 Supplemental balance sheet information related to finance leases is as follows: September 30, 2019 Property and equipment, net (1) $ 9 Current maturities of long-term debt 2 Long-term debt 9 Total finance lease liabilities $ 11 (1) Finance lease assets are net of $13 million of accumulated amortization. Weighted-average remaining lease terms and discount rates are as follows: September 30, 2019 Weighted-average remaining lease term in years Operating leases (1) 21 Finance leases 7 Weighted-average discount rate Operating leases 3.7 % Finance leases 0.9 % (1) Certain of our hotel and land leases have nominal or contingent rental payments. As such, this results in a lower weighted-average remaining lease term. The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter at September 30, 2019 are as follows: Operating leases Finance leases 2019 (remaining) $ 12 $ — 2020 47 3 2021 44 2 2022 42 2 2023 39 2 Thereafter 452 5 Total minimum lease payments $ 636 $ 14 Less: amount representing interest (208 ) (3 ) Present value of minimum lease payments $ 428 $ 11 The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows: Years ending December 31, Operating leases Capital leases 2019 $ 46 $ 3 2020 42 3 2021 42 2 2022 38 2 2023 35 2 Thereafter 448 5 Total minimum lease payments $ 651 $ 17 Less: amount representing interest (5 ) Present value of minimum lease payments $ 12 Lessor —We lease retail space under operating leases at our owned hotel locations. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. We recognized rental income within owned and leased hotels revenues on our condensed consolidated statements of income as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Rental income $ 5 $ 7 $ 18 $ 20 The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter at September 30, 2019 are as follows: 2019 (remaining) $ 5 2020 16 2021 12 2022 11 2023 8 Thereafter 14 Total minimum lease receipts $ 66 The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows: Years ending December 31, 2019 $ 22 2020 18 2021 16 2022 15 2023 11 Thereafter 48 Total minimum lease receipts $ 130 |
Leases | LEASES Lessee —We primarily lease land, buildings, office space, spas and fitness centers, and equipment. We determine if an arrangement is an operating or finance lease at inception. For our hotel management agreements, we apply judgment in order to determine whether the contract is accounted for as a lease or management agreement based on the specific facts and circumstances of each agreement. In evaluating whether an agreement constitutes a lease, we review the contractual terms to determine which party obtains both the economic benefits and control of the assets. In arrangements where we control the assets and obtain the economic benefits, we account for the contract as a lease. Certain of our leases include options to extend the lease term by 1 to 99 years . We include lease extension options in our operating ROU assets and lease liabilities when it is reasonably certain that we will exercise the options. The range of extension options included in our operating ROU assets and lease liabilities is approximately 1 to 20 years . Our lease agreements do not contain any significant residual value guarantees or restrictive covenants. As our leases do not provide an implicit borrowing rate, we use our estimated IBR to determine the present value of our lease payments and apply a portfolio approach. We apply judgment in estimating the IBR including factors related to currency risk and our credit risk. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when determining our IBR. Our operating leases may include the following terms: (i) fixed minimum lease payments, (ii) variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, (iii) lease payments equal to the greater of a minimum or variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, or (iv) lease payments adjusted for changes in an index or market value. Future lease payments that are contingent are not included in the measurement of the operating lease liability or in the future maturities table below. Total lease expense related to short-term leases and finance leases was insignificant for the three and nine months ended September 30, 2019 . A summary of operating lease expense is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Minimum rentals $ 12 $ 37 Contingent rentals 22 78 Total operating lease expense $ 34 $ 115 Supplemental balance sheet information related to finance leases is as follows: September 30, 2019 Property and equipment, net (1) $ 9 Current maturities of long-term debt 2 Long-term debt 9 Total finance lease liabilities $ 11 (1) Finance lease assets are net of $13 million of accumulated amortization. Weighted-average remaining lease terms and discount rates are as follows: September 30, 2019 Weighted-average remaining lease term in years Operating leases (1) 21 Finance leases 7 Weighted-average discount rate Operating leases 3.7 % Finance leases 0.9 % (1) Certain of our hotel and land leases have nominal or contingent rental payments. As such, this results in a lower weighted-average remaining lease term. The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter at September 30, 2019 are as follows: Operating leases Finance leases 2019 (remaining) $ 12 $ — 2020 47 3 2021 44 2 2022 42 2 2023 39 2 Thereafter 452 5 Total minimum lease payments $ 636 $ 14 Less: amount representing interest (208 ) (3 ) Present value of minimum lease payments $ 428 $ 11 The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows: Years ending December 31, Operating leases Capital leases 2019 $ 46 $ 3 2020 42 3 2021 42 2 2022 38 2 2023 35 2 Thereafter 448 5 Total minimum lease payments $ 651 $ 17 Less: amount representing interest (5 ) Present value of minimum lease payments $ 12 Lessor —We lease retail space under operating leases at our owned hotel locations. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. We recognized rental income within owned and leased hotels revenues on our condensed consolidated statements of income as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Rental income $ 5 $ 7 $ 18 $ 20 The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter at September 30, 2019 are as follows: 2019 (remaining) $ 5 2020 16 2021 12 2022 11 2023 8 Thereafter 14 Total minimum lease receipts $ 66 The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows: Years ending December 31, 2019 $ 22 2020 18 2021 16 2022 15 2023 11 Thereafter 48 Total minimum lease receipts $ 130 |
Leases | LEASES Lessee —We primarily lease land, buildings, office space, spas and fitness centers, and equipment. We determine if an arrangement is an operating or finance lease at inception. For our hotel management agreements, we apply judgment in order to determine whether the contract is accounted for as a lease or management agreement based on the specific facts and circumstances of each agreement. In evaluating whether an agreement constitutes a lease, we review the contractual terms to determine which party obtains both the economic benefits and control of the assets. In arrangements where we control the assets and obtain the economic benefits, we account for the contract as a lease. Certain of our leases include options to extend the lease term by 1 to 99 years . We include lease extension options in our operating ROU assets and lease liabilities when it is reasonably certain that we will exercise the options. The range of extension options included in our operating ROU assets and lease liabilities is approximately 1 to 20 years . Our lease agreements do not contain any significant residual value guarantees or restrictive covenants. As our leases do not provide an implicit borrowing rate, we use our estimated IBR to determine the present value of our lease payments and apply a portfolio approach. We apply judgment in estimating the IBR including factors related to currency risk and our credit risk. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when determining our IBR. Our operating leases may include the following terms: (i) fixed minimum lease payments, (ii) variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, (iii) lease payments equal to the greater of a minimum or variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, or (iv) lease payments adjusted for changes in an index or market value. Future lease payments that are contingent are not included in the measurement of the operating lease liability or in the future maturities table below. Total lease expense related to short-term leases and finance leases was insignificant for the three and nine months ended September 30, 2019 . A summary of operating lease expense is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Minimum rentals $ 12 $ 37 Contingent rentals 22 78 Total operating lease expense $ 34 $ 115 Supplemental balance sheet information related to finance leases is as follows: September 30, 2019 Property and equipment, net (1) $ 9 Current maturities of long-term debt 2 Long-term debt 9 Total finance lease liabilities $ 11 (1) Finance lease assets are net of $13 million of accumulated amortization. Weighted-average remaining lease terms and discount rates are as follows: September 30, 2019 Weighted-average remaining lease term in years Operating leases (1) 21 Finance leases 7 Weighted-average discount rate Operating leases 3.7 % Finance leases 0.9 % (1) Certain of our hotel and land leases have nominal or contingent rental payments. As such, this results in a lower weighted-average remaining lease term. The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter at September 30, 2019 are as follows: Operating leases Finance leases 2019 (remaining) $ 12 $ — 2020 47 3 2021 44 2 2022 42 2 2023 39 2 Thereafter 452 5 Total minimum lease payments $ 636 $ 14 Less: amount representing interest (208 ) (3 ) Present value of minimum lease payments $ 428 $ 11 The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows: Years ending December 31, Operating leases Capital leases 2019 $ 46 $ 3 2020 42 3 2021 42 2 2022 38 2 2023 35 2 Thereafter 448 5 Total minimum lease payments $ 651 $ 17 Less: amount representing interest (5 ) Present value of minimum lease payments $ 12 Lessor —We lease retail space under operating leases at our owned hotel locations. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. We recognized rental income within owned and leased hotels revenues on our condensed consolidated statements of income as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Rental income $ 5 $ 7 $ 18 $ 20 The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter at September 30, 2019 are as follows: 2019 (remaining) $ 5 2020 16 2021 12 2022 11 2023 8 Thereafter 14 Total minimum lease receipts $ 66 The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows: Years ending December 31, 2019 $ 22 2020 18 2021 16 2022 15 2023 11 Thereafter 48 Total minimum lease receipts $ 130 |
Intangibles, Net
Intangibles, Net | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangibles, Net | INTANGIBLES, NET September 30, 2019 Weighted- average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 371 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 149 — 180 Advanced booking intangibles 14 6 14 Other definite-lived intangibles 8 6 8 Intangibles 542 713 Less: accumulated amortization (89 ) (85 ) Intangibles, net $ 453 $ 628 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 8 $ 3 $ 18 $ 10 During the three and nine months ended September 30, 2019 , we recognized $9 million and $13 million of impairment charges related to management agreement intangibles, respectively, for contracts that terminated or will terminate in the near-term. The impairment charges were recognized in asset impairments on our condensed consolidated statements of income, primarily on the Americas management and franchising segment. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS September 30, 2019 December 31, 2018 Marketable securities held to fund rabbi trusts (Note 4) $ 419 $ 367 Management and franchise agreement assets constituting payments to customers (1) 409 396 Marketable securities held to fund the loyalty program (Note 4) 338 303 Long-term investments 111 112 Common shares of Playa N.V. (Note 4) 95 87 Other 104 88 Total other assets $ 1,476 $ 1,353 (1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt, net of current maturities, was $1,612 million and $ 1,623 million at September 30, 2019 and December 31, 2018 , respectively. Senior Notes —During the nine months ended September 30, 2018, we issued $400 million of 4.375% senior notes due 2028, at an issue price of 99.866% (the "2028 Notes"). We received $396 million of net proceeds from the sale of the 2028 Notes, after deducting $4 million of underwriting discounts and other offering expenses. We used a portion of the proceeds from the issuance of the 2028 Notes to redeem our 6.875% senior notes due 2019 (the "2019 Notes"), and the remainder was used for general corporate purposes. Interest on the 2028 Notes is payable semi-annually on March 15 and September 15 of each year, beginning on March 15, 2019. The 2028 Notes, together with our $250 million of 5.375% senior notes due 2021 (the "2021 Notes"), $350 million of 3.375% senior notes due 2023 (the "2023 Notes"), and $400 million of 4.850% senior notes due 2026 (the "2026 Notes"), are collectively referred to as the "Senior Notes." Debt Redemption —During the nine months ended September 30, 2018, we redeemed all of our outstanding 2019 Notes, of which there was $196 million of aggregate principal outstanding, at a redemption price of approximately $203 million , which was calculated in accordance with the terms of the 2019 Notes and included principal and accrued interest plus a make-whole premium. The $7 million loss on extinguishment of debt was recognized in other income (loss), net on our condensed consolidated statements of income (see Note 19 ). Revolving Credit Facility —During the nine months ended September 30, 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. During the nine months ended September 30, 2019 , we had $180 million of borrowings and repayments on our revolving credit facility. The weighted-average interest rate on these borrowings was 3.46% at September 30, 2019 . At September 30, 2019 and December 31, 2018 , we had no balance outstanding. At September 30, 2019 , we had $1.5 billion available on our revolving credit facility. Fair Value —We estimated the fair value of debt, excluding finance 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 a discounted cash flow analysis based on current market inputs for similar types of arrangements. Based upon the lack of available market data, we have classified our revolving credit facility and other debt instruments as Level Three. The primary sensitivity in these models is based on the selection of appropriate discount rates. Fluctuations in these assumptions will result in different estimates of fair value. September 30, 2019 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) $ 1,627 $ 1,745 $ — $ 1,685 $ 60 (1) Excludes $11 million of finance lease obligations and $15 million of unamortized discounts and deferred financing fees. December 31, 2018 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) $ 1,638 $ 1,651 $ — $ 1,584 $ 67 (2) Excludes $12 million of capital lease obligations and $16 million of unamortized discounts and deferred financing fees. Interest Rate Locks —At September 30, 2019 , we had outstanding interest rate locks with $ 275 million notional value and mandatory settlement dates of 2021. The interest rate locks hedge a portion of the risk of changes in the benchmark interest rate associated with long-term debt we anticipate issuing in the future. The outstanding derivative instruments are designated as cash flow hedges and deemed highly effective both at inception and at September 30, 2019 . During the three and nine months ended September 30, 2019 , we recognized $13 million and $30 million of pre-tax losses, respectively, and during the three and nine months ended September 30, 2018, we recognized $3 million and $2 million of pre-tax gains, respectively, in unrealized gains (losses) on derivative activity on our condensed consolidated statements of comprehensive income. At September 30, 2019 and December 31, 2018 , we had $ 34 million and $ 4 million of liabilities related to these derivative instruments, respectively, recorded in other long-term liabilities on our condensed consolidated balance sheets. We estimated the fair values of interest rate locks, which are classified as Level Two in the fair value hierarchy, using discounted cash flow models. The primary sensitivity in these models is based on forward and discount curves. During the three months ended September 30, 2018, we settled interest rate locks with $225 million notional value upon issuance of the 2028 Notes. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES September 30, 2019 December 31, 2018 Deferred compensation plans funded by rabbi trusts (Note 4) $ 419 $ 367 Income taxes payable 145 131 Self-insurance liabilities (Note 13) 79 78 Deferred income taxes 47 54 Guarantee liabilities (Note 13) 37 76 Other 119 134 Total other long-term liabilities $ 846 $ 840 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The effective income tax rates for the three months ended September 30, 2019 and September 30, 2018 were 26.9% and 7.7% , respectively. The effective income tax rates for the nine months ended September 30, 2019 and September 30, 2018 were 25.0% and 21.2% , respectively. Our effective tax rate increased for the three and nine months ended September 30, 2019 , compared to the three and nine months ended September 30, 2018 , primarily due to the low effective tax rate on the HRMC transaction in 2018. We are currently under field exam by the Internal Revenue Service ("IRS") for tax years 2015 through 2017. U.S. tax years 2009 through 2011 are before the U.S. Tax Court concerning the tax treatment of the loyalty program. Additionally, U.S. tax years 2012 through 2014 are pending the outcome of the issue currently in U.S. Tax Court. If the IRS' position to include loyalty program contributions as taxable income to the Company is upheld, it would result in an income tax payment of $188 million (including $44 million of estimated interest, net of federal tax benefit) for all assessed years that would be partially offset by a deferred tax asset. As future tax benefits will be recognized at the reduced U.S. corporate income tax rate, $67 million of the payment and related interest would have an impact on the effective tax rate, if recognized. We believe we have an adequate uncertain tax liability recorded in connection with this matter. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 , we are committed, under certain conditions, to lend or provide certain consideration to, or invest in, various business ventures up to $ 395 million , net of any related letters of credit, including a commitment to purchase land and a hotel under construction in Portland, Oregon from the developer for a remaining purchase price of approximately $140 million upon substantial completion of construction. Performance Guarantees —Certain of our contractual agreements with third-party hotel owners require us to guarantee payments to the owners if specified levels of operating profit are not achieved by their hotels. Our most significant performance guarantee relates to four managed hotels in France that we began managing in the second quarter of 2013 ("the four managed hotels in France"), which has a term of seven years and less than one year remaining. This guarantee has a maximum cap, but does not have an annual cap. The remaining maximum exposure related to our performance guarantees at September 30, 2019 was $252 million , of which €180 million ( $196 million using exchange rates at September 30, 2019 ) was related to the four managed hotels in France. We had $13 million and $47 million of total net performance guarantee liabilities at September 30, 2019 and December 31, 2018 , respectively, which included $4 million and $25 million recorded in other long-term liabilities and $9 million and $22 million in accrued expenses and other current liabilities on our condensed consolidated balance sheets, respectively. The four managed hotels in France Other performance guarantees All performance guarantees 2019 2018 2019 2018 2019 2018 Beginning balance, January 1 $ 36 $ 58 $ 11 $ 13 $ 47 $ 71 Initial guarantee obligation liability — — 1 — 1 — Amortization of initial guarantee obligation liability into income (8 ) (8 ) (1 ) (2 ) (9 ) (10 ) Performance guarantee expense (recovery), net 24 36 — (1 ) 24 35 Net payments during the period (36 ) (50 ) (4 ) (5 ) (40 ) (55 ) Ending balance, June 30 $ 16 $ 36 $ 7 $ 5 $ 23 $ 41 Amortization of initial guarantee obligation liability into income (4 ) (3 ) (1 ) (1 ) (5 ) (4 ) Performance guarantee expense (recovery), net (1 ) 3 2 3 1 6 Net (payments) receipts during the period (3 ) (9 ) (2 ) 2 (5 ) (7 ) Foreign currency exchange, net (1 ) 1 — — (1 ) 1 Ending balance, September 30 $ 7 $ 28 $ 6 $ 9 $ 13 $ 37 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 September 30, 2019 and December 31, 2018 , there were no amounts recognized on our condensed 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 property owners and unconsolidated hospitality ventures 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 September 30, 2019 Other long-term liabilities recorded at December 31, 2018 Year of guarantee expiration Hotel properties in India (1) $ 169 $ 169 $ 6 $ 10 2020 Hotel and residential properties in Brazil (2), (3) 97 40 3 3 various, through 2023 Hotel properties in Tennessee (2) 44 20 9 2 various, through 2023 Hotel property in Massachusetts (2), (4) 40 14 7 8 various, through 2022 Hotel properties in California (2) 31 12 3 4 various, through 2021 Hotel property in Oregon (2), (4) 28 7 3 4 various, through 2022 Hotel property in Arizona (2), (3) 25 — — 1 2019 Other (2), (5) 10 5 2 19 2022 Total $ 444 $ 267 $ 33 $ 51 (1) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at September 30, 2019 . We have the contractual right to recover amounts funded from an unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $85 million , taking into account our partner's 50% ownership interest in the unconsolidated hospitality venture. Under certain events or conditions, we have the right to force the sale of the properties in order to recover amounts funded. (2) We have agreements with our unconsolidated hospitality venture partners, 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. (3) If certain funding thresholds are met or if certain events occur, we have the ability to assume control of the property. With respect to properties in Brazil, this right only exists for the residential property. (4) In conjunction with the debt repayment guarantees, we are subject to completion guarantees 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 partial recovery in the form of cash. At September 30, 2019 , the maximum potential future payments for the property in Massachusetts and the property in Oregon are $13 million and $12 million , respectively. After consideration of recoverability from third parties, our maximum exposure is insignificant for both the property in Massachusetts and the property in Oregon at September 30, 2019 . (5) At December 31, 2018 , other-long term liabilities included a debt repayment guarantee for a hotel property in Washington State. During the nine months ended September 30, 2019 , the debt was refinanced, and we are no longer a guarantor. As a result, we recognized a $15 million release of our debt repayment guarantee liability in other income (loss), net on our condensed consolidated statements of income for the nine months ended September 30, 2019 (see Note 19 ). At September 30, 2019 , 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 $112 million and $128 million at September 30, 2019 and December 31, 2018 , respectively. Based upon the lack of 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. Reserves for losses in our captive insurance companies to be paid within 12 months are $40 million and $38 million at September 30, 2019 and December 31, 2018 , respectively, and are classified within accrued expenses and other current liabilities on our condensed consolidated balance sheets, while reserves for losses in our captive insurance companies to be paid in future periods are $79 million and $78 million at September 30, 2019 and December 31, 2018 , respectively, and are included in other long-term liabilities on our condensed consolidated balance sheets. Collective Bargaining Agreements —At September 30, 2019 , approximately 22% 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 $46 million at September 30, 2019 and primarily relate to workers' compensation, taxes, licenses, construction liens, and utilities related to our lodging operations. Letters of Credit —Letters of credit outstanding on our behalf at September 30, 2019 were $286 million , which relate to our ongoing operations, hotel properties under development in the U.S., collateral for estimated insurance claims, and securitization of our performance under our debt repayment guarantees associated with the hotel properties in India and the residential property in Brazil, which are only called upon if we default on our guarantees. The letters of credit outstanding do not reduce the available capacity under our revolving credit facility (see Note 10 ). 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 to have a material effect on our condensed consolidated financial statements. During the year ended December 31, 2018, we received a notice from the Indian tax authorities assessing additional service tax on our operations in India. We appealed this decision and do not believe a loss is probable, and therefore, we have not recognized a liability in connection with this matter. At September 30, 2019 , our maximum exposure is not expected to exceed $18 million . |
Equity
Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Equity | EQUITY Accumulated Other Comprehensive Loss Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2019 Foreign currency translation adjustments $ (191 ) $ (27 ) $ — $ (218 ) Unrecognized pension cost (5 ) — — (5 ) Unrealized losses on derivative instruments (16 ) (9 ) — (25 ) Accumulated other comprehensive loss $ (212 ) $ (36 ) $ — $ (248 ) Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at Foreign currency translation adjustments $ (191 ) $ (27 ) $ — $ (218 ) Unrecognized pension cost (5 ) — — (5 ) Unrealized losses on derivative instruments (4 ) (21 ) — (25 ) Accumulated other comprehensive loss $ (200 ) $ (48 ) $ — $ (248 ) Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss (a) Balance at Foreign currency translation adjustments $ (266 ) $ 9 $ 62 $ (195 ) Unrecognized pension cost (7 ) — — (7 ) Unrealized losses on derivative instruments (3 ) 3 — — Accumulated other comprehensive loss $ (276 ) $ 12 $ 62 $ (202 ) (a) The amounts reclassified from accumulated other comprehensive loss include the gain recognized in gains on sales of real estate related to the HRMC transaction (see Note 6). Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss (b) Balance at Foreign currency translation adjustments $ (243 ) $ (29 ) $ 77 $ (195 ) Unrecognized pension cost (7 ) — — (7 ) Unrealized losses on derivative instruments (3 ) 3 — — Accumulated other comprehensive loss $ (253 ) $ (26 ) $ 77 $ (202 ) (b) The amounts reclassified from accumulated other comprehensive loss include the net gain recognized in gains on sales of real estate related to the derecognition of a wholly owned subsidiary and the HRMC transaction (see Note 6). Share Repurchase — During 2018 and 2017, our board of directors authorized the repurchase of up to $750 million and $1,250 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 or an accelerated share repurchase transaction, 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 and 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 nine months ended September 30, 2019 , we repurchased 3,829,427 shares of common stock. The shares of common stock were repurchased at a weighted-average price of $73.08 per share for an aggregate purchase price of $ 280 million , excluding related insignificant expenses. The shares repurchased during the nine months ended September 30, 2019 represented approximately 4% of our total shares of common stock outstanding at December 31, 2018 . During the nine months ended September 30, 2018 , we entered into the following accelerated share repurchase ("ASR") program with a third-party financial institution to repurchase Class A shares: Total number of shares repurchased (1) Weighted-average price per share Total cash paid May 2018 ASR 2,481,341 $ 80.60 $ 200 (1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share. During the nine months ended September 30, 2018 , we repurchased 8,560,012 shares of common stock, including settlement of the May 2018 ASR and 244,260 shares representing the settlement of an ASR program entered into during the fourth quarter of 2017 ("November 2017 ASR"). The shares of common stock were repurchased at a weighted-average price of $78.42 per share and an aggregate purchase price of $674 million , excluding related insignificant expenses. The aggregate purchase price includes $20 million of shares delivered in the settlement of the November 2017 ASR in 2018, for which payment was made during 2017. The shares repurchased during the nine months ended September 30, 2018 represented approximately 7% of our total shares of common stock outstanding at December 31, 2017 . 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 retired during the three months ended September 30, 2019 (see Note 16). At September 30, 2019 , we had $388 million remaining under the share repurchase authorization. Dividend — The following tables summarize dividends paid to Class A and Class B shareholders of record: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Class A common stock $ 8 $ 7 $ 22 $ 21 Class B common stock 12 10 38 31 Total cash dividends paid $ 20 $ 17 $ 60 $ 52 Date declared Dividend per share amount for Class A and Class B Date of record Date paid February 13, 2019 $ 0.19 February 27, 2019 March 11, 2019 May 17, 2019 $ 0.19 May 29, 2019 June 10, 2019 July 31, 2019 $ 0.19 August 27, 2019 September 9, 2019 February 14, 2018 $ 0.15 March 22, 2018 March 29, 2018 May 16, 2018 $ 0.15 June 19, 2018 June 28, 2018 July 31, 2018 $ 0.15 September 6, 2018 September 20, 2018 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION As part of our Long- Term Incentive Plan ("LTIP"), we award Stock Appreciation Rights ("SARs"), Restricted Stock Units ("RSUs"), and Performance Share Units ("PSUs") to certain employees. 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 recognized within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties and costs incurred on behalf of managed and franchised properties on our condensed consolidated statements of income. Stock-based compensation expense included in selling, general, and administrative expense on our condensed consolidated statements of income related to these awards was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 SARs $ 1 $ 1 $ 11 $ 10 RSUs 2 2 13 14 PSUs 1 2 4 4 Total $ 4 $ 5 $ 28 $ 28 SARs —During the nine months ended September 30, 2019 , we granted 643,989 SARs to employees with a weighted-average grant date fair value of $17.11 . During the nine months ended September 30, 2018 , we granted 504,760 SARs to employees with a weighted-average grant date fair value of $21.18 . RSUs —During the nine months ended September 30, 2019 , we granted 355,774 RSUs to employees with a weighted-average grant date fair value of $72.05 . During the nine months ended September 30, 2018 , we granted 272,549 RSUs to employees with a weighted-average grant date fair value of $ 79.90 . PSUs —During the nine months ended September 30, 2019 , we granted 120,720 PSUs to employees with a weighted-average grant date fair value of $77.95 . The performance period applicable to such PSUs is a three year period beginning January 1, 2019 and ending December 31, 2021. During the nine months ended September 30, 2018 , we granted 89,441 PSUs to our executive officers, with a weighted-average grant date fair value of $82.10 . Our total unearned compensation for our stock- based compensation programs at September 30, 2019 was $2 million for SARs, $17 million for RSUs, and $10 million for PSUs, which will primarily be recognized in stock-based compensation expense over a weighted-average period of three years with respect to SARs and RSUs and two years with respect to PSUs. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS In addition to those included elsewhere in the Notes to our condensed consolidated financial statements, related- party transactions entered into by us are summarized as follows: Legal Services —A partner in a law firm that provided services to us throughout the nine months ended September 30, 2019 and September 30, 2018 is the brother-in-law of our Executive Chairman. We incurred $2 million of legal fees with this firm during each of the three months ended September 30, 2019 and September 30, 2018 . We incurred $5 million of legal fees with this firm during each of the nine months ended September 30, 2019 and September 30, 2018 . At September 30, 2019 and December 31, 2018 , we had $2 million and insignificant amounts due to the law firm, respectively. Equity Method Investments —We have equity method investments in entities that own properties for which we receive management or franchise fees. We recognized $5 million of fees for each of the three months ended September 30, 2019 and September 30, 2018 , respectively. We recognized $15 million of fees for each of the nine months ended September 30, 2019 and September 30, 2018 . In addition, in some cases we provide loans (see Note 5 ) or guarantees (see Note 13 ) to these entities. During the three months ended September 30, 2019 and September 30, 2018 , we recognized $1 million and $2 million of income related to these guarantees, respectively. We recognized income related to these guarantees of $3 million and $5 million during the nine months ended September 30, 2019 and September 30, 2018 , respectively. At September 30, 2019 and December 31, 2018 , we had $ 13 million and $ 17 million of receivables due from these properties, respectively. Our ownership interest in these unconsolidated hospitality ventures varies from 24% to 50% . See Note 4 for further details regarding these investments. Other Services —The brother of our Executive Chairman is affiliated with a limited partnership which has ownership interests in hotels from which we recorded management and franchise fees of $2 million and $4 million during the three and nine months ended September 30, 2019, respectively. At both September 30, 2019 and December 31, 2018, we had insignificant receivables due from these properties. Class B Share Conversion —During the three and nine months ended September 30, 2018 , 950,161 shares and 1,207,355 shares 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 were retired, thereby reducing the shares of Class B common stock authorized and outstanding. Class B Share Repurchase —During the three and nine months ended September 30, 2019, we repurchased 677,384 shares of Class B common stock for a weighted-average price of $74.21 per share, for an aggregate purchase price of approximately $50 million . The shares repurchased represented approximately 1% of our total shares of common stock outstanding prior to the repurchase. During the nine months ended September 30, 2018 , we repurchased 2,427,000 shares of Class B common stock for a weighted-average price of $78.11 per share, for an aggregate purchase price of approximately $190 million . The shares repurchased represented approximately 2% |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT 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 ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM 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 cards and revenues earned under the loyalty program for stays at our owned and leased hotels 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 and franchised properties as well as revenues from residential management operations. These costs relate primarily to payroll costs at managed properties where the Company is the employer, as well as costs associated with reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased 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, Greater China, Australia, South Korea, Japan, and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned hotel 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 and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation. Our CODM evaluates performance based on owned and leased hotels revenues, management, franchise, and other fees revenues, 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; amortization of management and franchise agreement assets constituting payments to customers ("Contra revenue"); revenues for the reimbursement of costs incurred on behalf of managed and franchised properties; costs incurred on behalf of managed and franchised properties; 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 and Exhale, Hyatt Residence Club license fees, results related to our co- branded credit cards, and unallocated corporate expenses. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Owned and leased hotels Owned and leased hotels revenues $ 425 $ 443 $ 1,364 $ 1,428 Intersegment revenues (a) 11 7 27 26 Adjusted EBITDA 76 91 291 324 Depreciation and amortization 62 65 185 197 Americas management and franchising Management, franchise, and other fees revenues 106 95 326 301 Contra revenue (4 ) (4 ) (11 ) (10 ) Other revenues 16 — 71 — Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 565 447 1,688 1,328 Intersegment revenues (a) 14 16 47 52 Adjusted EBITDA 92 83 285 266 Depreciation and amortization 6 2 18 6 ASPAC management and franchising Management, franchise, and other fees revenues 32 30 96 90 Contra revenue — — (1 ) (1 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 30 24 80 67 Intersegment revenues (a) 1 1 1 1 Adjusted EBITDA 19 19 59 55 Depreciation and amortization 1 1 3 1 EAME/SW Asia management and franchising Management, franchise, and other fees revenues 21 21 58 58 Contra revenue (1 ) (1 ) (4 ) (4 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 20 16 54 49 Intersegment revenues (a) 3 3 7 8 Adjusted EBITDA 12 12 33 33 Depreciation and amortization 1 — 1 — Corporate and other Revenues 32 26 101 89 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 2 2 4 3 Intersegment revenues (a) — (2 ) (1 ) (5 ) Adjusted EBITDA (35 ) (29 ) (107 ) (85 ) Depreciation and amortization 15 13 41 39 Eliminations Revenues (a) (29 ) (25 ) (81 ) (82 ) Adjusted EBITDA (1 ) (1 ) 2 2 TOTAL Revenues $ 1,215 $ 1,074 $ 3,745 $ 3,316 Adjusted EBITDA 163 175 563 595 Depreciation and amortization 85 81 248 243 (a) Intersegment revenues are included in management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations. 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: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income attributable to Hyatt Hotels Corporation $ 296 $ 237 $ 445 $ 725 Interest expense 19 19 58 57 Provision for income taxes 109 19 148 194 Depreciation and amortization 85 81 248 243 EBITDA 509 356 899 1,219 Contra revenue 5 5 16 15 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (617 ) (489 ) (1,826 ) (1,447 ) Costs incurred on behalf of managed and franchised properties 633 487 1,871 1,447 Equity losses from unconsolidated hospitality ventures 5 6 2 17 Stock-based compensation expense (Note 15) 4 5 28 28 Gains on sales of real estate (Note 6) (373 ) (239 ) (374 ) (769 ) Asset impairments 9 21 13 21 Other (income) loss, net (Note 19) (25 ) 9 (104 ) 22 Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA 13 14 38 42 Adjusted EBITDA $ 163 $ 175 $ 563 $ 595 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
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: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income $ 296 $ 237 $ 445 $ 725 Net income and accretion attributable to noncontrolling interests — — — — Net income attributable to Hyatt Hotels Corporation $ 296 $ 237 $ 445 $ 725 Denominator: Basic weighted-average shares outstanding 104,349,157 111,356,759 105,226,587 114,829,210 Share-based compensation 1,569,736 1,867,226 1,553,693 1,954,863 Diluted weighted-average shares outstanding 105,918,893 113,223,985 106,780,280 116,784,073 Basic Earnings Per Share: Net income $ 2.84 $ 2.12 $ 4.23 $ 6.31 Net income and accretion attributable to noncontrolling interests — — — — Net income attributable to Hyatt Hotels Corporation $ 2.84 $ 2.12 $ 4.23 $ 6.31 Diluted Earnings Per Share: Net income $ 2.80 $ 2.09 $ 4.17 $ 6.21 Net income and accretion attributable to noncontrolling interests — — — — Net income attributable to Hyatt Hotels Corporation $ 2.80 $ 2.09 $ 4.17 $ 6.21 The computations of diluted net income per share for the three and nine months ended September 30, 2019 and September 30, 2018 do not include the following shares of Class A common stock assumed to be issued as stock- settled SARs because they are anti- dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 SARs 14,800 — 14,400 — |
Other Income (Loss), Net
Other Income (Loss), Net | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Loss), Net | OTHER INCOME (LOSS), NET Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Depreciation recovery $ 7 $ 5 $ 19 $ 16 Interest income (Note 4) 6 7 18 19 Performance guarantee liability amortization (Note 13) 5 4 14 14 Unrealized gains (losses) (Note 4) 3 (15 ) 23 (21 ) Release of contingent consideration liability (Note 6) 2 — 29 — Release and amortization of debt repayment guarantee liability (Note 13) 1 2 18 8 Impairment of an equity security without a readily determinable fair value (Note 4) — — — (22 ) Loss on extinguishment of debt (Note 10) — (7 ) — (7 ) Performance guarantee expense, net (Note 13) (1 ) (6 ) (25 ) (41 ) Other, net 2 1 8 12 Other income (loss), net $ 25 $ (9 ) $ 104 $ (22 ) |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q |
Principles of Consolidation | We have eliminated all intercompany accounts and transactions in our condensed consolidated financial statements. We consolidate entities under our control, including entities where we are deemed to be the primary beneficiary. |
Recently Issued Accounting Pronouncements | Leases —In February 2016, the Financial Accounting Standards Board ("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 ("ROU") asset and lease liability with certain practical expedients available. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make fixed minimum lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of fixed minimum lease payments over the lease term, including optional periods for which it is reasonably certain the renewal option will be exercised. In July 2018, the FASB released Accounting Standards Update No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements , providing entities with an additional optional transition method. The provisions of ASU 2016-02, and all related ASUs, are effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted. We adopted ASU 2016-02 utilizing the optional transition approach under ASU 2018-11 and applied the package of practical expedients beginning January 1, 2019. As a result of utilizing the optional transition method, our reporting for periods prior to January 1, 2019 continue to be reported in accordance with Leases (Topic 840) . We elected the following additional practical expedients: (i) for office space, land, and hotel leases, we do not separate the lease and nonlease components, which primarily relate to common area maintenance and utilities, (ii) we combine lease and nonlease components for those leases where we are the lessor, and (iii) we exclude all leases that are twelve months or less from the ROU assets and lease liabilities. For leases in place upon adoption, we used the remaining lease term as of January 1, 2019 in determining the incremental borrowing rate ("IBR"). For the initial measurement of the lease liabilities for leases commencing on or after January 1, 2019, the IBR at the lease commencement date was applied. For operating leases, the adoption of ASU 2016-02 resulted in the initial recognition of ROU assets of $512 million and related lease liabilities of $452 million on our condensed consolidated balance sheet at January 1, 2019. Upon adoption, we reclassified $103 million of intangibles, net related to below market leases and $49 million of deferred rent and other lease liabilities to the operating ROU assets. The net tax impact upon adoption was insignificant. The adoption of ASU 2016-02 did not significantly impact our accounting for finance leases or for those leases where we are the lessor. Additionally, the adoption of ASU 2016-02 did not materially affect our condensed consolidated statements of income or our condensed consolidated statements of cash flows. The impact on our condensed consolidated balance sheet upon adoption of ASU 2016-02 was as follows: December 31, 2018 January 1, 2019 Effect of the adoption of ASU 2016-02 As adjusted ASSETS Prepaids and other assets $ 149 $ (2 ) $ 147 Intangibles, net 628 (103 ) 525 Other assets 1,353 (7 ) 1,346 Operating lease right-of-use assets — 512 512 TOTAL ASSETS $ 7,643 $ 400 $ 8,043 LIABILITIES AND EQUITY Accounts payable $ 151 $ (1 ) $ 150 Accrued expenses and other current liabilities 361 (2 ) 359 Current operating lease liabilities — 34 34 Long-term operating lease liabilities — 418 418 Other long-term liabilities 840 (49 ) 791 Total liabilities 3,966 400 4,366 Total equity 3,677 — 3,677 TOTAL LIABILITIES AND EQUITY $ 7,643 $ 400 $ 8,043 Intangibles - Goodwill and Other - Internal-Use Software —In August 2018, the FASB released Accounting Standards Update No. 2018-15 ("ASU 2018-15"), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The provisions of ASU 2018-15 are to be applied using a prospective or retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We early adopted ASU 2018-15 on January 1, 2019 on a prospective basis which did not materially impact our condensed consolidated financial statements. Future Adoption of Accounting Standards Financial Instruments - Credit Losses —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 allowances for credit losses 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 available-for-sale ("AFS") debt securities to be recognized 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. While we continue to evaluate the impact of adopting ASU 2016-13, we do not expect a material impact upon adoption related to receivables at our owned and leased properties, AFS debt securities, and debt repayment guarantees. We are continuing to evaluate other potential impacts on our condensed consolidated financial statements, including the impact on our remaining receivables, held-to-maturity ("HTM") debt securities, and financing receivables. |
Revenue Recognition | We did not estimate revenues expected to be recognized related to our unsatisfied performance obligations for the following: • Deferred revenue related to the loyalty program and revenue from base and incentive management fees as the revenue is allocated to a wholly unperformed performance obligation in a series; • Revenues related to royalty fees as they are considered sales-based royalty fees; • Revenues received for free nights granted through our co-branded credit cards as the awards are required to be redeemed within 12 months; and • Revenues related to advanced bookings at owned and leased hotels as each stay has a duration of 12 months or less. Revenue Allocated to Remaining Performance Obligations |
Lessee, Leases | We primarily lease land, buildings, office space, spas and fitness centers, and equipment. We determine if an arrangement is an operating or finance lease at inception. For our hotel management agreements, we apply judgment in order to determine whether the contract is accounted for as a lease or management agreement based on the specific facts and circumstances of each agreement. In evaluating whether an agreement constitutes a lease, we review the contractual terms to determine which party obtains both the economic benefits and control of the assets. In arrangements where we control the assets and obtain the economic benefits, we account for the contract as a lease. Certain of our leases include options to extend the lease term by 1 to 99 years . We include lease extension options in our operating ROU assets and lease liabilities when it is reasonably certain that we will exercise the options. The range of extension options included in our operating ROU assets and lease liabilities is approximately 1 to 20 years . Our lease agreements do not contain any significant residual value guarantees or restrictive covenants. As our leases do not provide an implicit borrowing rate, we use our estimated IBR to determine the present value of our lease payments and apply a portfolio approach. We apply judgment in estimating the IBR including factors related to currency risk and our credit risk. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when determining our IBR. |
Lessor, Leases | We lease retail space under operating leases at our owned hotel locations. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. |
Self 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. |
Commitments and Contingencies 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 to have a material effect on our condensed 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 ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM 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 cards and revenues earned under the loyalty program for stays at our owned and leased hotels 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 and franchised properties as well as revenues from residential management operations. These costs relate primarily to payroll costs at managed properties where the Company is the employer, as well as costs associated with reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased 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, Greater China, Australia, South Korea, Japan, and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned hotel 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 and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation. Our CODM evaluates performance based on owned and leased hotels revenues, management, franchise, and other fees revenues, 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; amortization of management and franchise agreement assets constituting payments to customers ("Contra revenue"); revenues for the reimbursement of costs incurred on behalf of managed and franchised properties; costs incurred on behalf of managed and franchised properties; 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. |
Recently Issued Accounting Pr_3
Recently Issued Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact on our condensed consolidated balance sheet upon adoption of ASU 2016-02 was as follows: December 31, 2018 January 1, 2019 Effect of the adoption of ASU 2016-02 As adjusted ASSETS Prepaids and other assets $ 149 $ (2 ) $ 147 Intangibles, net 628 (103 ) 525 Other assets 1,353 (7 ) 1,346 Operating lease right-of-use assets — 512 512 TOTAL ASSETS $ 7,643 $ 400 $ 8,043 LIABILITIES AND EQUITY Accounts payable $ 151 $ (1 ) $ 150 Accrued expenses and other current liabilities 361 (2 ) 359 Current operating lease liabilities — 34 34 Long-term operating lease liabilities — 418 418 Other long-term liabilities 840 (49 ) 791 Total liabilities 3,966 400 4,366 Total equity 3,677 — 3,677 TOTAL LIABILITIES AND EQUITY $ 7,643 $ 400 $ 8,043 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues disaggregated by the nature of the product or service: Three Months Ended September 30, 2019 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 259 $ — $ — $ — $ 4 $ (11 ) $ 252 Food and beverage 131 — — — 3 — 134 Other 35 — — — 9 — 44 Owned and leased hotels 425 — — — 16 (11 ) 430 Base management fees — 55 11 10 — (12 ) 64 Incentive management fees — 13 17 9 — (6 ) 33 Franchise fees — 36 1 — — — 37 Other fees — 2 3 2 1 — 8 License fees — — — — 6 — 6 Management, franchise, and other fees — 106 32 21 7 (18 ) 148 Amortization of management and franchise agreement assets constituting payments to customers — (4 ) — (1 ) — — (5 ) Net management, franchise, and other fees — 102 32 20 7 (18 ) 143 Other revenues — 16 — — 9 — 25 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 565 30 20 2 — 617 Total $ 425 $ 683 $ 62 $ 40 $ 34 $ (29 ) $ 1,215 Nine Months Ended September 30, 2019 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 804 $ — $ — $ — $ 17 $ (27 ) $ 794 Food and beverage 452 — — — 9 — 461 Other 108 — — — 27 — 135 Owned and leased hotels 1,364 — — — 53 (27 ) 1,390 Base management fees — 173 33 27 — (38 ) 195 Incentive management fees — 46 51 26 — (17 ) 106 Franchise fees — 104 3 — — — 107 Other fees — 3 9 5 4 — 21 License fees — — — — 18 — 18 Management, franchise, and other fees — 326 96 58 22 (55 ) 447 Amortization of management and franchise agreement assets constituting payments to customers — (11 ) (1 ) (4 ) — — (16 ) Net management, franchise, and other fees — 315 95 54 22 (55 ) 431 Other revenues — 71 — — 26 1 98 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,688 80 54 4 — 1,826 Total $ 1,364 $ 2,074 $ 175 $ 108 $ 105 $ (81 ) $ 3,745 Three Months Ended September 30, 2018 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 276 $ — $ — $ — $ 5 $ (7 ) $ 274 Food and beverage 133 — — — 2 — 135 Other 34 — — — 7 — 41 Owned and leased hotels 443 — — — 14 (7 ) 450 Base management fees — 48 11 9 — (13 ) 55 Incentive management fees — 14 16 10 — (7 ) 33 Franchise fees — 32 1 — — — 33 Other fees — 1 2 2 2 — 7 License fees — — — — 5 — 5 Management, franchise, and other fees — 95 30 21 7 (20 ) 133 Amortization of management and franchise agreement assets constituting payments to customers — (4 ) — (1 ) — — (5 ) Net management, franchise, and other fees — 91 30 20 7 (20 ) 128 Other revenues — — — — 5 2 7 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 447 24 16 2 — 489 Total $ 443 $ 538 $ 54 $ 36 $ 28 $ (25 ) $ 1,074 Nine Months Ended September 30, 2018 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 848 $ — $ — $ — $ 18 $ (26 ) $ 840 Food and beverage 474 — — — 7 — 481 Other 106 — — — 23 — 129 Owned and leased hotels 1,428 — — — 48 (26 ) 1,450 Base management fees — 150 32 25 — (40 ) 167 Incentive management fees — 47 50 29 — (21 ) 105 Franchise fees — 94 2 — — — 96 Other fees — 10 6 4 4 — 24 License fees — — — — 15 — 15 Management, franchise, and other fees — 301 90 58 19 (61 ) 407 Amortization of management and franchise agreement assets constituting payments to customers — (10 ) (1 ) (4 ) — — (15 ) Net management, franchise, and other fees — 291 89 54 19 (61 ) 392 Other revenues — — — — 22 5 27 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,328 67 49 3 — 1,447 Total $ 1,428 $ 1,619 $ 156 $ 103 $ 92 $ (82 ) $ 3,316 |
Summary of Contract Liability | Contract liabilities are comprised of the following: September 30, 2019 December 31, 2018 Deferred revenue related to the loyalty program $ 657 $ 596 Advanced deposits 77 81 Initial fees received from franchise owners 39 35 Deferred revenue related to system-wide services 11 7 Other deferred revenue 91 111 Total contract liabilities $ 875 $ 830 The following table summarizes the activity in our contract liabilities: 2019 2018 Beginning balance, January 1 $ 830 $ 772 Cash received and other 490 433 Revenue recognized (459 ) (441 ) Ending balance, June 30 $ 861 $ 764 Cash received and other 265 223 Revenue recognized (251 ) (222 ) Ending balance, September 30 $ 875 $ 765 |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summarized Financial Information | The following table presents summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total revenues $ 130 $ 135 $ 371 $ 399 Gross operating profit 51 53 139 141 Income (loss) from continuing operations 9 (12 ) (2 ) (15 ) Net income (loss) 9 (12 ) (2 ) (15 ) |
Marketable Securities Held to Fund Operating Programs | Marketable Securities Held to Fund Operating Programs —Marketable securities held to fund operating programs, which are recorded at fair value and included on our condensed consolidated balance sheets, were as follows: September 30, 2019 December 31, 2018 Loyalty program (Note 9) $ 453 $ 397 Deferred compensation plans held in rabbi trusts (Note 9 and Note 11) 419 367 Captive insurance companies 136 133 Total marketable securities held to fund operating programs $ 1,008 $ 897 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 (205 ) (174 ) Marketable securities held to fund operating programs included in other assets $ 803 $ 723 |
Net Gains and Interest Income from Marketable Securities Held to Fund Operating Programs | Net realized and unrealized gains (losses) and interest income from marketable securities held to fund the loyalty program are recognized in other income (loss), net on our condensed consolidated statements of income: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Loyalty program (Note 19) $ 5 $ 1 $ 24 $ (2 ) Net realized and unrealized gains (losses) and interest income from marketable securities held to fund rabbi trusts are recognized in net gains and interest income from marketable securities held to fund rabbi trusts on our condensed consolidated statements of income: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Unrealized gains (losses) $ (2 ) $ 5 $ 35 $ 7 Realized gains 2 5 6 12 Net gains and interest income from marketable securities held to fund rabbi trusts $ — $ 10 $ 41 $ 19 |
Marketable Securities Held for Investment Purposes | Marketable Securities Held for Investment Purposes —Marketable securities held for investment purposes, which are recorded at fair value and included on our condensed consolidated balance sheets, were as follows: September 30, 2019 December 31, 2018 Interest-bearing money market funds $ 202 $ 14 Common shares of Playa N.V. (Note 9) 95 87 Time deposits 37 100 Total marketable securities held for investment purposes $ 334 $ 201 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (239 ) (114 ) Marketable securities held for investment purposes included in other assets $ 95 $ 87 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | We measured the following financial assets at fair value on a recurring basis: September 30, 2019 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 $ 308 $ 308 $ — $ — $ — Mutual funds 419 — — — 419 Common shares 95 — — — 95 Level Two - Significant Other Observable Inputs Time deposits 49 — 41 — 8 U.S. government obligations 195 — — 34 161 U.S. government agencies 58 — 2 7 49 Corporate debt securities 155 — 20 21 114 Mortgage-backed securities 23 — — 4 19 Asset-backed securities 38 — — 7 31 Municipal and provincial notes and bonds 2 — — — 2 Total $ 1,342 $ 308 $ 63 $ 73 $ 898 December 31, 2018 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 $ 88 $ 88 $ — $ — $ — Mutual funds 367 — — — 367 Common shares 87 — — — 87 Level Two - Significant Other Observable Inputs Time deposits 113 — 104 — 9 U.S. government obligations 169 — — 37 132 U.S. government agencies 52 — 2 7 43 Corporate debt securities 151 — 10 25 116 Mortgage-backed securities 23 — — 5 18 Asset-backed securities 46 — — 10 36 Municipal and provincial notes and bonds 2 — — — 2 Total $ 1,098 $ 88 $ 116 $ 84 $ 810 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables | September 30, 2019 December 31, 2018 Unsecured financing to hotel owners $ 119 $ 159 Less: current portion of financing receivables, included in receivables, net — (45 ) Less: allowance for losses (100 ) (101 ) Total long-term financing receivables, net of allowances $ 19 $ 13 |
Allowance for Losses and Impairments | The following table summarizes the activity in our unsecured financing receivables allowance: 2019 2018 Allowance at January 1 $ 101 $ 108 Provisions 3 3 Other adjustments — (2 ) Write-offs (4 ) — Allowance at June 30 $ 100 $ 109 Provisions 1 2 Other adjustments (1 ) — Write-offs — (12 ) Allowance at September 30 $ 100 $ 99 |
Credit Monitoring | Our unsecured financing receivables were as follows: September 30, 2019 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 17 $ (1 ) $ 16 $ — Impaired loans (1) 44 (44 ) — 44 Total loans 61 (45 ) 16 44 Other financing arrangements 58 (55 ) 3 58 Total unsecured financing receivables $ 119 $ (100 ) $ 19 $ 102 (1) The unpaid principal balance was $34 million and the average recorded loan balance was $47 million at September 30, 2019 . December 31, 2018 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 58 $ — $ 58 $ — Impaired loans (2) 50 (50 ) — 50 Total loans 108 (50 ) 58 50 Other financing arrangements 51 (51 ) — 51 Total unsecured financing receivables $ 159 $ (101 ) $ 58 $ 101 (2) The unpaid principal balance was $36 million and the average recorded loan balance was $54 million at December 31, 2018 . |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Identifiable Net Assets Acquired | Net assets acquired were determined as follows: Cash paid, net of cash acquired $ 415 Cash acquired 37 Contingent consideration liability 57 Net assets acquired at December 31, 2018 $ 509 Post-acquisition working capital adjustments (2 ) Net assets acquired at September 30, 2019 $ 507 The following table summarizes the preliminary fair value of the identifiable net assets acquired at September 30, 2019 : Cash $ 32 Receivables 20 Other current assets 2 Equity method investment 2 Property and equipment 2 Indefinite-lived intangibles (1) 96 Management agreement intangibles (2), (5) 209 Goodwill (3) 194 Other assets (4) 25 Total assets $ 582 Advanced deposits $ 20 Other current liabilities 22 Other long-term liabilities (4) 33 Total liabilities 75 Total net assets acquired $ 507 (1) Includes intangibles attributable to the Destination, Alila, and Thompson brands. (2) Amortized over useful lives of 1 to 19 years , with a weighted-average useful life of approximately 12 years . (3) The goodwill, of which $152 million is tax deductible, is attributable to the growth opportunities Hyatt expects to realize by expanding into new markets and enhancing guest experiences through a distinctive collection of lifestyle brands and recorded in the Americas management and franchising segment. (4) Includes $13 million of prior year tax liabilities relating to certain foreign filing positions, including $4 million of interest and penalties. We recorded an offsetting indemnification asset which we expect to collect under contractual arrangements. (5) See Note 8 for impairment discussion. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Rent Expense and Weighted Average Remaining Lease Terms and Discount Rates | Total lease expense related to short-term leases and finance leases was insignificant for the three and nine months ended September 30, 2019 . A summary of operating lease expense is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Minimum rentals $ 12 $ 37 Contingent rentals 22 78 Total operating lease expense $ 34 $ 115 Weighted-average remaining lease terms and discount rates are as follows: September 30, 2019 Weighted-average remaining lease term in years Operating leases (1) 21 Finance leases 7 Weighted-average discount rate Operating leases 3.7 % Finance leases 0.9 % (1) Certain of our hotel and land leases have nominal or contingent rental payments. As such, this results in a lower weighted-average remaining lease term. |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to finance leases is as follows: September 30, 2019 Property and equipment, net (1) $ 9 Current maturities of long-term debt 2 Long-term debt 9 Total finance lease liabilities $ 11 (1) Finance lease assets are net of $13 million of accumulated amortization. |
Maturities of Finance Lease Liabilities in Accordance with ASC 842 | The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter at September 30, 2019 are as follows: Operating leases Finance leases 2019 (remaining) $ 12 $ — 2020 47 3 2021 44 2 2022 42 2 2023 39 2 Thereafter 452 5 Total minimum lease payments $ 636 $ 14 Less: amount representing interest (208 ) (3 ) Present value of minimum lease payments $ 428 $ 11 |
Maturities of Operating Lease Liabilities in Accordance with ASC 842 | The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter at September 30, 2019 are as follows: Operating leases Finance leases 2019 (remaining) $ 12 $ — 2020 47 3 2021 44 2 2022 42 2 2023 39 2 Thereafter 452 5 Total minimum lease payments $ 636 $ 14 Less: amount representing interest (208 ) (3 ) Present value of minimum lease payments $ 428 $ 11 |
Maturities of Lease Liabilities in Accordance with ASC 840 | The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows: Years ending December 31, Operating leases Capital leases 2019 $ 46 $ 3 2020 42 3 2021 42 2 2022 38 2 2023 35 2 Thereafter 448 5 Total minimum lease payments $ 651 $ 17 Less: amount representing interest (5 ) Present value of minimum lease payments $ 12 |
Operating Lease, Lease Income | We recognized rental income within owned and leased hotels revenues on our condensed consolidated statements of income as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Rental income $ 5 $ 7 $ 18 $ 20 |
Future Minimum Lease Receipts in Accordance with ASC 842 | The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter at September 30, 2019 are as follows: 2019 (remaining) $ 5 2020 16 2021 12 2022 11 2023 8 Thereafter 14 Total minimum lease receipts $ 66 |
Future Minimum Lease Receipts in Accordance with ASC 840 | The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows: Years ending December 31, 2019 $ 22 2020 18 2021 16 2022 15 2023 11 Thereafter 48 Total minimum lease receipts $ 130 |
Intangibles, Net (Tables)
Intangibles, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | September 30, 2019 Weighted- average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 371 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 149 — 180 Advanced booking intangibles 14 6 14 Other definite-lived intangibles 8 6 8 Intangibles 542 713 Less: accumulated amortization (89 ) (85 ) Intangibles, net $ 453 $ 628 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 8 $ 3 $ 18 $ 10 |
Schedule of Indefinite-Lived Intangible Assets | September 30, 2019 Weighted- average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 371 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 149 — 180 Advanced booking intangibles 14 6 14 Other definite-lived intangibles 8 6 8 Intangibles 542 713 Less: accumulated amortization (89 ) (85 ) Intangibles, net $ 453 $ 628 Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 8 $ 3 $ 18 $ 10 |
Schedule of Intangible Assets Amortization Expense | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amortization expense $ 8 $ 3 $ 18 $ 10 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | September 30, 2019 December 31, 2018 Marketable securities held to fund rabbi trusts (Note 4) $ 419 $ 367 Management and franchise agreement assets constituting payments to customers (1) 409 396 Marketable securities held to fund the loyalty program (Note 4) 338 303 Long-term investments 111 112 Common shares of Playa N.V. (Note 4) 95 87 Other 104 88 Total other assets $ 1,476 $ 1,353 (1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Fair Value, by Balance Sheet Grouping | September 30, 2019 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) $ 1,627 $ 1,745 $ — $ 1,685 $ 60 (1) Excludes $11 million of finance lease obligations and $15 million of unamortized discounts and deferred financing fees. December 31, 2018 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) $ 1,638 $ 1,651 $ — $ 1,584 $ 67 (2) Excludes $12 million of capital lease obligations and $16 million of unamortized discounts and deferred financing fees. |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities [Abstract] | |
Other Long-term Liabilities | September 30, 2019 December 31, 2018 Deferred compensation plans funded by rabbi trusts (Note 4) $ 419 $ 367 Income taxes payable 145 131 Self-insurance liabilities (Note 13) 79 78 Deferred income taxes 47 54 Guarantee liabilities (Note 13) 37 76 Other 119 134 Total other long-term liabilities $ 846 $ 840 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Guarantor Obligations | The four managed hotels in France Other performance guarantees All performance guarantees 2019 2018 2019 2018 2019 2018 Beginning balance, January 1 $ 36 $ 58 $ 11 $ 13 $ 47 $ 71 Initial guarantee obligation liability — — 1 — 1 — Amortization of initial guarantee obligation liability into income (8 ) (8 ) (1 ) (2 ) (9 ) (10 ) Performance guarantee expense (recovery), net 24 36 — (1 ) 24 35 Net payments during the period (36 ) (50 ) (4 ) (5 ) (40 ) (55 ) Ending balance, June 30 $ 16 $ 36 $ 7 $ 5 $ 23 $ 41 Amortization of initial guarantee obligation liability into income (4 ) (3 ) (1 ) (1 ) (5 ) (4 ) Performance guarantee expense (recovery), net (1 ) 3 2 3 1 6 Net (payments) receipts during the period (3 ) (9 ) (2 ) 2 (5 ) (7 ) Foreign currency exchange, net (1 ) 1 — — (1 ) 1 Ending balance, September 30 $ 7 $ 28 $ 6 $ 9 $ 13 $ 37 |
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 September 30, 2019 Other long-term liabilities recorded at December 31, 2018 Year of guarantee expiration Hotel properties in India (1) $ 169 $ 169 $ 6 $ 10 2020 Hotel and residential properties in Brazil (2), (3) 97 40 3 3 various, through 2023 Hotel properties in Tennessee (2) 44 20 9 2 various, through 2023 Hotel property in Massachusetts (2), (4) 40 14 7 8 various, through 2022 Hotel properties in California (2) 31 12 3 4 various, through 2021 Hotel property in Oregon (2), (4) 28 7 3 4 various, through 2022 Hotel property in Arizona (2), (3) 25 — — 1 2019 Other (2), (5) 10 5 2 19 2022 Total $ 444 $ 267 $ 33 $ 51 (1) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at September 30, 2019 . We have the contractual right to recover amounts funded from an unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $85 million , taking into account our partner's 50% ownership interest in the unconsolidated hospitality venture. Under certain events or conditions, we have the right to force the sale of the properties in order to recover amounts funded. (2) We have agreements with our unconsolidated hospitality venture partners, 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. (3) If certain funding thresholds are met or if certain events occur, we have the ability to assume control of the property. With respect to properties in Brazil, this right only exists for the residential property. (4) In conjunction with the debt repayment guarantees, we are subject to completion guarantees 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 partial recovery in the form of cash. At September 30, 2019 , the maximum potential future payments for the property in Massachusetts and the property in Oregon are $13 million and $12 million , respectively. After consideration of recoverability from third parties, our maximum exposure is insignificant for both the property in Massachusetts and the property in Oregon at September 30, 2019 . (5) At December 31, 2018 , other-long term liabilities included a debt repayment guarantee for a hotel property in Washington State. During the nine months ended September 30, 2019 , the debt was refinanced, and we are no longer a guarantor. As a result, we recognized a $15 million release of our debt repayment guarantee liability in other income (loss), net on our condensed consolidated statements of income for the nine months ended September 30, 2019 (see Note 19 ). |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2019 Foreign currency translation adjustments $ (191 ) $ (27 ) $ — $ (218 ) Unrecognized pension cost (5 ) — — (5 ) Unrealized losses on derivative instruments (16 ) (9 ) — (25 ) Accumulated other comprehensive loss $ (212 ) $ (36 ) $ — $ (248 ) Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at Foreign currency translation adjustments $ (191 ) $ (27 ) $ — $ (218 ) Unrecognized pension cost (5 ) — — (5 ) Unrealized losses on derivative instruments (4 ) (21 ) — (25 ) Accumulated other comprehensive loss $ (200 ) $ (48 ) $ — $ (248 ) Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss (a) Balance at Foreign currency translation adjustments $ (266 ) $ 9 $ 62 $ (195 ) Unrecognized pension cost (7 ) — — (7 ) Unrealized losses on derivative instruments (3 ) 3 — — Accumulated other comprehensive loss $ (276 ) $ 12 $ 62 $ (202 ) (a) The amounts reclassified from accumulated other comprehensive loss include the gain recognized in gains on sales of real estate related to the HRMC transaction (see Note 6). Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss (b) Balance at Foreign currency translation adjustments $ (243 ) $ (29 ) $ 77 $ (195 ) Unrecognized pension cost (7 ) — — (7 ) Unrealized losses on derivative instruments (3 ) 3 — — Accumulated other comprehensive loss $ (253 ) $ (26 ) $ 77 $ (202 ) (b) The amounts reclassified from accumulated other comprehensive loss include the net gain recognized in gains on sales of real estate related to the derecognition of a wholly owned subsidiary and the HRMC transaction (see Note 6). |
Stockholders' Equity and Noncontrolling Interests | During the nine months ended September 30, 2018 , we entered into the following accelerated share repurchase ("ASR") program with a third-party financial institution to repurchase Class A shares: Total number of shares repurchased (1) Weighted-average price per share Total cash paid May 2018 ASR 2,481,341 $ 80.60 $ 200 (1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share. |
Dividends Declared and Paid | The following tables summarize dividends paid to Class A and Class B shareholders of record: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Class A common stock $ 8 $ 7 $ 22 $ 21 Class B common stock 12 10 38 31 Total cash dividends paid $ 20 $ 17 $ 60 $ 52 Date declared Dividend per share amount for Class A and Class B Date of record Date paid February 13, 2019 $ 0.19 February 27, 2019 March 11, 2019 May 17, 2019 $ 0.19 May 29, 2019 June 10, 2019 July 31, 2019 $ 0.19 August 27, 2019 September 9, 2019 February 14, 2018 $ 0.15 March 22, 2018 March 29, 2018 May 16, 2018 $ 0.15 June 19, 2018 June 28, 2018 July 31, 2018 $ 0.15 September 6, 2018 September 20, 2018 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Compensation Expense Related to Long-Term Incentive Plan | Stock-based compensation expense included in selling, general, and administrative expense on our condensed consolidated statements of income related to these awards was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 SARs $ 1 $ 1 $ 11 $ 10 RSUs 2 2 13 14 PSUs 1 2 4 4 Total $ 4 $ 5 $ 28 $ 28 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 and Exhale, Hyatt Residence Club license fees, results related to our co- branded credit cards, and unallocated corporate expenses. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Owned and leased hotels Owned and leased hotels revenues $ 425 $ 443 $ 1,364 $ 1,428 Intersegment revenues (a) 11 7 27 26 Adjusted EBITDA 76 91 291 324 Depreciation and amortization 62 65 185 197 Americas management and franchising Management, franchise, and other fees revenues 106 95 326 301 Contra revenue (4 ) (4 ) (11 ) (10 ) Other revenues 16 — 71 — Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 565 447 1,688 1,328 Intersegment revenues (a) 14 16 47 52 Adjusted EBITDA 92 83 285 266 Depreciation and amortization 6 2 18 6 ASPAC management and franchising Management, franchise, and other fees revenues 32 30 96 90 Contra revenue — — (1 ) (1 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 30 24 80 67 Intersegment revenues (a) 1 1 1 1 Adjusted EBITDA 19 19 59 55 Depreciation and amortization 1 1 3 1 EAME/SW Asia management and franchising Management, franchise, and other fees revenues 21 21 58 58 Contra revenue (1 ) (1 ) (4 ) (4 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 20 16 54 49 Intersegment revenues (a) 3 3 7 8 Adjusted EBITDA 12 12 33 33 Depreciation and amortization 1 — 1 — Corporate and other Revenues 32 26 101 89 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 2 2 4 3 Intersegment revenues (a) — (2 ) (1 ) (5 ) Adjusted EBITDA (35 ) (29 ) (107 ) (85 ) Depreciation and amortization 15 13 41 39 Eliminations Revenues (a) (29 ) (25 ) (81 ) (82 ) Adjusted EBITDA (1 ) (1 ) 2 2 TOTAL Revenues $ 1,215 $ 1,074 $ 3,745 $ 3,316 Adjusted EBITDA 163 175 563 595 Depreciation and amortization 85 81 248 243 (a) Intersegment revenues are included in management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations. |
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: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income attributable to Hyatt Hotels Corporation $ 296 $ 237 $ 445 $ 725 Interest expense 19 19 58 57 Provision for income taxes 109 19 148 194 Depreciation and amortization 85 81 248 243 EBITDA 509 356 899 1,219 Contra revenue 5 5 16 15 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (617 ) (489 ) (1,826 ) (1,447 ) Costs incurred on behalf of managed and franchised properties 633 487 1,871 1,447 Equity losses from unconsolidated hospitality ventures 5 6 2 17 Stock-based compensation expense (Note 15) 4 5 28 28 Gains on sales of real estate (Note 6) (373 ) (239 ) (374 ) (769 ) Asset impairments 9 21 13 21 Other (income) loss, net (Note 19) (25 ) 9 (104 ) 22 Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA 13 14 38 42 Adjusted EBITDA $ 163 $ 175 $ 563 $ 595 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income $ 296 $ 237 $ 445 $ 725 Net income and accretion attributable to noncontrolling interests — — — — Net income attributable to Hyatt Hotels Corporation $ 296 $ 237 $ 445 $ 725 Denominator: Basic weighted-average shares outstanding 104,349,157 111,356,759 105,226,587 114,829,210 Share-based compensation 1,569,736 1,867,226 1,553,693 1,954,863 Diluted weighted-average shares outstanding 105,918,893 113,223,985 106,780,280 116,784,073 Basic Earnings Per Share: Net income $ 2.84 $ 2.12 $ 4.23 $ 6.31 Net income and accretion attributable to noncontrolling interests — — — — Net income attributable to Hyatt Hotels Corporation $ 2.84 $ 2.12 $ 4.23 $ 6.31 Diluted Earnings Per Share: Net income $ 2.80 $ 2.09 $ 4.17 $ 6.21 Net income and accretion attributable to noncontrolling interests — — — — Net income attributable to Hyatt Hotels Corporation $ 2.80 $ 2.09 $ 4.17 $ 6.21 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The computations of diluted net income per share for the three and nine months ended September 30, 2019 and September 30, 2018 do not include the following shares of Class A common stock assumed to be issued as stock- settled SARs because they are anti- dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 SARs 14,800 — 14,400 — |
Other Income (Loss), Net (Table
Other Income (Loss), Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Loss), Net | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Depreciation recovery $ 7 $ 5 $ 19 $ 16 Interest income (Note 4) 6 7 18 19 Performance guarantee liability amortization (Note 13) 5 4 14 14 Unrealized gains (losses) (Note 4) 3 (15 ) 23 (21 ) Release of contingent consideration liability (Note 6) 2 — 29 — Release and amortization of debt repayment guarantee liability (Note 13) 1 2 18 8 Impairment of an equity security without a readily determinable fair value (Note 4) — — — (22 ) Loss on extinguishment of debt (Note 10) — (7 ) — (7 ) Performance guarantee expense, net (Note 13) (1 ) (6 ) (25 ) (41 ) Other, net 2 1 8 12 Other income (loss), net $ 25 $ (9 ) $ 104 $ (22 ) |
Organization (Details)
Organization (Details) | Sep. 30, 2019hotelcountryroom |
Organization | |
Number of countries in which entity operates | country | 63 |
Full service | |
Organization | |
Number of hotels operated or franchised | 434 |
Number of rooms operated or franchised | room | 151,995 |
Select service | |
Organization | |
Number of hotels operated or franchised | 453 |
Number of rooms operated or franchised | room | 64,500 |
Select service | United States | |
Organization | |
Number of hotels operated or franchised | 390 |
All inclusive | |
Organization | |
Number of hotels operated or franchised | 6 |
Number of rooms operated or franchised | room | 2,403 |
Wellness resorts | |
Organization | |
Number of hotels operated or franchised | 3 |
Number of rooms operated or franchised | room | 410 |
Recently Issued Accounting Pr_4
Recently Issued Accounting Pronouncements - Narrative (Details) - USD ($) | Jan. 01, 2019 | Sep. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 512,000,000 | $ 488,000,000 |
Total operating lease liabilities | $ 428,000,000 | |
Effect of the adoption of ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | 512,000,000 | |
Total operating lease liabilities | 452,000,000 | |
Leases, tax impact | 0 | |
Below Market Lease Related Intangibles | Effect of the adoption of ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification from assets and liabilities | 103,000,000 | |
Deferred Lease Liabilities | Effect of the adoption of ASU 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification from assets and liabilities | $ (49,000,000) |
Recently Issued Accounting Pr_5
Recently Issued Accounting Pronouncements - Schedule of Changes Due to Adoption of ASU 2016-02 (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | |||||||||
Prepaids and other assets | $ 129 | $ 147 | $ 149 | ||||||
Intangibles, net | 453 | 525 | 628 | ||||||
Other assets | 1,476 | 1,346 | 1,353 | ||||||
Operating lease right-of-use assets | 488 | 512 | |||||||
TOTAL ASSETS | 8,129 | 8,043 | 7,643 | ||||||
LIABILITIES AND EQUITY | |||||||||
Accounts payable | 144 | 150 | 151 | ||||||
Accrued expenses and other current liabilities | 315 | 359 | 361 | ||||||
Current operating lease liabilities | 33 | 34 | |||||||
Long-term operating lease liabilities | 395 | 418 | |||||||
Other long-term liabilities | 846 | 791 | 840 | ||||||
Total liabilities | 4,368 | 4,366 | 3,966 | ||||||
Total equity | 3,761 | $ 3,647 | $ 3,628 | 3,677 | 3,677 | $ 3,935 | $ 3,701 | $ 4,194 | $ 3,839 |
TOTAL LIABILITIES AND EQUITY | $ 8,129 | 8,043 | $ 7,643 | ||||||
Effect of the adoption of ASU 2016-02 | |||||||||
ASSETS | |||||||||
Prepaids and other assets | (2) | ||||||||
Intangibles, net | (103) | ||||||||
Other assets | (7) | ||||||||
Operating lease right-of-use assets | 512 | ||||||||
TOTAL ASSETS | 400 | ||||||||
LIABILITIES AND EQUITY | |||||||||
Accounts payable | (1) | ||||||||
Accrued expenses and other current liabilities | (2) | ||||||||
Current operating lease liabilities | 34 | ||||||||
Long-term operating lease liabilities | 418 | ||||||||
Other long-term liabilities | (49) | ||||||||
Total liabilities | 400 | ||||||||
Total equity | 0 | ||||||||
TOTAL LIABILITIES AND EQUITY | $ 400 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,215 | $ 1,074 | $ 3,745 | $ 3,316 |
Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 252 | 274 | 794 | 840 |
Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 134 | 135 | 461 | 481 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 44 | 41 | 135 | 129 |
Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 430 | 450 | 1,390 | 1,450 |
Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64 | 55 | 195 | 167 |
Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33 | 33 | 106 | 105 |
Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37 | 33 | 107 | 96 |
Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8 | 7 | 21 | 24 |
License fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6 | 5 | 18 | 15 |
Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 148 | 133 | 447 | 407 |
Amortization of management and franchise agreement assets constituting payments to customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (5) | (5) | (16) | (15) |
Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 143 | 128 | 431 | 392 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 25 | 7 | 98 | 27 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 617 | 489 | 1,826 | 1,447 |
Operating segments | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 425 | 443 | 1,364 | 1,428 |
Operating segments | Owned and leased hotels | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 259 | 276 | 804 | 848 |
Operating segments | Owned and leased hotels | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 131 | 133 | 452 | 474 |
Operating segments | Owned and leased hotels | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35 | 34 | 108 | 106 |
Operating segments | Owned and leased hotels | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 425 | 443 | 1,364 | 1,428 |
Operating segments | Owned and leased hotels | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | License fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 683 | 538 | 2,074 | 1,619 |
Operating segments | Americas management and franchising | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55 | 48 | 173 | 150 |
Operating segments | Americas management and franchising | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13 | 14 | 46 | 47 |
Operating segments | Americas management and franchising | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36 | 32 | 104 | 94 |
Operating segments | Americas management and franchising | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2 | 1 | 3 | 10 |
Operating segments | Americas management and franchising | License fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 106 | 95 | 326 | 301 |
Operating segments | Americas management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (4) | (4) | (11) | (10) |
Operating segments | Americas management and franchising | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 102 | 91 | 315 | 291 |
Operating segments | Americas management and franchising | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16 | 0 | 71 | 0 |
Operating segments | Americas management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 565 | 447 | 1,688 | 1,328 |
Operating segments | ASPAC management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62 | 54 | 175 | 156 |
Operating segments | ASPAC management and franchising | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11 | 11 | 33 | 32 |
Operating segments | ASPAC management and franchising | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17 | 16 | 51 | 50 |
Operating segments | ASPAC management and franchising | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 1 | 3 | 2 |
Operating segments | ASPAC management and franchising | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3 | 2 | 9 | 6 |
Operating segments | ASPAC management and franchising | License fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32 | 30 | 96 | 90 |
Operating segments | ASPAC management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | (1) | (1) |
Operating segments | ASPAC management and franchising | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 32 | 30 | 95 | 89 |
Operating segments | ASPAC management and franchising | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30 | 24 | 80 | 67 |
Operating segments | EAME/SW Asia management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40 | 36 | 108 | 103 |
Operating segments | EAME/SW Asia management and franchising | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10 | 9 | 27 | 25 |
Operating segments | EAME/SW Asia management and franchising | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9 | 10 | 26 | 29 |
Operating segments | EAME/SW Asia management and franchising | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2 | 2 | 5 | 4 |
Operating segments | EAME/SW Asia management and franchising | License fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 21 | 21 | 58 | 58 |
Operating segments | EAME/SW Asia management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (1) | (1) | (4) | (4) |
Operating segments | EAME/SW Asia management and franchising | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20 | 20 | 54 | 54 |
Operating segments | EAME/SW Asia management and franchising | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20 | 16 | 54 | 49 |
Corporate and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34 | 28 | 105 | 92 |
Corporate and other | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4 | 5 | 17 | 18 |
Corporate and other | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3 | 2 | 9 | 7 |
Corporate and other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9 | 7 | 27 | 23 |
Corporate and other | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16 | 14 | 53 | 48 |
Corporate and other | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 2 | 4 | 4 |
Corporate and other | License fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6 | 5 | 18 | 15 |
Corporate and other | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7 | 7 | 22 | 19 |
Corporate and other | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7 | 7 | 22 | 19 |
Corporate and other | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9 | 5 | 26 | 22 |
Corporate and other | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2 | 2 | 4 | 3 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (29) | (25) | (81) | (82) |
Eliminations | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (11) | (7) | (27) | (26) |
Eliminations | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (11) | (7) | (27) | (26) |
Eliminations | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (12) | (13) | (38) | (40) |
Eliminations | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (6) | (7) | (17) | (21) |
Eliminations | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | License fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (18) | (20) | (55) | (61) |
Eliminations | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (18) | (20) | (55) | (61) |
Eliminations | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 2 | 1 | 5 |
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11 | 7 | 27 | 26 |
Eliminations | Americas management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14 | 16 | 47 | 52 |
Eliminations | ASPAC management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 1 | 1 | 1 |
Eliminations | EAME/SW Asia management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 3 | $ 3 | $ 7 | $ 8 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Contract assets | $ 2,000,000 | $ 2,000,000 | $ 0 | ||||||
Total contract liabilities | 875,000,000 | $ 765,000,000 | $ 861,000,000 | $ 764,000,000 | 875,000,000 | $ 765,000,000 | 830,000,000 | $ 772,000,000 | |
Cash received from contract with customer | 265,000,000 | 223,000,000 | 490,000,000 | 433,000,000 | |||||
Revenue recognized from contract with customer | (251,000,000) | (222,000,000) | $ (459,000,000) | $ (441,000,000) | |||||
Revenue recognized from contract with customer beginning balance | 80,000,000 | $ 81,000,000 | 318,000,000 | $ 299,000,000 | |||||
Deferred revenue related to the loyalty program | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Total contract liabilities | 657,000,000 | 657,000,000 | 596,000,000 | ||||||
Advanced deposits | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Total contract liabilities | 77,000,000 | 77,000,000 | 81,000,000 | ||||||
Initial fees received from franchise owners | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Total contract liabilities | 39,000,000 | 39,000,000 | 35,000,000 | ||||||
Deferred revenue related to system-wide services | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Total contract liabilities | 11,000,000 | 11,000,000 | 7,000,000 | ||||||
Other deferred revenue | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Total contract liabilities | $ 91,000,000 | $ 91,000,000 | $ 111,000,000 | ||||||
Scenario, Forecast | |||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||
Contract assets | $ 0 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Remaining Performance Obligation (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 130 |
Revenue, performance obligation, description of timing | Revenues received for free nights granted through our co-branded credit card as the awards are required to be redeemed within 12 months; and Revenues related to advanced bookings at owned and leased hotels as each stay has a duration of 12 months or less. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent recognized | 20.00% |
Remaining performance obligation, period | 1 year |
Debt and Equity Securities - Na
Debt and Equity Securities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule of Debt and Equity Method Investments | |||||
Equity method investments | $ 229 | $ 229 | $ 233 | ||
Equity method investment, realized gain on disposal | $ 1 | 8 | $ 11 | ||
Equity method investment, net sales proceeds | 2 | 7 | 25 | 17 | |
Equity method investment, impairment charges | $ 6 | $ 7 | |||
Equity method investment, net purchase price | 4 | 4 | |||
Common stock, shares sold (in shares) | 0 | 0 | |||
Held-to-maturity securities | $ 56 | $ 56 | 49 | ||
Equity securities without a readily determinable fair value | 9 | 9 | $ 9 | ||
Investments, impairment charges | 0 | 0 | 0 | 22 | |
Unconsolidated Hospitality Venture | |||||
Schedule of Debt and Equity Method Investments | |||||
Equity method investment, impairment charges | 16 | ||||
Playa Hotels & Resorts N.V. | Common shares | |||||
Schedule of Debt and Equity Method Investments | |||||
Unrealized gains (losses) recognized in other income (loss), net | $ 1 | $ (14) | $ 8 | $ (14) |
Debt and Equity Securities - Su
Debt and Equity Securities - Summarized Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Total revenues | $ 130 | $ 135 | $ 371 | $ 399 |
Gross operating profit | 51 | 53 | 139 | 141 |
Income (loss) from continuing operations | 9 | (12) | (2) | (15) |
Net income (loss) | $ 9 | $ (12) | $ (2) | $ (15) |
Debt and Equity Securities - He
Debt and Equity Securities - Held to Fund Operating Programs (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Held for operating programs | ||
Schedule of Investments | ||
Total marketable securities held for investment/operating purposes | $ 1,008 | $ 897 |
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 | (205) | (174) |
Marketable securities held to fund operating programs included in other assets | 803 | 723 |
Loyalty program | ||
Schedule of Investments | ||
Total marketable securities held for investment/operating purposes | 453 | 397 |
Deferred compensation plans held in rabbi trusts | ||
Schedule of Investments | ||
Total marketable securities held for investment/operating purposes | 419 | 367 |
Captive insurance companies | ||
Schedule of Investments | ||
Total marketable securities held for investment/operating purposes | $ 136 | $ 133 |
Debt and Equity Securities - Ga
Debt and Equity Securities - Gain (loss) on Investments Held to Fund Operating Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Loyalty program | $ 0 | $ 10 | $ 41 | $ 19 |
Net gains and interest income from marketable securities held to fund rabbi trusts | 0 | 10 | 41 | 19 |
Loyalty program | ||||
Gain (Loss) on Securities [Line Items] | ||||
Loyalty program | 5 | 1 | 24 | (2) |
Net gains and interest income from marketable securities held to fund rabbi trusts | 5 | 1 | 24 | (2) |
Deferred compensation plans held in rabbi trusts | ||||
Gain (Loss) on Securities [Line Items] | ||||
Unrealized gains (losses) | (2) | 5 | 35 | 7 |
Realized gains | $ 2 | $ 5 | $ 6 | $ 12 |
Debt and Equity Securities - _2
Debt and Equity Securities - Held for Investment Purposes (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments | ||
Common shares of Playa N.V. (Note 4) | $ 95 | $ 87 |
Held for Investment Purposes | ||
Schedule of Investments | ||
Interest-bearing money market funds | 202 | 14 |
Common shares of Playa N.V. (Note 4) | 95 | 87 |
Time deposits | 37 | 100 |
Total marketable securities held for investment/operating purposes | 334 | 201 |
Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments | (239) | (114) |
Marketable securities held for investment purposes included in other assets | $ 95 | $ 87 |
Debt and Equity Securities - Fa
Debt and Equity Securities - Fair Value of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | $ 1,342 | $ 1,098 |
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 | 308 | 88 |
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 | 419 | 367 |
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 | 95 | 87 |
Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 49 | 113 |
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 | 195 | 169 |
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 | 58 | 52 |
Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 155 | 151 |
Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 23 | 23 |
Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 38 | 46 |
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 | 2 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 308 | 88 |
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 | 308 | 88 |
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 | 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 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 63 | 116 |
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 | 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 | 41 | 104 |
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 | 2 |
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 | 20 | 10 |
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 |
Prepaids and other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 73 | 84 |
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 | 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 | 34 | 37 |
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 | 7 |
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 | 21 | 25 |
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 | 4 | 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 | 7 | 10 |
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 | 0 | 0 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 898 | 810 |
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 | 419 | 367 |
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 | 95 | 87 |
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 | 8 | 9 |
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 | 161 | 132 |
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 | 49 | 43 |
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 | 114 | 116 |
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 | 18 |
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 | 31 | 36 |
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 | $ 2 |
Financing Receivables - Schedul
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable | ||||||
Total long-term financing receivables, net of allowances | $ 19 | $ 13 | ||||
Unsecured financing | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Unsecured financing to hotel owners | 119 | 159 | ||||
Less: current portion of financing receivables, included in receivables, net | 0 | (45) | ||||
Less: allowance for losses | (100) | $ (100) | (101) | $ (99) | $ (109) | $ (108) |
Total long-term financing receivables, net of allowances | $ 19 | $ 13 |
Financing Receivables - Allowan
Financing Receivables - Allowance for Losses and Impairments (Details) - Unsecured financing - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Losses and Impairments | ||||
Allowance beginning balance | $ 100 | $ 109 | $ 101 | $ 108 |
Provisions | 1 | 2 | 3 | 3 |
Other adjustments | (1) | 0 | 0 | (2) |
Write-offs | 0 | (12) | (4) | 0 |
Allowance ending balance | $ 100 | $ 99 | $ 100 | $ 109 |
Financing Receivables - Credit
Financing Receivables - Credit Monitoring (Details) - Unsecured financing - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Unsecured Financing Receivables | ||||||
Gross loan balance (principal and interest) | $ 119 | $ 159 | ||||
Related allowance | (100) | (101) | $ (100) | $ (99) | $ (109) | $ (108) |
Net financing receivables | 19 | 58 | ||||
Gross receivables on non-accrual status | 102 | 101 | ||||
Loans | ||||||
Unsecured Financing Receivables | ||||||
Gross loan balance (principal and interest) | 17 | 58 | ||||
Related allowance | (1) | 0 | ||||
Net financing receivables | 16 | 58 | ||||
Gross receivables on non-accrual status | 0 | 0 | ||||
Impaired loans | ||||||
Unsecured Financing Receivables | ||||||
Impaired loans | 44 | 50 | ||||
Impaired loans, allowance | (44) | (50) | ||||
Net financing receivables | 0 | 0 | ||||
Gross receivables on non-accrual status | 44 | 50 | ||||
Impaired financing receivable, unpaid principal balance | 34 | 36 | ||||
Impaired financing receivable, average recorded investment | 47 | 54 | ||||
Total loans | ||||||
Unsecured Financing Receivables | ||||||
Gross loan balance (principal and interest) | 61 | 108 | ||||
Related allowance | (45) | (50) | ||||
Net financing receivables | 16 | 58 | ||||
Gross receivables on non-accrual status | 44 | 50 | ||||
Other financing arrangements | ||||||
Unsecured Financing Receivables | ||||||
Gross loan balance (principal and interest) | 58 | 51 | ||||
Related allowance | (55) | (51) | ||||
Net financing receivables | 3 | 0 | ||||
Gross receivables on non-accrual status | $ 58 | $ 51 |
Financing Receivables - Narrati
Financing Receivables - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Significant unobservable inputs (Level Three) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Financing receivables | $ 20 | $ 59 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions Narrative (Details) $ in Millions | Nov. 30, 2018USD ($)asset_acquired | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||||
Acquisitions, net of cash acquired | $ 18 | $ 263 | |||||
Post-acquisition working capital adjustments | (2) | ||||||
Partial release of contingent consideration | $ (2) | $ 0 | (29) | 0 | |||
Intangibles reclassified to goodwill | 453 | 453 | $ 525 | $ 628 | |||
Goodwill from reclassification of intangible assets | 322 | 322 | 283 | ||||
Land Held for Development | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire land | 15 | ||||||
Two Roads Hospitality LLC | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | $ 405 | ||||||
Additional consideration, completion of specific actions | $ 96 | ||||||
Time to meet agreed upon actions | 120 days | ||||||
Additional consideration, event of execution of certain agreements within one year of closing | $ 8 | ||||||
Acquisitions, net of cash acquired | 415 | ||||||
Cash acquired | 37 | ||||||
Additional considerations | 36 | ||||||
Other purchase price adjustments | 4 | ||||||
Additional amount that could be funded | 68 | ||||||
Contingent liability | 4 | 4 | 57 | ||||
Total net assets acquired | 507 | 507 | 507 | $ 509 | |||
Additional consideration owed to sellers | 24 | 24 | |||||
Partial release of contingent consideration | 2 | 29 | |||||
Goodwill from reclassification of intangible assets | 194 | ||||||
Property and equipment acquired | $ 2 | ||||||
Hyatt Regency Phoenix | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration transferred | 139 | ||||||
Business combination, proration costs | 1 | ||||||
Property and equipment acquired | 136 | 136 | |||||
Hyatt Regency Indian Wells Resort And Spa | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, consideration transferred | 120 | ||||||
Property and equipment acquired | $ 119 | $ 119 | |||||
Brand And Other Intangibles | Two Roads Hospitality LLC | |||||||
Business Acquisition [Line Items] | |||||||
Number of brands acquired | asset_acquired | 5 | ||||||
Scenario, Adjustment | Two Roads Hospitality LLC | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles reclassified to goodwill | (34) | (34) | |||||
Goodwill from reclassification of intangible assets | $ 34 | $ 34 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 322 | $ 283 | |
Two Roads Hospitality LLC | |||
Business Acquisition [Line Items] | |||
Cash | $ 32 | ||
Receivables | 20 | ||
Other current assets | 2 | ||
Equity method investment | 2 | ||
Property and equipment | 2 | ||
Indefinite-lived intangibles | 96 | ||
Management agreement intangibles | 209 | ||
Goodwill | 194 | ||
Other assets | 25 | ||
Total assets | 582 | ||
Advanced deposits | 20 | ||
Other current liabilities | 22 | ||
Other long-term liabilities | 33 | ||
Total liabilities | 75 | ||
Total net assets acquired | 507 | $ 507 | $ 509 |
Goodwill expected tax deductible amount | 152 | ||
Prior year tax liabilities | 13 | ||
Income tax examination, penalties and interest expense | $ 4 | ||
Two Roads Hospitality LLC | Management Agreement | Minimum | |||
Business Acquisition [Line Items] | |||
Weighted-average useful life | 1 year | ||
Two Roads Hospitality LLC | Management Agreement | Maximum | |||
Business Acquisition [Line Items] | |||
Weighted-average useful life | 19 years | ||
Two Roads Hospitality LLC | Management Agreement | Weighted Average | |||
Business Acquisition [Line Items] | |||
Weighted-average useful life | 12 years |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Dispositions Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of real estate, net of cash disposed | $ 461 | $ 1,334 | |||
Asset impairments | $ 9 | $ 21 | 13 | 21 | |
Equity method investments | 229 | $ 229 | $ 233 | ||
Hyatt Regency Atlanta | Disposal group, disposed of by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of real estate, net of cash disposed | 346 | ||||
Gains on sales of real estate | 272 | ||||
Property Adjacent to Grand Hyatt San Francisco | Disposal group, disposed of by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of real estate, net of cash disposed | 115 | ||||
Gains on sales of real estate | $ 101 | ||||
Hyatt Regency Mexico City | Disposal group, disposed of by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of real estate, net of cash disposed | 360 | ||||
Gains on sales of real estate | 240 | ||||
Disposal group, consideration | 405 | 405 | |||
Unsecured financing receivable | 46 | ||||
Asset impairments | $ 21 | ||||
Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort & Spa | Disposal group, disposed of by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sales of real estate, net of cash disposed | 992 | ||||
Gains on sales of real estate | 531 | ||||
Pre-tax net income | $ 15 | ||||
Land Held For Development And Sold In 2018 | Disposal group, disposed of by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Consideration in exchange for the third party investment | 50.00% | 50.00% | |||
Unconsolidated Hospitality Venture | Land Held For Development And Sold In 2018 | Disposal group, disposed of by sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Equity method investments | $ 45 | $ 45 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Like-Kind Exchange Agreements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Like-kind exchange period for replacement property identified | 45 days | |||
Disposal group, disposed of by sale | ||||
Business Acquisition [Line Items] | ||||
Proceeds used to in acquisition | $ 198 | |||
Proceeds released | $ 23 | |||
Disposal group, disposed of by sale | Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort & Spa | ||||
Business Acquisition [Line Items] | ||||
Proceeds held as restricted for use | $ 115 | |||
Disposal group, disposed of by sale | Hyatt Regency Coconut Point Resort & Spa | ||||
Business Acquisition [Line Items] | ||||
Proceeds held as restricted for use | $ 221 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating and finance lease, extension term | 1 year |
Operating lease, term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating and finance lease, extension term | 99 years |
Operating lease, term of contract | 20 years |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Minimum rentals | $ 12 | $ 37 |
Contingent rentals | 22 | 78 |
Total operating lease expense | $ 34 | $ 115 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Property and equipment, net | $ 9 |
Current maturities of long-term debt | 2 |
Long-term debt | 9 |
Total finance lease liabilities | 11 |
Finance lease, amortization | $ 13 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rates (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term - operating leases | 21 years |
Weighted-average remaining lease term - finance leases | 7 years |
Weighted-average discount rate - operating leases | 3.70% |
Weighted-average discount rate - finance leases | 0.90% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities in Accordance with ASC 842 (Details) $ in Millions | Sep. 30, 2019USD ($) |
Operating leases | |
2019 (remaining) | $ 12 |
2020 | 47 |
2021 | 44 |
2022 | 42 |
2023 | 39 |
Thereafter | 452 |
Total minimum lease payments | 636 |
Less: amount representing interest | (208) |
Total operating lease liabilities | 428 |
Finance leases | |
2019 (remaining) | 0 |
2020 | 3 |
2021 | 2 |
2022 | 2 |
2023 | 2 |
Thereafter | 5 |
Total minimum lease payments | 14 |
Less: amount representing interest | (3) |
Total finance lease liabilities | $ 11 |
Leases - Maturities of Lease _2
Leases - Maturities of Lease Liabilities in Accordance with ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating leases | |
2019 | $ 46 |
2020 | 42 |
2021 | 42 |
2022 | 38 |
2023 | 35 |
Thereafter | 448 |
Total minimum lease payments | 651 |
Capital leases | |
2019 | 3 |
2020 | 3 |
2021 | 2 |
2022 | 2 |
2023 | 2 |
Thereafter | 5 |
Total minimum lease payments | 17 |
Less: amount representing interest | (5) |
Present value of minimum lease payments | $ 12 |
Leases - Rental Income (Details
Leases - Rental Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||||
Rental income | $ 5 | $ 7 | $ 18 | $ 20 |
Leases - Maturities of Future M
Leases - Maturities of Future Minimum Lease Receipts Under ASC 842 (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining) | $ 5 |
2020 | 16 |
2021 | 12 |
2022 | 11 |
2023 | 8 |
Thereafter | 14 |
Total minimum lease receipts | $ 66 |
Leases - Maturities of Future_2
Leases - Maturities of Future Minimum Lease Receipts Under ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 22 |
2020 | 18 |
2021 | 16 |
2022 | 15 |
2023 | 11 |
Thereafter | 48 |
Operating Leases, Future Minimum Payments Receivable | $ 130 |
Intangibles, Net - Schedule of
Intangibles, Net - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Schedule of Intangible Asset by Major Class | |||
Intangible assets, gross | $ 542 | $ 713 | |
Less: accumulated amortization | (89) | (85) | |
Intangibles, net | 453 | $ 525 | 628 |
Brand and other indefinite-lived intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangible assets, gross | 149 | 180 | |
Management and franchise agreement intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangible assets, gross | $ 371 | 390 | |
Weighted- average useful lives in years | 18 years | ||
Lease related intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangible assets, gross | $ 0 | 121 | |
Weighted- average useful lives in years | 0 years | ||
Advanced booking intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangible assets, gross | $ 14 | 14 | |
Weighted- average useful lives in years | 6 years | ||
Other definite-lived intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangible assets, gross | $ 8 | $ 8 | |
Weighted- average useful lives in years | 6 years |
Intangibles, Net - Amortization
Intangibles, Net - Amortization Expense Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 8 | $ 3 | $ 18 | $ 10 |
Intangibles, Net - Narrative (D
Intangibles, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Management and franchise agreement intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets | $ 9 | $ 13 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent [Abstract] | |||
Marketable securities held to fund rabbi trusts (Note 4) | $ 419 | $ 367 | |
Management and franchise agreement assets constituting payments to customers (1) | 409 | 396 | |
Marketable securities held to fund the loyalty program (Note 4) | 338 | 303 | |
Long-term investments | 111 | 112 | |
Common shares of Playa N.V. (Note 4) | 95 | 87 | |
Other | 104 | 88 | |
Total other assets | $ 1,476 | $ 1,346 | $ 1,353 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Instrument | |||||
Long-term debt, net of current maturities | $ 1,612,000,000 | $ 1,612,000,000 | $ 1,623,000,000 | ||
Discounts and offering expenses | 15,000,000 | 15,000,000 | 16,000,000 | ||
Loss on extinguishment of debt | $ 0 | $ 7,000,000 | 0 | $ 7,000,000 | |
Revolving credit facility | |||||
Debt Instrument | |||||
Borrowings from revolving credit facility during period | $ 180,000,000 | ||||
Revolving credit facility, weighted average interest rate | 3.46% | 3.46% | |||
Revolving credit facility, outstanding balance | $ 0 | $ 0 | $ 0 | ||
Revolving credit facility, remaining borrowing capacity | 1,500,000,000 | 1,500,000,000 | |||
Line of Credit | Revolving credit facility | |||||
Debt Instrument | |||||
Line of credit facility | 1,500,000,000 | 1,500,000,000 | |||
2028 Notes | Senior Notes | |||||
Debt Instrument | |||||
Long-term debt, fair value | $ 400,000,000 | $ 400,000,000 | |||
Debt instrument, stated percent | 4.375% | 4.375% | |||
Issue price percentage | 99.866% | ||||
Proceeds from issuance of debt | $ 396,000,000 | ||||
Discounts and offering expenses | $ 4,000,000 | 4,000,000 | |||
2019 Notes | Senior Notes | |||||
Debt Instrument | |||||
Long-term debt, fair value | $ 196,000,000 | $ 196,000,000 | |||
Debt instrument, stated percent | 6.875% | 6.875% | |||
Redemption price | $ 203,000,000 | ||||
Loss on extinguishment of debt | $ 7,000,000 | ||||
2021 Notes | Senior Notes | |||||
Debt Instrument | |||||
Long-term debt, fair value | $ 250,000,000 | $ 250,000,000 | |||
Debt instrument, stated percent | 5.375% | 5.375% | |||
2023 Notes | Senior Notes | |||||
Debt Instrument | |||||
Long-term debt, fair value | $ 350,000,000 | $ 350,000,000 | |||
Debt instrument, stated percent | 3.375% | 3.375% | |||
2026 Notes | Senior Notes | |||||
Debt Instrument | |||||
Long-term debt, fair value | $ 400,000,000 | $ 400,000,000 | |||
Debt instrument, stated percent | 4.85% | 4.85% |
Debt - Fair Value (Details)
Debt - Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Finance lease obligations | $ 11 | |
Unamortized discount and deferred financing fees | 15 | $ 16 |
Capital lease obligations | 12 | |
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 | 1,685 | 1,584 |
Significant unobservable inputs (Level Three) | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | 60 | 67 |
Carrying value | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | 1,627 | 1,638 |
Fair value | ||
Debt Instrument | ||
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value | $ 1,745 | $ 1,651 |
Debt - Interest Rate Locks (Det
Debt - Interest Rate Locks (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Unrealized gains (losses) on derivative activity, net of tax benefit | $ (13,000,000) | $ 3,000,000 | $ (30,000,000) | $ 2,000,000 | |
Interest Rate Contract | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 275,000,000 | 275,000,000 | |||
Derivative liability, noncurrent | $ 34,000,000 | $ 34,000,000 | $ 4,000,000 | ||
Interest rate locks settled | $ 225,000,000 | $ 225,000,000 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Liabilities [Abstract] | |||
Deferred compensation plans funded by rabbi trusts (Note 4) | $ 419 | $ 367 | |
Income taxes payable | 145 | 131 | |
Self-insurance liabilities (Note 13) | 79 | 78 | |
Deferred income taxes | 47 | 54 | |
Guarantee liabilities (Note 13) | 37 | 76 | |
Other | 119 | 134 | |
Total other long-term liabilities | $ 846 | $ 791 | $ 840 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Tax Credit Carryforward [Line Items] | ||||
Effective income tax rate | 26.90% | 7.70% | 25.00% | 21.20% |
Settlement with Taxing Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Estimated income tax liability based on taxing authority’s assessment | $ 188 | |||
Estimated income tax liability, interest | 44 | |||
Amount of unrecognized tax benefits that would affect the tax rate if recognized | $ 67 | $ 67 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments and Performance Guarantees Narrative (Details) | 9 Months Ended | ||||||
Sep. 30, 2019USD ($)hotel | Sep. 30, 2019EUR (€)hotel | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Performance guarantee | |||||||
Loss Contingencies | |||||||
Remaining maximum exposure | $ 252,000,000 | ||||||
Guarantor obligations, liability, current carrying value | 13,000,000 | $ 23,000,000 | $ 47,000,000 | $ 37,000,000 | $ 41,000,000 | $ 71,000,000 | |
Performance guarantee | Other long-term liabilities | |||||||
Loss Contingencies | |||||||
Guarantor obligations, liability, current carrying value | 4,000,000 | 25,000,000 | |||||
Performance guarantee | Accrued expenses and other current liabilitiess | |||||||
Loss Contingencies | |||||||
Guarantor obligations, liability, current carrying value | 9,000,000 | 22,000,000 | |||||
Performance test clause guarantee | |||||||
Loss Contingencies | |||||||
Guarantor obligations, liability, current carrying value | $ 0 | 0 | |||||
The four managed hotels in France | Performance guarantee | |||||||
Loss Contingencies | |||||||
Hotels managed In France | hotel | 4 | 4 | |||||
Performance guarantee term | 7 years | ||||||
Remaining performance guarantee term | 1 year | ||||||
Remaining maximum exposure | $ 196,000,000 | € 180,000,000 | |||||
Guarantor obligations, liability, current carrying value | 7,000,000 | $ 16,000,000 | $ 36,000,000 | $ 28,000,000 | $ 36,000,000 | $ 58,000,000 | |
Various Business Ventures | |||||||
Loss Contingencies | |||||||
Commitment to loan or investment | 395,000,000 | ||||||
Hotel property in Oregon | |||||||
Loss Contingencies | |||||||
Remaining purchase price | $ 140,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Guarantor Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Guarantor Obligations | ||||||
Amortization of initial guarantee obligation liability into income | $ (5) | $ (4) | $ (14) | $ (14) | ||
Performance guarantee expense (recovery), net | (1) | (6) | (25) | (41) | ||
Performance guarantee | ||||||
Guarantor Obligations | ||||||
Beginning balance | 23 | 41 | $ 47 | $ 71 | 47 | 71 |
Initial guarantee obligation liability | 1 | 0 | ||||
Amortization of initial guarantee obligation liability into income | (5) | (4) | (9) | (10) | ||
Performance guarantee expense (recovery), net | 1 | 6 | 24 | 35 | ||
Net payments during the period | (5) | (7) | (40) | (55) | ||
Foreign currency exchange, net | (1) | 1 | ||||
Ending balance | 13 | 37 | 23 | 41 | 13 | 37 |
Performance guarantee | The four managed hotels in France | ||||||
Guarantor Obligations | ||||||
Beginning balance | 16 | 36 | 36 | 58 | 36 | 58 |
Initial guarantee obligation liability | 0 | 0 | ||||
Amortization of initial guarantee obligation liability into income | (4) | (3) | (8) | (8) | ||
Performance guarantee expense (recovery), net | (1) | 3 | 24 | 36 | ||
Net payments during the period | (3) | (9) | (36) | (50) | ||
Foreign currency exchange, net | (1) | 1 | ||||
Ending balance | 7 | 28 | 16 | 36 | 7 | 28 |
Performance guarantee | Other performance guarantees | ||||||
Guarantor Obligations | ||||||
Beginning balance | 7 | 5 | 11 | 13 | 11 | 13 |
Initial guarantee obligation liability | 1 | 0 | ||||
Amortization of initial guarantee obligation liability into income | (1) | (1) | (1) | (2) | ||
Performance guarantee expense (recovery), net | 2 | 3 | 0 | (1) | ||
Net payments during the period | (2) | 2 | (4) | (5) | ||
Foreign currency exchange, net | 0 | 0 | ||||
Ending balance | $ 6 | $ 9 | $ 7 | $ 5 | $ 6 | $ 9 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Debt Guarantees (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Loss Contingencies | |||||
Debt repayment and other guarantees, other long-term liabilities | $ 37,000,000 | $ 37,000,000 | $ 76,000,000 | ||
Release and amortization of debt repayment guarantee liability (Note 13) | 1,000,000 | $ 2,000,000 | 18,000,000 | $ 8,000,000 | |
Debt repayment and other guarantees | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 444,000,000 | 444,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 267,000,000 | 267,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 33,000,000 | 33,000,000 | 51,000,000 | ||
Debt repayment and other guarantees | Hotel properties in India | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 169,000,000 | 169,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 169,000,000 | 169,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 6,000,000 | 6,000,000 | 10,000,000 | ||
Debt repayment and other guarantees | Hotel and residential properties in Brazil | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 97,000,000 | 97,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 40,000,000 | 40,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 3,000,000 | 3,000,000 | 3,000,000 | ||
Debt repayment and other guarantees | Hotel Properties In Tennessee | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 44,000,000 | 44,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 20,000,000 | 20,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 9,000,000 | 9,000,000 | 2,000,000 | ||
Debt repayment and other guarantees | Hotel property in Massachusetts | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 40,000,000 | 40,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 14,000,000 | 14,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 7,000,000 | 7,000,000 | 8,000,000 | ||
Debt repayment and other guarantees | Hotel properties in California | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 31,000,000 | 31,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 12,000,000 | 12,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 3,000,000 | 3,000,000 | 4,000,000 | ||
Debt repayment and other guarantees | Hotel property in Oregon | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 28,000,000 | 28,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 7,000,000 | 7,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 3,000,000 | 3,000,000 | 4,000,000 | ||
Debt repayment and other guarantees | Hotel property in Arizona | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 25,000,000 | 25,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 0 | 0 | |||
Debt repayment and other guarantees, other long-term liabilities | 0 | 0 | 1,000,000 | ||
Debt repayment and other guarantees | Other | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 10,000,000 | 10,000,000 | |||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 5,000,000 | 5,000,000 | |||
Debt repayment and other guarantees, other long-term liabilities | 2,000,000 | 2,000,000 | $ 19,000,000 | ||
Release and amortization of debt repayment guarantee liability (Note 13) | 15,000,000 | ||||
Debt repayment and other guarantees | Joint venture | Hotel properties in India | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | $ 85,000,000 | $ 85,000,000 | |||
Debt repayment and other guarantees, equity method investment, ownership percentage | 50.00% | 50.00% | |||
Construction Loans | Debt repayment and other guarantees | Hotel property in Massachusetts | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | $ 0 | $ 0 | |||
Construction Loans | Debt repayment and other guarantees | Hotel Property in Washington and Hotel Property In Oregon | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties | 0 | 0 | |||
Completion Guarantee | Debt repayment and other guarantees | Hotel property in Massachusetts | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | 13,000,000 | 13,000,000 | |||
Completion Guarantee | Debt repayment and other guarantees | Hotel Property in Washington and Hotel Property In Oregon | |||||
Loss Contingencies | |||||
Debt repayment and other guarantees, maximum potential future payments | $ 12,000,000 | $ 12,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Guarantee Liabilities Fair Value Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Guarantees, fair value disclosure | $ 112 | $ 128 |
Commitments and Contingencies_5
Commitments and Contingencies - Insurance, Collective Bargaining Agreements, Surety Bonds, and Letters of Credit, and Other Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Loss Contingencies | ||
Self insurance reserve, current | $ 40 | $ 38 |
Self-insurance reserve, noncurrent | 79 | $ 78 |
Surety bonds | 46 | |
Maximum | ||
Loss Contingencies | ||
Maximum exposure of possible loss | 18 | |
Letter of credit | ||
Loss Contingencies | ||
Letters of credit outstanding, amount | $ 286 | |
Various US | ||
Loss Contingencies | ||
Multiemployer plans, collective-bargaining arrangement, percentage of participants | 22.00% |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Total Equity | |||||
Balance, beginning of period | $ 3,647 | $ 3,701 | $ 3,677 | $ 3,839 | |
Balance, end of period | 3,761 | 3,935 | 3,761 | 3,935 | |
Foreign currency translation adjustments | |||||
Total Equity | |||||
Balance, beginning of period | (191) | (266) | (243) | ||
Beginning balance, adjusted | $ (191) | ||||
Current period other comprehensive income (loss) before reclassification | (27) | 9 | (27) | (29) | |
Amount reclassified from accumulated other comprehensive loss | 0 | 62 | 0 | 77 | |
Balance, end of period | (218) | (195) | (218) | (195) | |
Unrecognized pension cost | |||||
Total Equity | |||||
Balance, beginning of period | (5) | (7) | (7) | ||
Beginning balance, adjusted | (5) | ||||
Current period other comprehensive income (loss) before reclassification | 0 | 0 | 0 | 0 | |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |
Balance, end of period | (5) | (7) | (5) | (7) | |
Unrealized losses on derivative instruments | |||||
Total Equity | |||||
Balance, beginning of period | (16) | (3) | (3) | ||
Beginning balance, adjusted | (4) | ||||
Current period other comprehensive income (loss) before reclassification | (9) | 3 | (21) | 3 | |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 | |
Balance, end of period | (25) | 0 | (25) | 0 | |
Accumulated other comprehensive loss | |||||
Total Equity | |||||
Balance, beginning of period | (212) | (276) | (200) | (253) | |
Beginning balance, adjusted | $ (200) | ||||
Current period other comprehensive income (loss) before reclassification | (36) | 12 | (48) | (26) | |
Amount reclassified from accumulated other comprehensive loss | 0 | 62 | 0 | 77 | |
Balance, end of period | $ (248) | $ (202) | $ (248) | $ (202) |
Equity - Share Repurchase (Deta
Equity - Share Repurchase (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Repurchase | ||||||||||
Stock repurchase program, authorized amount | $ 750,000,000 | $ 1,250,000,000 | ||||||||
Stock repurchased during period (in shares) | 3,829,427 | 8,560,012 | ||||||||
Stock repurchased and retired during period, excluding insignificant expenses | $ 280,000,000 | $ 674,000,000 | ||||||||
Percent of stock outstanding repurchased during period | 4.00% | 7.00% | ||||||||
Stock repurchased and retired during period | $ 133,000,000 | $ 45,000,000 | $ 102,000,000 | $ 66,000,000 | $ 513,000,000 | $ 75,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 388,000,000 | $ 388,000,000 | ||||||||
Weighted Average | ||||||||||
Share Repurchase | ||||||||||
Stock repurchased and retired during period (in dollars per share) | $ 73.08 | $ 78.42 | ||||||||
May 2018 ASR | ||||||||||
Share Repurchase | ||||||||||
Stock repurchased during period (in shares) | 2,481,341 | |||||||||
Stock repurchased and retired during period, excluding insignificant expenses | $ 200,000,000 | |||||||||
May 2018 ASR | Weighted Average | ||||||||||
Share Repurchase | ||||||||||
Stock repurchased and retired during period (in dollars per share) | $ 80.60 | |||||||||
November 2017 ASR | ||||||||||
Share Repurchase | ||||||||||
Stock repurchased during period (in shares) | 244,260 | |||||||||
Stock repurchased and retired during period | $ 20,000,000 |
Equity - Dividend (Details)
Equity - Dividend (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 09, 2019 | Jul. 31, 2019 | Jun. 10, 2019 | May 17, 2019 | Mar. 11, 2019 | Feb. 13, 2019 | Sep. 20, 2018 | Jul. 31, 2018 | Jun. 28, 2018 | May 16, 2018 | Mar. 29, 2018 | Feb. 14, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Class of Stock [Line Items] | ||||||||||||||||||||
Cash dividends | $ 20 | $ 20 | $ 20 | $ 17 | $ 17 | $ 18 | $ 60 | $ 52 | ||||||||||||
Cash dividend (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | ||||||||
Cash dividend declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | ||||||||||||||
Common Class A | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Cash dividends | $ 8 | $ 7 | 22 | 21 | ||||||||||||||||
Common Class B | ||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||
Cash dividends | $ 12 | $ 10 | $ 38 | $ 31 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense Related to Long-Term Incentive Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | $ 4 | $ 5 | $ 28 | $ 28 |
SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | 1 | 1 | 11 | 10 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | 2 | 2 | 13 | 14 |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | $ 1 | $ 2 | $ 4 | $ 4 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
SARs and RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Amortization period, deferred compensation expense | 3 years | |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 643,989 | 504,760 |
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 17.11 | $ 21.18 |
Total unearned compensation | $ 2 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 355,774 | 272,549 |
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 72.05 | $ 79.90 |
Total unearned compensation | $ 17 | |
Performance Shares (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 120,720 | 89,441 |
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 77.95 | $ 82.10 |
Performance period | 3 years | |
Total unearned compensation | $ 10 | |
Amortization period, deferred compensation expense | 2 years |
Related-Party Transactions - Le
Related-Party Transactions - Legal Services (Details) - Family member of management - Related party legal services - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Related Party Transaction | |||||
Legal services | $ 2,000,000 | $ 2,000,000 | $ 5,000,000 | $ 5,000,000 | |
Due to (from) related parties | $ 2,000,000 | $ 2,000,000 | $ 0 |
Related-Party Transactions - Eq
Related-Party Transactions - Equity Method Investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Minimum | |||||
Related Party Transaction | |||||
Equity method investment, ownership percentage | 24.00% | 24.00% | |||
Maximum | |||||
Related Party Transaction | |||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||
Equity method investee | |||||
Related Party Transaction | |||||
Management, franchise, and other fees | $ 5,000,000 | $ 5,000,000 | $ 15,000,000 | $ 15,000,000 | |
Due (to) from related parties | 13,000,000 | 13,000,000 | $ 17,000,000 | ||
Guarantee fees | $ 1,000,000 | $ 2,000,000 | $ 3,000,000 | $ 5,000,000 |
Related-Party Transactions - Ot
Related-Party Transactions - Other Services (Details) - Limited Partnership Affiliated with Executive Chairman - Management Agreement - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Related Party Transaction | |||
Management fees | $ 2 | $ 4 | |
Receivables due from related parties | $ 0 | $ 0 | $ 0 |
Related-Party Transactions - Sh
Related-Party Transactions - Share Conversion (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | |
Common Class B | ||||
Related Party Transaction | ||||
Conversion of stock, shares converted (in shares) | 950,161 | 1,207,355 | ||
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 | $ 0.01 | $ 0.01 |
Related-Party Transactions - _2
Related-Party Transactions - Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transaction | ||||||||
Stock repurchased during period | $ 133 | $ 45 | $ 102 | $ 66 | $ 513 | $ 75 | ||
Percent of stock outstanding repurchased during period | 4.00% | 7.00% | ||||||
Common Class B | ||||||||
Related Party Transaction | ||||||||
Stock repurchased during period, shares | 677,384 | 677,384 | 2,427,000 | |||||
Stock repurchased during period (in dollars per share) | $ 74.21 | $ 74.21 | $ 78.11 | |||||
Stock repurchased during period | $ 50 | $ 50 | $ 190 | |||||
Percent of stock outstanding repurchased during period | 1.00% | 1.00% | 2.00% |
Segment Information - Summarize
Segment Information - Summarized Consolidated Financial Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information | ||||
Total revenues | $ 1,215 | $ 1,074 | $ 3,745 | $ 3,316 |
Adjusted EBITDA | 163 | 175 | 563 | 595 |
Depreciation and amortization | 85 | 81 | 248 | 243 |
Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 430 | 450 | 1,390 | 1,450 |
Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 25 | 7 | 98 | 27 |
Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 148 | 133 | 447 | 407 |
Amortization of management and franchise agreement assets constituting payments to customers | ||||
Segment Reporting Information | ||||
Total revenues | (5) | (5) | (16) | (15) |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 617 | 489 | 1,826 | 1,447 |
Operating segments | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 425 | 443 | 1,364 | 1,428 |
Adjusted EBITDA | 76 | 91 | 291 | 324 |
Depreciation and amortization | 62 | 65 | 185 | 197 |
Operating segments | Owned and leased hotels | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 425 | 443 | 1,364 | 1,428 |
Operating segments | Owned and leased hotels | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Owned and leased hotels | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 683 | 538 | 2,074 | 1,619 |
Adjusted EBITDA | 92 | 83 | 285 | 266 |
Depreciation and amortization | 6 | 2 | 18 | 6 |
Operating segments | Americas management and franchising | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | Americas management and franchising | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 16 | 0 | 71 | 0 |
Operating segments | Americas management and franchising | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 106 | 95 | 326 | 301 |
Operating segments | Americas management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Segment Reporting Information | ||||
Total revenues | (4) | (4) | (11) | (10) |
Operating segments | Americas management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 565 | 447 | 1,688 | 1,328 |
Operating segments | ASPAC management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 62 | 54 | 175 | 156 |
Adjusted EBITDA | 19 | 19 | 59 | 55 |
Depreciation and amortization | 1 | 1 | 3 | 1 |
Operating segments | ASPAC management and franchising | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | ASPAC management and franchising | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 32 | 30 | 96 | 90 |
Operating segments | ASPAC management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | (1) | (1) |
Operating segments | ASPAC management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 30 | 24 | 80 | 67 |
Operating segments | EAME/SW Asia management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 40 | 36 | 108 | 103 |
Adjusted EBITDA | 12 | 12 | 33 | 33 |
Depreciation and amortization | 1 | 0 | 1 | 0 |
Operating segments | EAME/SW Asia management and franchising | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating segments | EAME/SW Asia management and franchising | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 21 | 21 | 58 | 58 |
Operating segments | EAME/SW Asia management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Segment Reporting Information | ||||
Total revenues | (1) | (1) | (4) | (4) |
Operating segments | EAME/SW Asia management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 20 | 16 | 54 | 49 |
Eliminations | ||||
Segment Reporting Information | ||||
Total revenues | (29) | (25) | (81) | (82) |
Adjusted EBITDA | (1) | (1) | 2 | 2 |
Eliminations | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | (11) | (7) | (27) | (26) |
Eliminations | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 2 | 1 | 5 |
Eliminations | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | (18) | (20) | (55) | (61) |
Eliminations | Amortization of management and franchise agreement assets constituting payments to customers | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Eliminations | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 11 | 7 | 27 | 26 |
Eliminations | Americas management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 14 | 16 | 47 | 52 |
Eliminations | ASPAC management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 1 | 1 | 1 | 1 |
Eliminations | EAME/SW Asia management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 3 | 3 | 7 | 8 |
Eliminations | Corporate and other | ||||
Segment Reporting Information | ||||
Total revenues | 0 | (2) | (1) | (5) |
Corporate and other | ||||
Segment Reporting Information | ||||
Total revenues | 32 | 26 | 101 | 89 |
Adjusted EBITDA | (35) | (29) | (107) | (85) |
Depreciation and amortization | 15 | 13 | 41 | 39 |
Corporate and other | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | $ 2 | $ 2 | $ 4 | $ 3 |
Segment Information - Reconcili
Segment 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information | ||||
Net income attributable to Hyatt Hotels Corporation | $ 296 | $ 237 | $ 445 | $ 725 |
Interest expense | 19 | 19 | 58 | 57 |
Provision for income taxes | 109 | 19 | 148 | 194 |
Depreciation and amortization | 85 | 81 | 248 | 243 |
EBITDA | 509 | 356 | 899 | 1,219 |
Revenues | (1,215) | (1,074) | (3,745) | (3,316) |
Equity losses from unconsolidated hospitality ventures | 5 | 6 | 2 | 17 |
Stock-based compensation expense | 4 | 5 | 28 | 28 |
Gains on sales of real estate | (373) | (239) | (374) | (769) |
Asset impairments | 9 | 21 | 13 | 21 |
Other (income) loss, net | (25) | 9 | (104) | 22 |
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA | 13 | 14 | 38 | 42 |
Adjusted EBITDA | 163 | 175 | 563 | 595 |
Contra revenue | ||||
Segment Reporting Information | ||||
Revenues | 5 | 5 | 16 | 15 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Revenues | (617) | (489) | (1,826) | (1,447) |
Costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Costs incurred on behalf of managed and franchised properties | $ 633 | $ 487 | $ 1,871 | $ 1,447 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of the Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income | $ 296 | $ 237 | $ 445 | $ 725 |
Net income and accretion attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 296 | $ 237 | $ 445 | $ 725 |
Denominator: | ||||
Basic weighted-average shares outstanding (in shares) | 104,349,157 | 111,356,759 | 105,226,587 | 114,829,210 |
Share-based compensation (in shares) | 1,569,736 | 1,867,226 | 1,553,693 | 1,954,863 |
Diluted weighted-average shares outstanding (in shares) | 105,918,893 | 113,223,985 | 106,780,280 | 116,784,073 |
Basic Earnings Per Share: | ||||
Net income (in dollars per share) | $ 2.84 | $ 2.12 | $ 4.23 | $ 6.31 |
Net income and accretion attributable to noncontrolling interests (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | 2.84 | 2.12 | 4.23 | 6.31 |
Diluted Earnings Per Share: | ||||
Net income (in dollars per share) | 2.80 | 2.09 | 4.17 | 6.21 |
Net income and accretion attributable to noncontrolling interests (in dollars per share) | 0 | 0 | 0 | 0 |
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | $ 2.80 | $ 2.09 | $ 4.17 | $ 6.21 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Shares Issued (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
SARs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 14,800 | 0 | 14,400 | 0 |
Other Income (Loss), Net (Detai
Other Income (Loss), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | ||||
Depreciation recovery | $ 7 | $ 5 | $ 19 | $ 16 |
Interest income | 6 | 7 | 18 | 19 |
Performance guarantee liability amortization (Note 13) | 5 | 4 | 14 | 14 |
Unrealized gains (losses) (Note 4) | 3 | (15) | 23 | (21) |
Release of contingent consideration liability (Note 6) | 2 | 0 | 29 | 0 |
Release and amortization of debt repayment guarantee liability (Note 13) | 1 | 2 | 18 | 8 |
Impairment of an equity security without a readily determinable fair value (Note 4) | 0 | 0 | 0 | (22) |
Loss on extinguishment of debt (Note 10) | 0 | (7) | 0 | (7) |
Performance guarantee expense (recovery), net | (1) | (6) | (25) | (41) |
Other, net | 2 | 1 | 8 | 12 |
Other income (loss), net | $ 25 | $ (9) | $ 104 | $ (22) |
Uncategorized Items - hq393019.
Label | Element | Value | [1] |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 20,000,000 | |
Restricted Cash and Cash Equivalents, Noncurrent | us-gaap_RestrictedCashAndCashEquivalentsNoncurrent | $ 19,000,000 | |
[1] | Restricted cash generally represents sales proceeds pursuant to like-kind exchanges, captive insurance subsidiary requirements, debt service on bonds, escrow deposits, and other arrangements. |