Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Document Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
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, $0.01 par value | ||
Trading Symbol | H | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 2,838 | ||
Entity Central Index Key | 0001468174 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates by reference portions of the registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders to be held on May 20, 2020. | ||
Common Class A | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 35,841,277 | ||
Common Class B | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 65,463,274 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES: | |||
Revenue | $ 5,020 | $ 4,454 | $ 4,462 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | |||
Depreciation and amortization | 329 | 327 | 348 |
Other direct costs | 133 | 48 | 31 |
Selling, general, and administrative | 417 | 320 | 377 |
Direct and selling, general, and administrative expenses | 4,823 | 4,122 | 4,202 |
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | 62 | (11) | 45 |
Equity earnings (losses) from unconsolidated hospitality ventures | (10) | 8 | 219 |
Interest expense | (75) | (76) | (80) |
Gains on sales of real estate | 723 | 772 | 236 |
Asset impairments | (18) | (25) | 0 |
Other income (loss), net | 127 | (49) | 42 |
INCOME BEFORE INCOME TAXES | 1,006 | 951 | 722 |
PROVISION FOR INCOME TAXES | (240) | (182) | (332) |
NET INCOME | 766 | 769 | 390 |
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | (1) |
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 766 | $ 769 | $ 389 |
EARNINGS PER SHARE—Basic | |||
Net Income - basic (in dollars per share) | $ 7.33 | $ 6.79 | $ 3.13 |
Net income attributable to Hyatt Hotels Corporation - Basic (in dollars per share) | 7.33 | 6.79 | 3.12 |
EARNINGS PER SHARE—Diluted | |||
Net Income - diluted (in dollars per share) | 7.21 | 6.68 | 3.09 |
Net income attributable to Hyatt Hotels Corporation - Diluted (in dollars per share) | $ 7.21 | $ 6.68 | $ 3.08 |
Owned and leased hotels | |||
REVENUES: | |||
Revenue | $ 1,848 | $ 1,918 | $ 2,184 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | |||
Costs incurred on behalf of managed and franchised properties | 1,424 | 1,446 | 1,664 |
Management, franchise, and other fees | |||
REVENUES: | |||
Revenue | 608 | 552 | 498 |
Amortization of management and franchise agreement assets constituting payments to customers | |||
REVENUES: | |||
Revenue | (22) | (20) | (18) |
Net management, franchise, and other fees | |||
REVENUES: | |||
Revenue | 586 | 532 | 480 |
Other revenues | |||
REVENUES: | |||
Revenue | 125 | 48 | 36 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | |||
REVENUES: | |||
Revenue | 2,461 | 1,956 | 1,762 |
Costs incurred on behalf of managed and franchised properties | |||
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | |||
Costs incurred on behalf of managed and franchised properties | $ 2,520 | $ 1,981 | $ 1,782 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 766 | $ 769 | $ 390 |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation adjustments, net of tax (benefit) expense of $-, $(1), and $1 for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively | 8 | 52 | 56 |
Unrecognized pension (cost) benefit, net of tax (benefit) expense of $(1), $1, and $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively | (4) | 2 | 0 |
Unrealized gains on available-for-sale debt securities, net of tax expense of $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively, and unrealized gains on available-for-sale equity securities, net of tax expense of $23 for the year ended December 31, 2017 | 1 | 0 | 35 |
Unrealized gains (losses) on derivative activity, net of tax (benefit) expense of $(5), $-, and $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively | (14) | (1) | |
Unrealized gains (losses) on derivative activity, net of tax (benefit) expense of $(5), $-, and $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively | 1 | ||
Other comprehensive income (loss) | (9) | 53 | 92 |
COMPREHENSIVE INCOME | 757 | 822 | 482 |
COMPREHENSIVE INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | (1) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 757 | $ 822 | $ 481 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, net of tax (benefit) expense | $ 0 | $ (1) | $ 1 |
Unrecognized pension costs, net of tax expense (benefit) | (1) | 1 | 0 |
Unrealized gains on available-for-sale debt securities tax | 0 | 0 | 0 |
Unrealized gains on available-for-sale equity securities tax | 23 | ||
Unrealized gains on derivative activity, net of tax expense | $ (5) | $ 0 | |
Unrealized gains on derivative activity, net of tax expense | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 893 | $ 570 |
Restricted cash | 150 | 33 |
Short-term investments | 68 | 116 |
Receivables, net of allowances of $32 and $26 at December 31, 2019 and December 31, 2018, respectively | 421 | 427 |
Inventories | 12 | 14 |
Prepaids and other assets | 134 | 149 |
Prepaid income taxes | 28 | 36 |
Total current assets | 1,706 | 1,345 |
Equity method investments | 232 | 233 |
Property and equipment, net | 3,456 | 3,608 |
Financing receivables, net of allowances | 35 | 13 |
Operating lease right-of-use assets | 493 | |
Goodwill | 326 | 283 |
Intangibles, net | 437 | 628 |
Deferred tax assets | 144 | 180 |
Other assets | 1,588 | 1,353 |
TOTAL ASSETS | 8,417 | 7,643 |
CURRENT LIABILITIES: | ||
Current maturities of long-term debt | 11 | 11 |
Accounts payable | 150 | 151 |
Accrued expenses and other current liabilities | 304 | 361 |
Current contract liabilities | 445 | 388 |
Accrued compensation and benefits | 144 | 150 |
Current operating lease liabilities | 32 | |
Total current liabilities | 1,086 | 1,061 |
Long-term debt | 1,612 | 1,623 |
Long-term contract liabilities | 475 | 442 |
Long-term operating lease liabilities | 393 | |
Other long-term liabilities | 884 | 840 |
Total liabilities | 4,450 | 3,966 |
Commitments and contingencies (see Note 15) | ||
EQUITY: | ||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding as of December 31, 2019 and December 31, 2018 | 0 | 0 |
Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 36,109,179 issued and outstanding at December 31, 2019, and Class B common stock, $0.01 par value per share, 397,457,686 shares authorized, 65,463,274 shares issued and outstanding at December 31, 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, 67, | 1 | 1 |
Additional paid-in capital | 0 | 50 |
Retained earnings | 4,170 | 3,819 |
Accumulated other comprehensive loss | (209) | (200) |
Total stockholders' equity | 3,962 | 3,670 |
Noncontrolling interests in consolidated subsidiaries | 5 | 7 |
Total equity | 3,967 | 3,677 |
TOTAL LIABILITIES AND EQUITY | $ 8,417 | $ 7,643 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts receivable, current | $ 32 | $ 26 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares, issued (in shares) | 0 | |
Common Class A | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares, outstanding (in shares) | 36,109,179 | 39,507,817 |
Common stock, shares, issued (in shares) | 36,109,179 | 39,507,817 |
Common Class B | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 397,457,686 | 399,110,240 |
Common stock, shares, outstanding (in shares) | 65,463,274 | 67,115,828 |
Common stock, shares, issued (in shares) | 65,463,274 | 67,115,828 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 766 | $ 769 | $ 390 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gains on sales of real estate | (723) | (772) | (236) |
Depreciation and amortization | 329 | 327 | 348 |
Release of contingent consideration liability | (30) | 0 | 0 |
Amortization of share awards | 35 | 28 | 32 |
Amortization of operating lease right-of-use assets | 35 | ||
Deferred income taxes | 28 | (33) | 56 |
Asset impairments | 18 | 47 | 0 |
Equity (earnings) losses from unconsolidated hospitality ventures | 10 | (8) | (219) |
Amortization of management and franchise agreement assets constituting payments to customers | 22 | 20 | 18 |
Gain on sale of contractual right | (16) | 0 | 0 |
Realized (gains) losses, net | (2) | 3 | 41 |
Unrealized (gains) losses, net | (26) | 47 | (1) |
Distributions from unconsolidated hospitality ventures | 13 | 17 | 29 |
Other | (55) | (25) | 4 |
Increase (decrease) in cash attributable to changes in assets and liabilities and other | |||
Receivables, net | (29) | 14 | (37) |
Inventories | 1 | 0 | 12 |
Prepaid income taxes | 10 | (5) | 14 |
Accounts payable, accrued expenses, and other current liabilities | 26 | (80) | 102 |
Operating lease liabilities | (34) | ||
Accrued compensation and benefits | (1) | 6 | 22 |
Other long-term liabilities | 73 | 51 | 53 |
Other, net | (54) | (65) | (41) |
Net cash provided by operating activities | 396 | 341 | 587 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of marketable securities and short-term investments | (350) | (665) | (469) |
Proceeds from marketable securities and short-term investments | 349 | 624 | 480 |
Contributions to equity method and other investments | (48) | (60) | (89) |
Return of equity method and other investments | 28 | 51 | 425 |
Acquisitions, net of cash acquired | (18) | (678) | (259) |
Capital expenditures | (369) | (297) | (298) |
Issuance of financing receivables | (18) | (2) | 0 |
Proceeds from financing receivables | 46 | 0 | 0 |
Proceeds from sales of real estate, net of cash disposed | 940 | 1,382 | 663 |
Proceeds from sale of contractual right | 21 | 0 | 0 |
Pre-condemnation proceeds | 0 | 7 | 15 |
Other investing activities | 4 | 12 | (11) |
Net cash provided by investing activities | 585 | 374 | 457 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from long-term debt, net of issuance costs of $-, $4, and $-, respectively | 400 | 416 | 670 |
Repayments of debt | (409) | (231) | (782) |
Repurchase of common stock | (421) | (946) | (743) |
Contingent consideration paid | (24) | 0 | 0 |
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary | 0 | 0 | 9 |
Repayments of redeemable noncontrolling interest in preferred shares in a subsidiary | 0 | (10) | 0 |
Dividends paid | (80) | (68) | 0 |
Other financing activities | (7) | (11) | (12) |
Net cash used in financing activities | (541) | (850) | (858) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 1 | 5 | (7) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 441 | (130) | 179 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR | 622 | 752 | 573 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD | $ 1,063 | $ 622 | $ 752 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Supplemental Disclosure Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Debt issuance cost | $ 0 | $ 4 | $ 0 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash and cash equivalents | 893 | 570 | 503 |
Restricted cash | 150 | 33 | 234 |
Restricted cash included in other assets | 20 | 19 | 15 |
Total cash, cash equivalents, and restricted cash | 1,063 | 622 | 752 |
Cash paid during the period for interest | 79 | 73 | 80 |
Cash paid during the period for income taxes | 175 | 292 | 175 |
Cash paid for amounts included in the measurement of operating lease liabilities | 50 | ||
Non-cash investing and financing activities are as follows: | |||
Non-cash contributions to equity method investments (see Note 4, Note 15) | 9 | 61 | 5 |
Non-cash issuance of financing receivables (see Note 6, Note 7) | 1 | 45 | 0 |
Change in accrued capital expenditures | (7) | 13 | 9 |
Non-cash right-of-use assets obtained in exchange for operating lease liabilities | 8 | ||
Contingent liability (see Note 7) | $ 0 | $ 57 | $ 0 |
Consolidated Statements of Chan
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 | Common Class A | Common Class ACommon Stock Amount | Common Class B | Common Class BCommon Stock Amount |
Balance, beginning of period (in shares) at Dec. 31, 2016 | 39,952,061 | 90,863,209 | ||||||||
Balance, beginning of period at Dec. 31, 2016 | $ 4,080 | $ 1 | $ 1,686 | $ 2,665 | $ (277) | $ 5 | ||||
Total comprehensive income | 481 | 389 | 92 | |||||||
Noncontrolling interests | 1 | 1 | ||||||||
Repurchase of common stock (in shares) | (9,096,871) | (3,089,437) | ||||||||
Repurchase of common stock | (743) | (743) | ||||||||
Directors compensation | 2 | 2 | ||||||||
Employee stock plan issuance (in shares) | 69,012 | |||||||||
Employee stock plan issuance | 4 | 4 | ||||||||
Share-based payment activity (in shares) | 287,012 | |||||||||
Share-based payment activity | 18 | 18 | ||||||||
Class share conversions (in shares) | 17,019,935 | (17,019,935) | ||||||||
Balance, beginning of period (in shares) at Dec. 31, 2017 | 48,231,149 | 70,753,837 | ||||||||
Balance, end of period at Dec. 31, 2017 | 3,843 | 1 | 967 | 3,054 | (185) | 6 | ||||
BALANCE—January 1, 2018 | (253) | |||||||||
Total comprehensive income | 822 | 769 | 53 | |||||||
Noncontrolling interests | 1 | 1 | ||||||||
Repurchase of common stock (in shares) | (10,293,241) | (2,430,654) | ||||||||
Repurchase of common stock | (946) | (946) | $ (190) | |||||||
Directors compensation | $ 2 | 2 | ||||||||
Employee stock plan issuance (in shares) | 61,900 | 61,900 | ||||||||
Employee stock plan issuance | $ 5 | 5 | ||||||||
Share-based payment activity (in shares) | 300,654 | |||||||||
Share-based payment activity | 22 | 22 | ||||||||
Class share conversions (in shares) | 1,207,355 | (1,207,355) | ||||||||
Cash dividends | (68) | (68) | $ (27) | (41) | ||||||
Balance, beginning of period (in shares) at Dec. 31, 2018 | 39,507,817 | 67,115,828 | ||||||||
Balance, end of period at Dec. 31, 2018 | 3,677 | 1 | 50 | 3,819 | (200) | 7 | ||||
Total comprehensive income | 757 | 766 | (9) | |||||||
Noncontrolling interests | (2) | (2) | ||||||||
Repurchase of common stock (in shares) | (4,943,897) | (677,384) | ||||||||
Repurchase of common stock | (421) | (86) | (335) | (50) | ||||||
Directors compensation | $ 2 | 2 | ||||||||
Employee stock plan issuance (in shares) | 79,700 | 79,700 | ||||||||
Employee stock plan issuance | $ 5 | 5 | ||||||||
Share-based payment activity (in shares) | 490,389 | |||||||||
Share-based payment activity | 29 | 29 | ||||||||
Class share conversions (in shares) | 975,170 | (975,170) | ||||||||
Cash dividends | (80) | (80) | $ (29) | $ (51) | ||||||
Balance, beginning of period (in shares) at Dec. 31, 2019 | 36,109,179 | 65,463,274 | ||||||||
Balance, end of period at Dec. 31, 2019 | $ 3,967 | $ 1 | $ 0 | $ 4,170 | $ (209) | $ 5 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity Parenthetical - $ / shares | Dec. 09, 2019 | Sep. 09, 2019 | Jun. 10, 2019 | Mar. 11, 2019 | Dec. 10, 2018 | Sep. 20, 2018 | Jun. 28, 2018 | Mar. 29, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||||||||||
Cash dividends (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.15 |
Organization
Organization | 12 Months Ended |
Dec. 31, 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 December 31, 2019 , (i) we operated or franchised 446 full service hotels, comprising 156,133 rooms throughout the world, (ii) we operated or franchised 467 select service hotels, comprising 66,978 rooms, of which 399 hotels are located in the United States, and (iii) our portfolio included 8 franchised all-inclusive Hyatt-branded resorts, comprising 3,153 rooms, and 3 wellness resorts, comprising 410 rooms. At December 31, 2019 , our portfolio of properties operated in 65 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation —Our consolidated financial statements present the results of operations, financial position, and cash flows of Hyatt Hotels Corporation and its majority owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates —We are required to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying Notes. Actual results could differ materially from such estimated amounts. Revenue Recognition —Our revenues are primarily derived from the products and services provided to our customers and generally recognized when control of the product or service has transferred to the customer. Our customers include third-party hotel owners, guests at owned and leased hotels and spa and fitness centers, a third-party partner through our co-branded credit card program, and owners and guests of the condominium ownership units. A summary of our revenue streams is as follows: • Owned and leased hotels revenues —Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased hotels. We present revenues net of sales, occupancy, and other taxes. Taxes collected on behalf of and remitted to governmental taxing authorities are excluded from the transaction price of the underlying products and services. • Management, franchise, and other fees —Management fees primarily consist of a base fee, which is generally calculated as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Included within the aforementioned management fees are royalty fees that we earn in exchange for providing access to Hyatt's intellectual property ("IP"). Franchise fees consist of an initial fee and ongoing royalty fees computed as a percentage of gross room revenues and, as applicable, food and beverage revenues. Other fees include license fee revenues associated with the licensing of the Hyatt brand names through our co-branded credit card program and sales of our branded residential ownership units as well as termination fees. • Net management, franchise, and other fees —Management, franchise, and other fees are reduced by the amortization of management and franchise agreement assets constituting payments to customers. Consideration provided to customers is recognized in other assets and amortized over the expected customer life, which is typically the initial term of the management or franchise agreement. • Other revenues —Other revenues include revenues from our residential management operations for our condominium ownership units, the sale of promotional awards through our co-branded credit cards, and spa and fitness revenues from Exhale. • Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties —Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties represent the reimbursement of costs incurred on behalf of the owners of properties. These reimbursed costs relate primarily to payroll at managed properties, as well as system-wide services and the loyalty program operated on behalf of owners. The products and services we offer to our customers are comprised of the following performance obligations: Management and franchise agreements • License to Hyatt's IP, including the Hyatt brand names —We receive variable consideration from third-party hotel owners in exchange for providing access to our IP, including the Hyatt brand names. The license represents a license of symbolic IP and in exchange for providing the license, Hyatt receives sales-based royalty fees. Fees are generally payable on a monthly basis as the third-party hotel owners derive value from access to our IP. Royalty fees are recognized over time as services are rendered. Under our franchise agreements, we also receive initial fees from third-party hotel owners. The initial fees do not represent a distinct performance obligation and, therefore, are combined with the royalty fees and deferred and recognized through management, franchise, and other fees over the expected customer life, which is typically the initial term of the franchise agreement. • System-wide services —We provide system-wide services on behalf of owners of managed and franchised properties. The promise to provide system-wide services is not a distinct performance obligation because it is attendant to the license of our IP. Therefore, this promise is combined with the license of our IP to form a single performance obligation. We have two accounting models depending on the terms of the agreements: • Cost reimbursement model —Third-party hotel owners are required to reimburse us for all costs incurred to operate the system-wide programs with no added margin. The reimbursements are recognized over time within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal. Expenses incurred related to the system-wide programs are recognized within costs incurred on behalf of managed and franchised properties. The reimbursement of system-wide services is billed monthly based upon an annual estimate of costs to be incurred and recognized as revenue commensurate with incurring the cost. Any amounts collected and not yet recognized as revenues are deferred and classified as contract liabilities. Any costs incurred in excess of revenues collected are classified as receivables. • Fund model —Third-party hotel owners are invoiced a system-wide assessment fee primarily based on a percentage of hotel revenues on a monthly basis. We recognize the revenues over time as services are provided through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal. Expenses related to the system-wide programs are recognized as incurred through costs incurred on behalf of managed and franchised properties. Over time, we manage the system-wide programs to break-even, but the timing of the revenue received from the owners may not align with the timing of the expenses to operate the programs. Therefore, the difference between the revenues and expenses will impact our net income. • Hotel management agreement services —Under the terms of our management agreements, we provide hotel management agreement services, which form a single performance obligation that qualifies as a series. In exchange, we receive variable consideration in the form of management fees, which are comprised of base and/or incentive fees. Incentive fees are typically subject to the achievement of certain profitability targets, and therefore, we apply judgment in determining the amount of incentive fees recognized each period. Incentive fees revenue is recognized to the extent it is probable that we will not reverse a significant portion of the fees in a subsequent period. We rely on internal financial forecasts and historical trends to estimate the amount of incentive fees revenue recognized and the probability that incentive fees will reverse in the future. Generally, base management fees are due and payable on a monthly basis as services are provided, and incentive fees are due and payable based on the terms of the agreement, but at a minimum, incentive fees are billed and collected annually. Revenue is recognized over time as services are rendered. Under the terms of certain management agreements, primarily within the United States, we are the employer of hotel employees. When we are the employer, we are reimbursed for costs incurred related to the employee management services with no added margin, and the reimbursements are recognized over time as services are rendered within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. In jurisdictions in which we are the employer, we have discretion over how employee management services are provided and, therefore, we are the principal. • Loyalty program administration —We administer the loyalty program for the benefit of Hyatt's portfolio of properties during the period of their participation in the loyalty program. Under the program, members earn points based on their spend at our properties, by transacting with our strategic loyalty alliances, or in connection with spend on the Hyatt co-branded credit cards, which may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties. Points earned by loyalty program members represent a material right to free or discounted goods or services in the future. The loyalty program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. These two promises are not distinct because the promise to market and manage the program does not benefit the customer without the related arrangement for award redemptions. The costs of administering the loyalty program are charged to the properties through an assessment fee based on members' qualified expenditures. The assessment fee is billed and collected monthly, and the revenue received by the program is deferred until a member redeems points. Upon redemption of points at managed and franchised properties, we recognize the previously deferred revenue through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties, net of redemption expense paid to managed and franchised hotels. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent with respect to this performance obligation for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. A portion of our owned and leased hotels revenues is deferred upon initial stay as points are earned by program members at owned or leased hotels, and revenues are recognized upon redemption at owned or leased hotels. We actuarially determine the amount to recognize as revenue based on statistical formulas that estimate the timing of future point redemptions based on historical experience. The revenue recognized each period includes an estimate of the loyalty points that will eventually be redeemed and includes an estimate of breakage for the loyalty points that will not be redeemed. Determining breakage involves significant judgment, and we engage third-party actuaries to estimate the ultimate redemption ratios used in the breakage calculations and the amount of revenue recognized upon redemption. Changes to the expected ultimate redemption assumptions are reflected in the current period. Any revenues in excess of the anticipated future redemptions are used to fund the other operational expenses of the program. Room rentals and other services provided at owned and leased hotels We provide room rentals and other services to our guests, including but not limited to spa, laundry, and parking. These products and services each represent individual performance obligations and, in exchange for these services, we receive fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time the services are rendered or the goods are provided. If a guest enters into a package including multiple goods or services, the fixed price is allocated to each distinct good or service based on the stand-alone selling price for each item. Revenue is recognized over time when we transfer control of the good or service to the customer. Room rental revenue is recognized on a daily basis as the guest occupies the room, and revenue related to other products and services is recognized when the product or service is provided to the guest. Hotels commonly enter into arrangements with online travel agencies, trade associations, and other entities. As part of these arrangements, Hyatt may pay the other party a commission or rebate based on the revenue generated through that channel. The determination of whether to recognize revenues gross or net of rebates and commissions is made based on the terms of each contract. Residential management operations We provide services related to the residential management business pursuant to rental management agreements with individual property owners or homeowners' associations whereby the property owners and/or homeowners' association participate in our rental program. The services provided include reservations, housekeeping, security, and concierge assistance to guests in exchange for a variable fee based on a revenue sharing agreement with the owner of the condominium ownership unit. The services represent an individual performance obligation. Revenue is recognized over time as services are rendered or upon completion of the guest's stay at the condominium ownership unit. We are responsible for establishing pricing as well as fulfilling the services during the guest's stay and, as a result, we are deemed to be the principal in the transaction. Spa and fitness services Exhale spa and fitness studios provide guests with spa and fitness services as well as retail products in exchange for fixed consideration. Each spa and fitness service represents an individual performance obligation. Payment is due in full, and revenue is recognized at the point in time the services are rendered or the products are provided to the customer. If a guest purchases a spa or fitness package, the fixed price is allocated to each distinct product or service based on the stand-alone selling price for each item. Co-branded credit cards We have a co-branded credit card agreement with a third party and under the terms of the agreement, we have various performance obligations: granting a license to the Hyatt name, arranging for the fulfillment of points issued to cardholders through the loyalty program, and awarding cardholders with free room nights upon achievement of certain program milestones. The loyalty points and free room nights represent material rights that can be redeemed for free or discounted services in the future. In exchange for the products and services provided, we receive fixed and variable consideration which is allocated between the performance obligations based upon the relative stand-alone selling prices. Significant judgment is involved in determining the relative stand-alone selling prices, and therefore, we engaged a third-party valuation specialist to assist us. We utilize a relief from royalty method to determine the revenue allocated to the license, which is recognized over time as the licensee derives value from access to Hyatt's brand name. We utilize observable transaction prices and adjusted market assumptions to determine the stand-alone selling price of a loyalty point, and we utilize a cost plus margin approach to determine the stand-alone selling price of the free room nights. The revenues allocated to loyalty program points and free night awards are deferred and recognized upon redemption or expiration of a card member's promotional awards, which is recognized net of redemption expense when we are the agent. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. We satisfy the following performance obligations over time: the license of Hyatt's symbolic IP, hotel management agreement services, administration of the loyalty program, and the license to our brand name through our co-branded credit card agreement. Each of these performance obligations is considered a sales-based royalty or a series of distinct services, and although the activities to fulfill each of these promises may vary from day to day, the nature of each promise is the same and the customer benefits from the services every day. For each performance obligation satisfied over time, we recognize revenue using an output method based on the value transferred to the customer. Revenue is recognized based on the transaction price and the observable outputs related to each performance obligation. We deem the following to represent our progress in satisfying these performance obligations: • revenues and operating profits earned by the hotels during the reporting period for access to Hyatt's IP, as it is indicative of the value third-party owners derive; • revenues and operating profits of the hotels for the promise to provide management agreement services to the hotels; • award night redemptions or point redemptions with third-party partners for the administration of the loyalty program performance obligation; and • cardholder spend for the license to the Hyatt name through our co-branded credit cards, as it is indicative of the value our partner derives from the use of our name. Within our management agreements, we have two performance obligations: providing a license to Hyatt's IP and providing management agreement services. Although these constitute two separate performance obligations, both obligations represent services that are satisfied over time, and Hyatt recognizes revenue using an output method based on the performance of the hotel. Therefore, we have not allocated the transaction price between these two performance obligations as the allocation would result in the same pattern of revenue recognition. Revenue is adjusted for the effects of a significant financing component when the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. We have applied the practical expedient that permits the omission of prior-period information about revenue allocated to future performance obligations. Contract Balances —Our payments from customers are based on the billing terms established in our contracts. Customer billings are classified as accounts receivable when our right to consideration is unconditional. If our right to consideration is conditional on future performance under the contract, the balance is classified as a contract asset. Due to certain profitability hurdles in our management agreements, incentive fees are considered contract assets until the risk related to the achievement of the profitability metric no longer exists. Once the profitability hurdle has been met, the incentive fee receivable balance will be recorded in accounts receivable. Contract assets are included in receivables, net on our consolidated balance sheets. Payments received in advance of performance under the contract are classified as current or long-term contract liabilities on our consolidated balance sheets and recognized as revenue as we perform under the contract. Cash Equivalents —We consider all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Restricted Cash —We had restricted cash of $170 million and $52 million at December 31, 2019 and December 31, 2018 , of which $20 million and $19 million , respectively, are recorded in other assets on our consolidated balance sheets, which includes: • $115 million at December 31, 2019 related to sale proceeds from the disposition of the property adjacent to Grand Hyatt San Francisco pursuant to a potential like-kind exchange (see Note 7); • $30 million and $28 million , respectively, related to debt service on bonds related to our ownership in Grand Hyatt San Antonio (see Note 11 ); • $9 million related to our captive insurance subsidiary for minimum capital and surplus requirements in accordance with local insurance regulations (see Note 15 ); and • $16 million and $15 million , respectively, related to escrow deposits and other arrangements. Equity Method Investments —We have investments in unconsolidated hospitality ventures accounted for under the equity method. These investments are an integral part of our business and strategically and operationally important to our overall results. When we receive a distribution from an investment, we determine whether it is a return on our investment or a return of our investment based on the underlying nature of the distribution. We assess investments in unconsolidated hospitality ventures for impairment quarterly. When there is indication a loss in value has occurred, we evaluate the carrying value in comparison to the estimated fair value of the investment. Fair value is based upon internally developed discounted cash flow models, third-party appraisals, and if appropriate, current estimated net sales proceeds from pending offers. The principal inputs used in the discounted cash flow analysis requiring judgment are the projected future cash flows, the discount rate, and the capitalization rate assumptions. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. If the estimated fair value is less than carrying value, we use our judgment to determine if the decline in value is other than temporary. In determining this, we consider factors including, but not limited to, the length of time and extent of the decline, loss of value as a percentage of the cost, financial condition and near-term financial projections, our intent and ability to recover the lost value, and current economic conditions. Impairments deemed other than temporary are charged to equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. For additional information about equity method investments, see Note 4 . Debt and Equity Securities —Excluding the aforementioned equity method investments, debt and equity securities consist of various investments: • Equity securities consist of interest-bearing money market funds, mutual funds, common shares, and preferred shares. Equity securities with a readily determinable fair value are recorded at fair value on our consolidated balance sheets based on listed market prices or dealer quotations where available. Equity securities without a readily determinable fair value are recognized at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Net gains and losses, both realized and unrealized, and impairment charges on equity securities are recognized in other income (loss), net on our consolidated statements of income. • Debt securities include preferred shares, time deposits, and fixed income securities, including U.S. government obligations, obligations of other government agencies, corporate debt, mortgage-backed and asset-backed securities, and municipal and provincial notes and bonds. Debt securities are classified as either trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). • Trading securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Net gains and losses, both realized and unrealized, on trading securities are recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts or other income (loss), net, depending on the nature of the investment, on our consolidated statements of income. • AFS securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Unrealized gains and losses on AFS debt securities are recognized in accumulated other comprehensive loss on our consolidated balance sheets. Realized gains and losses on debt securities are recognized in other income (loss), net on our consolidated statements of income. • HTM securities—investments which we have the intent and ability to hold until maturity and are recorded at amortized cost. Our preferred shares earn a return that is recognized as interest income in other income (loss), net as earned unless we determine collection is at risk. AFS and HTM securities are assessed for impairment quarterly. To determine if an impairment is other than temporary for debt securities, we consider the duration and severity of the loss position, the strength of the underlying collateral, the term to maturity, credit rating, and our intent to sell. For debt securities that are deemed other than temporarily impaired and there is no intent to sell, impairments are separated into the amount related to the credit loss, which is typically recognized in other income (loss), net on our consolidated statements of income and the amount related to all other factors, which is recorded in accumulated other comprehensive loss on our consolidated balance sheets. For debt securities that are deemed other than temporarily impaired and there is intent to sell, impairments in their entirety are recognized in other income (loss), net on our consolidated statements of income . For additional information about debt and equity securities, see Note 4 . Foreign Currency —The functional currency of our consolidated entities located outside the United States of America is generally the local currency. The assets and liabilities of these entities are translated into U.S. dollars at year- end exchange rates, and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in earnings. Gains and losses from foreign exchange rate changes related to intercompany receivables and payables of a long- term nature are generally included in accumulated other comprehensive loss. Gains and losses from foreign exchange rate movement related to intercompany receivables and payables that are not long- term are included in earnings. Financing Receivables —Financing receivables represent contractual rights to receive money either on demand or on fixed or determinable dates and are recognized on our consolidated balance sheets at amortized cost. We recognize interest income as earned and provide an allowance for cancellations and defaults. Our financing receivables are composed of individual unsecured loans and other types of unsecured financing arrangements provided to hotel owners. These financing receivables generally have stated maturities and interest rates, however, the repayment terms vary and may be dependent upon future cash flows of the hotel. On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We determine our financing to hotel owners to be non-performing if interest or principal is greater than 90 days past due based on the contractual terms of the individual financing receivables, if an impairment charge is recognized for a loan, or if a provision is established for our other financing arrangements. If we consider a financing receivable to be non-performing, we place the financing receivable on non-accrual status. We individually assess all loans within financing receivables for impairment quarterly. This assessment is based on an analysis of several factors including current economic conditions and industry trends, as well as the specific risk characteristics of these loans including capital structure, loan performance, market factors, and the underlying hotel performance. When it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement or if projected future cash flows available for repayment of unsecured receivables indicate there is a collection risk, we measure the impairment based on the present value of projected future cash flows discounted at the loan's effective interest rate. For impaired loans, we establish a specific loan loss reserve for the difference between the recorded investment in the loan and the estimated fair value. In addition to loans, we include other types of financing arrangements in unsecured financing to hotel owners which we do not assess individually for impairment. We regularly evaluate our reserves for these other financing arrangements. We write off financing to hotel owners when we determine the receivables are uncollectible and when all commercially reasonable means of recovering the receivable balances have been exhausted. We recognize interest income when received for impaired loans and financing receivables on non-accrual status which is recognized in other income (loss), net in our consolidated statements of income. Accrual of interest income is resumed when the receivable becomes contractually current and collection doubts are removed. For additional information about financing receivables, see Note 6 . Accounts Receivable —Our accounts receivable primarily consists of trade receivables due from guests for services rendered at our owned and leased properties and from hotel owners with whom we have management and franchise agreements for services rendered and for reimbursements of costs incurred on behalf of managed and franchised properties. We record an accounts receivable reserve when losses are probable, based on an assessment of past collection activity and current business conditions. Inventories —Inventories are comprised of operating supplies and equipment that have a period of consumption of two years or less and food and beverage items at our owned and leased hotels which are generally valued at the lower of cost ( first- in, first- out) or net realizable value. Property and Equipment and Definite- Lived Intangible Assets —Property and equipment is stated at cost, including interest incurred during development and construction periods, less accumulated depreciation. Definite-lived intangible assets are recorded at the acquisition-date fair value, less accumulated amortization. Depreciation and amortization are recognized over the estimated useful lives of the assets, primarily on the straight- line method. Property and equipment are depreciated over the following: Buildings and improvements 10-50 years Leasehold improvements The shorter of the lease term or useful life of asset Furniture and equipment 3-20 years Computers 3-7 years Definite-lived intangible assets are amortized over the following: Management and franchise agreement intangibles 4 - 30 years Advanced booking intangibles 1 - 7 years We assess property and equipment and definite-lived intangible assets for impairment quarterly. When events or circumstances indicate the carrying amount may not be recoverable, we evaluate the net book value of the assets for impairment by comparison to the projected undiscounted future cash flows of the assets. The principal factor used in the undiscounted cash flow analysis requiring judgment is the projected future operating cash flows, which are based on historical data, various internal estimates, and a variety of external resources, and are developed as part of our routine, long-term planning process. If the projected undiscounted future cash flows are less than the net book value of the assets, the fair value is determined based upon internally developed discounted cash flows of the assets, third-party appraisals or broker valuations, and if appropriate, current estimated net sales proceeds from pending offers. The principal inputs used in the discounted cash flow analysis requiring judgment are the projected future operating cash flows, the discount rates, and the capitalization rate assumptions. The excess of the net book value over the estimated fair value is recognized in asset impairments on our consolidated statements of income. We evaluate the carrying value of our property and equipment and definite-lived intangible assets based on our plans, at the time, for such assets and consider qualitative factors such as future development in the surrounding area, status of local competition, and any significant adverse changes in the business climate. Changes to our plans, including a decision to dispose of or change the intended use of an asset, may have a material impact on the carrying value of the asset. For additional information about property and equipment and definite-lived intangible assets, see Notes 5 and 9 , respectively. Leases —We primarily lease land, buildings, office space, spas and fitness centers, and equipmen |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 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 $ 1,058 $ — $ — $ — $ 25 $ (35 ) $ 1,048 Food and beverage 607 — — — 12 — 619 Other 143 — — — 38 — 181 Owned and leased hotels 1,808 — — — 75 (35 ) 1,848 Base management fees — 227 46 37 — (50 ) 260 Incentive management fees — 65 72 38 — (24 ) 151 Franchise fees — 136 4 1 — — 141 Other fees — 5 14 7 6 — 32 License fees — — — — 24 — 24 Management, franchise, and other fees — 433 136 83 30 (74 ) 608 Amortization of management and franchise agreement assets constituting payments to customers — (15 ) (2 ) (5 ) — — (22 ) Net management, franchise, and other fees — 418 134 78 30 (74 ) 586 Other revenues — 89 — — 35 1 125 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 2,268 113 74 6 — 2,461 Total $ 1,808 $ 2,775 $ 247 $ 152 $ 146 $ (108 ) $ 5,020 Year Ended December 31, 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 $ 1,110 $ — $ — $ — $ 23 $ (33 ) $ 1,100 Food and beverage 636 — — — 10 — 646 Other 143 — — — 29 — 172 Owned and leased hotels 1,889 — — — 62 (33 ) 1,918 Base management fees — 200 44 34 — (53 ) 225 Incentive management fees — 67 71 39 — (29 ) 148 Franchise fees — 123 3 1 — — 127 Other fees — 10 9 6 6 — 31 License fees — — — — 21 — 21 Management, franchise, and other fees — 400 127 80 27 (82 ) 552 Amortization of management and franchise agreement assets constituting payments to customers — (13 ) (2 ) (5 ) — — (20 ) Net management, franchise, and other fees — 387 125 75 27 (82 ) 532 Other revenues — — — — 43 5 48 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,787 95 68 6 — 1,956 Total $ 1,889 $ 2,174 $ 220 $ 143 $ 138 $ (110 ) $ 4,454 Year Ended December 31, 2017 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 $ 1,270 $ — $ — $ — $ 22 $ (38 ) $ 1,254 Food and beverage 722 — — — 11 — 733 Other 167 — — — 30 — 197 Owned and leased hotels 2,159 — — — 63 (38 ) 2,184 Base management fees — 193 39 29 — (59 ) 202 Incentive management fees — 62 65 35 — (27 ) 135 Franchise fees — 112 2 — — — 114 Other fees — 13 6 5 4 — 28 License fees — — — — 19 — 19 Management, franchise, and other fees — 380 112 69 23 (86 ) 498 Amortization of management and franchise agreement assets constituting payments to customers — (12 ) (1 ) (5 ) — — (18 ) Net management, franchise, and other fees — 368 111 64 23 (86 ) 480 Other revenues 13 — — — 14 9 36 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,625 79 58 — — 1,762 Total $ 2,172 $ 1,993 $ 190 $ 122 $ 100 $ (115 ) $ 4,462 Contract Balances Our contract assets are insignificant at December 31, 2019 and December 31, 2018 . Contract liabilities are comprised of the following: December 31, 2019 December 31, 2018 Deferred revenue related to the loyalty program $ 671 $ 596 Advanced deposits 77 81 Initial fees received from franchise owners 41 35 Deferred revenue related to system-wide services 5 7 Other deferred revenue 126 111 Total contract liabilities $ 920 $ 830 The following table summarizes the activity in our contract liabilities: 2019 2018 Beginning balance, January 1 $ 830 $ 772 Cash received and other 1,025 964 Revenue recognized (935 ) (906 ) Ending balance, December 31 $ 920 $ 830 Revenue recognized during the years ended December 31, 2019 and December 31, 2018 included in the contract liabilities balance at the beginning of each year was $375 million and $356 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 December 31, 2019 , of which we expect to recognize approximately 20% of the 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 | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt and Equity Securities | DEBT AND EQUITY SECURITIES We make investments in debt and equity securities that we believe are strategically and operationally important to our business. These investments take the form of (i) equity method investments where we have the ability to significantly influence the operations of the entity, (ii) marketable securities held to fund operating programs and for investment purposes, and (iii) other types of investments. Equity Method Investments Equity method investments were $232 million and $233 million at December 31, 2019 and December 31, 2018 , respectively, and are primarily recorded on our owned and leased hotels segment. The carrying values and ownership interests of our investments in unconsolidated hospitality ventures accounted for under the equity method are as follows: Investee Existing or future hotel property Ownership interest Carrying value December 31, 2019 December 31, 2018 Hyatt of Baja, S. de. R.L. de C.V. Park Hyatt Los Cabos 50.0 % $ 48 $ 46 HP Boston Partners, LLC Hyatt Place Boston/Seaport District 50.0 % 29 29 Hotel am Belvedere Holding GmbH & Co KG Andaz Vienna Am Belvedere 50.0 % 22 25 San Jose Hotel Partners, LLC Hyatt Place San Jose Airport, Hyatt House San Jose Airport 40.0 % 20 18 Desarrolladora Hotelera Acueducto, S. de R.L. de C.V. Hyatt Regency Andares Guadalajara 50.0 % 14 13 Portland Hotel Properties, LLC Hyatt Centric Downtown Portland 40.0 % 13 13 CBR HCN, LLC Hyatt Centric Downtown Nashville 40.0 % 12 — HH Nashville JV Holdings, LLC Hyatt House Nashville at Vanderbilt 50.0 % 11 12 33 Beale Street Hotel Company, LLC Hyatt Centric Memphis 50.0 % 11 — HP Atlanta Centennial Park JV, LLC Hyatt Place Atlanta/Centennial Park 50.0 % 10 10 Hotel Hoyo Uno, S. de R.L. de C.V. Andaz Mayakoba Resort Riviera Maya 40.0 % 10 16 Other Various 32 51 Total equity method investments $ 232 $ 233 The following tables present summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method: Years Ended December 31, 2019 2018 2017 Total revenues $ 496 $ 513 $ 832 Gross operating profit 179 182 289 Income (loss) from continuing operations (24 ) (16 ) 54 Net income (loss) (24 ) (16 ) 54 December 31, 2019 December 31, 2018 Current assets $ 231 $ 228 Noncurrent assets 1,417 1,345 Total assets $ 1,648 $ 1,573 Current liabilities $ 143 $ 141 Noncurrent liabilities 1,270 1,148 Total liabilities $ 1,413 $ 1,289 During the year ended December 31, 2019 , we had the following activity: • We recognized $8 million of gains in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income resulting from sales activity related to certain equity method investments within our owned and leased hotels segment and received $25 million of related sales proceeds. During the year ended December 31, 2018 , we had the following activity: • We recognized $40 million of net gains in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income resulting from sales activity related to certain equity method investments primarily within our owned and leased hotels segment and received $43 million of related sales proceeds. • 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 . We recognized $16 million of impairment charges related to these investments in equity earnings (losses) from unconsolidated hospitality ventures in our owned and leased hotels segment on our consolidated statements of income as the carrying value was in excess of fair value. During the year ended December 31, 2017 , we had the following activity: • In conjunction with the sale of Avendra, an equity method investment within our Americas management and franchising segment, to Aramark, we received approximately $217 million of net proceeds and recognized a $217 million gain in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. • We recognized $6 million of gains in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income resulting from sales activity related to certain equity method investments within our owned and leased hotels segment and received $12 million of related sales proceeds. During the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , we recognized $7 million , $16 million , and $3 million of impairment charges, respectively, in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income as the carrying values were in excess of fair values. The fair values were determined to be Level Three fair value measures, and the impairments were deemed other-than-temporary. 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 consolidated balance sheets, were as follows: December 31, 2019 December 31, 2018 Loyalty program (Note 10) $ 483 $ 397 Deferred compensation plans held in rabbi trusts (Note 10 and Note 13) 450 367 Captive insurance companies 180 133 Total marketable securities held to fund operating programs $ 1,113 $ 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 (219 ) (174 ) Marketable securities held to fund operating programs included in other assets $ 894 $ 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 consolidated statements of income: Years Ended December 31, 2019 2018 2017 Loyalty program (Note 21) $ 26 $ 4 $ 9 Net realized and unrealized gains (losses) and interest income from marketable securities held to fund rabbi trusts are recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts on our consolidated statements of income: Years Ended December 31, 2019 2018 2017 Unrealized gains (losses), net $ 42 $ (45 ) $ 20 Realized gains, net 20 34 25 Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ 62 $ (11 ) $ 45 Our captive insurance companies hold marketable securities which include AFS debt securities that 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 2020 through 2024. Marketable Securities Held for Investment Purposes —Marketable securities held for investment purposes, which are recorded at fair value and included on our consolidated balance sheets, were as follows: December 31, 2019 December 31, 2018 Interest-bearing money market funds $ 147 $ 14 Common shares of Playa N.V. (Note 10) 102 87 Time deposits 37 100 Total marketable securities held for investment purposes $ 286 $ 201 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (184 ) (114 ) Marketable securities held for investment purposes included in other assets $ 102 $ 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 $15 million of unrealized gains and $44 million of unrealized losses for the years ended December 31, 2019 and December 31, 2018 , respectively, recognized in other income (loss), net on our consolidated statements of income (see Note 21). We did no t sell any shares of common stock during the year ended December 31, 2019 . Other Investments HTM Debt Securities —At December 31, 2019 and December 31, 2018 , we held $58 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 in our consolidated balance sheets. The securities are mandatorily redeemable between 2020 and 2025. The amortized cost of our investments approximate fair value. We estimated the fair value of our investments using internally developed discounted cash flow models based on current market inputs for similar types of arrangements. Based upon the lack of available market data, our investments are classified as Level Three within the fair value hierarchy. The primary sensitivity in these 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 December 31, 2019 and December 31, 2018 , we had $7 million and $9 million , respectively, 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. Due to ongoing operating cash flow shortfalls in the business underlying an equity security during the year ended December 31, 2018 , we recognized a $22 million impairment charge for our full investment balance in other income (loss), net on our consolidated statements of income (see Note 21 ) 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 year ended December 31, 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: December 31, 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 $ 269 $ 269 $ — $ — $ — Mutual funds 502 — — — 502 Common shares 102 — — — 102 Level Two - Significant Other Observable Inputs Time deposits 47 — 41 — 6 U.S. government obligations 202 — 4 31 167 U.S. government agencies 50 — 3 6 41 Corporate debt securities 161 — 20 18 123 Mortgage-backed securities 23 — — 4 19 Asset-backed securities 39 — — 6 33 Municipal and provincial notes and bonds 4 — — 1 3 Total $ 1,399 $ 269 $ 68 $ 66 $ 996 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 years ended December 31, 2019 and December 31, 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. We invest a portion of our cash into short- term interest-bearing money market funds that have a maturity of less than 90 days. Consequently, the balances are recorded in cash and cash equivalents. The funds are held with open- ended registered investment companies, and the fair value of the funds is classified as Level One as we are able to obtain market available pricing information on an ongoing basis. The fair value of our mutual funds is classified as Level One as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Time deposits are recorded at par value, which approximates fair value, and are classified as Level Two. The remaining securities are classified as Level Two due to the use and weighting of multiple market inputs being considered in the final price of the security. Market inputs include quoted market prices from active markets for identical securities, quoted market prices for identical securities in inactive markets, and quoted market prices in active and inactive markets for similar securities. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET December 31, 2019 December 31, 2018 Land $ 690 $ 713 Buildings 3,285 3,583 Leasehold improvements 194 215 Furniture, equipment, and computers 1,183 1,178 Construction in progress 253 158 Property and equipment 5,605 5,847 Less: accumulated depreciation (2,149 ) (2,239 ) Total property and equipment, net $ 3,456 $ 3,608 Years Ended December 31, 2019 2018 2017 Depreciation expense $ 304 $ 312 $ 335 Interest capitalized as a cost of property and equipment was $6 million , $3 million , and $4 million for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 |
Financing Receivables
Financing Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables | FINANCING RECEIVABLES December 31, 2019 December 31, 2018 Unsecured financing to hotel owners $ 135 $ 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 $ 35 $ 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 6 7 Write-offs (6 ) (12 ) Other adjustments (1 ) (2 ) Allowance at December 31 $ 100 $ 101 Credit Monitoring — Our unsecured financing receivables were as follows: December 31, 2019 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 33 $ (1 ) $ 32 $ — Impaired loans (1) 43 (43 ) — 43 Total loans 76 (44 ) 32 43 Other financing arrangements 59 (56 ) 3 56 Total unsecured financing receivables $ 135 $ (100 ) $ 35 $ 99 (1) The unpaid principal balance was $33 million and the average recorded loan balance was $46 million at December 31, 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 to be approximately $36 million and $59 million at December 31, 2019 and December 31, 2018 , respectively. The fair values, which are classified as Level Three in the fair value hierarchy, are estimated using discounted future cash flow models. The principal inputs used are projected future cash flows and the discount rate, which is generally the effective interest rate of the loan. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | ACQUISITIONS AND DISPOSITIONS Acquisitions Two Roads Hospitality, LLC —During the year ended December 31, 2018 , we acquired all of the outstanding equity interests of 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 consolidated balance sheet at December 31, 2018, which represented our estimate of 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 December 31, 2019 $ 507 As it relates to the $57 million contingent consideration liability recorded at December 31, 2018 , of which $3 million remains at December 31, 2019 , the following occurred during the year ended December 31, 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 $30 million of the contingent liability to other income (loss), net on our consolidated statements of income during the year ended December 31, 2019 (see Note 21). The acquisition includes management and license agreements for operating and pipeline hotels primarily across North America and Asia under five hospitality brands. During the year ended December 31, 2019 , the fair values of the assets acquired and liabilities assumed 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 $38 million reduction in intangibles, net with an offsetting increase in goodwill on our consolidated balance sheet at December 31, 2019. We finalized the fair values of the assets acquired and liabilities assumed, which are classified as Level Three in the fair value hierarchy, during 2019. The fair values 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, renewal assumptions, and long-term growth rates, as well as the selection of discount rates. The following table summarizes the fair value of the identifiable net assets acquired: Cash $ 32 Receivables 20 Other current assets 2 Equity method investment 2 Property and equipment 2 Indefinite-lived intangibles (1), (5) 96 Management agreement intangibles (2), (5) 205 Goodwill (3) 199 Other assets (4) 25 Total assets $ 583 Advanced deposits (6) $ 20 Other current liabilities 23 Other long-term liabilities (4) 33 Total liabilities 76 Total net assets acquired $ 507 (1) Includes brand-related intangibles. (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 $154 million is tax deductible, is attributable to the growth opportunities we expect to realize by expanding into new markets and enhancing guest experiences through these newly acquired lifestyle brands (see Note 9 ). (4) Includes $13 million of pre-acquisition 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 (see Note 14 ). (5) See Note 9 for impairment discussion. (6) Included in contract liabilities (see Note 3 ). Hyatt Regency Phoenix —During the year ended December 31, 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 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 year ended December 31, 2018 , we completed an asset acquisition of Hyatt Regency Indian Wells Resort & Spa from an unrelated third party for a purchase price of approximately $120 million , net of proration adjustments. 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). Exhale —During the year ended December 31, 2017 , we acquired the equity of Exhale from an unrelated third party for a purchase price of $16 million , net of $1 million cash acquired. Assets acquired and recorded within corporate and other primarily include a $9 million brand indefinite-lived intangible and $4 million of goodwill, of which $3 million is deductible for tax purposes. Miraval —During the year ended December 31, 2017 , we acquired Miraval from an unrelated third party. The transaction included the Miraval Life in Balance Spa brand, Miraval Arizona Resort & Spa in Tucson, Arizona, Travaasa Resort in Austin, Texas, and the option to acquire Cranwell Spa & Golf Resort ("Cranwell") in Lenox, Massachusetts. We subsequently exercised our option and acquired approximately 95% of Cranwell during the year ended December 31, 2017 . Total cash consideration for Miraval was $237 million . The following table summarizes the fair value of the identifiable net assets acquired in the acquisition of Miraval, which is recorded within corporate and other: Current assets $ 1 Property and equipment 172 Indefinite-lived intangibles (1) 37 Management agreement intangibles (2) 14 Goodwill (3) 21 Other definite-lived intangibles (4) 7 Total assets $ 252 Current liabilities $ 13 Deferred tax liabilities 3 Total liabilities 16 Total net assets acquired attributable to Hyatt Hotels Corporation 236 Total net assets acquired attributable to noncontrolling interests 1 Total net assets acquired $ 237 (1) Includes an intangible attributable to the Miraval brand. (2) Amortized over a 20 year useful life. (3) The goodwill, of which $10 million is deductible for tax purposes, is attributable to Miraval's reputation as a renowned provider of wellness and mindfulness experiences, the extension of the Hyatt brand beyond traditional hotel stays, and the establishment of deferred tax liabilities. (4) Amortized over useful lives ranging from two to seven years . In conjunction with the acquisition of Miraval, a consolidated hospitality venture for which we are the managing partner (the "Miraval Venture") issued $9 million of redeemable preferred shares to unrelated third-party investors. The preferred shares were non-voting, except as required by applicable law and certain contractual approval rights, and had liquidation preference over all other classes of securities within the Miraval Venture. The redeemable preferred shares earned a return of 12% . During the year ended December 31, 2018 , the preferred shares were redeemed for $10 million . Dispositions Grand Hyatt Seoul —During the year ended December 31, 2019 , we sold the shares of the entity which owns Grand Hyatt Seoul and adjacent land to an unrelated third party for approximately $467 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 $349 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2019. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Contractual Right —During the year ended December 31, 2019 , we sold our contractual right to purchase Hyatt Regency Portland at the Oregon Convention Center to an unrelated third party for approximately $21 million , net of closing costs. We entered into a long-term management agreement for the property upon sale. The sale resulted in a $16 million pre-tax gain which was recognized in other income (loss), net on our consolidated statements of income during the year ended December 31, 2019 (see Note 21 ). Land —During the year ended December 31, 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 sold the land and related construction in progress through an asset disposition during 2019. Hyatt Regency Atlanta —During the year ended December 31, 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 consolidated statements of income during the year ended December 31, 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 year ended December 31, 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 consolidated statements of income during the year ended December 31, 2019 . The operating results and financial position of this property prior to the sale remain within our owned and leased hotels segment. A Hyatt House Hotel —During the year ended December 31, 2018 , we sold a select service property for $48 million , net of closing costs and proration adjustments, to an unrelated third party 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 $4 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2018 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Mexico City —During the year ended December 31, 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, 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 year ended December 31, 2019 (see Note 6 ). The sale resulted in a pre-tax gain of approximately $238 million , which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2018 . In connection with the disposition, we recognized a $21 million goodwill impairment charge in asset impairments on our consolidated statements of income during the year ended December 31, 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 (see Note 9 ). 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 year ended December 31, 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 consolidated statements of income during the year ended December 31, 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 does not qualify as discontinued operations, the disposal is considered to be material. Pre-tax net income attributable to the three properties was $15 million and $23 million during the years ended December 31, 2018 and December 31, 2017, respectively. Land Held for Development —A wholly owned subsidiary held undeveloped land in Los Cabos, Mexico. During the year ended December 31, 2018 , an unrelated third party invested in the subsidiary in exchange for a 50% ownership interest resulting in derecognition of the subsidiary and the recognition of an investment in an unconsolidated hospitality venture at fair value of $45 million . Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course —During the year ended December 31, 2017 , we sold Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course to an unrelated third party for $58 million , net of closing costs and proration adjustments, and entered into a long-term franchise agreement for the property upon sale. The sale resulted in a $17 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2017 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa —During the year ended December 31, 2017 , we sold Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa to an unrelated third party as a portfolio for $296 million , net of closing costs and proration adjustments, and entered into long-term management agreements for the properties upon sale. The sale resulted in a $159 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2017 . The operating results and financial position of these hotels prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Grand Cypress —During the year ended December 31, 2017 , we sold Hyatt Regency Grand Cypress to an unrelated third party for $202 million , net of closing costs and proration adjustments, and entered into a long-term management agreement for the property upon sale. The sale resulted in a $26 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2017 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Louisville —During the year ended December 31, 2017 , we sold Hyatt Regency Louisville to an unrelated third party for $65 million , net of closing costs and proration adjustments, and entered into a long-term franchise agreement for the property upon sale. The sale resulted in a $35 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2017 . The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Land Held for Development —During the year ended December 31, 2017 , we sold land and construction in progress for $29 million to an unconsolidated hospitality venture in which we have a 50% ownership interest, with the intent to complete development of a hotel in Glendale, California. 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 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 year ended December 31, 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 year ended December 31, 2018 , $221 million of proceeds were held as restricted for use in a potential like-kind exchange. During the year ended December 31, 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. In conjunction with the sale of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch during the year ended December 31, 2017 , $207 million of proceeds were held as restricted for use in a potential like-kind exchange. However, we did not acquire an identified replacement property within the specified 180 day period, and the proceeds were released during the year ended December 31, 2018 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES Lessee A summary of operating lease expense is as follows: Years Ended December 31, 2019 2018 2017 Minimum rentals $ 50 $ 38 $ 42 Contingent rentals 97 47 52 Total operating lease expense $ 147 $ 85 $ 94 Total lease expense related to short-term leases and finance leases was insignificant for the year ended December 31, 2019 . Supplemental balance sheet information related to finance leases is as follows: December 31, 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 $14 million of accumulated amortization. Weighted-average remaining lease terms and discount rates are as follows: December 31, 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 and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term. The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows: Years ending December 31, Operating leases Finance leases 2020 $ 47 $ 3 2021 45 2 2022 42 2 2023 39 2 2024 36 2 Thereafter 422 3 Total minimum lease payments $ 631 $ 14 Less: amount representing interest (206 ) (3 ) Present value of minimum lease payments $ 425 $ 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 certain of our owned hotels. 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 consolidated statements of income as follows: Years Ended December 31, 2019 2018 2017 Rental income $ 23 $ 25 $ 27 The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter are as follows: Years Ending December 31, 2020 $ 19 2021 13 2022 11 2023 8 2024 4 Thereafter 8 Total minimum lease receipts $ 63 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 A summary of operating lease expense is as follows: Years Ended December 31, 2019 2018 2017 Minimum rentals $ 50 $ 38 $ 42 Contingent rentals 97 47 52 Total operating lease expense $ 147 $ 85 $ 94 Total lease expense related to short-term leases and finance leases was insignificant for the year ended December 31, 2019 . Supplemental balance sheet information related to finance leases is as follows: December 31, 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 $14 million of accumulated amortization. Weighted-average remaining lease terms and discount rates are as follows: December 31, 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 and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term. The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows: Years ending December 31, Operating leases Finance leases 2020 $ 47 $ 3 2021 45 2 2022 42 2 2023 39 2 2024 36 2 Thereafter 422 3 Total minimum lease payments $ 631 $ 14 Less: amount representing interest (206 ) (3 ) Present value of minimum lease payments $ 425 $ 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 certain of our owned hotels. 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 consolidated statements of income as follows: Years Ended December 31, 2019 2018 2017 Rental income $ 23 $ 25 $ 27 The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter are as follows: Years Ending December 31, 2020 $ 19 2021 13 2022 11 2023 8 2024 4 Thereafter 8 Total minimum lease receipts $ 63 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 A summary of operating lease expense is as follows: Years Ended December 31, 2019 2018 2017 Minimum rentals $ 50 $ 38 $ 42 Contingent rentals 97 47 52 Total operating lease expense $ 147 $ 85 $ 94 Total lease expense related to short-term leases and finance leases was insignificant for the year ended December 31, 2019 . Supplemental balance sheet information related to finance leases is as follows: December 31, 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 $14 million of accumulated amortization. Weighted-average remaining lease terms and discount rates are as follows: December 31, 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 and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term. The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows: Years ending December 31, Operating leases Finance leases 2020 $ 47 $ 3 2021 45 2 2022 42 2 2023 39 2 2024 36 2 Thereafter 422 3 Total minimum lease payments $ 631 $ 14 Less: amount representing interest (206 ) (3 ) Present value of minimum lease payments $ 425 $ 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 certain of our owned hotels. 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 consolidated statements of income as follows: Years Ended December 31, 2019 2018 2017 Rental income $ 23 $ 25 $ 27 The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter are as follows: Years Ending December 31, 2020 $ 19 2021 13 2022 11 2023 8 2024 4 Thereafter 8 Total minimum lease receipts $ 63 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 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Total Balance at January 1, 2018 Goodwill $ 189 $ 33 $ — $ — $ 23 $ 245 Accumulated impairment losses (95 ) — — — — (95 ) Goodwill, net $ 94 $ 33 $ — $ — $ 23 $ 150 Activity during the year Additions — 135 18 3 2 158 Impairment losses (21 ) — — — (4 ) (25 ) Balance at December 31, 2018 Goodwill 189 168 18 3 25 403 Accumulated impairment losses (116 ) — — — (4 ) (120 ) Goodwill, net $ 73 $ 168 $ 18 $ 3 $ 21 $ 283 Activity during the year Measurement period adjustments (Note 7) — 64 (18 ) (3 ) — 43 Balance at December 31, 2019 Goodwill 189 232 — — 25 446 Accumulated impairment losses (116 ) — — — (4 ) (120 ) Goodwill, net $ 73 $ 232 $ — $ — $ 21 $ 326 December 31, 2019 Weighted-average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 367 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 144 — 180 Advanced booking intangibles 14 5 14 Other definite-lived intangibles 8 6 8 Intangibles 533 713 Less: accumulated amortization (96 ) (85 ) Intangibles, net $ 437 $ 628 Years Ended December 31, 2019 2018 2017 Amortization expense $ 25 $ 15 $ 13 We estimate amortization expense for definite-lived intangibles as follows: Years Ending December 31, 2020 $ 28 2021 27 2022 25 2023 24 2024 23 Thereafter 166 Total amortization expense $ 293 During the year ended December 31, 2019 , we recognized $18 million of impairment charges related to management and franchise agreement intangibles and brand and other indefinite-lived intangibles primarily as a result of contract terminations. The impairment charges were recognized in asset impairments on our consolidated statements of income, primarily within our Americas management and franchising segment, and are classified as Level Three in the fair value hierarchy. During the year ended December 31, 2018 , we recognized $25 million of goodwill impairment charges primarily related to the HRMC transaction in asset impairments on our consolidated statements of income (see Note 7). During the year ended December 31, 2017 , we did no |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS December 31, 2019 December 31, 2018 Marketable securities held to fund rabbi trusts (Note 4) $ 450 $ 367 Management and franchise agreement assets constituting payments to customers (1) 423 396 Marketable securities held to fund the loyalty program (Note 4) 347 303 Long-term investments 162 112 Common shares of Playa N.V. (Note 4) 102 87 Other 104 88 Total other assets $ 1,588 $ 1,353 (1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT December 31, 2019 December 31, 2018 $250 million senior unsecured notes maturing in 2021—5.375% $ 250 $ 250 $350 million senior unsecured notes maturing in 2023—3.375% 350 350 $400 million senior unsecured notes maturing in 2026—4.850% 400 400 $400 million senior unsecured notes maturing in 2028—4.375% 400 400 Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A 130 130 Contract Revenue Bonds, Senior Taxable Series 2005B 47 52 Floating average rate construction loan 49 55 Other 1 1 Total debt before finance lease obligations 1,627 1,638 Finance lease obligations 11 12 Total debt 1,638 1,650 Less: current maturities (11 ) (11 ) Less: unamortized discounts and deferred financing fees (15 ) (16 ) Total long-term debt $ 1,612 $ 1,623 Under existing agreements, maturities of debt for the next five years and thereafter are as follows: Years Ending December 31, 2020 $ 11 2021 261 2022 11 2023 361 2024 12 Thereafter 982 Total maturities of debt $ 1,638 Senior Notes —At December 31, 2019 and December 31, 2018 , we had unsecured Senior Notes as further described below. Interest on the Senior Notes is payable semi-annually. We may redeem all or a portion of the Senior Notes at any time at 100% of the principal amount of the Senior Notes redeemed together with the accrued and unpaid interest, plus a make- whole amount, if any. The amount of any make- whole payment depends, in part, on the yield of U.S. Treasury securities with a comparable maturity to the Senior Notes at the date of redemption. A summary of the terms of our outstanding Senior Notes, by year of issuance, is as follows: • In 2011, we issued $250 million of 5.375% senior notes due 2021, at an issue price of 99.846% . • In 2013, we issued $350 million of 3.375% senior notes due 2023, at an issue price of 99.498% . • In 2016, we issued $400 million of 4.850% senior notes due 2026, at an issue price of 99.920% . • In 2018, we issued 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 the 2019 Notes, and the remainder was used for general corporate purposes. Debt Redemption —During the year ended December 31, 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 consolidated statements of income (see Note 21 ). Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A and Contract Revenue Bonds, Senior Taxable Series 2005B —During the year ended December 31, 2013, we acquired our partner's interest in the entity that owned Grand Hyatt San Antonio, and as a result, we consolidated $198 million of bonds, net of the $9 million bond discount, which is being amortized over the life of the bonds. The construction was financed in part by The City of San Antonio, Texas Convention Center Hotel Finance Corporation ("Texas Corporation"), a non-profit local government corporation created by the City of San Antonio, Texas for the purpose of providing financing for a portion of the costs of constructing the hotel. On June 8, 2005, Texas Corporation issued $130 million of original principal amount Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A ("Series 2005A Bonds") and $78 million of original principal amount Contract Revenue Bonds, Senior Taxable Series 2005B ("Series 2005B Bonds"). The Series 2005A Bonds mature between 2034 and 2039, with interest ranging from 4.75% to 5.00% , and the remaining Series 2005B Bonds mature between 2020 and 2028, with interest ranging from 5.1% to 5.31% . The loan payments are required to be funded solely from net operating revenues of Grand Hyatt San Antonio, and in the event that net operating revenues are not sufficient to pay debt service, Texas Corporation under certain circumstances will be required to provide certain tax revenue to pay debt service on the 2005 Series Bonds. The indenture allows for optional early redemption of the Series 2005B Bonds subject to make-whole payments at any time with consent from Texas Corporation and beginning in 2015 for the Series 2005A Bonds. Interest is payable semi-annually. Floating Average Rate Construction Loan —During the year ended December 31, 2012, we obtained a secured construction loan with Banco Nacional de Desenvolvimento Econômico e Social - BNDES ("BNDES") in order to develop Grand Hyatt Rio de Janeiro. The loan is split into four separate sub-loans, each with different interest rates. Sub-loans (a) and (b) mature in 2031 and sub-loans (c) and (d) mature in 2023. Borrowings under the four sub-loans bear interest at the following rates, depending on the applicable sub-loan: (a) and (b) the Brazilian Long Term Interest Rate - TJLP plus 2.92% , (c) 2.5% , and (d) the Brazilian Long Term Interest Rate - TJLP. On sub-loans (a), (b), and (d), when the TJLP rate exceeds 6% , the amount corresponding to the TJLP portion above 6% is required to be capitalized daily. At December 31, 2019 , the weighted-average interest rates for the sub-loans we have drawn upon is 7.54% . The outstanding balance of the sub-loan subject to the interest rate described in (a) above is subject to adjustment on a daily basis based on BNDES's calculation of the weighted-average of exchange rate variations related to foreign currency funds raised by BNDES in foreign currency. At December 31, 2019 and December 31, 2018 , we had Brazilian Real ("BRL") 197 million , or $49 million , and BRL 214 million , or $55 million , outstanding, respectively. Revolving Credit Facility —During the year ended December 31, 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. Interest rates on outstanding borrowings are either LIBOR- based or based on an alternate base rate, with margins in each case based on our credit rating or, in certain circumstances, our credit rating and leverage ratio. During the year ended December 31, 2019 , we had $400 million of borrowings and repayments on our revolving credit facility. The weighted-average interest rate on these borrowings was 3.47% at December 31, 2019 . At December 31, 2019 and December 31, 2018 , we had no balance outstanding. The Company had $263 million and $277 million of letters of credit issued through additional banks at December 31, 2019 and December 31, 2018 , respectively. 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 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. December 31, 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 $ 1,740 $ — $ 1,680 $ 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 December 31, 2019 and December 31, 2018 , we had outstanding interest rate locks with $275 million and $200 million of notional value, respectively, 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. These outstanding derivative instruments are designated as cash flow hedges and deemed highly effective both at inception and at December 31, 2019 . During the years ended December 31, 2019 and December 31, 2018 , we recognized $20 million and $4 million of pre-tax losses, respectively, in unrealized gains (losses) on derivative activity on our consolidated statements of comprehensive income. At December 31, 2019 and December 31, 2018 , we had $24 million and $4 million of liabilities related to these derivative instruments, respectively, recorded in other long-term liabilities on our 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 year ended December 31, 2018 , we settled interest rate locks with $225 million |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Benefit Plans —We sponsor supplemental executive retirement plans consisting of funded and unfunded defined benefit plans for certain former executives. Retirement benefits are based primarily on the former employees' salary, as defined, and are payable upon satisfaction of certain service and age requirements as defined by the plans. The accumulated benefit obligation related to the unfunded U.S. plan was $21 million and $19 million , of which $20 million and $18 million was classified as a long-term liability, at December 31, 2019 and December 31, 2018 , respectively. At December 31, 2019 , we expect benefits of $1 million to be paid annually over the next 10 years. Defined Contribution Plans —We provide retirement benefits to certain eligible employees under the Retirement Savings Plan (a qualified plan under Internal Revenue Code Section 401(k)), the FRP, and other similar plans. For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , we recorded expenses of $48 million , $41 million , and $39 million , respectively, related to the Retirement Savings Plan based on a percentage of eligible employee contributions on stipulated amounts. The majority of these contributions relate to hotel property level employees, which are reimbursable to us, and are included in 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 consolidated statements of income. Deferred Compensation Plans —We provide nonqualified deferred compensation for certain employees through the DCP. Contributions and investment elections are determined by the employees, and we provide contributions to certain eligible employees according to pre-established formulas. The DCP is fully funded through a rabbi trust, therefore changes in the underlying securities impact the deferred compensation liability, which is recorded in other long-term liabilities (see Note 13 ) and the corresponding marketable securities assets (see Note 4 ). Employee Stock Purchase Program —We provide the Hyatt Hotels Corporation ESPP, which qualifies under Section 423 of the Internal Revenue Code. The ESPP provides eligible employees the opportunity to purchase shares of the Company's common stock on a quarterly basis through payroll deductions at a price equal to 95% of the fair value on the last trading day of each quarter. We issued 79,700 shares and 61,900 shares under the ESPP during 2019 and 2018 , respectively. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES December 31, 2019 December 31, 2018 Deferred compensation plans funded by rabbi trusts (Note 4) $ 450 $ 367 Income taxes payable 147 131 Self-insurance liabilities (Note 15) 80 78 Deferred income taxes (Note 14) 47 54 Guarantee liabilities (Note 15) 46 76 Other 114 134 Total other long-term liabilities $ 884 $ 840 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our tax provision includes federal, state, local, and foreign income taxes. Years Ended December 31, 2019 2018 2017 U.S. income before tax $ 466 $ 652 $ 650 Foreign income before tax 540 299 72 Income before income taxes $ 1,006 $ 951 $ 722 The provision (benefit) for income taxes from continuing operations is comprised of the following: Years Ended December 31, 2019 2018 2017 Current: Federal $ 74 $ 140 $ 201 State 35 50 45 Foreign 103 25 30 Total Current $ 212 $ 215 $ 276 Deferred: Federal $ 29 $ (35 ) $ 46 State 2 (12 ) (3 ) Foreign (3 ) 14 13 Total Deferred $ 28 $ (33 ) $ 56 Total $ 240 $ 182 $ 332 The following is a reconciliation of the statutory federal income tax rate to the effective tax rate from continuing operations: Years Ended December 31, 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes—net of federal tax benefit 2.7 2.6 3.8 Impact of foreign operations (excluding unconsolidated hospitality ventures losses) (2.0 ) (5.6 ) (5.4 ) U.S. foreign tax credits — (1.6 ) 0.7 2017 Tax Act deferred rate change — (0.1 ) 6.3 2017 Tax Act deemed repatriation tax — 0.3 1.8 Change in valuation allowances 1.0 0.9 1.0 Foreign unconsolidated hospitality ventures 0.5 0.9 0.9 Tax contingencies 0.3 1.0 1.0 Equity based compensation 0.2 0.3 0.6 General business credits (0.3 ) (0.5 ) (0.3 ) Other 0.5 (0.1 ) 0.5 Effective income tax rate 23.9 % 19.1 % 45.9 % Significant items affecting the 2019 effective tax rate include the state impact of U.S. operations and certain foreign net operating losses generated in the current year that are not expected to be utilized within the carryforward period. These expenses are offset by the benefits related to the rate differential on foreign operations, including a non-recurring benefit related to prior years recognized as a result of an agreement reached by the United States and Swiss tax authorities on Advanced Pricing Agreement terms covering tax years 2012 through 2021. Significant items affecting the 2018 effective tax rate include the decrease in the U.S. corporate income tax rate from 35% to 21% as part of the 2017 Tax Act, the low effective tax rate on the HRMC transaction, and a $15 million release of a valuation allowance on foreign tax credits expected to be utilized within the allowed carryforward period. These benefits are partially offset by the impact of certain foreign net operating losses generated that are not expected to be utilized in the future. Significant items affecting the 2017 effective tax rate include a $45 million expense related to reducing our net deferred tax assets to the lower U.S. corporate income tax rate. Additional items that impacted the 2017 effective tax rate include an expense related to certain foreign net operating losses generated that are not expected to be utilized in the future, a $15 million valuation allowance on foreign tax credits not expected to be utilized in the future, and $13 million of expenses related to deemed repatriation tax as a result of the Tax Act. These expenses were partially offset by the benefit related to the rate differential of foreign operations and the recognition of $10 million of foreign tax credits generated by distributions from certain foreign subsidiaries. The components of the net deferred tax assets and deferred tax liabilities are comprised of the following: December 31, 2019 December 31, 2018 Deferred tax assets related to: Employee benefits $ 134 $ 133 Loyalty program 118 99 Long-term operating lease liabilities 103 — Foreign and state net operating losses and credit carryforwards 50 57 Allowance for uncollectible assets 33 31 Investments 28 37 Unrealized losses 7 3 Interest and state benefits 3 3 Other 33 41 Valuation allowance (41 ) (41 ) Total deferred tax asset $ 468 $ 363 Deferred tax liabilities related to: Property and equipment $ (152 ) $ (131 ) Operating ROU assets (105 ) — Intangibles (59 ) (49 ) Investments (36 ) (16 ) Prepaid expenses (9 ) (7 ) Unrealized gains (2 ) (24 ) Other (8 ) (10 ) Total deferred tax liabilities $ (371 ) $ (237 ) Net deferred tax assets $ 97 $ 126 Recognized in the balance sheet as: Deferred tax assets—noncurrent $ 144 $ 180 Deferred tax liabilities—noncurrent (47 ) (54 ) Total $ 97 $ 126 As a result of the adoption of ASU 2016-02, we recognized a deferred tax asset and an offsetting deferred tax liability for operating lease liabilities and operating ROU assets, respectively. Additionally, we reclassified existing deferred tax balances primarily from other deferred tax asset and property and equipment deferred tax liability balances. On a net basis, there was no change to our total net deferred tax assets as a result of the adoption. During the year ended December 31, 2019, significant changes to our deferred tax balances include a $21 million increase in the property and equipment deferred tax liability as a result of book depreciation in excess of tax depreciation and a $10 million increase in the intangibles deferred tax liability due to tax amortization in excess of book, primarily driven by the Two Roads acquisition (see Note 7). At December 31, 2019, we have $451 million of accumulated undistributed earnings generated by our foreign subsidiaries, the majority of which have been subject to U.S. tax. Any additional taxes due with respect to such earnings or the excess of book basis over tax basis of our foreign investments would generally be limited to foreign withholding and U.S. state income taxes. We continue to assert that undistributed net earnings with respect to certain foreign subsidiaries that have not previously been taxed in the U.S. are indefinitely reinvested. At December 31, 2019, we have $46 million of deferred tax assets for future tax benefits related to foreign and state net operating losses and $4 million of benefits related to federal and state credits. Of these deferred tax assets, $23 million relates to net operating losses and federal and state credits that expire in 2020 through 2039. However, $27 million primarily relates to foreign net operating losses that have no expiration date and may be carried forward indefinitely. A valuation allowance of $41 million is recorded for certain deferred tax assets related to net operating losses and credits that we do not believe are more likely than not to be realized. At December 31, 2019 and December 31, 2018, total unrecognized tax benefits were $125 million and $116 million , respectively, of which $36 million and $15 million , respectively, would impact the effective tax rate if recognized. It is reasonably possible that a reduction of up to $6 million of unrecognized tax benefits could occur within 12 months resulting from the expiration of certain tax statutes of limitations and tax settlements. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 Unrecognized tax benefits—beginning balance $ 116 $ 94 Total increases—current-period tax positions 21 10 Total increases (decreases)—prior-period tax positions (7 ) 18 Settlements (3 ) (1 ) Lapse of statute of limitations (3 ) (4 ) Foreign currency fluctuation 1 (1 ) Unrecognized tax benefits—ending balance $ 125 $ 116 In 2019, the $9 million net increase in uncertain tax positions is primarily related to an accrual for the U.S. treatment of the loyalty program. The decrease in prior period tax positions primarily relates to the effective settlement of certain federal and state tax matters. In 2018, the $22 million net increase in uncertain tax positions is primarily related to an accrual for the U.S. treatment of the loyalty program. The increase in prior period tax positions relates to local tax filing positions identified as a result of the Two Roads acquisition (see Note 7) and a state tax accrual related to filing positions taken on the 2017 state tax returns. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Total gross accrued interest and penalties were $22 million and $18 million at December 31, 2019 and December 31, 2018 , respectively. The amount of interest and penalties recognized as a component of income tax expense in 2019 was an expense of $5 million , primarily related to federal, state, and foreign tax matters. The amount of interest and penalties recognized as a component of income tax expense in 2018 was insignificant. We are subject to audits by federal, state, and foreign tax authorities. We are currently under field exam by the 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 $191 million (including $47 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, $69 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. We have several state audits pending, specifically in Illinois and Florida. State income tax returns are generally subject to examination for a period of three to five years after filing of the return. However, the state impact of any federal changes remains subject to examination by various states for a period generally up to one year after formal notification to the states of the federal changes. We also have several foreign audits pending. The statutes of limitations for the foreign jurisdictions ranges from three to ten years after filing the applicable tax return. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 December 31, 2019 , we are committed, under certain conditions, to lend or provide certain consideration to, or invest in, various business ventures up to $296 million , net of any related letters of credit. 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 (see Note 2). Our most significant performance guarantee relates to the four managed hotels in France, which has a term of seven years and expires on April 30, 2020. This guarantee has a maximum cap, but does not have an annual cap. The remaining maximum exposure related to our performance guarantees at December 31, 2019 was $238 million , of which €147 million ( $165 million using exchange rates at December 31, 2019 ) was related to the four managed hotels in France. We had $33 million and $47 million of total net performance guarantee liabilities at December 31, 2019 and December 31, 2018 , respectively, which included $14 million and $25 million recorded in other long-term liabilities and $19 million and $22 million recorded in accrued expenses and other current liabilities on our consolidated balance sheets, respectively. The four managed hotels in France Other performance guarantees All performance guarantees 2019 2018 2019 2018 2019 2018 Beginning balance, January 1 $ 36 $ 58 $ 11 $ 13 $ 47 $ 71 Initial guarantee obligation liability — — 7 — 7 — Amortization of initial guarantee obligation liability into income (15 ) (15 ) (3 ) (3 ) (18 ) (18 ) Performance guarantee expense, net 37 55 5 4 42 59 Net payments during the year (37 ) (62 ) (7 ) (3 ) (44 ) (65 ) Foreign currency exchange, net (1 ) — — — (1 ) — Ending balance, December 31 $ 20 $ 36 $ 13 $ 11 $ 33 $ 47 Additionally, we enter into certain management contracts where we have the right, but not an obligation, to make payments to certain hotel owners if their hotels do not achieve specified levels of operating profit. If we choose not to fund the shortfall, the hotel owner has the option to terminate the management contract. At December 31, 2019 and December 31, 2018 , there were no amounts recognized on our consolidated balance sheets related to these performance test clauses. Debt Repayment and Other Guarantees —We enter into various debt repayment and other guarantees in order to assist 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 December 31, 2019 Other long-term liabilities recorded at December 31, 2018 Year of guarantee expiration Hotel properties in India (1) $ 169 $ 169 $ 5 $ 10 2020 Hotel and residential properties in Brazil (2), (3) 97 40 3 3 various, through 2023 Hotel properties in Tennessee (2) 44 20 8 2 various, through 2023 Hotel properties in California (2) 31 12 3 4 various, through 2021 Hotel property in Massachusetts (2), (4) 30 14 6 8 various, through 2022 Hotel property in Oregon (2), (4) 15 6 3 4 various, through 2022 Hotel property in Arizona (2), (3) 14 — 1 1 2021 Other (2), (5) 15 9 3 19 various, through 2022 Total $ 415 $ 270 $ 32 $ 51 (1) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at December 31, 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 December 31, 2019 , the maximum potential future payments are $3 million , and the maximum exposure net of recoverability from third parties is insignificant. (5) At December 31, 2018 , other-long term liabilities included a debt repayment guarantee for a hotel property in Washington State. During the year ended December 31, 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 consolidated statements of income for the year ended December 31, 2019 (see Note 21 ). At December 31, 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 $62 million and $128 million at December 31, 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 (see Note 2). 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 $41 million and $38 million at December 31, 2019 and December 31, 2018 , respectively, and are recorded in accrued expenses and other current liabilities on our consolidated balance sheets, while reserves for losses in our captive insurance companies to be paid in future periods are $80 million and $78 million at December 31, 2019 and December 31, 2018 , respectively, and are recorded in other long-term liabilities on our consolidated balance sheets. Collective Bargaining Agreements —At December 31, 2019 , approximately 23% 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 $48 million at December 31, 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 December 31, 2019 were $264 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. Of the letters of credit outstanding, $1 million reduces the available capacity under our revolving credit facility (see Note 11 ). 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 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. As of December 31, 2019 , our maximum exposure is not expected to exceed $18 million . |
Stockholders' Equity and Compre
Stockholders' Equity and Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity and Comprehensive Loss | STOCKHOLDERS' EQUITY AND COMPREHENSIVE LOSS Common Stock— At December 31, 2019 , Pritzker family business interests beneficially owned, in the aggregate, approximately 96.5% of our Class B common stock and approximately 2.9% of our Class A common stock, representing approximately 63.2% of the outstanding shares of our common stock and approximately 91.6% of the total voting power of our outstanding common stock. As a result, consistent with the voting agreements contained in the Amended and Restated Global Hyatt Agreement and Amended and Restated Foreign Global Hyatt Agreement, Pritzker family business interests are able to exert a significant degree of influence or actual control over our management and affairs and over matters requiring stockholder approval, including the election of directors and other significant corporate transactions. While the voting agreements are in effect, they may provide our board of directors with effective control over matters requiring stockholder approval. Because of our dual class ownership structure, Pritzker family business interests will continue to exert a significant degree of influence or actual control over matters requiring stockholder approval, even if they own less than 50% of the outstanding shares of our common stock. Pursuant to the Amended and Restated Global Hyatt Agreement and Amended and Restated Foreign Global Hyatt Agreement, the Pritzker family business interests have agreed to certain voting agreements and to certain limitations with respect to the sale of shares of our common stock. In addition, other stockholders beneficially own, in the aggregate, approximately 3.5% of our outstanding Class B common stock representing approximately 2.2% of the outstanding shares of our common stock and approximately 3.3% of the total voting power of our outstanding common stock. Pursuant to the 2007 Stockholders' Agreement, these entities have also agreed to certain voting agreements and to certain limitations with respect to the sale of shares of our common stock. Share Repurchase —During 2019, 2018, and 2017, our board of directors authorized the repurchase of up to $ 750 million , $ 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 year ended December 31, 2019 , we repurchased 5,621,281 shares of common stock. The shares of common stock were repurchased at a weighted-average price of $74.85 per share for an aggregate purchase price of $421 million , excluding related insignificant expenses. The shares repurchased during 2019 represented approximately 5% of our total shares of common stock outstanding at December 31, 2018 . During the year ended December 31, 2018 , we entered into the following ASR programs with third-party financial institutions to repurchase Class A shares: Total number of shares repurchased (1) Weighted-average price per share Total cash paid May 2018 (2) 2,481,341 $ 80.60 $ 200 November 2018 (2) 2,575,095 $ 69.90 $ 180 (1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share (see Note 20 ). (2) The May 2018 ASR and the November 2018 ASR are collectively referred to as the "2018 ASR Agreements." During the year ended December 31, 2018 , we repurchased 12,723,895 shares of common stock, including settlement of the 2018 ASR Agreements and 244,260 shares representing the settlement of the November 2017 ASR. The shares of common stock were repurchased at a weighted-average price of $75.68 per share for an aggregate purchase price of $966 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 2018 represented approximately 11% 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 year ended December 31, 2019 (see Note 18). At December 31, 2019 , we had $997 million remaining under the share repurchase authorization. Accumulated Other Comprehensive Loss Balance at January 1, 2019 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at December 31, 2019 Foreign currency translation adjustments (a) $ (191 ) $ 1 $ 7 $ (183 ) Unrealized gains on AFS debt securities — 1 — 1 Unrecognized pension cost (5 ) (4 ) — (9 ) Unrealized losses on derivative instruments (4 ) (15 ) 1 (18 ) Accumulated other comprehensive income (loss) $ (200 ) $ (17 ) $ 8 $ (209 ) (a) The amount reclassified from accumulated other comprehensive loss includes the net gain recognized in gains on sales of real estate related to the sale of shares of the entity which owns Grand Hyatt Seoul and adjacent land (see Note 7). Balance at January 1, 2018 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at December 31, 2018 Foreign currency translation adjustments (b) $ (243 ) $ (25 ) $ 77 $ (191 ) Unrecognized pension (cost) benefit (7 ) 2 — (5 ) Unrealized losses on derivative instruments (3 ) (1 ) — (4 ) Accumulated other comprehensive income (loss) $ (253 ) $ (24 ) $ 77 $ (200 ) (b) The amount reclassified from accumulated other comprehensive loss includes 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 7). Dividend — During the year ended December 31, 2019 , we paid cash dividends of $29 million and $51 million , respectively, to Class A and Class B shareholders of record, and during the year ended December 31, 2018 , we paid cash dividends of $27 million and $41 million , respectively, to Class A and Class B shareholders of record as follows: 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 October 30, 2019 $ 0.19 November 26, 2019 December 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 October 30, 2018 $ 0.15 November 28, 2018 December 10, 2018 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION As part of our LTIP, we award SARs, RSUs, and PSUs to certain employees and non-employee directors (see Note 2). In addition, non-employee directors may elect to receive their annual fees and/or annual equity retainers in the form of shares of our Class A common stock. Under the LTIP, we are authorized to issue up to 14,375,000 shares. Compensation expense and unearned compensation presented below exclude amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as this expense has been and will continue to be reimbursed by our third-party hotel owners and is 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 consolidated statements of income. Stock-based compensation expense included in selling, general, and administration expense on our consolidated statements of income related to these awards was as follows: Years Ended December 31, 2019 2018 2017 SARs $ 11 $ 10 $ 11 RSUs 17 15 16 PSUs 6 4 2 Other 1 — — Total $ 35 $ 29 $ 29 The expected income tax benefit to be realized at the time of vest related to these awards for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 was as follows: Years Ended December 31, 2019 2018 2017 SARs $ 3 $ 2 $ 3 RSUs 5 4 4 PSUs 2 1 1 Total $ 10 $ 7 $ 8 SARs —The following table sets forth a summary of the SAR grants in 2019 , 2018 , and 2017 : Grant date Granted Value at date of grant Vesting period Vesting start month March 2019 643,989 $ 17.11 25 % annually March 2020 May 2018 38,918 21.84 25 % annually March 2019 March 2018 465,842 21.13 25 % annually March 2019 September 2017 20,139 18.62 25 % annually September 2018 March 2017 605,601 16.35 25 % annually March 2018 The weighted-average grant date fair value for the awards granted in 2019 , 2018 , and 2017 was $17.11 , $21.18 , and $16.42 , respectively. The fair value of each SAR was estimated based on the date of grant using the Black- Scholes- Merton option- pricing model with the following weighted-average assumptions: 2019 2018 2017 Exercise price $ 71.67 $ 80.12 $ 52.93 Expected life in years 6.25 6.24 6.24 Risk-free interest rate 2.40 % 2.79 % 2.11 % Expected volatility 22.51 % 22.97 % 26.56 % Annual dividend yield 1.06 % 0.75 % — % Due to a lack of historical exercise activity, the expected life was estimated based on the midpoint between the vesting period and the contractual life of each SAR. The risk-free interest rate was based on U.S. Treasury instruments with similar expected life. We calculate volatility using our trading history over a time period consistent with our expected term assumption. The dividend yield assumption is based on the expected annualized dividend payment at the date of grant. A summary of employee SAR activity is presented below: SAR units Weighted-average exercise price (in whole dollars) Weighted-average remaining contractual term Outstanding at December 31, 2018: 3,488,886 $ 51.27 5.80 Granted 643,989 71.67 Exercised (240,417 ) 36.48 Forfeited or expired (48,101 ) 66.00 Outstanding at December 31, 2019: 3,844,357 $ 55.51 5.78 Exercisable at December 31, 2019: 2,458,448 $ 48.72 4.38 During the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , the intrinsic value of exercised SARs was $16 million , $7 million , and $24 million , respectively. The total intrinsic value of SARs outstanding at December 31, 2019 was $131 million , and the total intrinsic value for exercisable SARs was $101 million at December 31, 2019 . RSUs —The following table sets forth a summary of the employee RSU grants: Grant date Granted Value at date of grant Aggregate value at date of grant Vesting period December 2019 9,695 $ 82.50 $ 1 various May 2019 23,672 77.54 2 various March 2019 329,239 71.67 24 various February 2019 2,863 69.85 — 4 years December 2018 9,650 67.34 1 various September 2018 10,034 76.72 1 various May 2018 4,306 81.27 — 4 years March 2018 254,707 80.02 20 various February 2018 3,502 78.52 — 4 years December 2017 9,238 70.35 1 various September 2017 22,357 61.50 1 various September 2017 43,151 60.48 3 various May 2017 1,390 57.51 — 4 years March 2017 416,404 52.65 22 various The weighted-average grant date fair value for the awards granted in 2019 , 2018 , and 2017 was $72.32 , $79.47 , and $54.08 , respectively. The liability and related expense for granted cash- settled RSUs are insignificant at and for the year ended December 31, 2019 . A summary of the status of the nonvested employee RSU awards outstanding under the LTIP is presented below: RSUs Weighted-average grant date fair value Nonvested at December 31, 2018: 796,830 $ 61.31 Granted 365,469 72.32 Vested (339,227 ) 58.73 Forfeited or canceled (47,790 ) 62.69 Nonvested at December 31, 2019: 775,282 $ 67.54 The total intrinsic value of nonvested RSUs at December 31, 2019 was $70 million . PSUs —The following table sets forth a summary of PSU grants: Year granted Granted Weighted-average grant date fair value Performance period Performance period start date 2019 PSUs 120,720 $ 77.95 3 years January 1, 2019 2018 PSUs 89,441 $ 82.10 3 years January 1, 2018 2017 PSUs 102,115 $ 52.65 3 years January 1, 2017 A summary of the status of the nonvested PSU awards outstanding under the LTIP is presented below: PSUs Weighted-average grant date fair value Nonvested at December 31, 2018: 204,489 $ 62.68 Granted 120,720 77.95 Vested (61,545 ) 47.36 Forfeited or canceled (3,248 ) 82.10 Nonvested at December 31, 2019: 260,416 $ 73.14 At December 31, 2019 , the total intrinsic value of nonvested PSUs if target performance is achieved was $23 million . Unearned Compensation —Our total unearned compensation for our stock- based compensation programs at December 31, 2019 is as follows and is expected to be recorded as stock-based compensation expense: 2020 2021 2022 2023 Total SARs $ 1 $ 1 $ — $ — $ 2 RSUs 7 4 3 1 15 PSUs 5 3 — — 8 Total $ 13 $ 8 $ 3 $ 1 $ 25 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | RELATED-PARTY TRANSACTIONS In addition to those included elsewhere in the Notes to our consolidated financial statements, related- party transactions entered into by us are summarized as follows: Legal Services —A partner in a law firm that provided services to us throughout 2019 , 2018 , and 2017 is the brother- in- law of our Executive Chairman. We incurred $6 million , $6 million , and $3 million of legal fees with this firm for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. At both December 31, 2019 and December 31, 2018 , we had insignificant amounts due to the law firm. Equity Method Investments —We have equity method investments in entities that own properties for which we receive management or franchise fees. We recognized $22 million , $20 million , and $24 million of fees for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , respectively. In addition, in some cases we provide loans (see Note 6 ) or guarantees (see Note 15 ) to these entities. During the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , we recognized $4 million , $7 million , and $5 million , respectively, of income related to these guarantees. At both December 31, 2019 and December 31, 2018 , we had $17 million of receivables due from these properties. 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 recognized $7 million of management and franchise fees during the year ended December 31, 2019. At both December 31, 2019 and December 31, 2018 , we had insignificant receivables due from these properties. Class B Share Conversion —During the years ended December 31, 2019 and December 31, 2018 , 975,170 shares and 1,207,355 shares, respectively, of Class B common stock were converted on a share-for-share basis into shares of our Class A common stock, $0.01 par value per share. The shares of Class B common stock that were converted into shares of Class A common stock have been retired, thereby reducing the shares of Class B common stock authorized and outstanding. Class B Share Repurchase —During 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 at December 31, 2018 . During 2018 , we repurchased 2,430,654 shares of Class B common stock at a weighted-average price of $78.10 per share, for an aggregate purchase price of approximately $190 million . The shares repurchased represented approximately 2% of our total shares of common stock outstanding at December 31, 2017 . The shares of Class B common stock were repurchased in privately negotiated transactions from trusts or limited partnerships owned indirectly by trusts for the benefit of certain Pritzker family members or private charitable organizations affiliated with certain Pritzker family members and were retired, thereby reducing |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the CODM to assess performance and make decisions regarding the allocation of resources. 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 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 revenues from residential management operations. These reimbursed costs relate primarily to payroll at managed properties where the Company is the employer, as well as system-wide services 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 reimbursed costs relate primarily to system-wide services 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, which was sold during the year ended December 31, 2019 , 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 reimbursed costs relate primarily to system-wide services 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 owned and leased hospitality ventures Adjusted EBITDA based on our ownership percentage of each owned and leased venture, adjusted to exclude interest expense; provision for income taxes; depreciation and amortization; 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. Years Ended December 31, 2019 2018 2017 Owned and leased hotels Owned and leased hotels revenues $ 1,808 $ 1,889 $ 2,159 Other revenues — — 13 Intersegment revenues (a) 35 33 38 Adjusted EBITDA 387 428 490 Depreciation and amortization 244 266 295 Capital expenditures 233 194 195 Americas management and franchising Management, franchise, and other fees revenues 433 400 380 Contra revenue (15 ) (13 ) (12 ) Other revenues 89 — — Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 2,268 1,787 1,625 Intersegment revenues (a) 62 70 74 Adjusted EBITDA 376 352 327 Depreciation and amortization 24 9 7 Capital expenditures 2 1 — ASPAC management and franchising Management, franchise, and other fees revenues 136 127 112 Contra revenue (2 ) (2 ) (1 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 113 95 79 Intersegment revenues (a) 2 2 2 Adjusted EBITDA 87 78 70 Depreciation and amortization 3 1 1 Capital expenditures 1 4 1 EAME/SW Asia management and franchising Management, franchise, and other fees revenues 83 80 69 Contra revenue (5 ) (5 ) (5 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 74 68 58 Intersegment revenues (a) 10 10 10 Adjusted EBITDA 49 46 37 Depreciation and amortization 1 1 — Capital expenditures — 1 1 Corporate and other Revenues 140 132 100 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 6 6 — Intersegment revenues (a) (1 ) (5 ) (9 ) Adjusted EBITDA (146 ) (127 ) (135 ) Depreciation and amortization 57 50 45 Capital expenditures 133 97 101 Eliminations Revenues (a) (108 ) (110 ) (115 ) Adjusted EBITDA 1 — 3 TOTAL Revenues $ 5,020 $ 4,454 $ 4,462 Adjusted EBITDA 754 777 792 Depreciation and amortization 329 327 348 Capital expenditures 369 297 298 (a) Intersegment revenues are included in the management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations. The table below presents summarized consolidated balance sheet information by segment: December 31, 2019 December 31, 2018 Total Assets: Owned and leased hotels $ 4,203 $ 4,118 Americas management and franchising 1,024 842 ASPAC management and franchising 260 203 EAME/SW Asia management and franchising 273 225 Corporate and other 2,657 2,255 Total $ 8,417 $ 7,643 The following tables present revenues and property and equipment, net, operating lease ROU assets, intangibles, net, and goodwill by geographical region: Years Ended December 31, 2019 2018 2017 Revenues: United States $ 4,142 $ 3,587 $ 3,619 All foreign 878 867 843 Total $ 5,020 $ 4,454 $ 4,462 December 31, 2019 December 31, 2018 Property and equipment, net, Operating lease ROU assets, Intangibles, net, and Goodwill: United States $ 3,798 $ 3,670 All foreign 914 849 Total $ 4,712 $ 4,519 The table below provides a reconciliation of our net income attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA: Years Ended December 31, 2019 2018 2017 Net income attributable to Hyatt Hotels Corporation $ 766 $ 769 $ 389 Interest expense 75 76 80 Provision for income taxes 240 182 332 Depreciation and amortization 329 327 348 EBITDA 1,410 1,354 1,149 Contra revenue 22 20 18 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (2,461 ) (1,956 ) (1,762 ) Costs incurred on behalf of managed and franchised properties 2,520 1,981 1,782 Equity (earnings) losses from unconsolidated hospitality ventures 10 (8 ) (219 ) Stock-based compensation expense 35 29 29 Gains on sales of real estate (723 ) (772 ) (236 ) Asset impairments 18 25 — Other (income) loss, net (127 ) 49 (42 ) Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA 50 55 73 Adjusted EBITDA $ 754 $ 777 $ 792 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2019 2018 2017 Numerator: Net income $ 766 $ 769 $ 390 Net income and accretion attributable to noncontrolling interests — — (1 ) Net income attributable to Hyatt Hotels Corporation $ 766 $ 769 $ 389 Denominator: Basic weighted-average shares outstanding 104,590,383 113,259,113 124,836,917 Share-based compensation and equity-classified forward contract 1,702,021 1,865,904 1,509,986 Diluted weighted-average shares outstanding 106,292,404 115,125,017 126,346,903 Basic Earnings Per Share: Net income $ 7.33 $ 6.79 $ 3.13 Net income and accretion attributable to noncontrolling interests — — (0.01 ) Net income attributable to Hyatt Hotels Corporation $ 7.33 $ 6.79 $ 3.12 Diluted Earnings Per Share: Net income $ 7.21 $ 6.68 $ 3.09 Net income and accretion attributable to noncontrolling interests — — (0.01 ) Net income attributable to Hyatt Hotels Corporation $ 7.21 $ 6.68 $ 3.08 The computations of diluted net income per share for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 do not include the following shares of Class A common stock assumed to be issued as stock- settled SARs and RSUs because they are anti- dilutive. Years Ended December 31, 2019 2018 2017 SARs 13,000 100 21,400 RSUs — — 100 |
Other Income (Loss), Net
Other Income (Loss), Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Loss), Net | OTHER INCOME (LOSS), NET Years Ended December 31, 2019 2018 2017 Release of contingent consideration liability (Note 7) $ 30 $ — $ — Unrealized gains (losses), net (Note 4) 26 (47 ) 1 Interest income (Note 4) 25 28 110 Depreciation recovery 25 22 27 Performance guarantee liability amortization (Note 15) 18 18 19 Release and amortization of debt repayment guarantee liability (Note 15) 18 11 10 Gain on sale of contractual right (Note 7) 16 — — Realized gains (losses), net 2 (3 ) (41 ) Foreign currency gains (losses), net 1 4 (2 ) Pre-condemnation income — 4 18 Cease use liability — — (21 ) Loss on extinguishment of debt (Note 11) — (7 ) — Impairment of an equity security without a readily determinable fair value (Note 4) — (22 ) — Transaction costs (1 ) (10 ) (4 ) Performance guarantee expense, net (Note 15) (42 ) (59 ) (77 ) Other, net 9 12 2 Other income (loss), net $ 127 $ (49 ) $ 42 We recognized approximately $4 million and $18 million during the years ended December 31, 2018 and December 31, 2017, respectively, primarily related to pre-condemnation income for relinquishment of subterranean space at an owned hotel. During the year ended December 31, 2017, we relocated our corporate headquarters and recognized a $21 million cease use liability. During the year ended December 31, 2017, our convertible redeemable preferred shares in Playa Hotels & Resorts B.V., plus accrued and unpaid paid-in-kind dividends were redeemed, and we recognized $94 million of interest income and $ 40 million |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth the historical unaudited quarterly financial data. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. Three Months Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Consolidated statements of income data: Total revenues $ 1,275 $ 1,215 $ 1,289 $ 1,241 $ 1,138 $ 1,074 $ 1,133 $ 1,109 Direct and selling, general, and administrative expenses 1,225 1,175 1,208 1,215 1,054 1,012 1,026 1,030 Net income 321 296 86 63 44 237 77 411 Net income attributable to Hyatt Hotels Corporation 321 296 86 63 44 237 77 411 Net income per share—basic $ 3.13 $ 2.84 $ 0.81 $ 0.60 $ 0.41 $ 2.12 $ 0.67 $ 3.47 Net income per share—diluted $ 3.08 $ 2.80 $ 0.80 $ 0.59 $ 0.40 $ 2.09 $ 0.66 $ 3.40 Cash dividends declared per share $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.15 $ 0.15 $ 0.15 $ 0.15 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts [Schedule] | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2019 , December 31, 2018 , and December 31, 2017 (In millions of dollars) Description Balance at beginning of period Additions charged to revenues, costs, and expenses Additions charged to other accounts Deductions Balance at end of period Year Ended December 31, 2019: Trade receivables—allowance for doubtful accounts $ 26 $ 14 $ — $ (8 ) $ 32 Financing receivables—allowance for losses 101 6 (1 ) (6 ) 100 Deferred tax assets—valuation allowance 41 6 — (6 ) 41 Year Ended December 31, 2018: Trade receivables—allowance for doubtful accounts 21 15 — (10 ) 26 Financing receivables—allowance for losses 108 7 (2 ) A (12 ) 101 Deferred tax assets—valuation allowance 51 (10 ) — — 41 Year Ended December 31, 2017: Trade receivables—allowance for doubtful accounts 18 8 — (5 ) 21 Financing receivables—allowance for losses 100 6 2 A — 108 Deferred tax assets—valuation allowance 27 24 B — — 51 A —This amount represents currency translation on foreign currency denominated financing receivables. B —This amount represents the allowance related to our foreign tax credit carryforward balance. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation —Our consolidated financial statements present the results of operations, financial position, and cash flows of Hyatt Hotels Corporation and its majority owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates —We are required to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying Notes. Actual results could differ materially from such estimated amounts. |
Revenue Recognition | Revenue Recognition —Our revenues are primarily derived from the products and services provided to our customers and generally recognized when control of the product or service has transferred to the customer. Our customers include third-party hotel owners, guests at owned and leased hotels and spa and fitness centers, a third-party partner through our co-branded credit card program, and owners and guests of the condominium ownership units. A summary of our revenue streams is as follows: • Owned and leased hotels revenues —Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased hotels. We present revenues net of sales, occupancy, and other taxes. Taxes collected on behalf of and remitted to governmental taxing authorities are excluded from the transaction price of the underlying products and services. • Management, franchise, and other fees —Management fees primarily consist of a base fee, which is generally calculated as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Included within the aforementioned management fees are royalty fees that we earn in exchange for providing access to Hyatt's intellectual property ("IP"). Franchise fees consist of an initial fee and ongoing royalty fees computed as a percentage of gross room revenues and, as applicable, food and beverage revenues. Other fees include license fee revenues associated with the licensing of the Hyatt brand names through our co-branded credit card program and sales of our branded residential ownership units as well as termination fees. • Net management, franchise, and other fees —Management, franchise, and other fees are reduced by the amortization of management and franchise agreement assets constituting payments to customers. Consideration provided to customers is recognized in other assets and amortized over the expected customer life, which is typically the initial term of the management or franchise agreement. • Other revenues —Other revenues include revenues from our residential management operations for our condominium ownership units, the sale of promotional awards through our co-branded credit cards, and spa and fitness revenues from Exhale. • Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties —Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties represent the reimbursement of costs incurred on behalf of the owners of properties. These reimbursed costs relate primarily to payroll at managed properties, as well as system-wide services and the loyalty program operated on behalf of owners. The products and services we offer to our customers are comprised of the following performance obligations: Management and franchise agreements • License to Hyatt's IP, including the Hyatt brand names —We receive variable consideration from third-party hotel owners in exchange for providing access to our IP, including the Hyatt brand names. The license represents a license of symbolic IP and in exchange for providing the license, Hyatt receives sales-based royalty fees. Fees are generally payable on a monthly basis as the third-party hotel owners derive value from access to our IP. Royalty fees are recognized over time as services are rendered. Under our franchise agreements, we also receive initial fees from third-party hotel owners. The initial fees do not represent a distinct performance obligation and, therefore, are combined with the royalty fees and deferred and recognized through management, franchise, and other fees over the expected customer life, which is typically the initial term of the franchise agreement. • System-wide services —We provide system-wide services on behalf of owners of managed and franchised properties. The promise to provide system-wide services is not a distinct performance obligation because it is attendant to the license of our IP. Therefore, this promise is combined with the license of our IP to form a single performance obligation. We have two accounting models depending on the terms of the agreements: • Cost reimbursement model —Third-party hotel owners are required to reimburse us for all costs incurred to operate the system-wide programs with no added margin. The reimbursements are recognized over time within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal. Expenses incurred related to the system-wide programs are recognized within costs incurred on behalf of managed and franchised properties. The reimbursement of system-wide services is billed monthly based upon an annual estimate of costs to be incurred and recognized as revenue commensurate with incurring the cost. Any amounts collected and not yet recognized as revenues are deferred and classified as contract liabilities. Any costs incurred in excess of revenues collected are classified as receivables. • Fund model —Third-party hotel owners are invoiced a system-wide assessment fee primarily based on a percentage of hotel revenues on a monthly basis. We recognize the revenues over time as services are provided through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal. Expenses related to the system-wide programs are recognized as incurred through costs incurred on behalf of managed and franchised properties. Over time, we manage the system-wide programs to break-even, but the timing of the revenue received from the owners may not align with the timing of the expenses to operate the programs. Therefore, the difference between the revenues and expenses will impact our net income. • Hotel management agreement services —Under the terms of our management agreements, we provide hotel management agreement services, which form a single performance obligation that qualifies as a series. In exchange, we receive variable consideration in the form of management fees, which are comprised of base and/or incentive fees. Incentive fees are typically subject to the achievement of certain profitability targets, and therefore, we apply judgment in determining the amount of incentive fees recognized each period. Incentive fees revenue is recognized to the extent it is probable that we will not reverse a significant portion of the fees in a subsequent period. We rely on internal financial forecasts and historical trends to estimate the amount of incentive fees revenue recognized and the probability that incentive fees will reverse in the future. Generally, base management fees are due and payable on a monthly basis as services are provided, and incentive fees are due and payable based on the terms of the agreement, but at a minimum, incentive fees are billed and collected annually. Revenue is recognized over time as services are rendered. Under the terms of certain management agreements, primarily within the United States, we are the employer of hotel employees. When we are the employer, we are reimbursed for costs incurred related to the employee management services with no added margin, and the reimbursements are recognized over time as services are rendered within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. In jurisdictions in which we are the employer, we have discretion over how employee management services are provided and, therefore, we are the principal. • Loyalty program administration —We administer the loyalty program for the benefit of Hyatt's portfolio of properties during the period of their participation in the loyalty program. Under the program, members earn points based on their spend at our properties, by transacting with our strategic loyalty alliances, or in connection with spend on the Hyatt co-branded credit cards, which may be redeemed for the right to stay at participating properties, as well as for other goods and services from third parties. Points earned by loyalty program members represent a material right to free or discounted goods or services in the future. The loyalty program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. These two promises are not distinct because the promise to market and manage the program does not benefit the customer without the related arrangement for award redemptions. The costs of administering the loyalty program are charged to the properties through an assessment fee based on members' qualified expenditures. The assessment fee is billed and collected monthly, and the revenue received by the program is deferred until a member redeems points. Upon redemption of points at managed and franchised properties, we recognize the previously deferred revenue through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties, net of redemption expense paid to managed and franchised hotels. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent with respect to this performance obligation for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. A portion of our owned and leased hotels revenues is deferred upon initial stay as points are earned by program members at owned or leased hotels, and revenues are recognized upon redemption at owned or leased hotels. We actuarially determine the amount to recognize as revenue based on statistical formulas that estimate the timing of future point redemptions based on historical experience. The revenue recognized each period includes an estimate of the loyalty points that will eventually be redeemed and includes an estimate of breakage for the loyalty points that will not be redeemed. Determining breakage involves significant judgment, and we engage third-party actuaries to estimate the ultimate redemption ratios used in the breakage calculations and the amount of revenue recognized upon redemption. Changes to the expected ultimate redemption assumptions are reflected in the current period. Any revenues in excess of the anticipated future redemptions are used to fund the other operational expenses of the program. Room rentals and other services provided at owned and leased hotels We provide room rentals and other services to our guests, including but not limited to spa, laundry, and parking. These products and services each represent individual performance obligations and, in exchange for these services, we receive fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time the services are rendered or the goods are provided. If a guest enters into a package including multiple goods or services, the fixed price is allocated to each distinct good or service based on the stand-alone selling price for each item. Revenue is recognized over time when we transfer control of the good or service to the customer. Room rental revenue is recognized on a daily basis as the guest occupies the room, and revenue related to other products and services is recognized when the product or service is provided to the guest. Hotels commonly enter into arrangements with online travel agencies, trade associations, and other entities. As part of these arrangements, Hyatt may pay the other party a commission or rebate based on the revenue generated through that channel. The determination of whether to recognize revenues gross or net of rebates and commissions is made based on the terms of each contract. Residential management operations We provide services related to the residential management business pursuant to rental management agreements with individual property owners or homeowners' associations whereby the property owners and/or homeowners' association participate in our rental program. The services provided include reservations, housekeeping, security, and concierge assistance to guests in exchange for a variable fee based on a revenue sharing agreement with the owner of the condominium ownership unit. The services represent an individual performance obligation. Revenue is recognized over time as services are rendered or upon completion of the guest's stay at the condominium ownership unit. We are responsible for establishing pricing as well as fulfilling the services during the guest's stay and, as a result, we are deemed to be the principal in the transaction. Spa and fitness services Exhale spa and fitness studios provide guests with spa and fitness services as well as retail products in exchange for fixed consideration. Each spa and fitness service represents an individual performance obligation. Payment is due in full, and revenue is recognized at the point in time the services are rendered or the products are provided to the customer. If a guest purchases a spa or fitness package, the fixed price is allocated to each distinct product or service based on the stand-alone selling price for each item. Co-branded credit cards We have a co-branded credit card agreement with a third party and under the terms of the agreement, we have various performance obligations: granting a license to the Hyatt name, arranging for the fulfillment of points issued to cardholders through the loyalty program, and awarding cardholders with free room nights upon achievement of certain program milestones. The loyalty points and free room nights represent material rights that can be redeemed for free or discounted services in the future. In exchange for the products and services provided, we receive fixed and variable consideration which is allocated between the performance obligations based upon the relative stand-alone selling prices. Significant judgment is involved in determining the relative stand-alone selling prices, and therefore, we engaged a third-party valuation specialist to assist us. We utilize a relief from royalty method to determine the revenue allocated to the license, which is recognized over time as the licensee derives value from access to Hyatt's brand name. We utilize observable transaction prices and adjusted market assumptions to determine the stand-alone selling price of a loyalty point, and we utilize a cost plus margin approach to determine the stand-alone selling price of the free room nights. The revenues allocated to loyalty program points and free night awards are deferred and recognized upon redemption or expiration of a card member's promotional awards, which is recognized net of redemption expense when we are the agent. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. We satisfy the following performance obligations over time: the license of Hyatt's symbolic IP, hotel management agreement services, administration of the loyalty program, and the license to our brand name through our co-branded credit card agreement. Each of these performance obligations is considered a sales-based royalty or a series of distinct services, and although the activities to fulfill each of these promises may vary from day to day, the nature of each promise is the same and the customer benefits from the services every day. For each performance obligation satisfied over time, we recognize revenue using an output method based on the value transferred to the customer. Revenue is recognized based on the transaction price and the observable outputs related to each performance obligation. We deem the following to represent our progress in satisfying these performance obligations: • revenues and operating profits earned by the hotels during the reporting period for access to Hyatt's IP, as it is indicative of the value third-party owners derive; • revenues and operating profits of the hotels for the promise to provide management agreement services to the hotels; • award night redemptions or point redemptions with third-party partners for the administration of the loyalty program performance obligation; and • cardholder spend for the license to the Hyatt name through our co-branded credit cards, as it is indicative of the value our partner derives from the use of our name. Within our management agreements, we have two performance obligations: providing a license to Hyatt's IP and providing management agreement services. Although these constitute two separate performance obligations, both obligations represent services that are satisfied over time, and Hyatt recognizes revenue using an output method based on the performance of the hotel. Therefore, we have not allocated the transaction price between these two performance obligations as the allocation would result in the same pattern of revenue recognition. Revenue is adjusted for the effects of a significant financing component when the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. We have applied the practical expedient that permits the omission of prior-period information about revenue allocated to future performance obligations. Contract Balances —Our payments from customers are based on the billing terms established in our contracts. Customer billings are classified as accounts receivable when our right to consideration is unconditional. If our right to consideration is conditional on future performance under the contract, the balance is classified as a contract asset. Due to certain profitability hurdles in our management agreements, incentive fees are considered contract assets until the risk related to the achievement of the profitability metric no longer exists. Once the profitability hurdle has been met, the incentive fee receivable balance will be recorded in accounts receivable. Contract assets are included in receivables, net on our consolidated balance sheets. Payments received in advance of performance under the contract are classified as current or long-term contract liabilities on our consolidated balance sheets and recognized as revenue as we perform under the contract. Loyalty Program —The loyalty program is funded through contributions from participating properties and third-party loyalty alliances based on eligible revenues from loyalty program members and returns on marketable securities. The funds are used for the redemption of member awards and payment of operating expenses. Operating costs are expensed as incurred through costs incurred on behalf of managed and franchised properties. The program invests amounts received from the properties in marketable securities which are included in other current and noncurrent assets (see Note 4 ). Deferred revenues related to the loyalty program are classified as current and long-term contract liabilities on our consolidated balance sheets (see Note 3 ). The costs of administering the loyalty program, including the estimated cost of award redemption, are charged to the participating properties and third-party loyalty alliances based on members' qualified expenditures. |
Cash Equivalents | Cash Equivalents —We consider all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. |
Equity Method Investments | Equity Method Investments |
Debt and Equity Securities | Debt and Equity Securities —Excluding the aforementioned equity method investments, debt and equity securities consist of various investments: • Equity securities consist of interest-bearing money market funds, mutual funds, common shares, and preferred shares. Equity securities with a readily determinable fair value are recorded at fair value on our consolidated balance sheets based on listed market prices or dealer quotations where available. Equity securities without a readily determinable fair value are recognized at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. Net gains and losses, both realized and unrealized, and impairment charges on equity securities are recognized in other income (loss), net on our consolidated statements of income. • Debt securities include preferred shares, time deposits, and fixed income securities, including U.S. government obligations, obligations of other government agencies, corporate debt, mortgage-backed and asset-backed securities, and municipal and provincial notes and bonds. Debt securities are classified as either trading, available-for-sale ("AFS"), or held-to-maturity ("HTM"). • Trading securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Net gains and losses, both realized and unrealized, on trading securities are recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts or other income (loss), net, depending on the nature of the investment, on our consolidated statements of income. • AFS securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Unrealized gains and losses on AFS debt securities are recognized in accumulated other comprehensive loss on our consolidated balance sheets. Realized gains and losses on debt securities are recognized in other income (loss), net on our consolidated statements of income. • HTM securities—investments which we have the intent and ability to hold until maturity and are recorded at amortized cost. Our preferred shares earn a return that is recognized as interest income in other income (loss), net as earned unless we determine collection is at risk. AFS and HTM securities are assessed for impairment quarterly. To determine if an impairment is other than temporary for debt securities, we consider the duration and severity of the loss position, the strength of the underlying collateral, the term to maturity, credit rating, and our intent to sell. For debt securities that are deemed other than temporarily impaired and there is no intent to sell, impairments are separated into the amount related to the credit loss, which is typically recognized in other income (loss), net on our consolidated statements of income and the amount related to all other factors, which is recorded in accumulated other comprehensive loss on our consolidated balance sheets. For debt securities that are deemed other than temporarily impaired and there is intent to sell, impairments in their entirety are recognized in other income (loss), net on our consolidated statements of income |
Foreign Currency | Foreign Currency —The functional currency of our consolidated entities located outside the United States of America is generally the local currency. The assets and liabilities of these entities are translated into U.S. dollars at year- end exchange rates, and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in earnings. Gains and losses from foreign exchange rate changes related to intercompany receivables and payables of a long- term nature are generally included in accumulated other comprehensive loss. Gains and losses from foreign exchange rate movement related to intercompany receivables and payables that are not long- term are included in earnings. |
Financing Receivables | Financing Receivables —Financing receivables represent contractual rights to receive money either on demand or on fixed or determinable dates and are recognized on our consolidated balance sheets at amortized cost. We recognize interest income as earned and provide an allowance for cancellations and defaults. Our financing receivables are composed of individual unsecured loans and other types of unsecured financing arrangements provided to hotel owners. These financing receivables generally have stated maturities and interest rates, however, the repayment terms vary and may be dependent upon future cash flows of the hotel. |
Financing Receivables - Non-performing Loans | On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We determine our financing to hotel owners to be non-performing if interest or principal is greater than 90 days past due based on the contractual terms of the individual financing receivables, if an impairment charge is recognized for a loan, or if a provision is established for our other financing arrangements. |
Financing Receivables - Impaired Loans | We individually assess all loans within financing receivables for impairment quarterly. This assessment is based on an analysis of several factors including current economic conditions and industry trends, as well as the specific risk characteristics of these loans including capital structure, loan performance, market factors, and the underlying hotel performance. When it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement or if projected future cash flows available for repayment of unsecured receivables indicate there is a collection risk, we measure the impairment based on the present value of projected future cash flows discounted at the loan's effective interest rate. For impaired loans, we establish a specific loan loss reserve for the difference between the recorded investment in the loan and the estimated fair value. In addition to loans, we include other types of financing arrangements in unsecured financing to hotel owners which we do not assess individually for impairment. We regularly evaluate our reserves for these other financing arrangements. We write off financing to hotel owners when we determine the receivables are uncollectible and when all commercially reasonable means of recovering the receivable balances have been exhausted. |
Financing Receivables - Non-accrual Status | If we consider a financing receivable to be non-performing, we place the financing receivable on non-accrual status.We recognize interest income when received for impaired loans and financing receivables on non-accrual status which is recognized in other income (loss), net in our consolidated statements of income. Accrual of interest income is resumed when the receivable becomes contractually current and collection doubts are removed. |
Accounts Receivable | Accounts Receivable —Our accounts receivable primarily consists of trade receivables due from guests for services rendered at our owned and leased properties and from hotel owners with whom we have management and franchise agreements for services rendered and for reimbursements of costs incurred on behalf of managed and franchised properties. We record an accounts receivable reserve when losses are probable, based on an assessment of past collection activity and current business conditions. |
Inventories | Inventories —Inventories are comprised of operating supplies and equipment that have a period of consumption of two years or less and food and beverage items at our owned and leased hotels which are generally valued at the lower of cost ( first- in, first- out) or net realizable value. |
Property and Equipment and Definite-Lived Intangible Assets | Property and Equipment and Definite- Lived Intangible Assets —Property and equipment is stated at cost, including interest incurred during development and construction periods, less accumulated depreciation. Definite-lived intangible assets are recorded at the acquisition-date fair value, less accumulated amortization. Depreciation and amortization are recognized over the estimated useful lives of the assets, primarily on the straight- line method. Property and equipment are depreciated over the following: Buildings and improvements 10-50 years Leasehold improvements The shorter of the lease term or useful life of asset Furniture and equipment 3-20 years Computers 3-7 years Definite-lived intangible assets are amortized over the following: Management and franchise agreement intangibles 4 - 30 years Advanced booking intangibles 1 - 7 years We assess property and equipment and definite-lived intangible assets for impairment quarterly. When events or circumstances indicate the carrying amount may not be recoverable, we evaluate the net book value of the assets for impairment by comparison to the projected undiscounted future cash flows of the assets. The principal factor used in the undiscounted cash flow analysis requiring judgment is the projected future operating cash flows, which are based on historical data, various internal estimates, and a variety of external resources, and are developed as part of our routine, long-term planning process. If the projected undiscounted future cash flows are less than the net book value of the assets, the fair value is determined based upon internally developed discounted cash flows of the assets, third-party appraisals or broker valuations, and if appropriate, current estimated net sales proceeds from pending offers. The principal inputs used in the discounted cash flow analysis requiring judgment are the projected future operating cash flows, the discount rates, and the capitalization rate assumptions. The excess of the net book value over the estimated fair value is recognized in asset impairments on our consolidated statements of income. We evaluate the carrying value of our property and equipment and definite-lived intangible assets based on our plans, at the time, for such assets and consider qualitative factors such as future development in the surrounding area, status of local competition, and any significant adverse changes in the business climate. Changes to our plans, including a decision to dispose of or change the intended use of an asset, may have a material impact on the carrying value of the asset. |
Acquisitions | Acquisitions —We evaluate the facts and circumstances of each acquisition to determine whether the transaction should be accounted for as an asset acquisition or a business combination. Under the supervision of management, independent third-party valuation specialists estimate the fair value of the assets or businesses acquired using various recognized valuation methods including the income approach, cost approach, relief from royalty approach, and sales comparison approach, which are primarily based on Level Three assumptions. Assumptions utilized in determining the fair value under these approaches include, but are not limited to, historical financial results when applicable, projected cash flows, discount rates, capitalization rates, royalty rates, current market conditions, likelihood of contract renewals, and comparable transactions. In a business combination, the fair value is allocated to tangible assets and liabilities and identifiable intangible assets, with any remaining value assigned to goodwill, if applicable. In an asset acquisition, any difference between the consideration paid and the fair value of the assets acquired is allocated across the identified assets based on the relative fair value. When we acquire the remaining ownership interest in or the property from an unconsolidated hospitality venture in a step acquisition, we estimate the fair value of our equity interest using the assumed cash proceeds we would receive from sale to a third party at a market sales price, which is determined using the aforementioned fair value methodologies and assumptions. The results of operations of properties or businesses have been included in our consolidated statements of income since their respective dates of acquisition. Assets acquired and liabilities assumed in acquisitions are recorded on our consolidated balance sheets at the respective acquisition dates based upon their estimated fair values (see Note 7 ). In business combinations, the purchase price allocations may be based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision when we receive final information, including appraisals and other analyses. Acquisition-related costs incurred in conjunction with a business combination are recognized in other income (loss), net on our consolidated statements of income. In an asset acquisition, these costs are included in the total consideration paid and allocated to the acquired assets. |
Goodwill | Goodwill —Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As required, we evaluate goodwill for impairment annually during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. Goodwill impairment is determined by comparing the fair value of a reporting unit to its carrying amount. We evaluate the fair value of the reporting unit either by performing a qualitative or quantitative assessment. In any given year, we can elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If it is not more likely than not that the fair value is in excess of the carrying value, or we elect to bypass the qualitative assessment, we proceed to the quantitative assessment. When determining fair value, we utilize internally developed discounted future cash flow models, third-party valuation specialist models, third-party appraisals or broker valuations and, if appropriate, current estimated net sales proceeds from pending offers. Under the discounted cash flow approach, we utilize various assumptions requiring judgment, including projected future cash flows, discount rates, and capitalization rates. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long- |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Assets —We have certain brand and other indefinite-lived intangibles that were acquired through various business combinations. At the time of each respective acquisition, fair value was estimated using a relief from royalty methodology. |
Guarantees | Guarantees |
Income Taxes | Income Taxes |
Fair Value | Fair Value —We apply the provisions of fair value measurement to various financial instruments, which we measure at fair value on a recurring basis, and to various financial and nonfinancial assets and liabilities, which we measure at fair value on a nonrecurring basis. We disclose the fair value of our financial assets and liabilities based on observable market information where available or on market participant assumptions. These assumptions are subjective in nature, involve matters of judgment, and, therefore, fair values cannot always be determined with precision. When determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy are as follows: • Level One—Fair values based on unadjusted quoted prices in active markets for identical assets and liabilities; • Level Two—Fair values based on quoted market prices for similar assets and liabilities in active markets, quoted prices in inactive markets for identical assets and liabilities, and inputs other than quoted market prices that are observable for the asset or liability; and • Level Three—Fair values based on inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Valuation techniques could include the use of discounted cash flow models and similar techniques. We typically utilize the market approach and income approach for valuing our financial instruments. The market approach utilizes prices and information generated by market transactions involving identical or similar assets and liabilities and the income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). For instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the classification within the fair value hierarchy has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy. |
Stock-Based Compensation | Stock-Based Compensation —As part of our LTIP, we award SARs, RSUs, and PSUs to certain employees and directors: • SARs —Each vested SAR gives the holder the right to the difference between the value of one share of our Class A common stock at the exercise date and the value of one share of our Class A common stock at the grant date. Vested SARs can be exercised over their life as determined in accordance with the LTIP. All SARs have a 10 -year contractual term, are settled in shares of our Class A common stock, and are accounted for as equity instruments. We recognize the compensation expense for SARs on a straight-line basis from the date of grant through the requisite service period. The exercise price of these SARs is the fair value of our common stock at the grant date, based on a valuation of the Company prior to the IPO or the closing share price on the date of grant (as applicable). We recognize the effect of forfeitures for SARs as they occur. • RSUs —Each vested RSU will generally be settled by delivery of a single share of our Class A common stock and therefore is accounted for as an equity instrument. In certain situations, we also grant a limited number of cash-settled RSUs, which are recorded as a liability instrument. The cash-settled RSUs represent an insignificant portion of certain previous grants. The value of the RSUs is based upon the fair value of our common stock at the grant date, based upon a valuation of the Company prior to IPO or the closing stock price of our Class A common stock for the December 2009 award and all subsequent awards. Awards issued prior to our November 2009 IPO are deferred in nature and will be settled once all tranches of the award have fully vested or otherwise as provided in the relevant agreements, while all awards issued in December 2009 and later will be settled as each individual tranche vests under the relevant agreements. We recognize compensation expense over the requisite service period of the individual grant, which is generally between one and four years unless the employee meets retirement eligibility criteria resulting in immediate recognition. We recognize the effect of forfeitures as they occur. Under certain circumstances, we may issue performance-based RSUs which vest in tranches according to performance targets that are established annually. The value of the RSUs is determined using the fair value of our common stock at the grant date based upon the closing stock price of our Class A common stock. Due to the fact the performance tests, and therefore the vesting criteria, are established annually, each award tranche may have its own grant date. We issued 140,000 of such RSUs during the year ended December 31, 2019, for which, 126,000 RSUs have not met the grant date criteria and are therefore, not deemed granted as of December 31, 2019. • PSUs —The Company has granted PSUs to certain executive officers. PSUs vest and are settled in Class A common stock based upon the performance of the Company through the end of the applicable three -year performance period relative to the applicable performance target and are generally subject to continued employment through the applicable performance period. The PSUs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions. |
Adopted Accounting Standards and Future Adoption of Accounting Standards | Adopted Accounting Standards Leases —In February 2016, the Financial Accounting Standards Board ("FASB") released ASU 2016-02. ASU 2016-02 requires lessees to record lease contracts on the balance sheet by recognizing a 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, were 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) . For leases in place upon adoption, we used the remaining lease term as of January 1, 2019 in determining the 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 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 consolidated statements of income or our consolidated statements of cash flows. The impact on our 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 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 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 and its disclosure requirements, we do not expect a material impact upon adoption. |
Lessor, Leases | We lease retail space under operating leases at certain of our owned hotels. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. |
Employee Benefit Plans | Defined Contribution Plans —We provide retirement benefits to certain eligible employees under the Retirement Savings Plan (a qualified plan under Internal Revenue Code Section 401(k)), the FRP, and other similar plans. For the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 , we recorded expenses of $48 million , $41 million , and $39 million , respectively, related to the Retirement Savings Plan based on a percentage of eligible employee contributions on stipulated amounts. The majority of these contributions relate to hotel property level employees, which are reimbursable to us, and are included in 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 consolidated statements of income. Deferred Compensation Plans Employee Stock Purchase Program —We provide the Hyatt Hotels Corporation ESPP, which qualifies under Section 423 of the Internal Revenue Code. The ESPP provides eligible employees the opportunity to purchase shares of the Company's common stock on a quarterly basis through payroll deductions at a price equal to 95% Defined Benefit Plans |
Self Insurance Reserve | We obtain commercial insurance for potential losses for general liability, workers' compensation, automobile liability, employment practices, crime, property, cyber risk, and other miscellaneous coverages. A portion of the risk is retained on a self-insurance basis primarily through U.S.-based and licensed captive insurance companies that are wholly owned subsidiaries of Hyatt and generally insure our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. |
Commitments and Contingencies | We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender's recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof. In conjunction with financing obtained for our unconsolidated hospitality ventures, certain managed hotels, and other properties, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions or actions of the other unconsolidated hospitality venture partners, respective hotel owners, or other third parties. As a result of certain dispositions, we have agreed to provide customary indemnifications to third- party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. We are subject, from time to time, to various claims and contingencies related to lawsuits, taxes, and environmental matters, as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. Although the ultimate liability for these matters cannot be determined at this point, based on information currently available, we do not expect the ultimate resolution of such claims and litigation to have a material effect on our consolidated financial statements. |
Segment Reporting | 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 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 revenues from residential management operations. These reimbursed costs relate primarily to payroll at managed properties where the Company is the employer, as well as system-wide services 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 reimbursed costs relate primarily to system-wide services 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, which was sold during the year ended December 31, 2019 , 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 reimbursed costs relate primarily to system-wide services 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 owned and leased hospitality ventures Adjusted EBITDA based on our ownership percentage of each owned and leased venture, adjusted to exclude interest expense; provision for income taxes; depreciation and amortization; 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Property and Equipment Useful Lives | Property and equipment are depreciated over the following: Buildings and improvements 10-50 years Leasehold improvements The shorter of the lease term or useful life of asset Furniture and equipment 3-20 years Computers 3-7 years |
Schedule of Definite-Lived Intangible Assets | Definite-lived intangible assets are amortized over the following: Management and franchise agreement intangibles 4 - 30 years Advanced booking intangibles 1 - 7 years December 31, 2019 Weighted-average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 367 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 144 — 180 Advanced booking intangibles 14 5 14 Other definite-lived intangibles 8 6 8 Intangibles 533 713 Less: accumulated amortization (96 ) (85 ) Intangibles, net $ 437 $ 628 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact on our 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) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 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 $ 1,058 $ — $ — $ — $ 25 $ (35 ) $ 1,048 Food and beverage 607 — — — 12 — 619 Other 143 — — — 38 — 181 Owned and leased hotels 1,808 — — — 75 (35 ) 1,848 Base management fees — 227 46 37 — (50 ) 260 Incentive management fees — 65 72 38 — (24 ) 151 Franchise fees — 136 4 1 — — 141 Other fees — 5 14 7 6 — 32 License fees — — — — 24 — 24 Management, franchise, and other fees — 433 136 83 30 (74 ) 608 Amortization of management and franchise agreement assets constituting payments to customers — (15 ) (2 ) (5 ) — — (22 ) Net management, franchise, and other fees — 418 134 78 30 (74 ) 586 Other revenues — 89 — — 35 1 125 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 2,268 113 74 6 — 2,461 Total $ 1,808 $ 2,775 $ 247 $ 152 $ 146 $ (108 ) $ 5,020 Year Ended December 31, 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 $ 1,110 $ — $ — $ — $ 23 $ (33 ) $ 1,100 Food and beverage 636 — — — 10 — 646 Other 143 — — — 29 — 172 Owned and leased hotels 1,889 — — — 62 (33 ) 1,918 Base management fees — 200 44 34 — (53 ) 225 Incentive management fees — 67 71 39 — (29 ) 148 Franchise fees — 123 3 1 — — 127 Other fees — 10 9 6 6 — 31 License fees — — — — 21 — 21 Management, franchise, and other fees — 400 127 80 27 (82 ) 552 Amortization of management and franchise agreement assets constituting payments to customers — (13 ) (2 ) (5 ) — — (20 ) Net management, franchise, and other fees — 387 125 75 27 (82 ) 532 Other revenues — — — — 43 5 48 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,787 95 68 6 — 1,956 Total $ 1,889 $ 2,174 $ 220 $ 143 $ 138 $ (110 ) $ 4,454 Year Ended December 31, 2017 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 $ 1,270 $ — $ — $ — $ 22 $ (38 ) $ 1,254 Food and beverage 722 — — — 11 — 733 Other 167 — — — 30 — 197 Owned and leased hotels 2,159 — — — 63 (38 ) 2,184 Base management fees — 193 39 29 — (59 ) 202 Incentive management fees — 62 65 35 — (27 ) 135 Franchise fees — 112 2 — — — 114 Other fees — 13 6 5 4 — 28 License fees — — — — 19 — 19 Management, franchise, and other fees — 380 112 69 23 (86 ) 498 Amortization of management and franchise agreement assets constituting payments to customers — (12 ) (1 ) (5 ) — — (18 ) Net management, franchise, and other fees — 368 111 64 23 (86 ) 480 Other revenues 13 — — — 14 9 36 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,625 79 58 — — 1,762 Total $ 2,172 $ 1,993 $ 190 $ 122 $ 100 $ (115 ) $ 4,462 |
Summary of Contract Liability | Contract liabilities are comprised of the following: December 31, 2019 December 31, 2018 Deferred revenue related to the loyalty program $ 671 $ 596 Advanced deposits 77 81 Initial fees received from franchise owners 41 35 Deferred revenue related to system-wide services 5 7 Other deferred revenue 126 111 Total contract liabilities $ 920 $ 830 The following table summarizes the activity in our contract liabilities: 2019 2018 Beginning balance, January 1 $ 830 $ 772 Cash received and other 1,025 964 Revenue recognized (935 ) (906 ) Ending balance, December 31 $ 920 $ 830 |
Debt and Equity Securities (Tab
Debt and Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Method Investments | The carrying values and ownership interests of our investments in unconsolidated hospitality ventures accounted for under the equity method are as follows: Investee Existing or future hotel property Ownership interest Carrying value December 31, 2019 December 31, 2018 Hyatt of Baja, S. de. R.L. de C.V. Park Hyatt Los Cabos 50.0 % $ 48 $ 46 HP Boston Partners, LLC Hyatt Place Boston/Seaport District 50.0 % 29 29 Hotel am Belvedere Holding GmbH & Co KG Andaz Vienna Am Belvedere 50.0 % 22 25 San Jose Hotel Partners, LLC Hyatt Place San Jose Airport, Hyatt House San Jose Airport 40.0 % 20 18 Desarrolladora Hotelera Acueducto, S. de R.L. de C.V. Hyatt Regency Andares Guadalajara 50.0 % 14 13 Portland Hotel Properties, LLC Hyatt Centric Downtown Portland 40.0 % 13 13 CBR HCN, LLC Hyatt Centric Downtown Nashville 40.0 % 12 — HH Nashville JV Holdings, LLC Hyatt House Nashville at Vanderbilt 50.0 % 11 12 33 Beale Street Hotel Company, LLC Hyatt Centric Memphis 50.0 % 11 — HP Atlanta Centennial Park JV, LLC Hyatt Place Atlanta/Centennial Park 50.0 % 10 10 Hotel Hoyo Uno, S. de R.L. de C.V. Andaz Mayakoba Resort Riviera Maya 40.0 % 10 16 Other Various 32 51 Total equity method investments $ 232 $ 233 |
Summarized Financial Information | The following tables present summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method: Years Ended December 31, 2019 2018 2017 Total revenues $ 496 $ 513 $ 832 Gross operating profit 179 182 289 Income (loss) from continuing operations (24 ) (16 ) 54 Net income (loss) (24 ) (16 ) 54 December 31, 2019 December 31, 2018 Current assets $ 231 $ 228 Noncurrent assets 1,417 1,345 Total assets $ 1,648 $ 1,573 Current liabilities $ 143 $ 141 Noncurrent liabilities 1,270 1,148 Total liabilities $ 1,413 $ 1,289 |
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 consolidated balance sheets, were as follows: December 31, 2019 December 31, 2018 Loyalty program (Note 10) $ 483 $ 397 Deferred compensation plans held in rabbi trusts (Note 10 and Note 13) 450 367 Captive insurance companies 180 133 Total marketable securities held to fund operating programs $ 1,113 $ 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 (219 ) (174 ) Marketable securities held to fund operating programs included in other assets $ 894 $ 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 consolidated statements of income: Years Ended December 31, 2019 2018 2017 Loyalty program (Note 21) $ 26 $ 4 $ 9 Net realized and unrealized gains (losses) and interest income from marketable securities held to fund rabbi trusts are recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts on our consolidated statements of income: Years Ended December 31, 2019 2018 2017 Unrealized gains (losses), net $ 42 $ (45 ) $ 20 Realized gains, net 20 34 25 Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ 62 $ (11 ) $ 45 |
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 consolidated balance sheets, were as follows: December 31, 2019 December 31, 2018 Interest-bearing money market funds $ 147 $ 14 Common shares of Playa N.V. (Note 10) 102 87 Time deposits 37 100 Total marketable securities held for investment purposes $ 286 $ 201 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (184 ) (114 ) Marketable securities held for investment purposes included in other assets $ 102 $ 87 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Fair Value —We measured the following financial assets at fair value on a recurring basis: December 31, 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 $ 269 $ 269 $ — $ — $ — Mutual funds 502 — — — 502 Common shares 102 — — — 102 Level Two - Significant Other Observable Inputs Time deposits 47 — 41 — 6 U.S. government obligations 202 — 4 31 167 U.S. government agencies 50 — 3 6 41 Corporate debt securities 161 — 20 18 123 Mortgage-backed securities 23 — — 4 19 Asset-backed securities 39 — — 6 33 Municipal and provincial notes and bonds 4 — — 1 3 Total $ 1,399 $ 269 $ 68 $ 66 $ 996 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 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | December 31, 2019 December 31, 2018 Land $ 690 $ 713 Buildings 3,285 3,583 Leasehold improvements 194 215 Furniture, equipment, and computers 1,183 1,178 Construction in progress 253 158 Property and equipment 5,605 5,847 Less: accumulated depreciation (2,149 ) (2,239 ) Total property and equipment, net $ 3,456 $ 3,608 |
Depreciation | Years Ended December 31, 2019 2018 2017 Depreciation expense $ 304 $ 312 $ 335 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivables | December 31, 2019 December 31, 2018 Unsecured financing to hotel owners $ 135 $ 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 $ 35 $ 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 6 7 Write-offs (6 ) (12 ) Other adjustments (1 ) (2 ) Allowance at December 31 $ 100 $ 101 |
Credit Monitoring | Our unsecured financing receivables were as follows: December 31, 2019 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on non-accrual status Loans $ 33 $ (1 ) $ 32 $ — Impaired loans (1) 43 (43 ) — 43 Total loans 76 (44 ) 32 43 Other financing arrangements 59 (56 ) 3 56 Total unsecured financing receivables $ 135 $ (100 ) $ 35 $ 99 (1) The unpaid principal balance was $33 million and the average recorded loan balance was $46 million at December 31, 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) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the identifiable net assets acquired: Cash $ 32 Receivables 20 Other current assets 2 Equity method investment 2 Property and equipment 2 Indefinite-lived intangibles (1), (5) 96 Management agreement intangibles (2), (5) 205 Goodwill (3) 199 Other assets (4) 25 Total assets $ 583 Advanced deposits (6) $ 20 Other current liabilities 23 Other long-term liabilities (4) 33 Total liabilities 76 Total net assets acquired $ 507 (1) Includes brand-related intangibles. (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 $154 million is tax deductible, is attributable to the growth opportunities we expect to realize by expanding into new markets and enhancing guest experiences through these newly acquired lifestyle brands (see Note 9 ). (4) Includes $13 million of pre-acquisition 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 (see Note 14 ). (5) See Note 9 for impairment discussion. (6) Included in contract liabilities (see Note 3 ). 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 December 31, 2019 $ 507 The following table summarizes the fair value of the identifiable net assets acquired in the acquisition of Miraval, which is recorded within corporate and other: Current assets $ 1 Property and equipment 172 Indefinite-lived intangibles (1) 37 Management agreement intangibles (2) 14 Goodwill (3) 21 Other definite-lived intangibles (4) 7 Total assets $ 252 Current liabilities $ 13 Deferred tax liabilities 3 Total liabilities 16 Total net assets acquired attributable to Hyatt Hotels Corporation 236 Total net assets acquired attributable to noncontrolling interests 1 Total net assets acquired $ 237 (1) Includes an intangible attributable to the Miraval brand. (2) Amortized over a 20 year useful life. (3) The goodwill, of which $10 million is deductible for tax purposes, is attributable to Miraval's reputation as a renowned provider of wellness and mindfulness experiences, the extension of the Hyatt brand beyond traditional hotel stays, and the establishment of deferred tax liabilities. (4) Amortized over useful lives ranging from two to seven years . |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Rent Expense and Weighted Average Remaining Lease Terms and Discount Rates | A summary of operating lease expense is as follows: Years Ended December 31, 2019 2018 2017 Minimum rentals $ 50 $ 38 $ 42 Contingent rentals 97 47 52 Total operating lease expense $ 147 $ 85 $ 94 Weighted-average remaining lease terms and discount rates are as follows: December 31, 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 and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term. |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to finance leases is as follows: December 31, 2019 Property and equipment, net (1) $ 9 Current maturities of long-term debt 2 Long-term debt 9 Total finance lease liabilities $ 11 |
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 are as follows: Years ending December 31, Operating leases Finance leases 2020 $ 47 $ 3 2021 45 2 2022 42 2 2023 39 2 2024 36 2 Thereafter 422 3 Total minimum lease payments $ 631 $ 14 Less: amount representing interest (206 ) (3 ) Present value of minimum lease payments $ 425 $ 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 are as follows: Years ending December 31, Operating leases Finance leases 2020 $ 47 $ 3 2021 45 2 2022 42 2 2023 39 2 2024 36 2 Thereafter 422 3 Total minimum lease payments $ 631 $ 14 Less: amount representing interest (206 ) (3 ) Present value of minimum lease payments $ 425 $ 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 consolidated statements of income as follows: Years Ended December 31, 2019 2018 2017 Rental income $ 23 $ 25 $ 27 |
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 are as follows: Years Ending December 31, 2020 $ 19 2021 13 2022 11 2023 8 2024 4 Thereafter 8 Total minimum lease receipts $ 63 |
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 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Total Balance at January 1, 2018 Goodwill $ 189 $ 33 $ — $ — $ 23 $ 245 Accumulated impairment losses (95 ) — — — — (95 ) Goodwill, net $ 94 $ 33 $ — $ — $ 23 $ 150 Activity during the year Additions — 135 18 3 2 158 Impairment losses (21 ) — — — (4 ) (25 ) Balance at December 31, 2018 Goodwill 189 168 18 3 25 403 Accumulated impairment losses (116 ) — — — (4 ) (120 ) Goodwill, net $ 73 $ 168 $ 18 $ 3 $ 21 $ 283 Activity during the year Measurement period adjustments (Note 7) — 64 (18 ) (3 ) — 43 Balance at December 31, 2019 Goodwill 189 232 — — 25 446 Accumulated impairment losses (116 ) — — — (4 ) (120 ) Goodwill, net $ 73 $ 232 $ — $ — $ 21 $ 326 December 31, 2019 Weighted-average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 367 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 144 — 180 Advanced booking intangibles 14 5 14 Other definite-lived intangibles 8 6 8 Intangibles 533 713 Less: accumulated amortization (96 ) (85 ) Intangibles, net $ 437 $ 628 |
Schedule of Intangible Assets by Major Class | Definite-lived intangible assets are amortized over the following: Management and franchise agreement intangibles 4 - 30 years Advanced booking intangibles 1 - 7 years December 31, 2019 Weighted-average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 367 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 144 — 180 Advanced booking intangibles 14 5 14 Other definite-lived intangibles 8 6 8 Intangibles 533 713 Less: accumulated amortization (96 ) (85 ) Intangibles, net $ 437 $ 628 |
Schedule of Indefinite-Lived Intangible Assets | December 31, 2019 Weighted-average useful lives in years December 31, 2018 Management and franchise agreement intangibles $ 367 18 $ 390 Lease related intangibles — — 121 Brand and other indefinite-lived intangibles 144 — 180 Advanced booking intangibles 14 5 14 Other definite-lived intangibles 8 6 8 Intangibles 533 713 Less: accumulated amortization (96 ) (85 ) Intangibles, net $ 437 $ 628 |
Schedule of Intangible Asset Amortization Expense | Years Ended December 31, 2019 2018 2017 Amortization expense $ 25 $ 15 $ 13 |
Schedule of Definite-Lived Intangible Assets, Future Amortization Expense | We estimate amortization expense for definite-lived intangibles as follows: Years Ending December 31, 2020 $ 28 2021 27 2022 25 2023 24 2024 23 Thereafter 166 Total amortization expense $ 293 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | December 31, 2019 December 31, 2018 Marketable securities held to fund rabbi trusts (Note 4) $ 450 $ 367 Management and franchise agreement assets constituting payments to customers (1) 423 396 Marketable securities held to fund the loyalty program (Note 4) 347 303 Long-term investments 162 112 Common shares of Playa N.V. (Note 4) 102 87 Other 104 88 Total other assets $ 1,588 $ 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) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | December 31, 2019 December 31, 2018 $250 million senior unsecured notes maturing in 2021—5.375% $ 250 $ 250 $350 million senior unsecured notes maturing in 2023—3.375% 350 350 $400 million senior unsecured notes maturing in 2026—4.850% 400 400 $400 million senior unsecured notes maturing in 2028—4.375% 400 400 Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A 130 130 Contract Revenue Bonds, Senior Taxable Series 2005B 47 52 Floating average rate construction loan 49 55 Other 1 1 Total debt before finance lease obligations 1,627 1,638 Finance lease obligations 11 12 Total debt 1,638 1,650 Less: current maturities (11 ) (11 ) Less: unamortized discounts and deferred financing fees (15 ) (16 ) Total long-term debt $ 1,612 $ 1,623 |
Schedule of Maturities of Long-term Debt | Under existing agreements, maturities of debt for the next five years and thereafter are as follows: Years Ending December 31, 2020 $ 11 2021 261 2022 11 2023 361 2024 12 Thereafter 982 Total maturities of debt $ 1,638 |
Fair Value | December 31, 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 $ 1,740 $ — $ 1,680 $ 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) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | December 31, 2019 December 31, 2018 Deferred compensation plans funded by rabbi trusts (Note 4) $ 450 $ 367 Income taxes payable 147 131 Self-insurance liabilities (Note 15) 80 78 Deferred income taxes (Note 14) 47 54 Guarantee liabilities (Note 15) 46 76 Other 114 134 Total other long-term liabilities $ 884 $ 840 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Our tax provision includes federal, state, local, and foreign income taxes. Years Ended December 31, 2019 2018 2017 U.S. income before tax $ 466 $ 652 $ 650 Foreign income before tax 540 299 72 Income before income taxes $ 1,006 $ 951 $ 722 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes from continuing operations is comprised of the following: Years Ended December 31, 2019 2018 2017 Current: Federal $ 74 $ 140 $ 201 State 35 50 45 Foreign 103 25 30 Total Current $ 212 $ 215 $ 276 Deferred: Federal $ 29 $ (35 ) $ 46 State 2 (12 ) (3 ) Foreign (3 ) 14 13 Total Deferred $ 28 $ (33 ) $ 56 Total $ 240 $ 182 $ 332 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory federal income tax rate to the effective tax rate from continuing operations: Years Ended December 31, 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes—net of federal tax benefit 2.7 2.6 3.8 Impact of foreign operations (excluding unconsolidated hospitality ventures losses) (2.0 ) (5.6 ) (5.4 ) U.S. foreign tax credits — (1.6 ) 0.7 2017 Tax Act deferred rate change — (0.1 ) 6.3 2017 Tax Act deemed repatriation tax — 0.3 1.8 Change in valuation allowances 1.0 0.9 1.0 Foreign unconsolidated hospitality ventures 0.5 0.9 0.9 Tax contingencies 0.3 1.0 1.0 Equity based compensation 0.2 0.3 0.6 General business credits (0.3 ) (0.5 ) (0.3 ) Other 0.5 (0.1 ) 0.5 Effective income tax rate 23.9 % 19.1 % 45.9 % |
Schedule of Deferred Tax Assets and Liabilities | The components of the net deferred tax assets and deferred tax liabilities are comprised of the following: December 31, 2019 December 31, 2018 Deferred tax assets related to: Employee benefits $ 134 $ 133 Loyalty program 118 99 Long-term operating lease liabilities 103 — Foreign and state net operating losses and credit carryforwards 50 57 Allowance for uncollectible assets 33 31 Investments 28 37 Unrealized losses 7 3 Interest and state benefits 3 3 Other 33 41 Valuation allowance (41 ) (41 ) Total deferred tax asset $ 468 $ 363 Deferred tax liabilities related to: Property and equipment $ (152 ) $ (131 ) Operating ROU assets (105 ) — Intangibles (59 ) (49 ) Investments (36 ) (16 ) Prepaid expenses (9 ) (7 ) Unrealized gains (2 ) (24 ) Other (8 ) (10 ) Total deferred tax liabilities $ (371 ) $ (237 ) Net deferred tax assets $ 97 $ 126 Recognized in the balance sheet as: Deferred tax assets—noncurrent $ 144 $ 180 Deferred tax liabilities—noncurrent (47 ) (54 ) Total $ 97 $ 126 |
Unrecognized Tax Benefits Reconciliation | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2019 2018 Unrecognized tax benefits—beginning balance $ 116 $ 94 Total increases—current-period tax positions 21 10 Total increases (decreases)—prior-period tax positions (7 ) 18 Settlements (3 ) (1 ) Lapse of statute of limitations (3 ) (4 ) Foreign currency fluctuation 1 (1 ) Unrecognized tax benefits—ending balance $ 125 $ 116 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 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 — — 7 — 7 — Amortization of initial guarantee obligation liability into income (15 ) (15 ) (3 ) (3 ) (18 ) (18 ) Performance guarantee expense, net 37 55 5 4 42 59 Net payments during the year (37 ) (62 ) (7 ) (3 ) (44 ) (65 ) Foreign currency exchange, net (1 ) — — — (1 ) — Ending balance, December 31 $ 20 $ 36 $ 13 $ 11 $ 33 $ 47 |
Debt Repayment and Other Guarantees | Included within debt repayment and other guarantees are the following: Property description Maximum potential future payments Maximum exposure net of recoverability from third parties Other long-term liabilities recorded at December 31, 2019 Other long-term liabilities recorded at December 31, 2018 Year of guarantee expiration Hotel properties in India (1) $ 169 $ 169 $ 5 $ 10 2020 Hotel and residential properties in Brazil (2), (3) 97 40 3 3 various, through 2023 Hotel properties in Tennessee (2) 44 20 8 2 various, through 2023 Hotel properties in California (2) 31 12 3 4 various, through 2021 Hotel property in Massachusetts (2), (4) 30 14 6 8 various, through 2022 Hotel property in Oregon (2), (4) 15 6 3 4 various, through 2022 Hotel property in Arizona (2), (3) 14 — 1 1 2021 Other (2), (5) 15 9 3 19 various, through 2022 Total $ 415 $ 270 $ 32 $ 51 (1) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at December 31, 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 December 31, 2019 , the maximum potential future payments are $3 million , and the maximum exposure net of recoverability from third parties is insignificant. (5) At December 31, 2018 , other-long term liabilities included a debt repayment guarantee for a hotel property in Washington State. During the year ended December 31, 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 consolidated statements of income for the year ended December 31, 2019 (see Note 21 ). |
Stockholders' Equity and Comp_2
Stockholders' Equity and Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accelerated Shares Repurchased | During the year ended December 31, 2018 , we entered into the following ASR programs with third-party financial institutions to repurchase Class A shares: Total number of shares repurchased (1) Weighted-average price per share Total cash paid May 2018 (2) 2,481,341 $ 80.60 $ 200 November 2018 (2) 2,575,095 $ 69.90 $ 180 (1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share (see Note 20 ). (2) The May 2018 ASR and the November 2018 ASR are collectively referred to as the "2018 ASR Agreements." |
Schedule of Accumulated Other Comprehensive Loss | Balance at January 1, 2019 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at December 31, 2019 Foreign currency translation adjustments (a) $ (191 ) $ 1 $ 7 $ (183 ) Unrealized gains on AFS debt securities — 1 — 1 Unrecognized pension cost (5 ) (4 ) — (9 ) Unrealized losses on derivative instruments (4 ) (15 ) 1 (18 ) Accumulated other comprehensive income (loss) $ (200 ) $ (17 ) $ 8 $ (209 ) (a) The amount reclassified from accumulated other comprehensive loss includes the net gain recognized in gains on sales of real estate related to the sale of shares of the entity which owns Grand Hyatt Seoul and adjacent land (see Note 7). Balance at January 1, 2018 Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at December 31, 2018 Foreign currency translation adjustments (b) $ (243 ) $ (25 ) $ 77 $ (191 ) Unrecognized pension (cost) benefit (7 ) 2 — (5 ) Unrealized losses on derivative instruments (3 ) (1 ) — (4 ) Accumulated other comprehensive income (loss) $ (253 ) $ (24 ) $ 77 $ (200 ) (b) The amount reclassified from accumulated other comprehensive loss includes 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 7). |
Dividends Declared | During the year ended December 31, 2019 , we paid cash dividends of $29 million and $51 million , respectively, to Class A and Class B shareholders of record, and during the year ended December 31, 2018 , we paid cash dividends of $27 million and $41 million , respectively, to Class A and Class B shareholders of record as follows: 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 October 30, 2019 $ 0.19 November 26, 2019 December 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 October 30, 2018 $ 0.15 November 28, 2018 December 10, 2018 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 administration expense on our consolidated statements of income related to these awards was as follows: Years Ended December 31, 2019 2018 2017 SARs $ 11 $ 10 $ 11 RSUs 17 15 16 PSUs 6 4 2 Other 1 — — Total $ 35 $ 29 $ 29 |
Income Tax Benefit Share Based Compensation | The expected income tax benefit to be realized at the time of vest related to these awards for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 was as follows: Years Ended December 31, 2019 2018 2017 SARs $ 3 $ 2 $ 3 RSUs 5 4 4 PSUs 2 1 1 Total $ 10 $ 7 $ 8 |
Stock Appreciation Rights by Grant Date | The following table sets forth a summary of the SAR grants in 2019 , 2018 , and 2017 : Grant date Granted Value at date of grant Vesting period Vesting start month March 2019 643,989 $ 17.11 25 % annually March 2020 May 2018 38,918 21.84 25 % annually March 2019 March 2018 465,842 21.13 25 % annually March 2019 September 2017 20,139 18.62 25 % annually September 2018 March 2017 605,601 16.35 25 % annually March 2018 |
Schedule of Share-based Payment Award SAR Valuation Assumptions | The fair value of each SAR was estimated based on the date of grant using the Black- Scholes- Merton option- pricing model with the following weighted-average assumptions: 2019 2018 2017 Exercise price $ 71.67 $ 80.12 $ 52.93 Expected life in years 6.25 6.24 6.24 Risk-free interest rate 2.40 % 2.79 % 2.11 % Expected volatility 22.51 % 22.97 % 26.56 % Annual dividend yield 1.06 % 0.75 % — % |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | A summary of employee SAR activity is presented below: SAR units Weighted-average exercise price (in whole dollars) Weighted-average remaining contractual term Outstanding at December 31, 2018: 3,488,886 $ 51.27 5.80 Granted 643,989 71.67 Exercised (240,417 ) 36.48 Forfeited or expired (48,101 ) 66.00 Outstanding at December 31, 2019: 3,844,357 $ 55.51 5.78 Exercisable at December 31, 2019: 2,458,448 $ 48.72 4.38 |
Restricted Stock Units by Grant Date | The following table sets forth a summary of the employee RSU grants: Grant date Granted Value at date of grant Aggregate value at date of grant Vesting period December 2019 9,695 $ 82.50 $ 1 various May 2019 23,672 77.54 2 various March 2019 329,239 71.67 24 various February 2019 2,863 69.85 — 4 years December 2018 9,650 67.34 1 various September 2018 10,034 76.72 1 various May 2018 4,306 81.27 — 4 years March 2018 254,707 80.02 20 various February 2018 3,502 78.52 — 4 years December 2017 9,238 70.35 1 various September 2017 22,357 61.50 1 various September 2017 43,151 60.48 3 various May 2017 1,390 57.51 — 4 years March 2017 416,404 52.65 22 various |
Schedule of Nonvested Restricted Stock Units Activity | A summary of the status of the nonvested employee RSU awards outstanding under the LTIP is presented below: RSUs Weighted-average grant date fair value Nonvested at December 31, 2018: 796,830 $ 61.31 Granted 365,469 72.32 Vested (339,227 ) 58.73 Forfeited or canceled (47,790 ) 62.69 Nonvested at December 31, 2019: 775,282 $ 67.54 |
Performance Vesting Restricted Stock | The following table sets forth a summary of PSU grants: Year granted Granted Weighted-average grant date fair value Performance period Performance period start date 2019 PSUs 120,720 $ 77.95 3 years January 1, 2019 2018 PSUs 89,441 $ 82.10 3 years January 1, 2018 2017 PSUs 102,115 $ 52.65 3 years January 1, 2017 |
Schedule of Nonvested Performance Awards | A summary of the status of the nonvested PSU awards outstanding under the LTIP is presented below: PSUs Weighted-average grant date fair value Nonvested at December 31, 2018: 204,489 $ 62.68 Granted 120,720 77.95 Vested (61,545 ) 47.36 Forfeited or canceled (3,248 ) 82.10 Nonvested at December 31, 2019: 260,416 $ 73.14 |
Unearned Compensation Future Compensation Expense | Our total unearned compensation for our stock- based compensation programs at December 31, 2019 is as follows and is expected to be recorded as stock-based compensation expense: 2020 2021 2022 2023 Total SARs $ 1 $ 1 $ — $ — $ 2 RSUs 7 4 3 1 15 PSUs 5 3 — — 8 Total $ 13 $ 8 $ 3 $ 1 $ 25 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 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. Years Ended December 31, 2019 2018 2017 Owned and leased hotels Owned and leased hotels revenues $ 1,808 $ 1,889 $ 2,159 Other revenues — — 13 Intersegment revenues (a) 35 33 38 Adjusted EBITDA 387 428 490 Depreciation and amortization 244 266 295 Capital expenditures 233 194 195 Americas management and franchising Management, franchise, and other fees revenues 433 400 380 Contra revenue (15 ) (13 ) (12 ) Other revenues 89 — — Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 2,268 1,787 1,625 Intersegment revenues (a) 62 70 74 Adjusted EBITDA 376 352 327 Depreciation and amortization 24 9 7 Capital expenditures 2 1 — ASPAC management and franchising Management, franchise, and other fees revenues 136 127 112 Contra revenue (2 ) (2 ) (1 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 113 95 79 Intersegment revenues (a) 2 2 2 Adjusted EBITDA 87 78 70 Depreciation and amortization 3 1 1 Capital expenditures 1 4 1 EAME/SW Asia management and franchising Management, franchise, and other fees revenues 83 80 69 Contra revenue (5 ) (5 ) (5 ) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 74 68 58 Intersegment revenues (a) 10 10 10 Adjusted EBITDA 49 46 37 Depreciation and amortization 1 1 — Capital expenditures — 1 1 Corporate and other Revenues 140 132 100 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 6 6 — Intersegment revenues (a) (1 ) (5 ) (9 ) Adjusted EBITDA (146 ) (127 ) (135 ) Depreciation and amortization 57 50 45 Capital expenditures 133 97 101 Eliminations Revenues (a) (108 ) (110 ) (115 ) Adjusted EBITDA 1 — 3 TOTAL Revenues $ 5,020 $ 4,454 $ 4,462 Adjusted EBITDA 754 777 792 Depreciation and amortization 329 327 348 Capital expenditures 369 297 298 (a) Intersegment revenues are included in the management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations. |
Reconciliation of Assets from Segment to Consolidated | The table below presents summarized consolidated balance sheet information by segment: December 31, 2019 December 31, 2018 Total Assets: Owned and leased hotels $ 4,203 $ 4,118 Americas management and franchising 1,024 842 ASPAC management and franchising 260 203 EAME/SW Asia management and franchising 273 225 Corporate and other 2,657 2,255 Total $ 8,417 $ 7,643 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following tables present revenues and property and equipment, net, operating lease ROU assets, intangibles, net, and goodwill by geographical region: Years Ended December 31, 2019 2018 2017 Revenues: United States $ 4,142 $ 3,587 $ 3,619 All foreign 878 867 843 Total $ 5,020 $ 4,454 $ 4,462 December 31, 2019 December 31, 2018 Property and equipment, net, Operating lease ROU assets, Intangibles, net, and Goodwill: United States $ 3,798 $ 3,670 All foreign 914 849 Total $ 4,712 $ 4,519 |
Reconciliation of Consolidated Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation | The table below provides a reconciliation of our net income attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA: Years Ended December 31, 2019 2018 2017 Net income attributable to Hyatt Hotels Corporation $ 766 $ 769 $ 389 Interest expense 75 76 80 Provision for income taxes 240 182 332 Depreciation and amortization 329 327 348 EBITDA 1,410 1,354 1,149 Contra revenue 22 20 18 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (2,461 ) (1,956 ) (1,762 ) Costs incurred on behalf of managed and franchised properties 2,520 1,981 1,782 Equity (earnings) losses from unconsolidated hospitality ventures 10 (8 ) (219 ) Stock-based compensation expense 35 29 29 Gains on sales of real estate (723 ) (772 ) (236 ) Asset impairments 18 25 — Other (income) loss, net (127 ) 49 (42 ) Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA 50 55 73 Adjusted EBITDA $ 754 $ 777 $ 792 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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: Years Ended December 31, 2019 2018 2017 Numerator: Net income $ 766 $ 769 $ 390 Net income and accretion attributable to noncontrolling interests — — (1 ) Net income attributable to Hyatt Hotels Corporation $ 766 $ 769 $ 389 Denominator: Basic weighted-average shares outstanding 104,590,383 113,259,113 124,836,917 Share-based compensation and equity-classified forward contract 1,702,021 1,865,904 1,509,986 Diluted weighted-average shares outstanding 106,292,404 115,125,017 126,346,903 Basic Earnings Per Share: Net income $ 7.33 $ 6.79 $ 3.13 Net income and accretion attributable to noncontrolling interests — — (0.01 ) Net income attributable to Hyatt Hotels Corporation $ 7.33 $ 6.79 $ 3.12 Diluted Earnings Per Share: Net income $ 7.21 $ 6.68 $ 3.09 Net income and accretion attributable to noncontrolling interests — — (0.01 ) Net income attributable to Hyatt Hotels Corporation $ 7.21 $ 6.68 $ 3.08 |
Anti-dilutive Shares Issued | The computations of diluted net income per share for the years ended December 31, 2019 , December 31, 2018 , and December 31, 2017 do not include the following shares of Class A common stock assumed to be issued as stock- settled SARs and RSUs because they are anti- dilutive. Years Ended December 31, 2019 2018 2017 SARs 13,000 100 21,400 RSUs — — 100 |
Other Income (Loss), Net (Table
Other Income (Loss), Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other income (loss), net | Years Ended December 31, 2019 2018 2017 Release of contingent consideration liability (Note 7) $ 30 $ — $ — Unrealized gains (losses), net (Note 4) 26 (47 ) 1 Interest income (Note 4) 25 28 110 Depreciation recovery 25 22 27 Performance guarantee liability amortization (Note 15) 18 18 19 Release and amortization of debt repayment guarantee liability (Note 15) 18 11 10 Gain on sale of contractual right (Note 7) 16 — — Realized gains (losses), net 2 (3 ) (41 ) Foreign currency gains (losses), net 1 4 (2 ) Pre-condemnation income — 4 18 Cease use liability — — (21 ) Loss on extinguishment of debt (Note 11) — (7 ) — Impairment of an equity security without a readily determinable fair value (Note 4) — (22 ) — Transaction costs (1 ) (10 ) (4 ) Performance guarantee expense, net (Note 15) (42 ) (59 ) (77 ) Other, net 9 12 2 Other income (loss), net $ 127 $ (49 ) $ 42 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth the historical unaudited quarterly financial data. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period. Three Months Ended December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Consolidated statements of income data: Total revenues $ 1,275 $ 1,215 $ 1,289 $ 1,241 $ 1,138 $ 1,074 $ 1,133 $ 1,109 Direct and selling, general, and administrative expenses 1,225 1,175 1,208 1,215 1,054 1,012 1,026 1,030 Net income 321 296 86 63 44 237 77 411 Net income attributable to Hyatt Hotels Corporation 321 296 86 63 44 237 77 411 Net income per share—basic $ 3.13 $ 2.84 $ 0.81 $ 0.60 $ 0.41 $ 2.12 $ 0.67 $ 3.47 Net income per share—diluted $ 3.08 $ 2.80 $ 0.80 $ 0.59 $ 0.40 $ 2.09 $ 0.66 $ 3.40 Cash dividends declared per share $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.15 $ 0.15 $ 0.15 $ 0.15 |
Organization (Details)
Organization (Details) | Dec. 31, 2019hotelcountryroom |
Organization | |
Number of countries in which entity operates (number of countries) | country | 65 |
Full service | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 446 |
Number of rooms operated or franchised (number of rooms) | room | 156,133 |
Select service | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 467 |
Number of rooms operated or franchised (number of rooms) | room | 66,978 |
Select service | United States | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 399 |
All inclusive | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 8 |
Number of rooms operated or franchised (number of rooms) | room | 3,153 |
Wellness resorts | |
Organization | |
Number of hotels operated or franchised (number of hotels) | 3 |
Number of rooms operated or franchised (number of rooms) | room | 410 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2019 | Feb. 28, 2019 | May 31, 2018 | Feb. 28, 2018 | May 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accounting Policies | |||||||||
Restricted cash | $ 170 | $ 170 | $ 52 | ||||||
Restricted cash included in other assets | 20 | 20 | 19 | $ 15 | |||||
Restricted cash, current | 150 | $ 150 | 33 | $ 234 | |||||
Inventory supplies and equipment, maximum consumption period | 2 years | ||||||||
Operating lease right-of-use assets | 493 | $ 493 | $ 512 | ||||||
Operating lease, liability | 425 | 425 | |||||||
Captive insurance subsidiary | |||||||||
Accounting Policies | |||||||||
Restricted cash, current | 9 | 9 | |||||||
Other restricted cash | |||||||||
Accounting Policies | |||||||||
Restricted cash, current | 16 | 16 | 15 | ||||||
Property Adjacent to Grand Hyatt San Francisco | |||||||||
Accounting Policies | |||||||||
Restricted cash, current | 115 | 115 | |||||||
Grand Hyatt San Antonio | |||||||||
Accounting Policies | |||||||||
Restricted cash, current | $ 30 | $ 30 | $ 28 | ||||||
Accounting Standards Update 2016-02 | |||||||||
Accounting Policies | |||||||||
Operating lease right-of-use assets | 512 | ||||||||
Operating lease, liability | 452 | ||||||||
Stock appreciation rights (SARs) | |||||||||
Accounting Policies | |||||||||
Share-based compensation contractual term | 10 years | ||||||||
Performance Shares [Member] | |||||||||
Accounting Policies | |||||||||
Performance period | 3 years | 3 years | 3 years | ||||||
Restricted stock units (RSUs) | |||||||||
Accounting Policies | |||||||||
Performance period | 4 years | 4 years | 4 years | 4 years | |||||
Share-based compensation, issued during the period | 140,000 | ||||||||
Share-based compensation arrangement, issued not granted | 126,000 | ||||||||
PSUs | |||||||||
Accounting Policies | |||||||||
Share-based compensation, performance period | 3 years | ||||||||
Below Market Lease Related Intangibles | Accounting Standards Update 2016-02 | |||||||||
Accounting Policies | |||||||||
Reclassification from assets and liabilities | 103 | ||||||||
Deferred Lease Liabilities | Accounting Standards Update 2016-02 | |||||||||
Accounting Policies | |||||||||
Reclassification from assets and liabilities | $ (49) | ||||||||
Minimum | |||||||||
Accounting Policies | |||||||||
Lessee, operating and finance lease, extension term | 1 year | ||||||||
Operating lease, term of contract | 1 year | 1 year | |||||||
Minimum | Performance Shares [Member] | |||||||||
Accounting Policies | |||||||||
Performance period | 1 year | ||||||||
Maximum | |||||||||
Accounting Policies | |||||||||
Lessee, operating and finance lease, extension term | 99 years | ||||||||
Operating lease, term of contract | 20 years | 20 years | |||||||
Maximum | Performance Shares [Member] | |||||||||
Accounting Policies | |||||||||
Performance period | 4 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | Buildings and improvements | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 10 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 3 years |
Minimum | Computers | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 3 years |
Maximum | Buildings and improvements | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 50 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 20 years |
Maximum | Computers | |
Property, Plant and Equipment | |
Property, plant and equipment, useful life | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Management and franchise agreement intangibles | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible asset, useful life | 4 years |
Management and franchise agreement intangibles | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible asset, useful life | 30 years |
Advanced booking intangibles | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible asset, useful life | 1 year |
Advanced booking intangibles | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived intangible asset, useful life | 7 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Changes Due to Adoption of ASU 2016-02 (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | |||||
Prepaids and other assets | $ 134 | $ 147 | $ 149 | ||
Intangibles, net | 437 | 525 | 628 | ||
Other assets | 1,588 | 1,346 | 1,353 | ||
Operating lease right-of-use assets | 493 | 512 | |||
TOTAL ASSETS | 8,417 | 8,043 | 7,643 | ||
LIABILITIES AND EQUITY | |||||
Accounts payable | 150 | 150 | 151 | ||
Accrued expenses and other current liabilities | 304 | 359 | 361 | ||
Current operating lease liabilities | 32 | 34 | |||
Long-term operating lease liabilities | 393 | 418 | |||
Other long-term liabilities | 884 | 791 | 840 | ||
Total liabilities | 4,450 | 4,366 | 3,966 | ||
Total equity | 3,967 | 3,677 | 3,677 | $ 3,843 | $ 4,080 |
TOTAL LIABILITIES AND EQUITY | $ 8,417 | 8,043 | $ 7,643 | ||
Accounting Standards Update 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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 1,275 | $ 1,215 | $ 1,289 | $ 1,241 | $ 1,138 | $ 1,074 | $ 1,133 | $ 1,109 | $ 5,020 | $ 4,454 | $ 4,462 |
Rooms revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,048 | 1,100 | 1,254 | ||||||||
Food and beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 619 | 646 | 733 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 181 | 172 | 197 | ||||||||
Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,848 | 1,918 | 2,184 | ||||||||
Base management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 260 | 225 | 202 | ||||||||
Incentive management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 151 | 148 | 135 | ||||||||
Franchise fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 141 | 127 | 114 | ||||||||
Other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 32 | 31 | 28 | ||||||||
License fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 24 | 21 | 19 | ||||||||
Management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 608 | 552 | 498 | ||||||||
Amortization of management and franchise agreement assets constituting payments to customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (22) | (20) | (18) | ||||||||
Net management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 586 | 532 | 480 | ||||||||
Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 125 | 48 | 36 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,461 | 1,956 | 1,762 | ||||||||
Operating Segments | Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,808 | 1,889 | 2,172 | ||||||||
Operating Segments | Owned and leased hotels | Rooms revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,058 | 1,110 | 1,270 | ||||||||
Operating Segments | Owned and leased hotels | Food and beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 607 | 636 | 722 | ||||||||
Operating Segments | Owned and leased hotels | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 143 | 143 | 167 | ||||||||
Operating Segments | Owned and leased hotels | Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,808 | 1,889 | 2,159 | ||||||||
Operating Segments | Owned and leased hotels | Base management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Owned and leased hotels | Incentive management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Owned and leased hotels | Franchise fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Owned and leased hotels | Other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Owned and leased hotels | License fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Owned and leased hotels | Management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 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 | ||||||||
Operating Segments | Owned and leased hotels | Net management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Owned and leased hotels | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 13 | ||||||||
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 | ||||||||
Operating Segments | Americas management and franchising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2,775 | 2,174 | 1,993 | ||||||||
Operating Segments | Americas management and franchising | Rooms revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Americas management and franchising | Food and beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Americas management and franchising | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Americas management and franchising | Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Americas management and franchising | Base management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 227 | 200 | 193 | ||||||||
Operating Segments | Americas management and franchising | Incentive management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 65 | 67 | 62 | ||||||||
Operating Segments | Americas management and franchising | Franchise fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 136 | 123 | 112 | ||||||||
Operating Segments | Americas management and franchising | Other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 5 | 10 | 13 | ||||||||
Operating Segments | Americas management and franchising | License fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | Americas management and franchising | Management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 433 | 400 | 380 | ||||||||
Operating Segments | Americas management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (15) | (13) | (12) | ||||||||
Operating Segments | Americas management and franchising | Net management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 418 | 387 | 368 | ||||||||
Operating Segments | Americas management and franchising | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 89 | 0 | 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 | 2,268 | 1,787 | 1,625 | ||||||||
Operating Segments | ASPAC management and franchising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 247 | 220 | 190 | ||||||||
Operating Segments | ASPAC management and franchising | Rooms revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | ASPAC management and franchising | Food and beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | ASPAC management and franchising | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | ASPAC management and franchising | Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | ASPAC management and franchising | Base management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 46 | 44 | 39 | ||||||||
Operating Segments | ASPAC management and franchising | Incentive management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 72 | 71 | 65 | ||||||||
Operating Segments | ASPAC management and franchising | Franchise fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 4 | 3 | 2 | ||||||||
Operating Segments | ASPAC management and franchising | Other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 14 | 9 | 6 | ||||||||
Operating Segments | ASPAC management and franchising | License fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | ASPAC management and franchising | Management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 136 | 127 | 112 | ||||||||
Operating Segments | ASPAC management and franchising | Amortization of management and franchise agreement assets constituting payments to customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (2) | (2) | (1) | ||||||||
Operating Segments | ASPAC management and franchising | Net management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 134 | 125 | 111 | ||||||||
Operating Segments | ASPAC management and franchising | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 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 | 113 | 95 | 79 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 152 | 143 | 122 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Rooms revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Food and beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Base management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 37 | 34 | 29 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Incentive management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 38 | 39 | 35 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Franchise fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1 | 1 | 0 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 7 | 6 | 5 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | License fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 83 | 80 | 69 | ||||||||
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 | (5) | (5) | (5) | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Net management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 78 | 75 | 64 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 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 | 74 | 68 | 58 | ||||||||
Corporate and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 146 | 138 | 100 | ||||||||
Corporate and other | Rooms revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 25 | 23 | 22 | ||||||||
Corporate and other | Food and beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 12 | 10 | 11 | ||||||||
Corporate and other | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 38 | 29 | 30 | ||||||||
Corporate and other | Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 75 | 62 | 63 | ||||||||
Corporate and other | Base management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Corporate and other | Incentive management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Corporate and other | Franchise fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Corporate and other | Other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6 | 6 | 4 | ||||||||
Corporate and other | License fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 24 | 21 | 19 | ||||||||
Corporate and other | Management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 30 | 27 | 23 | ||||||||
Corporate and other | Amortization of management and franchise agreement assets constituting payments to customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Corporate and other | Net management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 30 | 27 | 23 | ||||||||
Corporate and other | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 35 | 43 | 14 | ||||||||
Corporate and other | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 6 | 6 | 0 | ||||||||
Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (108) | (110) | (115) | ||||||||
Eliminations | Rooms revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (35) | (33) | (38) | ||||||||
Eliminations | Food and beverage | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations | Owned and leased hotels | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (35) | (33) | (38) | ||||||||
Eliminations | Base management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (50) | (53) | (59) | ||||||||
Eliminations | Incentive management fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (24) | (29) | (27) | ||||||||
Eliminations | Franchise fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations | Other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations | License fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations | Management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (74) | (82) | (86) | ||||||||
Eliminations | Amortization of management and franchise agreement assets constituting payments to customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations | Net management, franchise, and other fees | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (74) | (82) | (86) | ||||||||
Eliminations | Other revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1 | 5 | 9 | ||||||||
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Eliminations | Americas management and franchising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 62 | 70 | 74 | ||||||||
Eliminations | ASPAC management and franchising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 2 | 2 | 2 | ||||||||
Eliminations | EAME/SW Asia management and franchising | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 10 | $ 10 | $ 10 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract assets | $ 0 | $ 0 | |
Total contract liabilities | 920 | 830 | $ 772 |
Cash received from contract with customer | 1,025 | 964 | |
Revenue recognized from contract with customer | (935) | (906) | |
Revenue recognized from contract with customer beginning balance | 375 | 356 | |
Deferred revenue related to the loyalty program | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total contract liabilities | 671 | 596 | |
Advanced deposits | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total contract liabilities | 77 | 81 | |
Initial fees received from franchise owners | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total contract liabilities | 41 | 35 | |
Deferred revenue related to system-wide services | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total contract liabilities | 5 | 7 | |
Other deferred revenue | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total contract liabilities | $ 126 | $ 111 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Remaining Performance Obligation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 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]: 2020-01-01 | |
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 - Ca
Debt and Equity Securities - Carrying Value and Ownership Percentages of Equity Method Investments (Details) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments | ||
Equity method investments | $ 232 | $ 233 |
Hyatt of Baja, S. de. R.L. de C.V. | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | $ 48 | 46 |
HP Boston Partners, LLC | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | $ 29 | 29 |
Hotel am Belvedere Holding GmbH & Co KG | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | $ 22 | 25 |
San Jose Hotel Partners, LLC | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 40.00% | |
Equity method investments | $ 20 | 18 |
Desarrolladora Hotelera Acueducto, S. de R.L. de C.V. | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | $ 14 | 13 |
Portland Hotel Properties, LLC | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 40.00% | |
Equity method investments | $ 13 | 13 |
CBR HCN, LLC | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 40.00% | |
Equity method investments | $ 12 | 0 |
HH Nashville JV Holdings, LLC | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | $ 11 | 12 |
33 Beale Street Hotel Company, LLC | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | $ 11 | 0 |
HP Atlanta Centennial Park JV, LLC | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 50.00% | |
Equity method investments | $ 10 | 10 |
Hotel Hoyo Uno, S. de R.L. de C.V. | ||
Schedule of Equity Method Investments | ||
Equity method investment, ownership percentage | 40.00% | |
Equity method investments | $ 10 | 16 |
Other | ||
Schedule of Equity Method Investments | ||
Equity method investments | $ 32 | $ 51 |
Debt and Equity Securities - Su
Debt and Equity Securities - Summarized Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Total revenues | $ 496 | $ 513 | $ 832 |
Gross operating profit | 179 | 182 | 289 |
Income (loss) from continuing operations | (24) | (16) | 54 |
Net income (loss) | (24) | (16) | $ 54 |
Current assets | 231 | 228 | |
Noncurrent assets | 1,417 | 1,345 | |
Total assets | 1,648 | 1,573 | |
Current liabilities | 143 | 141 | |
Noncurrent liabilities | 1,270 | 1,148 | |
Total liabilities | $ 1,413 | $ 1,289 |
Debt and Equity Securities - Na
Debt and Equity Securities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments | |||
Equity method investments | $ 232 | $ 233 | |
Equity method investment, impairment charges | $ 7 | $ 3 | |
Common stock, shares sold (in shares) | 0 | ||
Held-to-maturity securities | $ 58 | 49 | |
Equity securities without a readily determinable fair value | 7 | 9 | |
Impairment charges on equity securities without readily determinable fair value | 22 | ||
Unconsolidated Hospitality Venture | |||
Schedule of Equity Method Investments | |||
Equity method investment, net purchase price | 4 | ||
Equity method investment, impairment charges | 16 | ||
Avendra LLC | |||
Schedule of Equity Method Investments | |||
Equity method investment, realized gain on disposal | 217 | ||
Equity method investment, net sales proceeds | 217 | ||
Playa Hotels & Resorts N.V. | Common shares | |||
Schedule of Equity Method Investments | |||
Increase in other income (loss) | 15 | ||
Decrease in other income (loss) | (44) | ||
Owned and leased hotels | |||
Schedule of Equity Method Investments | |||
Equity method investment, realized gain on disposal | 8 | 40 | 6 |
Equity method investment, net sales proceeds | $ 25 | $ 43 | $ 12 |
Debt and Equity Securities - He
Debt and Equity Securities - Held to Fund Operating Programs (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Held for operating programs | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | $ 1,113 | $ 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 | (219) | (174) |
Marketable securities held to fund operating programs included in other assets | 894 | 723 |
Loyalty program | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | 483 | 397 |
Deferred compensation plans held in rabbi trusts | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | 450 | 367 |
Captive insurance companies | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | $ 180 | $ 133 |
Debt and Equity Securities - Ga
Debt and Equity Securities - Gain (loss) on Investments Held to Fund Operating Programs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | |||
Loyalty program | $ 62 | $ (11) | $ 45 |
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | 62 | (11) | 45 |
Loyalty program | |||
Gain (Loss) on Securities [Line Items] | |||
Loyalty program | 26 | 4 | 9 |
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | 26 | 4 | 9 |
Deferred compensation plans held in rabbi trusts | |||
Gain (Loss) on Securities [Line Items] | |||
Unrealized gains (losses), net | 42 | (45) | 20 |
Realized gains, net | $ 20 | $ 34 | $ 25 |
Debt and Equity Securities - _2
Debt and Equity Securities - Held for Investment Purposes (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Investments | ||
Common shares of Playa N.V. (Note 10) | $ 102 | $ 87 |
Held for Investment Purposes | ||
Schedule of Investments | ||
Interest-bearing money market funds | 147 | 14 |
Common shares of Playa N.V. (Note 10) | 102 | 87 |
Time deposits | 37 | 100 |
Total marketable securities held to fund operating programs | 286 | 201 |
Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments | (184) | (114) |
Marketable securities held for investment purposes included in other assets | $ 102 | $ 87 |
Debt and Equity Securities - Fa
Debt and Equity Securities - Fair Value of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | $ 1,399 | $ 1,098 |
Quoted prices in active markets for identical assets (Level One) | Interest-bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 269 | 88 |
Quoted prices in active markets for identical assets (Level One) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 502 | 367 |
Quoted prices in active markets for identical assets (Level One) | Common shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 102 | 87 |
Significant other observable inputs (Level Two) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 47 | 113 |
Significant other observable inputs (Level Two) | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 202 | 169 |
Significant other observable inputs (Level Two) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 50 | 52 |
Significant other observable inputs (Level Two) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 161 | 151 |
Significant other observable inputs (Level Two) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 23 | 23 |
Significant other observable inputs (Level Two) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 39 | 46 |
Significant other observable inputs (Level Two) | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 4 | 2 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 269 | 88 |
Cash and cash equivalents | Quoted prices in active markets for identical assets (Level One) | Interest-bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 269 | 88 |
Cash and cash equivalents | Quoted prices in active markets for identical assets (Level One) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and cash equivalents | Quoted prices in active markets for identical assets (Level One) | Common shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and cash equivalents | Significant other observable inputs (Level Two) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and cash equivalents | Significant other observable inputs (Level Two) | 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 | Significant other observable inputs (Level Two) | 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 | Significant other observable inputs (Level Two) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and cash equivalents | Significant other observable inputs (Level Two) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and cash equivalents | Significant other observable inputs (Level Two) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Cash and cash equivalents | Significant other observable inputs (Level Two) | 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 | 68 | 116 |
Short-term investments | Quoted prices in active markets for identical assets (Level One) | 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 | Quoted prices in active markets for identical assets (Level One) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term investments | Quoted prices in active markets for identical assets (Level One) | Common shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term investments | Significant other observable inputs (Level Two) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 41 | 104 |
Short-term investments | Significant other observable inputs (Level Two) | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 4 | 0 |
Short-term investments | Significant other observable inputs (Level Two) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 3 | 2 |
Short-term investments | Significant other observable inputs (Level Two) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 20 | 10 |
Short-term investments | Significant other observable inputs (Level Two) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term investments | Significant other observable inputs (Level Two) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Short-term investments | Significant other observable inputs (Level Two) | 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 | 66 | 84 |
Prepaids and other assets | Quoted prices in active markets for identical assets (Level One) | 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 | Quoted prices in active markets for identical assets (Level One) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Prepaids and other assets | Quoted prices in active markets for identical assets (Level One) | Common shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Prepaids and other assets | Significant other observable inputs (Level Two) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Prepaids and other assets | Significant other observable inputs (Level Two) | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 31 | 37 |
Prepaids and other assets | Significant other observable inputs (Level Two) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 6 | 7 |
Prepaids and other assets | Significant other observable inputs (Level Two) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 18 | 25 |
Prepaids and other assets | Significant other observable inputs (Level Two) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 4 | 5 |
Prepaids and other assets | Significant other observable inputs (Level Two) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 6 | 10 |
Prepaids and other assets | Significant other observable inputs (Level Two) | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 1 | 0 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 996 | 810 |
Other assets | Quoted prices in active markets for identical assets (Level One) | Interest-bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 0 | 0 |
Other assets | Quoted prices in active markets for identical assets (Level One) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 502 | 367 |
Other assets | Quoted prices in active markets for identical assets (Level One) | Common shares | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 102 | 87 |
Other assets | Significant other observable inputs (Level Two) | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 6 | 9 |
Other assets | Significant other observable inputs (Level Two) | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 167 | 132 |
Other assets | Significant other observable inputs (Level Two) | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 41 | 43 |
Other assets | Significant other observable inputs (Level Two) | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 123 | 116 |
Other assets | Significant other observable inputs (Level Two) | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 19 | 18 |
Other assets | Significant other observable inputs (Level Two) | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | 33 | 36 |
Other assets | Significant other observable inputs (Level Two) | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Investments, fair value disclosure | $ 3 | $ 2 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 690 | $ 713 |
Buildings | 3,285 | 3,583 |
Leasehold improvements | 194 | 215 |
Furniture, equipment, and computers | 1,183 | 1,178 |
Construction in progress | 253 | 158 |
Property and equipment, gross | 5,605 | 5,847 |
Less: accumulated depreciation | (2,149) | (2,239) |
Total property and equipment, net | $ 3,456 | $ 3,608 |
Property and Equipment, Net - D
Property and Equipment, Net - Depreciation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 304 | $ 312 | $ 335 |
Property and Equipment, Net - N
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Interest costs, capitalized during period | $ 6 | $ 3 | $ 4 |
Financing Receivables - Schedul
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans, and Financing Receivable | |||
Total long-term financing receivables, net of allowances | $ 35 | $ 13 | |
Unsecured Financing | |||
Accounts, Notes, Loans, and Financing Receivable | |||
Unsecured financing to hotel owners | 135 | 159 | |
Less: current portion of financing receivables, included in receivables, net | 0 | (45) | |
Less: allowance for losses | (100) | (101) | $ (108) |
Total long-term financing receivables, net of allowances | $ 35 | $ 13 |
Financing Receivables - Allowan
Financing Receivables - Allowance For Credit Losses (Details) - Unsecured Financing - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Losses and Impairments | ||
Allowance beginning balance | $ 101 | $ 108 |
Provisions | 6 | 7 |
Write-offs | (6) | (12) |
Other adjustments | (1) | (2) |
Allowance ending balance | $ 100 | $ 101 |
Financing Receivables - Credit
Financing Receivables - Credit Monitoring (Details) - Unsecured Financing - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | $ 135 | $ 159 | |
Related allowance | (100) | (101) | $ (108) |
Net financing receivables | 35 | 58 | |
Gross receivables on non-accrual status | 99 | 101 | |
Loans | |||
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | 33 | 58 | |
Related allowance | (1) | 0 | |
Net financing receivables | 32 | 58 | |
Gross receivables on non-accrual status | 0 | 0 | |
Impaired loans | |||
Total Unsecured Financing Receivables | |||
Impaired loans | 43 | 50 | |
Impaired loans, allowance | (43) | (50) | |
Net financing receivables | 0 | 0 | |
Gross receivables on non-accrual status | 43 | 50 | |
Impaired financing receivables, unpaid principal balance | 33 | 36 | |
Impaired financing receivables, average recorded investment | 46 | 54 | |
Total loans | |||
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | 76 | 108 | |
Related allowance | (44) | (50) | |
Net financing receivables | 32 | 58 | |
Gross receivables on non-accrual status | 43 | 50 | |
Other financing arrangements | |||
Total Unsecured Financing Receivables | |||
Gross loan balance (principal and interest) | 59 | 51 | |
Related allowance | (56) | (51) | |
Net financing receivables | 3 | 0 | |
Gross receivables on non-accrual status | $ 56 | $ 51 |
Financing Receivables - Fair Va
Financing Receivables - Fair Value Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Significant unobservable inputs (Level Three) | ||
Total Unsecured Financing Receivables | ||
Level three financing receivables | $ 36 | $ 59 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions Narrative (Details) $ in Millions | Nov. 30, 2018USD ($)asset_acquired | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Business Acquisition | |||||
Acquisitions, net of cash acquired | $ 18 | $ 678 | $ 259 | ||
Post-acquisition working capital adjustments | (2) | ||||
Contingent liability | 0 | 57 | 0 | ||
Partial release of contingent consideration | (30) | 0 | 0 | ||
Intangibles, net | 437 | 628 | $ 525 | ||
Goodwill | 326 | 283 | 150 | ||
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary | 0 | 0 | 9 | ||
Payments for repurchase of redeemable preferred stock | 0 | 10 | 0 | ||
Two Roads Hospitality LLC | |||||
Business Acquisition | |||||
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 consideration | 36 | ||||
Other purchase price adjustments | 4 | ||||
Additional amount that could be funded | 68 | ||||
Contingent liability | 57 | 3 | 57 | ||
Total net assets acquired | 507 | 509 | |||
Contingent liability | 24 | ||||
Partial release of contingent consideration | 30 | ||||
Intangibles, net | $ 38 | ||||
Property and equipment acquired | 2 | ||||
Indefinite-lived Intangibles | 96 | ||||
Goodwill | 199 | ||||
Goodwill expected to be tax deductible | $ 154 | ||||
Two Roads Hospitality LLC | Brand intangibles | |||||
Business Acquisition | |||||
Number of brands acquired | asset_acquired | 5 | ||||
Hyatt Regency Phoenix | |||||
Business Acquisition | |||||
Business combination, consideration transferred | 139 | ||||
Property and equipment acquired | 136 | ||||
Hyatt Regency Indian Wells Resort And Spa | |||||
Business Acquisition | |||||
Business combination, consideration transferred | 120 | ||||
Property and equipment acquired | 119 | ||||
Exhale Enterprises Inc | |||||
Business Acquisition | |||||
Acquisitions, net of cash acquired | 16 | ||||
Cash acquired | 1 | ||||
Indefinite-lived Intangibles | 9 | ||||
Goodwill | 4 | ||||
Goodwill expected to be tax deductible | $ 3 | ||||
Cranwell Spa and Golf Resort | |||||
Business Acquisition | |||||
Business acquisition, remaining interest percent acquired in acquisition | 95.00% | ||||
Miraval Group | |||||
Business Acquisition | |||||
Acquisitions, net of cash acquired | $ 237 | ||||
Total net assets acquired | 237 | ||||
Property and equipment acquired | 172 | ||||
Indefinite-lived Intangibles | 37 | ||||
Goodwill | 21 | ||||
Goodwill expected to be tax deductible | 10 | ||||
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary | $ 9 | ||||
Redeemable preferred shares, preferred return | 12.00% | ||||
Payments for repurchase of redeemable preferred stock | $ 10 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Two Roads Hospitality Acquisition, Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition | ||||
Goodwill | $ 326 | $ 283 | $ 150 | |
Income tax examination, penalties and interest expense (benefit) | $ 5 | $ 0 | ||
Two Roads Hospitality LLC | ||||
Business Acquisition | ||||
Cash | $ 32 | |||
Receivables | 20 | |||
Other current assets | 2 | |||
Equity method investment | 2 | |||
Property and equipment | 2 | |||
Indefinite-lived intangibles | 96 | |||
Management agreement intangibles | 205 | |||
Goodwill | 199 | |||
Other assets | 25 | |||
Total assets | 583 | |||
Advanced deposits (6) | 20 | |||
Other current liabilities | 23 | |||
Other long-term liabilities | 33 | |||
Total liabilities | 76 | |||
Total net assets acquired | 507 | |||
Goodwill expected to be tax deductible | 154 | |||
Prior year tax liabilities | 13 | |||
Income tax examination, penalties and interest expense (benefit) | $ 4 | |||
Minimum | Management Agreement | Two Roads Hospitality LLC | ||||
Business Acquisition | ||||
Weighted average useful life | 1 year | |||
Maximum | Management Agreement | Two Roads Hospitality LLC | ||||
Business Acquisition | ||||
Weighted average useful life | 19 years | |||
Weighted average | Management Agreement | Two Roads Hospitality LLC | ||||
Business Acquisition | ||||
Weighted average useful life | 12 years |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Miraval and Cranwell Spa & Golf Resort, Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Business Acquisition | |||
Goodwill | $ 326 | $ 150 | $ 283 |
Miraval Group | |||
Business Acquisition | |||
Current assets | 1 | ||
Property and equipment | 172 | ||
Indefinite-lived intangibles | 37 | ||
Goodwill | 21 | ||
Total assets | 252 | ||
Current liabilities | 13 | ||
Deferred tax liabilities | 3 | ||
Total liabilities | 16 | ||
Total net assets acquired | 236 | ||
Total net assets acquired attributable to noncontrolling interests | 1 | ||
Total net assets acquired | 237 | ||
Goodwill expected to be tax deductible | 10 | ||
Management Agreement | Miraval Group | |||
Business Acquisition | |||
Management agreement intangibles | $ 14 | ||
Weighted average useful life | 20 years | ||
Other definite-lived intangibles | |||
Business Acquisition | |||
Weighted average useful life | 6 years | ||
Other definite-lived intangibles | Miraval Group | |||
Business Acquisition | |||
Management agreement intangibles | $ 7 | ||
Minimum | Other definite-lived intangibles | Miraval Group | |||
Business Acquisition | |||
Weighted average useful life | 2 years | ||
Maximum | Other definite-lived intangibles | Miraval Group | |||
Business Acquisition | |||
Weighted average useful life | 7 years |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Dispositions Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate, net | $ 940 | $ 1,382 | $ 663 |
Asset impairments | 18 | 25 | 0 |
Equity method investments | 232 | 233 | |
Disposal group, disposed of by sale | Grand Hyatt Seoul | |||
Significant Acquisitions and Disposals | |||
Proceeds from sale of real estate | 467 | ||
Gains (losses) on sales of real estate | 349 | ||
Disposal group, disposed of by sale | Contractual Rights | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 16 | ||
Advanced deposits | 21 | ||
Disposal group, disposed of by sale | Hyatt Regency Atlanta | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 272 | ||
Proceeds from sales of real estate, net | 346 | ||
Disposal group, disposed of by sale | Property Adjacent to Grand Hyatt San Francisco | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 101 | ||
Proceeds from sales of real estate, net | 115 | ||
Disposal group, disposed of by sale | A Hyatt House Hotel | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 4 | ||
Proceeds from sales of real estate, net | 48 | ||
Disposal group, disposed of by sale | Hyatt Regency Mexico City | |||
Significant Acquisitions and Disposals | |||
Proceeds from sale of real estate | 405 | ||
Gains (losses) on sales of real estate | 238 | ||
Proceeds from sales of real estate, net | 360 | ||
Consideration from sales of assets, unsecured financing receivable | 46 | ||
Asset impairments | 21 | ||
Disposal group, disposed of by sale | Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort & Spa | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 531 | ||
Proceeds from sales of real estate, net | 992 | ||
Disposal group, including discontinued operation, operating income (loss) | $ 15 | 23 | |
Disposal group, disposed of by sale | Land Held For Development And Sold In 2018 | |||
Significant Acquisitions and Disposals | |||
Consideration in exchange for third party investment | 50.00% | ||
Disposal group, disposed of by sale | Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 17 | ||
Proceeds from sales of real estate, net | 58 | ||
Disposal group, disposed of by sale | Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 159 | ||
Proceeds from sales of real estate, net | 296 | ||
Disposal group, disposed of by sale | Hyatt Regency Grand Cypress | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 26 | ||
Proceeds from sales of real estate, net | 202 | ||
Disposal group, disposed of by sale | Hyatt Regency Louisville | |||
Significant Acquisitions and Disposals | |||
Gains (losses) on sales of real estate | 35 | ||
Proceeds from sales of real estate, net | 65 | ||
Disposal group, disposed of by sale | Land and Construction in Progress, Sold in 2017 | |||
Significant Acquisitions and Disposals | |||
Proceeds from sales of real estate and other | $ 29 | ||
Equity method investment, ownership percentage | 50.00% | ||
Unconsolidated Hospitality Venture | Disposal group, disposed of by sale | Land Held For Development And Sold In 2018 | |||
Significant Acquisitions and Disposals | |||
Equity method investments | $ 45 | ||
Land Held for Development | |||
Significant Acquisitions and Disposals | |||
Payments to acquire land | $ 15 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions - Like-Kind Exchanges Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Like-kind exchange, period for replacement property | 45 days | ||
Disposal group, disposed of by sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Real estate 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 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Sales proceeds transferred to escrow as restricted cash | $ 115 | ||
Disposal group, disposed of by sale | Hyatt Regency Coconut Point Resort & Spa | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Sales proceeds transferred to escrow as restricted cash | 221 | ||
Disposal group, disposed of by sale | Hyatt Regency Phoenix And Hyatt Regency Indian Wells Resort And Spa | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Real estate proceeds used for business acquisition | $ 198 | ||
Disposal group, disposed of by sale | Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Like-kind exchange, period for replacement property | 180 days | ||
Sales proceeds transferred to escrow as restricted cash | $ 207 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Minimum rentals | $ 50 | $ 38 | $ 42 |
Contingent rentals | 97 | 47 | 52 |
Total operating lease expense | $ 147 | $ 85 | $ 94 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 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 | $ 14 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rates (Details) | Dec. 31, 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 | Dec. 31, 2019USD ($) |
Operating leases | |
2020 | $ 47 |
2021 | 45 |
2022 | 42 |
2023 | 39 |
2024 | 36 |
Thereafter | 422 |
Total minimum lease payments | 631 |
Less: amount representing interest | (206) |
Total operating lease liabilities | 425 |
Finance leases | |
2020 | 3 |
2021 | 2 |
2022 | 2 |
2023 | 2 |
2024 | 2 |
Thereafter | 3 |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Rental income | $ 23 | $ 25 | $ 27 |
Leases - Maturities of Future M
Leases - Maturities of Future Minimum Lease Receipts Under ASC 842 (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 19 |
2021 | 13 |
2022 | 11 |
2023 | 8 |
2024 | 4 |
Thereafter | 8 |
Total minimum lease receipts | $ 63 |
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 |
Total minimum lease receipts | $ 130 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Goodwill Changes Table (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | |||
Goodwill, beginning balance | $ 403,000,000 | $ 245,000,000 | |
Accumulated impairment losses, beginning balance | (120,000,000) | (95,000,000) | |
Goodwill, net, beginning balance | 283,000,000 | 150,000,000 | |
Additions | 158,000,000 | ||
Impairment losses | (25,000,000) | $ 0 | |
Measurement period adjustments (Note 7) | (43,000,000) | ||
Goodwill, ending balance | 446,000,000 | 403,000,000 | 245,000,000 |
Accumulated impairment losses, ending balance | (120,000,000) | (120,000,000) | (95,000,000) |
Goodwill, net, ending balance | 326,000,000 | 283,000,000 | 150,000,000 |
Operating Segments | Owned and leased hotels | |||
Goodwill | |||
Goodwill, beginning balance | 189,000,000 | 189,000,000 | |
Accumulated impairment losses, beginning balance | (116,000,000) | (95,000,000) | |
Goodwill, net, beginning balance | 73,000,000 | 94,000,000 | |
Additions | 0 | ||
Impairment losses | (21,000,000) | ||
Measurement period adjustments (Note 7) | 0 | ||
Goodwill, ending balance | 189,000,000 | 189,000,000 | 189,000,000 |
Accumulated impairment losses, ending balance | (116,000,000) | (116,000,000) | (95,000,000) |
Goodwill, net, ending balance | 73,000,000 | 73,000,000 | 94,000,000 |
Operating Segments | Americas management and franchising | |||
Goodwill | |||
Goodwill, beginning balance | 168,000,000 | 33,000,000 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill, net, beginning balance | 168,000,000 | 33,000,000 | |
Additions | 135,000,000 | ||
Impairment losses | 0 | ||
Measurement period adjustments (Note 7) | (64,000,000) | ||
Goodwill, ending balance | 232,000,000 | 168,000,000 | 33,000,000 |
Accumulated impairment losses, ending balance | 0 | 0 | 0 |
Goodwill, net, ending balance | 232,000,000 | 168,000,000 | 33,000,000 |
Operating Segments | ASPAC management and franchising | |||
Goodwill | |||
Goodwill, beginning balance | 18,000,000 | 0 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill, net, beginning balance | 18,000,000 | 0 | |
Additions | 18,000,000 | ||
Impairment losses | 0 | ||
Measurement period adjustments (Note 7) | 18,000,000 | ||
Goodwill, ending balance | 0 | 18,000,000 | 0 |
Accumulated impairment losses, ending balance | 0 | 0 | 0 |
Goodwill, net, ending balance | 0 | 18,000,000 | 0 |
Operating Segments | EAME/SW Asia management and franchising | |||
Goodwill | |||
Goodwill, beginning balance | 3,000,000 | ||
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill, net, beginning balance | 3,000,000 | ||
Additions | 3,000,000 | ||
Impairment losses | 0 | ||
Measurement period adjustments (Note 7) | 3,000,000 | ||
Goodwill, ending balance | 0 | 3,000,000 | |
Accumulated impairment losses, ending balance | 0 | 0 | 0 |
Goodwill, net, ending balance | 0 | 3,000,000 | |
Corporate and other | |||
Goodwill | |||
Goodwill, beginning balance | 25,000,000 | 23,000,000 | |
Accumulated impairment losses, beginning balance | (4,000,000) | 0 | |
Goodwill, net, beginning balance | 21,000,000 | 23,000,000 | |
Additions | 2,000,000 | ||
Impairment losses | (4,000,000) | ||
Measurement period adjustments (Note 7) | 0 | ||
Goodwill, ending balance | 25,000,000 | 25,000,000 | 23,000,000 |
Accumulated impairment losses, ending balance | (4,000,000) | (4,000,000) | 0 |
Goodwill, net, ending balance | $ 21,000,000 | $ 21,000,000 | $ 23,000,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Intangible Assets Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Schedule of Intangible Asset by Major Class | |||
Intangibles | $ 533 | $ 713 | |
Less: accumulated amortization | (96) | (85) | |
Intangibles, net | 437 | $ 525 | 628 |
Management and franchise agreement intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangibles | $ 367 | 390 | |
Weighted average useful life | 18 years | ||
Lease related intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangibles | $ 0 | 121 | |
Advanced booking intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangibles | $ 14 | 14 | |
Weighted average useful life | 5 years | ||
Other definite-lived intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangibles | $ 8 | 8 | |
Weighted average useful life | 6 years | ||
Brand and other indefinite-lived intangibles | |||
Schedule of Intangible Asset by Major Class | |||
Intangibles | $ 144 | $ 180 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Amortization Expense Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 25 | $ 15 | $ 13 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Future Amortization Table (Details) $ in Millions | Dec. 31, 2019USD ($) |
Estimate Amortization Expense For Definite-lived Intangibles | |
2020 | $ 28 |
2021 | 27 |
2022 | 25 |
2023 | 24 |
2024 | 23 |
Thereafter | 166 |
Total amortization expense | $ 293 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets, Net - Impairment Charges (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment losses | $ 25,000,000 | $ 0 | |
Management and franchise agreement intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment losses | $ 18,000,000 | $ 25,000,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Assets, Noncurrent [Abstract] | |||
Marketable securities held to fund rabbi trusts (Note 4) | $ 450 | $ 367 | |
Management and franchise agreement assets constituting payments to customers (1) | 423 | 396 | |
Marketable securities held to fund the loyalty program (Note 4) | 347 | 303 | |
Long-term investments | 162 | 112 | |
Common shares of Playa N.V. (Note 4) | 102 | 87 | |
Other | 104 | 88 | |
Total other assets | $ 1,588 | $ 1,346 | $ 1,353 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) R$ in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2016USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) |
Debt Instrument | |||||||
Long-term debt gross | $ 1,627,000,000 | $ 1,638,000,000 | |||||
Other | 1,000,000 | 1,000,000 | |||||
Finance lease obligations | 11,000,000 | ||||||
Finance lease obligations | 12,000,000 | ||||||
Total debt | 1,638,000,000 | 1,650,000,000 | |||||
Less: current maturities | (11,000,000) | (11,000,000) | |||||
Less: unamortized discounts and deferred financing fees | (15,000,000) | (16,000,000) | |||||
Total long-term debt | 1,612,000,000 | 1,623,000,000 | |||||
$196 million senior unsecured notes maturing in 2019—6.875% | Senior Notes | |||||||
Debt Instrument | |||||||
Debt instrument, face amount | 196,000,000 | ||||||
$250 million senior unsecured notes maturing in 2021—5.375% | |||||||
Debt Instrument | |||||||
Debt instrument, face amount | 250,000,000 | ||||||
$250 million senior unsecured notes maturing in 2021—5.375% | Senior Notes | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 250,000,000 | 250,000,000 | |||||
Debt instrument, face amount | $ 250,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | 5.375% | ||||
$350 million senior unsecured notes maturing in 2023—3.375% | |||||||
Debt Instrument | |||||||
Debt instrument, face amount | $ 350,000,000 | ||||||
$350 million senior unsecured notes maturing in 2023—3.375% | Senior Notes | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 350,000,000 | 350,000,000 | |||||
Debt instrument, face amount | $ 350,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | 3.375% | ||||
$400 million senior unsecured notes maturing in 2026—4.850% | |||||||
Debt Instrument | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||
$400 million senior unsecured notes maturing in 2026—4.850% | Senior Notes | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 400,000,000 | 400,000,000 | |||||
Debt instrument, face amount | $ 400,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 4.85% | 4.85% | 4.85% | ||||
$400 million senior unsecured notes maturing in 2028—4.375% | |||||||
Debt Instrument | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||
$400 million senior unsecured notes maturing in 2028—4.375% | Senior Notes | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 400,000,000 | 400,000,000 | |||||
Less: unamortized discounts and deferred financing fees | (4,000,000) | ||||||
Debt instrument, interest rate, stated percentage | 4.375% | 4.375% | |||||
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | Contract Revenue Bonds | |||||||
Debt Instrument | |||||||
Long-term debt gross | $ 130,000,000 | 130,000,000 | |||||
Contract Revenue Bonds, Senior Taxable Series 2005B | Contract Revenue Bonds | |||||||
Debt Instrument | |||||||
Long-term debt gross | 47,000,000 | 52,000,000 | |||||
Floating average rate construction loan | |||||||
Debt Instrument | |||||||
Floating average rate construction loan | $ 49,000,000 | R$ 197 | $ 55,000,000 | R$ 214 |
Debt - Schedule of Maturities (
Debt - Schedule of Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of Debt | ||
2019 | $ 11 | |
2020 | 261 | |
2021 | 11 | |
2022 | 361 | |
2023 | 12 | |
Thereafter | 982 | |
Total debt | $ 1,638 | $ 1,650 |
Debt - Senior Notes Narrative (
Debt - Senior Notes Narrative (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2011 | |
Debt Instrument | ||||||
Unamortized discounts and deferred financing fees | $ 15,000,000 | $ 16,000,000 | ||||
Loss on extinguishment of debt | 0 | 7,000,000 | $ 0 | |||
2021 Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | 250,000,000 | |||||
2023 Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | 350,000,000 | |||||
2026 Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | 400,000,000 | |||||
$400 million senior unsecured notes maturing in 2028—4.375% | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | $ 400,000,000 | |||||
Senior Notes | ||||||
Debt Instrument | ||||||
Debt instrument, redemption price, percentage | 100.00% | |||||
Senior Notes | 2021 Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | $ 250,000,000 | |||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | ||||
Issue price percentage | 99.846% | |||||
Senior Notes | 2023 Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | $ 350,000,000 | |||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | ||||
Issue price percentage | 99.498% | |||||
Senior Notes | 2026 Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | $ 400,000,000 | |||||
Debt instrument, interest rate, stated percentage | 4.85% | 4.85% | ||||
Issue price percentage | 99.92% | |||||
Senior Notes | $400 million senior unsecured notes maturing in 2028—4.375% | ||||||
Debt Instrument | ||||||
Debt instrument, interest rate, stated percentage | 4.375% | |||||
Proceeds from issuance of debt | 396,000,000 | |||||
Unamortized discounts and deferred financing fees | 4,000,000 | |||||
Senior Notes | 2019 Notes | ||||||
Debt Instrument | ||||||
Debt instrument, face amount | 196,000,000 | |||||
Make-whole premium | 203,000,000 | |||||
Loss on extinguishment of debt | $ 7,000,000 |
Debt - Contract Revenue Bonds N
Debt - Contract Revenue Bonds Narrative (Details) - Contract Revenue Bonds - USD ($) $ in Millions | Dec. 31, 2013 | Jun. 08, 2005 |
Debt Instrument | ||
Long-term debt | $ 198 | |
Debt instrument, unamortized discount | $ 9 | |
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | ||
Debt Instrument | ||
Long-term debt | $ 130 | |
Contract Revenue Bonds, Senior Taxable Series 2005B | ||
Debt Instrument | ||
Long-term debt | $ 78 | |
Minimum | Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | ||
Debt Instrument | ||
Debt instrument, interest rate, stated percentage | 4.75% | |
Minimum | Contract Revenue Bonds, Senior Taxable Series 2005B | ||
Debt Instrument | ||
Debt instrument, interest rate, stated percentage | 5.10% | |
Maximum | Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | ||
Debt Instrument | ||
Debt instrument, interest rate, stated percentage | 5.00% | |
Maximum | Contract Revenue Bonds, Senior Taxable Series 2005B | ||
Debt Instrument | ||
Debt instrument, interest rate, stated percentage | 5.31% |
Debt - Floating Average Rate Co
Debt - Floating Average Rate Construction Loan Narrative (Details) - Floating average rate construction loan R$ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2012sub-loan | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) | |
Debt Instrument | |||||
Number of loans | 4 | ||||
Debt, weighted average interest rate | 7.54% | 7.54% | |||
Floating average rate construction loan | $ 49 | R$ 197 | $ 55 | R$ 214 | |
Subloan (b) | |||||
Debt Instrument | |||||
Debt instrument, basis spread on variable rate | 2.92% | ||||
Subloan (c) | |||||
Debt Instrument | |||||
Debt instrument, interest rate, stated percentage | 2.50% | ||||
Brazilian long-term interest rate | Sub Loans (b) and (d) | |||||
Debt Instrument | |||||
Debt instrument, variable interest rate percent, threshold for daily capitalization | 6.00% |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revolving credit facility | ||
Debt Instrument | ||
Proceeds from revolving credit facility during period | $ 400,000,000 | |
Revolving credit facility, weighted average interest rate | 3.47% | |
Revolving credit facility, outstanding balance | $ 0 | |
Line of credit | Revolving credit facility | ||
Debt Instrument | ||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | |
Additional non-revolving credit facility banks | ||
Debt Instrument | ||
Revolving credit facility, remaining borrowing capacity | $ 263,000,000 | $ 277,000,000 |
Debt - Fair Value (Details)
Debt - Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument | ||
Finance lease obligations | $ 11 | |
Unamortized discounts 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 | 1,680 | 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 | $ 1,740 | $ 1,651 |
Debt - Interest Rate Locks (Det
Debt - Interest Rate Locks (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Unrealized gains (losses) on derivative activity, net of tax benefit | $ (20,000,000) | $ (4,000,000) |
Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | 275,000,000 | 200,000,000 |
Derivative liability, noncurrent | $ 24,000,000 | 4,000,000 |
Interest rate locks settled | $ 225,000,000 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plans (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Accumulated benefit obligation | $ 21 | $ 19 |
Accrued long-term benefit liability | 20 | $ 18 |
Expected benefits to be paid annually over the next 10 years | $ 1 |
Employee Benefit Plans - Defi_2
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Defined contribution plans | $ 48 | $ 41 | $ 39 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Purchase Program (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Price per share for the ESPP (percentage) | 95.00% | |
Stock issued during period, shares, ESPP (in shares) | 79,700 | 61,900 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Liabilities, Noncurrent [Abstract] | |||
Deferred compensation plans funded by rabbi trusts (Note 4) | $ 450 | $ 367 | |
Income taxes payable | 147 | 131 | |
Self-insurance liabilities (Note 15) | 80 | 78 | |
Deferred income taxes (Note 14) | 47 | 54 | |
Guarantee liabilities (Note 15) | 46 | 76 | |
Other | 114 | 134 | |
Total other long-term liabilities | $ 884 | $ 791 | $ 840 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Components of Pretax Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. income before tax | $ 466 | $ 652 | $ 650 |
Foreign income before tax | 540 | 299 | 72 |
INCOME BEFORE INCOME TAXES | $ 1,006 | $ 951 | $ 722 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 74 | $ 140 | $ 201 |
State | 35 | 50 | 45 |
Foreign | 103 | 25 | 30 |
Total Current | 212 | 215 | 276 |
Deferred: | |||
Federal | 29 | (35) | 46 |
State | 2 | (12) | (3) |
Foreign | (3) | 14 | 13 |
Total Deferred | 28 | (33) | 56 |
Total | $ 240 | $ 182 | $ 332 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes—net of federal tax benefit | 2.70% | 2.60% | 3.80% |
Impact of foreign operations (excluding unconsolidated hospitality ventures losses) | (2.00%) | (5.60%) | (5.40%) |
U.S. foreign tax credits | 0.00% | (1.60%) | 0.70% |
2017 Tax Act deferred rate change | 0.00% | (0.10%) | 6.30% |
2017 Tax Act deemed repatriation tax | 0.00% | 0.30% | 1.80% |
Change in valuation allowances | 1.00% | 0.90% | 1.00% |
Foreign unconsolidated hospitality ventures | 0.50% | 0.90% | 0.90% |
Tax contingencies | 0.30% | 1.00% | 1.00% |
Equity based compensation | 0.20% | 0.30% | 0.60% |
General business credits | (0.30%) | (0.50%) | (0.30%) |
Other | 0.50% | (0.10%) | 0.50% |
Effective income tax rate | 23.90% | 19.10% | 45.90% |
Income Taxes - Effective Tax _2
Income Taxes - Effective Tax Rate Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency | ||
Foreign tax credit, valuation allowance | $ 15 | $ 15 |
Tax Act, provisional income tax expense (benefit) | 45 | |
Tax Act, provisional expense | 13 | |
Statute expiration on state tax filing positions | ||
Income Tax Contingency | ||
Effective income tax rate reconciliation, tax contingency, amount | $ 10 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets related to: | ||
Employee benefits | $ 134 | $ 133 |
Loyalty program | 118 | 99 |
Long-term operating lease liabilities | 103 | |
Foreign and state net operating losses and credit carryforwards | 50 | 57 |
Allowance for uncollectible assets | 33 | 31 |
Investments | 28 | 37 |
Unrealized losses | 7 | 3 |
Interest and state benefits | 3 | 3 |
Other | 33 | 41 |
Valuation allowance | (41) | (41) |
Total deferred tax asset | 468 | 363 |
Deferred tax liabilities related to: | ||
Property and equipment | (152) | (131) |
Operating ROU assets | (105) | |
Intangibles | (59) | (49) |
Investments | (36) | (16) |
Prepaid expenses | (9) | (7) |
Unrealized gains | (2) | (24) |
Other | (8) | (10) |
Total deferred tax liabilities | (371) | (237) |
Net deferred tax assets | 97 | 126 |
Deferred tax assets—noncurrent | 144 | 180 |
Deferred tax liabilities—noncurrent | $ (47) | $ (54) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Taxes Narrative (Details) - USD ($) $ in Millions | Nov. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Contingency | ||||
Deferred tax liabilities, property and equipment | $ 152 | $ 131 | ||
Undistributed earnings of foreign subsidiaries | 451 | |||
Deferred tax assets, operating loss carryforwards | 50 | 57 | ||
Deferred tax assets, operating loss carryforwards, not subject to expiration | 27 | |||
Operating loss carryforwards, valuation allowance | 41 | |||
Unrecognized tax benefits | 125 | 116 | $ 94 | |
Amount of unrecognized tax benefits that would impact effective tax rate if recognized | 36 | 15 | ||
Significant change in unrecognized tax benefits is reasonably possible | 6 | |||
Unrecognized tax benefits, increase resulting from current period tax positions | 21 | 10 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 22 | 18 | ||
Income tax examination, penalties and interest expense (benefit) | 5 | 0 | ||
State and foreign | ||||
Income Tax Contingency | ||||
Deferred tax assets, operating loss carryforwards | 46 | |||
Deferred tax assets, operating loss carryforwards expiring | 23 | |||
Federal and state | ||||
Income Tax Contingency | ||||
Deferred tax assets, tax credit carryforwards | 4 | |||
Domestic tax authority | ||||
Income Tax Contingency | ||||
Unrecognized tax benefits, increase resulting from current period tax positions | 9 | $ 22 | ||
Possible settlement with taxing authority | ||||
Income Tax Contingency | ||||
Amount of unrecognized tax benefits that would impact effective tax rate if recognized | 69 | |||
Estimated income tax liability based on taxing authority's assessment | 191 | |||
Estimated interest, net of federal tax benefit, included in taxing authority assessment | 47 | |||
Two Roads Hospitality LLC | ||||
Income Tax Contingency | ||||
Deferred tax liabilities, property and equipment | 21 | |||
Deferred tax liabilities, intangible assets | $ 10 | |||
Income tax examination, penalties and interest expense (benefit) | $ 4 |
Income Taxes - Unrecognized T_2
Income Taxes - Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Unrecognized Tax Benefits | ||
Unrecognized tax benefits—beginning balance | $ 116 | $ 94 |
Total increases—current-period tax positions | 21 | 10 |
Total increases (decreases)—prior-period tax positions | (7) | |
Total increases (decreases)—prior-period tax positions | 18 | |
Settlements | (3) | (1) |
Lapse of statute of limitations | (3) | (4) |
Foreign currency fluctuation | 1 | |
Foreign currency fluctuation | (1) | |
Unrecognized tax benefits—ending balance | $ 125 | $ 116 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments, Guarantees Narrative (Details) € in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)hotel | Dec. 31, 2019EUR (€)hotel | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Performance guarantees | ||||
Loss Contingencies | ||||
Remaining maximum exposure | $ 238,000,000 | |||
Guarantor obligations, liability (asset), current carrying value | 33,000,000 | $ 47,000,000 | $ 71,000,000 | |
Performance Test Clause Guarantee | ||||
Loss Contingencies | ||||
Guarantor obligations, liability (asset), current carrying value | $ 0 | 0 | ||
The four managed hotels in France | Performance guarantees | ||||
Loss Contingencies | ||||
Performance guarantee initial term | 7 years | |||
Remaining maximum exposure | $ 165,000,000 | € 147 | ||
Number of hotels managed | hotel | 4 | 4 | ||
Guarantor obligations, liability (asset), current carrying value | $ 20,000,000 | 36,000,000 | $ 58,000,000 | |
Other long-term liabilities | Performance guarantees | ||||
Loss Contingencies | ||||
Guarantor obligations, liability (asset), current carrying value | 14,000,000 | 25,000,000 | ||
Accrued expenses and other current liabilities | Performance guarantees | ||||
Loss Contingencies | ||||
Guarantor obligations, liability (asset), current carrying value | 19,000,000 | $ 22,000,000 | ||
Various Business Ventures | ||||
Loss Contingencies | ||||
Commitment to loan or investment | $ 296,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Guarantor Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Guarantor Obligations | |||
Amortization of initial guarantee obligation liability into income | $ (18) | $ (18) | $ (19) |
Performance guarantee expense, net | 42 | 59 | 77 |
Foreign currency exchange, net | 1 | 4 | (2) |
Performance guarantees | |||
Guarantor Obligations | |||
Beginning Balance | 47 | 71 | |
Initial guarantee obligation liability | 7 | 0 | |
Amortization of initial guarantee obligation liability into income | (18) | (18) | |
Performance guarantee expense, net | 42 | 59 | |
Net payments during the year | (44) | (65) | |
Foreign currency exchange, net | (1) | 0 | |
Ending Balance | 33 | 47 | 71 |
The four managed hotels in France | Performance guarantees | |||
Guarantor Obligations | |||
Beginning Balance | 36 | 58 | |
Initial guarantee obligation liability | 0 | 0 | |
Amortization of initial guarantee obligation liability into income | (15) | (15) | |
Performance guarantee expense, net | 37 | 55 | |
Net payments during the year | (37) | (62) | |
Foreign currency exchange, net | (1) | 0 | |
Ending Balance | 20 | 36 | 58 |
Other performance guarantees | Performance guarantees | |||
Guarantor Obligations | |||
Beginning Balance | 11 | 13 | |
Initial guarantee obligation liability | 7 | 0 | |
Amortization of initial guarantee obligation liability into income | (3) | (3) | |
Performance guarantee expense, net | 5 | 4 | |
Net payments during the year | (7) | (3) | |
Foreign currency exchange, net | 0 | 0 | |
Ending Balance | $ 13 | $ 11 | $ 13 |
Commitments and Contingencies_3
Commitments and Contingencies - Debt Repayment and Other Guarantee (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies | |||
Guarantor obligations, carrying value, noncurrent | $ 46,000,000 | $ 76,000,000 | |
Release and amortization of debt repayment guarantee liability | 18,000,000 | 11,000,000 | $ 10,000,000 |
Debt repayment and other guarantees | |||
Loss Contingencies | |||
Maximum potential future payments | 415,000,000 | ||
Maximum exposure net of recoverability from third parties | 270,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 32,000,000 | 51,000,000 | |
Debt repayment and other guarantees | Hotel properties in India | |||
Loss Contingencies | |||
Maximum potential future payments | 169,000,000 | ||
Maximum exposure net of recoverability from third parties | 169,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 5,000,000 | 10,000,000 | |
Debt repayment and other guarantees | Hotel and Residential Properties In Brazil | |||
Loss Contingencies | |||
Maximum potential future payments | 97,000,000 | ||
Maximum exposure net of recoverability from third parties | 40,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 3,000,000 | 3,000,000 | |
Debt repayment and other guarantees | Hotel Properties In Tennessee | |||
Loss Contingencies | |||
Maximum potential future payments | 44,000,000 | ||
Maximum exposure net of recoverability from third parties | 20,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 8,000,000 | 2,000,000 | |
Debt repayment and other guarantees | Hotel properties in California | |||
Loss Contingencies | |||
Maximum potential future payments | 31,000,000 | ||
Maximum exposure net of recoverability from third parties | 12,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 3,000,000 | 4,000,000 | |
Debt repayment and other guarantees | Hotel property in Massachusetts | |||
Loss Contingencies | |||
Maximum potential future payments | 30,000,000 | ||
Maximum exposure net of recoverability from third parties | 14,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 6,000,000 | 8,000,000 | |
Debt repayment and other guarantees | Hotel Property In Oregon | |||
Loss Contingencies | |||
Maximum potential future payments | 15,000,000 | ||
Maximum exposure net of recoverability from third parties | 6,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 3,000,000 | 4,000,000 | |
Debt repayment and other guarantees | Hotel property in Arizona | |||
Loss Contingencies | |||
Maximum potential future payments | 14,000,000 | ||
Maximum exposure net of recoverability from third parties | 0 | ||
Guarantor obligations, carrying value, noncurrent | 1,000,000 | 1,000,000 | |
Debt repayment and other guarantees | Other | |||
Loss Contingencies | |||
Maximum potential future payments | 15,000,000 | ||
Maximum exposure net of recoverability from third parties | 9,000,000 | ||
Guarantor obligations, carrying value, noncurrent | 3,000,000 | $ 19,000,000 | |
Release and amortization of debt repayment guarantee liability | 15,000,000 | ||
Joint venture | Debt repayment and other guarantees | Hotel properties in India | |||
Loss Contingencies | |||
Maximum exposure net of recoverability from third parties | $ 85,000,000 | ||
Equity method investment, ownership percentage | 50.00% | ||
Construction Loans | Debt repayment and other guarantees | |||
Loss Contingencies | |||
Maximum exposure net of recoverability from third parties | $ 0 | ||
Completion Guarantee | Debt repayment and other guarantees | |||
Loss Contingencies | |||
Maximum potential future payments | $ 3,000,000 |
Commitments and Contingencies_4
Commitments and Contingencies - Additional Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies | ||
Guarantees, fair value disclosure | $ 62 | $ 128 |
Self Insurance reserve, current | 41 | 38 |
Self-insurance liabilities (Note 15) | 80 | $ 78 |
Surety bonds | 48 | |
Letter of Credit | ||
Loss Contingencies | ||
Letters of credit outstanding | 264 | |
Letters of credit outstanding, reduction to available capacity | 1 | |
Maximum | ||
Loss Contingencies | ||
Estimate of possible loss | $ 18 | |
Various US | ||
Loss Contingencies | ||
Multiemployer plans, collective-bargaining arrangement, percentage of participants | 23.00% |
Stockholders' Equity and Comp_3
Stockholders' Equity and Comprehensive Loss - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Repurchase | |||
Stock repurchase program, authorized amount | $ 1,250,000,000 | $ 750,000,000 | $ 750,000,000 |
Stock repurchased and retired during period (in shares) | 244,260 | 5,621,281 | 12,723,895 |
Stock repurchased and retired during period | $ 421,000,000 | $ 966,000,000 | |
Percent repurchased (percentage) | 5.00% | 11.00% | |
Stock repurchase program, remaining authorized repurchase amount | $ 997,000,000 | ||
Weighted average | |||
Share Repurchase | |||
Stock repurchased and retired during period (in dollars per share) | $ 74.85 | $ 75.68 | |
Pritzker Family Business Interests | |||
Common Stock | |||
Percent of Class B Common Stock owned (percentage) | 96.50% | ||
Percent of outstanding shares of Common Stock (percentage) | 63.20% | ||
Percent of total voting power, Common Stock (percentage) | 91.60% | ||
Pritzker Family Business Interests | Maximum | |||
Common Stock | |||
Percent of Class A Common Stock owned (percentage) | 2.90% | ||
Other Business Interests With Significant Ownership Percentage | |||
Common Stock | |||
Percent of Class B Common Stock owned (percentage) | 3.50% | ||
Percent of outstanding shares of Common Stock (percentage) | 2.20% | ||
Percent of total voting power, Common Stock (percentage) | 3.30% | ||
November 2017 ASR | |||
Share Repurchase | |||
Stock repurchased and retired during period | $ 20,000,000 |
Stockholders' Equity and Comp_4
Stockholders' Equity and Comprehensive Loss - Schedule of Shares Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Repurchases | |||
Stock repurchased and retired during period (in shares) | 244,260 | 5,621,281 | 12,723,895 |
Total cash paid | $ 421 | $ 966 | |
Weighted average | |||
Share Repurchases | |||
Stock repurchased and retired during period (in dollars per share) | $ 74.85 | $ 75.68 | |
May 2018 ASR | |||
Share Repurchases | |||
Stock repurchased and retired during period (in shares) | 2,481,341 | ||
Total cash paid | $ 200 | ||
May 2018 ASR | Weighted average | |||
Share Repurchases | |||
Stock repurchased and retired during period (in dollars per share) | $ 80.60 | ||
November 2018 ASR | |||
Share Repurchases | |||
Stock repurchased and retired during period (in shares) | 2,575,095 | ||
Total cash paid | $ 180 | ||
November 2018 ASR | Weighted average | |||
Share Repurchases | |||
Stock repurchased and retired during period (in dollars per share) | $ 69.90 |
Stockholders' Equity and Comp_5
Stockholders' Equity and Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in AOCI | ||
Balance, beginning of period | $ 3,677 | $ 3,843 |
Balance, end of period | 3,967 | 3,677 |
Foreign currency translation adjustments (a) | ||
Increase (Decrease) in AOCI | ||
Balance, beginning of period | (191) | |
Beginning balance, adjusted | (243) | |
Current period other comprehensive income (loss) before reclassification | 1 | (25) |
Amount reclassified from accumulated other comprehensive loss | 7 | 77 |
Balance, end of period | (183) | (191) |
Unrealized gains on AFS debt securities | ||
Increase (Decrease) in AOCI | ||
Balance, beginning of period | 0 | |
Current period other comprehensive income (loss) before reclassification | 1 | |
Amount reclassified from accumulated other comprehensive loss | 0 | |
Balance, end of period | 1 | 0 |
Unrecognized pension cost | ||
Increase (Decrease) in AOCI | ||
Balance, beginning of period | (5) | |
Beginning balance, adjusted | (7) | |
Current period other comprehensive income (loss) before reclassification | (4) | 2 |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance, end of period | (9) | (5) |
Unrealized losses on derivative instruments | ||
Increase (Decrease) in AOCI | ||
Balance, beginning of period | (4) | |
Beginning balance, adjusted | (3) | |
Current period other comprehensive income (loss) before reclassification | (15) | (1) |
Amount reclassified from accumulated other comprehensive loss | 1 | 0 |
Balance, end of period | (18) | (4) |
Accumulated other comprehensive income (loss) | ||
Increase (Decrease) in AOCI | ||
Balance, beginning of period | (200) | (185) |
Beginning balance, adjusted | (253) | |
Current period other comprehensive income (loss) before reclassification | (17) | (24) |
Amount reclassified from accumulated other comprehensive loss | 8 | 77 |
Balance, end of period | $ (209) | $ (200) |
Stockholders' Equity and Comp_6
Stockholders' Equity and Comprehensive Loss - Dividend (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 09, 2019 | Oct. 30, 2019 | Sep. 09, 2019 | Jul. 31, 2019 | Jun. 10, 2019 | May 17, 2019 | Mar. 11, 2019 | Feb. 13, 2019 | Dec. 10, 2018 | Oct. 30, 2018 | Sep. 20, 2018 | Jul. 31, 2018 | Jun. 28, 2018 | May 16, 2018 | Mar. 29, 2018 | Feb. 14, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends | $ 80 | $ 68 | ||||||||||||||||||||||||
Cash dividends declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | ||||||||||
Cash dividends (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.15 | ||||||||||||||||
Common Class A | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends | $ 29 | $ 27 | ||||||||||||||||||||||||
Common Class B | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Dividends | $ 51 | $ 41 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense Related To Long-Term Incentive Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares authorized for share based compensation (in shares) | 14,375,000 | ||
Compensation expense | $ 35 | $ 29 | $ 29 |
Stock appreciation rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation expense | 11 | 10 | 11 |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation expense | 17 | 15 | 16 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation expense | 6 | 4 | 2 |
Other | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Compensation expense | $ 1 | $ 0 | $ 0 |
Stock-Based Compensation - Inco
Stock-Based Compensation - Income Tax Benefit Share Based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Benefit Share Based Compensation | |||
Employee service share-based compensation, tax benefit | $ 10 | $ 7 | $ 8 |
Stock appreciation rights (SARs) | |||
Income Tax Benefit Share Based Compensation | |||
Employee service share-based compensation, tax benefit | 3 | 2 | 3 |
Restricted stock units (RSUs) | |||
Income Tax Benefit Share Based Compensation | |||
Employee service share-based compensation, tax benefit | 5 | 4 | 4 |
PSUs | |||
Income Tax Benefit Share Based Compensation | |||
Employee service share-based compensation, tax benefit | $ 2 | $ 1 | $ 1 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Appreciation Rights by Grant Date (Details) - Stock appreciation rights (SARs) - $ / shares | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2019 | May 31, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | 643,989 | |||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 17.11 | $ 21.18 | $ 16.42 | |||||
25% annually | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||
Granted (in shares) | 643,989 | 38,918 | 465,842 | 20,139 | 605,601 | |||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 17.11 | $ 21.84 | $ 21.13 | $ 18.62 | $ 16.35 | |||
Vesting period | 25.00% | 25.00% | 25.00% | 25.00% | 25.00% |
Stock-Based Compensation - SAR
Stock-Based Compensation - SAR Valuation Assumptions (Details) - Stock appreciation rights (SARs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Exercise price (in dollars per share) | $ 71.67 | $ 80.12 | $ 52.93 |
Expected life in years | 6 years 3 months | 6 years 2 months 26 days | 6 years 2 months 26 days |
Risk-free interest rate | 2.40% | 2.79% | 2.11% |
Expected volatility | 22.51% | 22.97% | 26.56% |
Annual dividend yield | 1.06% | 0.75% | 0.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of SAR Activity (Details) - Stock appreciation rights (SARs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 3,488,886 | ||
Granted (in shares) | 643,989 | ||
Exercised (in shares) | (240,417) | ||
Forfeited or expired (in shares) | (48,101) | ||
Ending balance (in shares) | 3,844,357 | 3,488,886 | |
Exercisable (in shares) | 2,458,448 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Exercise Price [Roll Forward] | |||
Beginning balance, weighted average exercise price (in dollars per share) | $ 51.27 | ||
Grants in period, weighted-average fair value at grant date (in dollars per share) | 71.67 | ||
Exercises in period, weighted average exercise price (in dollars per share) | 36.48 | ||
Forfeited or expired, weighted average exercise price (in dollars per share) | 66 | ||
Ending balance, weighted average exercise price (in dollars per share) | 55.51 | $ 51.27 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 48.72 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Outstanding, weighted average remaining contractual term | 5 years 9 months 10 days | 5 years 9 months 18 days | |
Exercisable, weighted average contractual term | 4 years 4 months 17 days | ||
Exercised intrinsic value | $ 16 | $ 7 | $ 24 |
Outstanding intrinsic value | 131 | ||
Exercisable intrinsic value | $ 101 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity by Grant Date (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2019 | May 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | May 31, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | May 31, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||
Stock-based compensation expense | $ 35 | $ 29 | $ 29 | |||||||||||||
Restricted stock units (RSUs) | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||
Granted (in shares) | 9,695 | 23,672 | 329,239 | 2,863 | 9,650 | 10,034 | 4,306 | 254,707 | 3,502 | 9,238 | 1,390 | 416,404 | 365,469 | |||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 82.50 | $ 77.54 | $ 71.67 | $ 69.85 | $ 67.34 | $ 76.72 | $ 81.27 | $ 80.02 | $ 78.52 | $ 70.35 | $ 57.51 | $ 52.65 | $ 72.32 | $ 79.47 | $ 54.08 | |
Total value | $ 1 | $ 2 | $ 24 | $ 0 | $ 1 | $ 1 | $ 0 | $ 20 | $ 0 | $ 1 | $ 0 | $ 22 | ||||
Vesting period | 4 years | 4 years | 4 years | 4 years | ||||||||||||
Stock-based compensation expense | $ 17 | $ 15 | $ 16 | |||||||||||||
Cash settled restricted stock units (RSUs) | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||
Liability for cash-settled RSU's | $ 0 | 0 | ||||||||||||||
Stock-based compensation expense | $ 0 | |||||||||||||||
September 2017 Award One | Restricted stock units (RSUs) | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||
Granted (in shares) | 22,357 | |||||||||||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 61.50 | |||||||||||||||
Total value | $ 1 | |||||||||||||||
September 2017 Award Two | Restricted stock units (RSUs) | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||||||||||||||
Granted (in shares) | 43,151 | |||||||||||||||
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 60.48 | |||||||||||||||
Total value | $ 3 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | May 31, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | May 31, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Dec. 31, 2017 | May 31, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Date Fair Value [Roll Forward] | |||||||||||||||
Beginning balance, nonvested weighted average (in dollars per share) | $ 62.68 | ||||||||||||||
Ending balance, nonvested weighted average (in dollars per share) | $ 73.14 | $ 62.68 | $ 73.14 | $ 62.68 | |||||||||||
Restricted stock units (RSUs) | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||||||||
Beginning balance (in shares) | 796,830 | ||||||||||||||
Granted (in shares) | 9,695 | 23,672 | 329,239 | 2,863 | 9,650 | 10,034 | 4,306 | 254,707 | 3,502 | 9,238 | 1,390 | 416,404 | 365,469 | ||
Vested (in shares) | (339,227) | ||||||||||||||
Forfeited or canceled (in shares) | (47,790) | ||||||||||||||
Ending balance (in shares) | 775,282 | 796,830 | 775,282 | 796,830 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Date Fair Value [Roll Forward] | |||||||||||||||
Beginning balance, nonvested weighted average (in dollars per share) | $ 61.31 | ||||||||||||||
Granted, weighted-average (in dollars per share) | $ 82.50 | $ 77.54 | $ 71.67 | $ 69.85 | $ 67.34 | $ 76.72 | $ 81.27 | $ 80.02 | $ 78.52 | $ 70.35 | $ 57.51 | $ 52.65 | 72.32 | $ 79.47 | $ 54.08 |
Vested, weighted average (in dollars per share) | 58.73 | ||||||||||||||
Forfeited or canceled, weighted average (in dollars per share) | 62.69 | ||||||||||||||
Ending balance, nonvested weighted average (in dollars per share) | $ 67.54 | $ 61.31 | $ 67.54 | $ 61.31 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||||||||||||||
Intrinsic value, nonvested | $ 70 | $ 70 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of PSU and PS Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance, nonvested weighted average (in dollars per share) | $ 62.68 | ||
Ending balance, nonvested weighted average (in dollars per share) | $ 73.14 | $ 62.68 | |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
PSUs Granted (in shares) | 120,720 | 89,441 | 102,115 |
Granted, weighted-average (in dollars per share) | $ 77.95 | $ 82.10 | $ 52.65 |
Performance period | 3 years | 3 years | 3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 204,489 | ||
Granted (in shares) | 120,720 | 89,441 | 102,115 |
Vested (in shares) | (61,545) | ||
Forfeited or canceled (in shares) | (3,248) | ||
Ending balance (in shares) | 260,416 | 204,489 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted, weighted-average (in dollars per share) | $ 77.95 | $ 82.10 | $ 52.65 |
Vested, weighted average (in dollars per share) | 47.36 | ||
Forfeited or canceled, weighted average (in dollars per share) | $ 82.10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract] | |||
Intrinsic value, nonvested | $ 23 |
Stock-Based Compensation - Unea
Stock-Based Compensation - Unearned Compensation (Details) $ in Millions | Dec. 31, 2019USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | $ 25 |
Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 2 |
Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 15 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 8 |
2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 13 |
2020 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2020 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 7 |
2020 | PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 5 |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 8 |
2021 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2021 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 4 |
2021 | PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 3 |
2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 3 |
2022 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 0 |
2022 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 3 |
2022 | PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 0 |
2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2023 | Stock appreciation rights (SARs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 0 |
2023 | Restricted stock units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | 1 |
2023 | PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Future compensation expense | $ 0 |
Related-Party Transactions - Le
Related-Party Transactions - Legal Services Narrative (Details) - Family member of management - Related party legal services - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction | |||
Legal services | $ 6,000,000 | $ 6,000,000 | $ 3,000,000 |
Due (to) from related party | $ 0 | $ 0 |
Related-Party Transactions - Eq
Related-Party Transactions - Equity Method Investments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum | |||
Related Party Transaction | |||
Equity method investment, ownership percentage | 24.00% | ||
Maximum | |||
Related Party Transaction | |||
Equity method investment, ownership percentage | 50.00% | ||
Equity method investments | |||
Related Party Transaction | |||
Management and franchise fees revenues | $ 22 | $ 20 | $ 24 |
Guarantee fees | 4 | 7 | $ 5 |
Due (to) from related party | $ 17 | $ 17 |
Related-Party Transactions - Ot
Related-Party Transactions - Other Services Narrative (Details) - Limited Partnership Affiliated with Executive Chairman - Management Agreement - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction | ||
Management fees | $ 7,000,000 | |
Receivables due from related parties | $ 0 | $ 0 |
Related-Party Transactions - Cl
Related-Party Transactions - Class B Share Conversion (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Common Class B | ||
Related Party Transaction | ||
Conversion of stock, shares converted (in shares) | 975,170 | 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 |
Related-Party Transactions - _2
Related-Party Transactions - Class B Shares Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction | ||||
Stock repurchased and retired during period (in shares) | 244,260 | 5,621,281 | 12,723,895 | |
Stock repurchased and retired during period | $ 421 | $ 946 | $ 743 | |
Percent of stock outstanding repurchased during period | 5.00% | 11.00% | ||
Common Class B | ||||
Related Party Transaction | ||||
Stock repurchased and retired during period (in shares) | 677,384 | 2,430,654 | ||
Stock repurchased and retired during period (in dollars per share) | $ 74.21 | $ 78.10 | ||
Stock repurchased and retired during period | $ 50 | $ 190 | ||
Percent of stock outstanding repurchased during period | 1.00% | 2.00% |
Segment and Geographic Inform_3
Segment and Geographic Information - Summarized Consolidated Financial Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Revenue | $ 1,275 | $ 1,215 | $ 1,289 | $ 1,241 | $ 1,138 | $ 1,074 | $ 1,133 | $ 1,109 | $ 5,020 | $ 4,454 | $ 4,462 |
Adjusted EBITDA | 754 | 777 | 792 | ||||||||
Depreciation and amortization | 329 | 327 | 348 | ||||||||
Capital expenditures | 369 | 297 | 298 | ||||||||
Operating Segments | Owned and leased hotels | |||||||||||
Segment Reporting Information | |||||||||||
Adjusted EBITDA | 387 | 428 | 490 | ||||||||
Depreciation and amortization | 244 | 266 | 295 | ||||||||
Capital expenditures | 233 | 194 | 195 | ||||||||
Operating Segments | Americas management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 2,775 | 2,174 | 1,993 | ||||||||
Adjusted EBITDA | 376 | 352 | 327 | ||||||||
Depreciation and amortization | 24 | 9 | 7 | ||||||||
Capital expenditures | 2 | 1 | 0 | ||||||||
Operating Segments | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 247 | 220 | 190 | ||||||||
Adjusted EBITDA | 87 | 78 | 70 | ||||||||
Depreciation and amortization | 3 | 1 | 1 | ||||||||
Capital expenditures | 1 | 4 | 1 | ||||||||
Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 152 | 143 | 122 | ||||||||
Adjusted EBITDA | 49 | 46 | 37 | ||||||||
Depreciation and amortization | 1 | 1 | 0 | ||||||||
Capital expenditures | 0 | 1 | 1 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 140 | 132 | 100 | ||||||||
Adjusted EBITDA | (146) | (127) | (135) | ||||||||
Depreciation and amortization | 57 | 50 | 45 | ||||||||
Capital expenditures | 133 | 97 | 101 | ||||||||
Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (108) | (110) | (115) | ||||||||
Adjusted EBITDA | 1 | 0 | 3 | ||||||||
Intersegment Eliminations | Owned and leased hotels | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 35 | 33 | 38 | ||||||||
Intersegment Eliminations | Americas management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 62 | 70 | 74 | ||||||||
Intersegment Eliminations | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 2 | 2 | 2 | ||||||||
Intersegment Eliminations | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 10 | 10 | 10 | ||||||||
Intersegment Eliminations | Corporate and Other | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (1) | (5) | (9) | ||||||||
Owned and leased hotels | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 1,848 | 1,918 | 2,184 | ||||||||
Owned and leased hotels | Operating Segments | Owned and leased hotels | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 1,808 | 1,889 | 2,159 | ||||||||
Owned and leased hotels | Operating Segments | Americas management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Owned and leased hotels | Operating Segments | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Owned and leased hotels | Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Owned and leased hotels | Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (35) | (33) | (38) | ||||||||
Other revenues | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 125 | 48 | 36 | ||||||||
Other revenues | Operating Segments | Owned and leased hotels | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 0 | 0 | 13 | ||||||||
Other revenues | Operating Segments | Americas management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 89 | 0 | 0 | ||||||||
Other revenues | Operating Segments | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Other revenues | Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Other revenues | Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 1 | 5 | 9 | ||||||||
Management, franchise, and other fees | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 608 | 552 | 498 | ||||||||
Management, franchise, and other fees | Operating Segments | Americas management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 433 | 400 | 380 | ||||||||
Management, franchise, and other fees | Operating Segments | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 136 | 127 | 112 | ||||||||
Management, franchise, and other fees | Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 83 | 80 | 69 | ||||||||
Management, franchise, and other fees | Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (74) | (82) | (86) | ||||||||
Contra revenue | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (22) | (20) | (18) | ||||||||
Contra revenue | Operating Segments | Americas management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (15) | (13) | (12) | ||||||||
Contra revenue | Operating Segments | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (2) | (2) | (1) | ||||||||
Contra revenue | Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (5) | (5) | (5) | ||||||||
Contra revenue | Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 2,461 | 1,956 | 1,762 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Operating Segments | Americas management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 2,268 | 1,787 | 1,625 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Operating Segments | ASPAC management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 113 | 95 | 79 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Operating Segments | EAME/SW Asia management and franchising | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 74 | 68 | 58 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Corporate and Other | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 6 | 6 | 0 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Intersegment Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | $ 0 | $ 0 | $ 0 |
Segment and Geographic Inform_4
Segment and Geographic Information - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Segment Reporting Information | |||
Assets | $ 8,417 | $ 8,043 | $ 7,643 |
Operating Segments | Owned and leased hotels | |||
Segment Reporting Information | |||
Assets | 4,203 | 4,118 | |
Operating Segments | Americas management and franchising | |||
Segment Reporting Information | |||
Assets | 1,024 | 842 | |
Operating Segments | ASPAC management and franchising | |||
Segment Reporting Information | |||
Assets | 260 | 203 | |
Operating Segments | EAME/SW Asia management and franchising | |||
Segment Reporting Information | |||
Assets | 273 | 225 | |
Corporate and other | |||
Segment Reporting Information | |||
Assets | $ 2,657 | $ 2,255 |
Segment and Geographic Inform_5
Segment and Geographic Information - Schedule of Revenues from External Customers and Long-Lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | $ 1,275 | $ 1,215 | $ 1,289 | $ 1,241 | $ 1,138 | $ 1,074 | $ 1,133 | $ 1,109 | $ 5,020 | $ 4,454 | $ 4,462 |
Property and equipment, net, intangibles, net and goodwill | 4,712 | 4,519 | 4,712 | 4,519 | |||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | 4,142 | 3,587 | 3,619 | ||||||||
Property and equipment, net, intangibles, net and goodwill | 3,798 | 3,670 | 3,798 | 3,670 | |||||||
All foreign | |||||||||||
Revenues from External Customers and Long-Lived Assets | |||||||||||
Revenue | 878 | 867 | $ 843 | ||||||||
Property and equipment, net, intangibles, net and goodwill | $ 914 | $ 849 | $ 914 | $ 849 |
Segment and Geographic Inform_6
Segment and Geographic Information - Reconciliation of Net Income attributable to Hyatt Hotels Corporation to EBITDA and a Reconciliation of EBITDA to Consolidated Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information | |||||||||||
Net income attributable to Hyatt Hotels Corporation | $ 321 | $ 296 | $ 86 | $ 63 | $ 44 | $ 237 | $ 77 | $ 411 | $ 766 | $ 769 | $ 389 |
Interest expense | 75 | 76 | 80 | ||||||||
Provision for income taxes | 240 | 182 | 332 | ||||||||
Depreciation and amortization | 329 | 327 | 348 | ||||||||
EBITDA | 1,410 | 1,354 | 1,149 | ||||||||
Revenue | $ (1,275) | $ (1,215) | $ (1,289) | $ (1,241) | $ (1,138) | $ (1,074) | $ (1,133) | $ (1,109) | (5,020) | (4,454) | (4,462) |
Equity (earnings) losses from unconsolidated hospitality ventures | 10 | (8) | (219) | ||||||||
Stock-based compensation expense | 35 | 29 | 29 | ||||||||
Gains on sales of real estate | (723) | (772) | (236) | ||||||||
Asset impairments | 18 | 25 | 0 | ||||||||
Other (income) loss, net | (127) | 49 | (42) | ||||||||
Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA | 50 | 55 | 73 | ||||||||
Adjusted EBITDA | 754 | 777 | 792 | ||||||||
Contra revenue | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | 22 | 20 | 18 | ||||||||
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | |||||||||||
Segment Reporting Information | |||||||||||
Revenue | (2,461) | (1,956) | (1,762) | ||||||||
Costs incurred on behalf of managed and franchised properties | |||||||||||
Segment Reporting Information | |||||||||||
Costs incurred on behalf of managed and franchised properties | $ 2,520 | $ 1,981 | $ 1,782 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income | $ 321 | $ 296 | $ 86 | $ 63 | $ 44 | $ 237 | $ 77 | $ 411 | $ 766 | $ 769 | $ 390 |
Net income and accretion attributable to noncontrolling interests | 0 | 0 | (1) | ||||||||
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 321 | $ 296 | $ 86 | $ 63 | $ 44 | $ 237 | $ 77 | $ 411 | $ 766 | $ 769 | $ 389 |
Denominator: | |||||||||||
Basic weighted-average shares outstanding (in shares) | 104,590,383 | 113,259,113 | 124,836,917 | ||||||||
Share-based compensation and equity-classified forward contract (in shares) | 1,702,021 | 1,865,904 | 1,509,986 | ||||||||
Diluted weighted-average shares outstanding (in shares) | 106,292,404 | 115,125,017 | 126,346,903 | ||||||||
EARNINGS PER SHARE—Basic | |||||||||||
Net Income - basic (in dollars per share) | $ 3.13 | $ 2.84 | $ 0.81 | $ 0.60 | $ 0.41 | $ 2.12 | $ 0.67 | $ 3.47 | $ 7.33 | $ 6.79 | $ 3.13 |
Net income and accretion attributable to noncontrolling interests - Basic (in dollars per share) | 0 | 0 | (0.01) | ||||||||
Net income attributable to Hyatt Hotels Corporation - Basic (in dollars per share) | 7.33 | 6.79 | 3.12 | ||||||||
EARNINGS PER SHARE—Diluted | |||||||||||
Net Income - diluted (in dollars per share) | $ 3.08 | $ 2.80 | $ 0.80 | $ 0.59 | $ 0.40 | $ 2.09 | $ 0.66 | $ 3.40 | 7.21 | 6.68 | 3.09 |
Net income and accretion attributable to noncontrolling interests - Diluted (in dollars per share) | 0 | 0 | (0.01) | ||||||||
Net income attributable to Hyatt Hotels Corporation - Diluted (in dollars per share) | $ 7.21 | $ 6.68 | $ 3.08 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Shares Issued (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock appreciation rights (SARs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from the computations of earnings per share (in shares) | 13,000 | 100 | 21,400 |
Restricted stock units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities excluded from the computations of earnings per share (in shares) | 0 | 0 | 100 |
Other Income (Loss), Net (Detai
Other Income (Loss), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Release of contingent consideration liability (Note 7) | $ 30 | $ 0 | $ 0 |
Unrealized gains (losses), net (Note 4) | 26 | (47) | 1 |
Interest income (Note 4) | 25 | 28 | 110 |
Depreciation recovery | 25 | 22 | 27 |
Performance guarantee liability amortization (Note 15) | 18 | 18 | 19 |
Release and amortization of debt repayment guarantee liability (Note 15) | 18 | 11 | 10 |
Gain on sale of contractual right (Note 7) | 16 | 0 | 0 |
Realized gains (losses), net | 2 | (3) | (41) |
Foreign currency gains (losses), net | 1 | 4 | (2) |
Pre-condemnation income | 0 | 4 | 18 |
Cease use liability | 0 | 0 | (21) |
Loss on extinguishment of debt (Note 11) | 0 | (7) | 0 |
Impairment of an equity security without a readily determinable fair value (Note 4) | 0 | (22) | 0 |
Transaction costs | (1) | (10) | (4) |
Performance guarantee expense, net (Note 15) | (42) | (59) | (77) |
Other, net | 9 | 12 | 2 |
Other income (loss), net | $ 127 | $ (49) | $ 42 |
Other Income (Loss), Net Other
Other Income (Loss), Net Other Income (Loss), Net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Pre-condemnation income | $ 0 | $ 4 | $ 18 |
Recorded cease use liability | 21 | ||
Schedule of Equity Method Investments | |||
Interest income (Note 4) | $ 25 | $ 28 | 110 |
Preferred shares | Playa Hotels & Resorts B.V. | |||
Schedule of Equity Method Investments | |||
Interest income (Note 4) | 94 | ||
Realized losses | $ 40 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 30, 2019 | Jul. 31, 2019 | May 17, 2019 | Feb. 13, 2019 | Oct. 30, 2018 | Jul. 31, 2018 | May 16, 2018 | Feb. 14, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Revenue | $ 1,275 | $ 1,215 | $ 1,289 | $ 1,241 | $ 1,138 | $ 1,074 | $ 1,133 | $ 1,109 | $ 5,020 | $ 4,454 | $ 4,462 | ||||||||
Direct and selling, general, and administrative expenses | 1,225 | 1,175 | 1,208 | 1,215 | 1,054 | 1,012 | 1,026 | 1,030 | 4,823 | 4,122 | 4,202 | ||||||||
Net income | 321 | 296 | 86 | 63 | 44 | 237 | 77 | 411 | 766 | 769 | 390 | ||||||||
Net income attributable to Hyatt Hotels Corporation | $ 321 | $ 296 | $ 86 | $ 63 | $ 44 | $ 237 | $ 77 | $ 411 | $ 766 | $ 769 | $ 389 | ||||||||
Net Income per share - basic (in dollars per share) | $ 3.13 | $ 2.84 | $ 0.81 | $ 0.60 | $ 0.41 | $ 2.12 | $ 0.67 | $ 3.47 | $ 7.33 | $ 6.79 | $ 3.13 | ||||||||
Net Income per share - diluted (in dollars per share) | 3.08 | 2.80 | 0.80 | 0.59 | 0.40 | 2.09 | 0.66 | 3.40 | $ 7.21 | $ 6.68 | $ 3.09 | ||||||||
Cash dividends, declared per share (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.15 | $ 0.15 | $ 0.15 | $ 0.15 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trade receivables—allowance for doubtful accounts | |||
Valuation and Qualifying Accounts Disclosure | |||
Balance at beginning of period | $ 26 | $ 21 | $ 18 |
Additions charged to revenues, costs, and expenses | 14 | 15 | 8 |
Additions charged to other accounts | 0 | 0 | 0 |
Deductions | (8) | (10) | (5) |
Balance at end of period | 32 | 26 | 21 |
Financing receivables—allowance for losses | |||
Valuation and Qualifying Accounts Disclosure | |||
Balance at beginning of period | 101 | 108 | 100 |
Additions charged to revenues, costs, and expenses | 6 | 7 | 6 |
Additions charged to other accounts | (1) | (2) | 2 |
Deductions | (6) | (12) | |
Balance at end of period | 100 | 101 | 108 |
Deferred tax assets—valuation allowance | |||
Valuation and Qualifying Accounts Disclosure | |||
Balance at beginning of period | 41 | 51 | 27 |
Additions charged to revenues, costs, and expenses | 6 | (10) | 24 |
Additions charged to other accounts | 0 | 0 | 0 |
Deductions | (6) | 0 | 0 |
Balance at end of period | $ 41 | $ 41 | $ 51 |
Uncategorized Items - h10-k1231
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (4,000,000) | [1] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,839,000,000 | |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 64,000,000 | [1] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,118,000,000 | |
Additional Paid-in Capital [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 967,000,000 | |
AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (68,000,000) | [1] |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (253,000,000) | |
Common Stock [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 1,000,000 | |
Noncontrolling Interest [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 6,000,000 | |
Common Class A [Member] | Common Stock [Member] | |||
Shares, Outstanding | us-gaap_SharesOutstanding | 48,231,149 | |
Common Class B [Member] | Common Stock [Member] | |||
Shares, Outstanding | us-gaap_SharesOutstanding | 70,753,837 | |
[1] | Cumulative Cumulative adjustment due to adoption of ASU 2016-01 and ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Upon the adoption of ASU 2016-01, the unrealized gains and losses on our equity securities previously classified as available-for-sale are recognized in other income (loss), net. |