Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PK | |
Entity Registrant Name | Park Hotels & Resorts Inc. | |
Entity Central Index Key | 0001617406 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 224,843,229 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-37795 | |
Entity Tax Identification Number | 36-2058176 | |
Entity Address, Address Line One | 1775 Tysons Boulevard | |
Entity Address, Address Line Two | 7th Floor | |
Entity Address, City or Town | Tysons | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102 | |
City Area Code | 571 | |
Local Phone Number | 302-5757 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Property and equipment, net | $ 8,292 | $ 8,511 |
Investments in affiliates | 4 | 15 |
Intangibles, net | 43 | 44 |
Cash and cash equivalents | 971 | 688 |
Restricted cash | 29 | 75 |
Accounts receivable, net of allowance for doubtful accounts of $X and $2 | 144 | 96 |
Prepaid expenses | 40 | 35 |
Other assets | 39 | 69 |
Operating lease right-of-use assets | 224 | 210 |
TOTAL ASSETS (variable interest entities - $X and $237) | 9,786 | 9,743 |
Liabilities | ||
Debt | 4,670 | 4,672 |
Accounts payable and accrued expenses | 254 | 156 |
Due to hotel managers | 123 | 111 |
Other liabilities | 177 | 174 |
Operating lease liabilities | 243 | 227 |
Total liabilities (variable interest entities - $X and $219) | 5,467 | 5,340 |
Commitments and contingencies - refer to Note 12 | ||
Stockholders' Equity | ||
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, X shares issued and X shares outstanding as of September 30, 2022 and 236,888,804 shares issued and 236,483,990 shares outstanding as of December 31, 2021 | 2 | 2 |
Additional paid-in capital | 4,325 | 4,533 |
Retained earnings (accumulated deficit) | 38 | (83) |
Total stockholders' equity | 4,365 | 4,452 |
Noncontrolling interests | (46) | (49) |
Total equity | 4,319 | 4,403 |
TOTAL LIABILITIES AND EQUITY | $ 9,786 | $ 9,743 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts receivable | $ 2 | $ 2 |
Total assets | 9,786 | 9,743 |
Total liabilities | $ 5,467 | $ 5,340 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 6,000,000,000 | 6,000,000,000 |
Common stock, issued shares | 225,354,874 | 236,888,804 |
Common stock, outstanding shares | 224,842,791 | 236,483,990 |
Consolidated VIEs [Member] | ||
Total assets | $ 240 | $ 237 |
Total liabilities | $ 220 | $ 219 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Revenues | |||||
Total revenues | $ 662 | $ 423 | $ 1,836 | $ 911 | |
Operating expenses | |||||
Other property-level | 58 | 51 | 173 | 151 | |
Management fees | 30 | 19 | 84 | 40 | |
Casualty and impairment loss, net | 3 | 2 | 4 | 7 | |
Depreciation and amortization | 67 | 68 | 204 | 213 | |
Corporate general and administrative | 16 | 14 | 48 | 48 | |
Other | 18 | 14 | 52 | 34 | |
Total expenses | 584 | 426 | 1,637 | 1,087 | |
Gain (loss) on sales of assets, net | 14 | (11) | 13 | (5) | |
Operating income (loss) | 92 | (14) | 212 | (181) | |
Interest income | 4 | 0 | 5 | 0 | |
Interest expense | (61) | (66) | (185) | (195) | |
Equity in earnings (losses) from investments in affiliates | 1 | 0 | 6 | (6) | |
Other gain (loss), net | 1 | (5) | 98 | (7) | |
Income (loss) before income taxes | 37 | (85) | 136 | (389) | |
Income tax benefit (expense) | 3 | 3 | 2 | 2 | |
Net income (loss) | 40 | (82) | 138 | (387) | |
Net income attributable to noncontrolling interests | (5) | (4) | (10) | (5) | |
Net income (loss) attributable to stockholders | 35 | (86) | 128 | (392) | |
Other comprehensive income, net of tax expense: | |||||
Change in fair value of interest rate swap, net of tax | 0 | 1 | 0 | 2 | |
Loss from interest rate swap reclassified into earnings | 0 | 2 | 0 | 2 | |
Total other comprehensive income | 0 | 3 | 0 | 4 | |
Comprehensive income (loss) | 40 | (79) | 138 | (383) | |
Comprehensive income attributable to noncontrolling interests | (5) | (4) | (10) | (5) | |
Comprehensive income (loss) attributable to stockholders | $ 35 | $ (83) | $ 128 | $ (388) | |
Earnings (loss) per share: | |||||
Earnings (loss) per share - Basic | [1] | $ 0.15 | $ (0.36) | $ 0.55 | $ (1.66) |
Earnings (loss) per share - Diluted | [1] | $ 0.15 | $ (0.36) | $ 0.55 | $ (1.66) |
Weighted average shares outstanding - Basic | 224 | 236 | 229 | 236 | |
Weighted average shares outstanding - Diluted | 224 | 236 | 229 | 236 | |
Rooms [Member] | |||||
Revenues | |||||
Total revenues | $ 428 | $ 274 | $ 1,153 | $ 587 | |
Operating expenses | |||||
Expenses | 115 | 76 | 298 | 170 | |
Food and Beverage [Member] | |||||
Revenues | |||||
Total revenues | 148 | 76 | 431 | 152 | |
Operating expenses | |||||
Expenses | 115 | 63 | 321 | 126 | |
Ancillary Hotel [Member] | |||||
Revenues | |||||
Total revenues | 67 | 58 | 198 | 137 | |
Other [Member] | |||||
Revenues | |||||
Total revenues | 19 | 15 | 54 | 35 | |
Other Departmental and Support [Member] | |||||
Operating expenses | |||||
Expenses | $ 162 | $ 119 | $ 453 | $ 298 | |
[1] Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities: | ||
Net income (loss) | $ 138 | $ (387) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 204 | 213 |
(Gain) loss on sales of assets, net | (13) | 5 |
Casualty and impairment loss, net | 4 | 7 |
Equity in (earnings) losses from investments in affiliates | (6) | 6 |
Other (gain) loss, net | (92) | 7 |
Share-based compensation expense | 13 | 15 |
Amortization of deferred financing costs | 7 | 9 |
Distributions from unconsolidated affiliates | 6 | 0 |
Deferred income taxes | 0 | (1) |
Changes in operating assets and liabilities | 78 | 31 |
Net cash used in operating activities | 339 | (95) |
Investing Activities: | ||
Capital expenditures for property and equipment | (104) | (28) |
Proceeds from asset dispositions, net | 143 | 454 |
Proceeds from the sale of investments in affiliates, net | 101 | 0 |
Contributions to unconsolidated affiliates | 0 | (5) |
Insurance proceeds for property damage claims | 0 | 4 |
Net cash provided by investing activities | 140 | 425 |
Financing Activities: | ||
Repayments of credit facilities | 0 | (1,193) |
Proceeds from issuance of Senior Secured Notes | 0 | 750 |
Proceeds from Issuance of Mortgage Debt | 30 | 14 |
Repayments of mortgage debt | (36) | (18) |
Debt issuance costs | (3) | (15) |
Dividends paid | (5) | 0 |
Distributions to noncontrolling interests, net | (7) | (2) |
Tax withholdings on share-based compensation | (3) | (5) |
Repurchase of common stock | (218) | 0 |
Net cash used in financing activities | (242) | (469) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 237 | (139) |
Cash and cash equivalents and restricted cash, beginning of period | 763 | 981 |
Cash and cash equivalents and restricted cash, end of period | 1,000 | 842 |
Non-cash financing activities: | ||
Dividends declared but unpaid | $ 2 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-Controlling Interests [Member] | |
Balance at Dec. 31, 2020 | $ 4,843 | $ 2 | $ 4,519 | $ 376 | $ (4) | $ (50) | |
Balance (shares) at Dec. 31, 2020 | 236 | ||||||
Share-based compensation, net | 1 | (1) | |||||
Net income (loss) | (191) | (190) | (1) | ||||
Other comprehensive income | 1 | 1 | |||||
Balance at Mar. 31, 2021 | 4,653 | $ 2 | 4,520 | 185 | (3) | (51) | |
Balance (shares) at Mar. 31, 2021 | 236 | ||||||
Balance at Dec. 31, 2020 | 4,843 | $ 2 | 4,519 | 376 | (4) | (50) | |
Balance (shares) at Dec. 31, 2020 | 236 | ||||||
Net income (loss) | (387) | ||||||
Other comprehensive income | 4 | ||||||
Balance at Sep. 30, 2021 | 4,468 | $ 2 | 4,529 | (16) | (47) | ||
Balance (shares) at Sep. 30, 2021 | 236 | ||||||
Balance at Mar. 31, 2021 | 4,653 | $ 2 | 4,520 | 185 | (3) | (51) | |
Balance (shares) at Mar. 31, 2021 | 236 | ||||||
Share-based compensation, net | 6 | 5 | 1 | ||||
Net income (loss) | (114) | (116) | 2 | ||||
Balance at Jun. 30, 2021 | 4,545 | $ 2 | 4,525 | 70 | (3) | (49) | |
Balance (shares) at Jun. 30, 2021 | 236 | ||||||
Share-based compensation, net | 4 | 4 | |||||
Net income (loss) | (82) | (86) | 4 | ||||
Other comprehensive income | 3 | $ 3 | |||||
Distributions to noncontrolling interests | (2) | (2) | |||||
Balance at Sep. 30, 2021 | 4,468 | $ 2 | 4,529 | (16) | (47) | ||
Balance (shares) at Sep. 30, 2021 | 236 | ||||||
Balance at Dec. 31, 2021 | $ 4,403 | $ 2 | 4,533 | (83) | (49) | ||
Balance (shares) at Dec. 31, 2021 | 236,483,990 | 236 | |||||
Share-based compensation, net | $ 1 | 1 | |||||
Net income (loss) | (56) | (57) | 1 | ||||
Dividends and dividend equivalents | [1] | (2) | (2) | ||||
Repurchase of common stock | (61) | (61) | |||||
Repurchases of common stock (Shares) | (3) | ||||||
Balance at Mar. 31, 2022 | 4,285 | $ 2 | 4,473 | (142) | (48) | ||
Balance (shares) at Mar. 31, 2022 | 233 | ||||||
Balance at Dec. 31, 2021 | $ 4,403 | $ 2 | 4,533 | (83) | (49) | ||
Balance (shares) at Dec. 31, 2021 | 236,483,990 | 236 | |||||
Net income (loss) | $ 138 | ||||||
Other comprehensive income | 0 | ||||||
Balance at Sep. 30, 2022 | $ 4,319 | $ 2 | 4,325 | 38 | (46) | ||
Balance (shares) at Sep. 30, 2022 | 224,842,791 | 225 | |||||
Balance at Mar. 31, 2022 | $ 4,285 | $ 2 | 4,473 | (142) | (48) | ||
Balance (shares) at Mar. 31, 2022 | 233 | ||||||
Share-based compensation, net | 5 | 5 | |||||
Net income (loss) | 154 | 150 | 4 | ||||
Dividends and dividend equivalents | [1] | (2) | (2) | ||||
Distributions to noncontrolling interests | (4) | (4) | |||||
Repurchase of common stock | (157) | (157) | |||||
Repurchases of common stock (Shares) | (8) | ||||||
Balance at Jun. 30, 2022 | 4,281 | $ 2 | 4,321 | 6 | (48) | ||
Balance (shares) at Jun. 30, 2022 | 225 | ||||||
Share-based compensation, net | 4 | 4 | |||||
Net income (loss) | 40 | 35 | 5 | ||||
Other comprehensive income | 0 | ||||||
Dividends and dividend equivalents | [1] | (3) | (3) | ||||
Distributions to noncontrolling interests | (3) | (3) | |||||
Balance at Sep. 30, 2022 | $ 4,319 | $ 2 | $ 4,325 | $ 38 | $ (46) | ||
Balance (shares) at Sep. 30, 2022 | 224,842,791 | 225 | |||||
[1] Dividends declared per common share were $ 0.01 for each of the three months ended March 31, 20 22, June 30, 2022 a nd September 30, 2022. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per common share | $ 0.01 | $ 0.01 | $ 0.01 |
Organization and Recent Events
Organization and Recent Events | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Recent Events | Note 1 : Organization and Recent Events Organization Park Hotels & Resorts Inc. (“we,” “us,” “our” or the “Company” and, exclusive of any subsidiaries, "Park Parent") is a Delaware corporation that owns a portfolio of premium-branded hotels and resorts primarily located in prime city center and resort locations. On January 3, 2017, Hilton Worldwide Holdings Inc. (“Hilton”) completed the spin-off of a portfolio of hotels and resorts that established Park Hotels & Resorts Inc. as an independent, publicly traded company. On May 5, 2019, the Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”), and PK Domestic Sub LLC, a wholly-owned subsidiary of PK Domestic (“Merger Sub”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Chesapeake Lodging Trust (“Chesapeake”). On September 18, 2019, pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Chesapeake merged with and into Merger Sub (the “Merger”) and each of Chesapeake’s common shares of beneficial interest, $ 0.01 par value per share, was converted into $ 11.00 in cash and 0.628 of a share of our common stock. No fractional shares of our common stock were issued in the Merger. The value of any fractional interests to which a Chesapeake shareholder would otherwise have been entitled was paid in cash. We are a real estate investment trust (“REIT”) for United States (“U.S.”) federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate, in a manner to qualify as a REIT. To qualify as a REIT, we must satisfy requirements related to, among other things, the real estate qualification of sources of our income, the real estate composition and values of our assets, the amounts we distribute to our stockholders annually and the diversity of ownership of our stock. From the date of our spin-off from Hilton, Park Intermediate Holdings LLC (our “Operating Company”), directly or indirectly, has held all our assets and has conducted all of our operations. Park Parent owned 100 % of the interests in our Operating Company until December 31, 2021 when the business undertook an internal reorganization transitioning our structure to a traditional umbrella partnership REIT structure ("UPREIT"). Effective January 1, 2022, Park Parent became the managing member of our Operating Company and PK Domestic REIT Inc., a wholly owned direct subsidiary of Park Parent, became a member in our Operating Company. We may, in the future, issue interests in (or from) our Operating Company in connection with acquiring hotels, financings, issuance of equity compensation or other purposes. The novel strain of coronavirus and the disease it causes (“COVID-19”) and its aftermath have continued to affect the hospitality industry and our business. Beginning in March 2020, we experienced a significant decline in occupancy and Revenue per Available Room (“RevPAR”) associated with COVID-19 throughout our portfolio, which resulted in a decline in our operating cash flow. The increase in vaccination rates across the country and the easing or removal of government restrictions, quarantining and “social distancing” mandates resulted in increased travel and hospitality spending beginning in the second quarter of 2021. As of May 2022, we have reopened all previously suspended hotels. While there can be no assurances that we will not experience further fluctuations in hotel revenues or earnings at our hotels due to the uncertainty of COVID-19 and other macroeconomic factors, such as inflation, increases in interest rates, potential economic slowdown or a recession and geopolitical conflicts, we expect to experience improvements in leisure, group and business transient demand. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | : Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Principles of Consolidation The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 18, 2022. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance. Reclassifications Certain line items on the condensed consolidated balance sheets as of December 31, 2021 have been reclassified to conform to the current period presentation. Summary of Significant Accounting Policies Our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 18, 2022, contains a discussion of the significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2021. |
Dispositions and Assets Held fo
Dispositions and Assets Held for Sale | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Dispositions | Note 3 : Dispositions Dispositions During the nine months ended September 30, 2022, we so ld the five consol idated hotels listed in the table below and received total gross proceeds of approximately $ 149 million. We recognized a net gain of approximately $ 15 million, which is included in gain (loss) on sales of assets, net in our condensed consolidated statements of comprehensive income (loss). Hotel Location Month Sold Hampton Inn & Suites Memphis - Shady Grove Memphis, Tennessee April 2022 Hilton Chicago/Oak Brook Suites Chicago, Illinois May 2022 Homewood Suites by Hilton Seattle Convention Center Pike Street Seattle, Washington June 2022 Hilton Garden Inn Chicago/Oakbrook Terrace Chicago, Illinois July 2022 Hilton Garden Inn LAX/El Segundo El Segundo, California September 2022 Additionally, in June 2022, we sold our ownership interests in the joint ventures that own and operate the Hilton San Diego Bayfront for gross proceeds of $ 157 million. Our gross proceeds were reduced by $ 55 million for our share of the mortgage debt in the joint venture. We recognized a gain of approximately $ 92 million, net of selling costs, which is included in other gain (loss), net in our condensed consolidated statements of comprehensive income (loss). During the nine months ended September 30, 2021, we sold the five consolidated hotels listed in the table below, received total gross proceeds of approximately $ 477 million and recognized a net $ 5 million loss due to selling costs, which is included in gain (loss) on sales of assets, net in our condensed consolidated statements of comprehensive income (loss). Hotel Location Month Sold W New Orleans - French Quarter New Orleans, Louisiana April 2021 Hotel Indigo San Diego Gaslamp Quarter (1) San Diego, California June 2021 Courtyard Washington Capitol Hill Navy Yard (1) Washington, D.C. June 2021 Hotel Adagio, Autograph Collection San Francisco, California July 2021 Le Meridien San Francisco San Francisco, California August 2021 (1) Sold as a portfolio in the same transaction. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4 : Property and Equipment Property and equipment were: September 30, 2022 December 31, 2021 (in millions) Land $ 3,317 $ 3,333 Buildings and leasehold improvements 6,509 6,606 Furniture and equipment 988 1,005 Construction-in-progress 140 82 10,954 11,026 Accumulated depreciation and amortization ( 2,662 ) ( 2,515 ) $ 8,292 $ 8,511 Depreciation of property and equipment was $ 67 million and $ 68 million during the three months ended September 30, 2022 and 2021, respectively, and $ 203 million and $ 212 million during the nine months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2021, we recognized $ 5 million of impairment losses related to one of our hotels classified as held for sale as of June 30, 2021, which was subsequently sold in July 2021, as the estimated selling costs were expected to reduce the gross proceeds below the net book value of the property. |
Consolidated Variable Interest
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates | 9 Months Ended |
Sep. 30, 2022 | |
Consolidated Variable Interest Entities And Investments In Affiliates [Abstract] | |
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates | Note 5 : Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates Consolidated VIEs We consolidate VIEs that own three hotels in the U.S. We are the primary beneficiary of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our VIEs are only available to settle the obligations of these entities. Our condensed consolidated balance sheets include the following assets and liabilities of these entities: September 30, 2022 December 31, 2021 (in millions) Property and equipment, net $ 207 $ 209 Cash and cash equivalents 25 18 Restricted cash 1 6 Accounts receivable, net 5 3 Prepaid expenses 2 1 Debt 206 208 Accounts payable and accrued expenses 9 7 Due to hotel manager 1 1 Other liabilities 4 3 Unconsolidated Entities Investments in affiliates were: Ownership % September 30, 2022 December 31, 2021 (in millions) Hilton San Diego Bayfront (1) 25 % $ — $ 11 All others (5 hotels) 20 % - 50 % 4 4 $ 4 $ 15 (1) In June 2022, we sold our ownership interests in the joint ventures that own and operate the Hilton San Diego Bayfront . Refer to Note 3: "Dispositions" for additional information. The affiliates in which we own investments accounted for under the equity method had total debt of approximately $ 722 million and $ 943 million as of September 30, 2022 and December 31, 2021, resp ectively. Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 : Debt Debt balances and associated interest rates as of September 30, 2022 were: Principal balance as of Interest Rate Maturity Date September 30, 2022 December 31, 2021 (in millions) SF Mortgage Loan (1) 4.11 % November 2023 $ 725 $ 725 HHV Mortgage Loan (1) 4.20 % November 2026 1,275 1,275 Other mortgage loans Average rate of 4.34 % 2023 to 2027 (2) 497 503 Revolver (3) L + 1.80 % (4) December 2023 — — 2019 Term Facility (3) L + 1.70 % (4) August 2024 78 78 2025 Senior Secured Notes (5) 7.50 % June 2025 650 650 2028 Senior Secured Notes (5) 5.88 % October 2028 725 725 2029 Senior Secured Notes (5) 4.88 % May 2029 750 750 4,700 4,706 Add: unamortized premium 3 4 Less: unamortized deferred financing costs and ( 33 ) ( 38 ) $ 4,670 $ 4,672 (1) In October 2016, we entered into a $ 725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF Mortgage Loan”) and a $ 1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV Mortgage Loan”). (2) Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender with six months of notice. As of September 30, 2022, Park had not received notice from the lender. (3) In August 2019, the Company, our Operating Company and PK Domestic entered into a term loan facility (the “2019 Term Facility”). As of September 30, 2022 , we had $ 901 million of available capacity under our revolving credit facility ("Revolver"). (4) In May 2020, we amended our credit and term loan facilities to add a LIBOR floor of 25 basis points . Additionally, upon exiting the covenant relief period under our credit facilities in July 2022, the applicable margin on the interest rate of the Revolver and 2019 Term Facility decreased by 1.20 % and 0.95 %, respectively. (5) In May and September 2020, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 650 million of senior secured notes due 2025 (“2025 Senior Secured Notes”) and an aggregate of $ 725 million of senior secured notes due 2028 (“2028 Senior Secured Notes”), respectively. Additionally, in May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 750 million of senior secured notes due 2029 (“2029 Senior Secured Notes”). We are required to deposit with lenders certain cash reserves for restricted uses. As of September 30, 2022 and December 31, 2021, our condensed consolidated balance sheets include d $ 6 m illion and $ 60 million of restricted cash, respectively, related to our mortgag e loans. The $ 92 millio n held by the lenders of the HHV Mortgage Loan and the mortgage loan secured by the Hilton Denver City Center was released to us during the third quarter upon submission of the certificates reflecting compliance with financial ratios of these loans. Debt Maturities The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of September 30, 2022 were: Year (in millions) 2022 $ 2 2023 889 2024 85 2025 657 2026 1,563 Thereafter (1) 1,504 $ 4,700 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 : Fair Value Measurements We did not elect the fair value measurement option for our financial assets or liabilities. The fair values of our other financial instruments not included in the table below are estimated to be equal to their carrying amounts. The fair value of our debt and the hierarchy level we used to estimate fair values are shown below: September 30, 2022 December 31, 2021 Hierarchy Carrying Fair Value Carrying Fair Value (in millions) Liabilities: SF Mortgage Loan 3 $ 725 $ 681 $ 725 $ 733 HHV Mortgage Loan 3 1,275 1,133 1,275 1,282 Other mortgage loans 3 497 460 503 491 2019 Term Facility 3 78 76 78 76 2025 Senior Secured Notes 1 650 641 650 688 2028 Senior Secured Notes 1 725 621 725 761 2029 Senior Secured Notes 1 750 609 750 771 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | : Share-Based Compensation We issue equity-based awards to our employees pursuant to the 2017 Omnibus Incentive Plan (“2017 Employee Plan”) and our non-employee directors pursuant to the 2017 Stock Plan for Non-Employee Directors (as amended and restated from time to time, the “2017 Director Plan”). The 2017 Employee Plan provides that a maximum of 8,000,000 shares of our common stock may be issued, and as of September 30, 2022, 2,315,269 shares of common stock remain available for future issuance. The 2017 Director Plan provides that a maximum of 950,000 shares of our common stock may be issued, and as of September 30, 2022, 407,210 shares of common stock remain available for future issuance. For the three months ended September 30, 2022 and 2021, we recognized $ 4 million and $ 5 million of share-based compensation expense, respectively, and $ 13 million and $ 15 million, respectively, for the nine months ended September 30, 2022 and 2021. As of September 30, 2022, unrecognized compensation expense was $ 21 million, which is expected to be recognized over a weighted-average period of 1.4 years. The total fair value of shares vested (calculated as the number of shares multiplied by the vesting date share price) during the nine months ended September 30, 2022 and 2021 was $ 7 million and $ 18 million, respectively. Restricted Stock Awards Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the nine months ended September 30, 2022: Number of Shares Weighted-Average Unvested at January 1, 2022 789,322 $ 22.52 Granted 457,046 18.38 Vested ( 366,400 ) 22.88 Forfeited ( 38,485 ) 20.28 Unvested at September 30, 2022 841,483 $ 20.22 Performance Stock Units Performance Stock Units (“PSUs”) generally vest at the end of a three-year performance period and are subject to the achievement of a market condition based on a measure of our total shareholder return relative to the total shareholder return of the companies that comprise the FTSE Nareit Lodging Resorts Index (that have a market capitalization in excess of $ 1 billion as of the first day of the applicable performance period). The number of PSUs that may become vested ranges from zero to 200 % of the number of PSUs granted to an employee, based on the level of achievement of the foregoing performance measure. Additionally, in November 2020, we granted special awards with vesting of these awards subject to the achievement of eight increasing levels of our average closing sales price per share, from $ 11.00 to $ 25.00 , over a consecutive 20 trading day period (“Share Price Target”). One-eighth of PSUs will vest at each date a Share Price Target is achieved and any PSUs remaining after a four-year performance period will be forfeited. As of September 30, 2022 , six of the eight Share Price Targets were achieved and thus 75 % of the awards granted were vested. The following table provides a summary of PSUs for the nine months ended September 30, 2022: Number of Shares Weighted-Average Unvested at January 1, 2022 972,074 $ 22.59 Granted 392,843 21.93 Forfeited ( 166,974 ) 34.47 Unvested at September 30, 2022 1,197,943 $ 20.71 The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility 57.5 % Dividend yield (1) — Risk-free rate 1.7 % Expected term 3 years (1) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 : Earnings Per Share The following table presents the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions, except per share amounts) Numerator: Net income (loss) attributable to stockholders, net $ 35 $ ( 86 ) $ 128 $ ( 392 ) Denominator: Weighted average shares outstanding – basic 224 236 229 236 Unvested restricted shares — — — — Weighted average shares outstanding – diluted 224 236 229 236 Earnings (loss) per share – Basic (1) $ 0.15 $ ( 0.36 ) $ 0.55 $ ( 1.66 ) Earnings (loss) per share – Diluted (1) $ 0.15 $ ( 0.36 ) $ 0.55 $ ( 1.66 ) (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. Certain of our outstanding equity awards were excluded from the above calculation of EPS for the three and nine months ended September 30, 2022 and 2021 because their effect would have been anti-dilutive. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 10 : Business Segment Information As of September 30, 2022 , we have two operating segments, our consolidated hotels and unconsolidated hotels. Our unconsolidated hotels operating segment does not meet the definition of a reportable segment, thus our consolidated hotels is our only reportable segment. We evaluate our consolidated hotels primarily based on hotel adjusted earnings (loss) before interest expense, taxes and depreciation and amortization (“EBITDA”). Hotel Adjusted EBITDA is calculated as EBITDA from hotel operations, adjusted to exclude: • Gains or losses on sales of assets for both consolidated and unconsolidated investments; • Costs associated with hotel acquisitions or dispositions expensed during the period; • Severance expense; • Share-based compensation expense; • Impairment losses and casualty gains or losses; and • Other items that we believe are not representative of our current or future operating performance. The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and net income (loss) to Hotel Adjusted EBITDA: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Revenues: Total consolidated hotel revenues $ 643 $ 408 $ 1,782 $ 876 Other revenues 19 15 54 35 Total revenues $ 662 $ 423 $ 1,836 $ 911 Net income (loss) $ 40 $ ( 82 ) $ 138 $ ( 387 ) Other revenues ( 19 ) ( 15 ) ( 54 ) ( 35 ) Depreciation and amortization expense 67 68 204 213 Corporate general and administrative expense 16 14 48 48 Casualty and impairment loss, net 3 2 4 7 Other operating expenses 18 14 52 34 (Gain) loss on sales of assets, net ( 14 ) 11 ( 13 ) 5 Interest income ( 4 ) — ( 5 ) — Interest expense 61 66 185 195 Equity in (earnings) losses from investments in affiliates ( 1 ) — ( 6 ) 6 Income tax benefit ( 3 ) ( 3 ) ( 2 ) ( 2 ) Other (gain) loss, net ( 1 ) 5 ( 98 ) 7 Other items 4 4 11 ( 1 ) Hotel Adjusted EBITDA $ 167 $ 84 $ 464 $ 90 The following table presents total assets for our consolidated hotels, reconciled to total assets: September 30, 2022 December 31, 2021 (in millions) Consolidated hotels $ 9,778 $ 9,724 All other 8 19 Total assets $ 9,786 $ 9,743 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 : Commitments and Contingencies In September 2022, Hurricanes Ian and Fiona caused minimal damage and disruption at our hotels in Florida and Puerto Rico, respectively. Although the total amount of the c osts to repair and remediate the minor damage has not yet been determined, they are not expected to be significant. The affected hotels experienced some group cancellations and displacement; however, the majority of lost revenue in September 2022 was replaced with revenue from displaced residents, recovery personnel and incremental transient demand. We continue to assess both the extent of costs and any ongoing business interruption. As of September 30, 2022, we recognized a loss of approximately $ 2 millio n resulting from these hurricanes included within casualty and impairment loss , net in our condensed consolidated statements of comprehensive income (loss). As of September 30, 2022, we had outstanding commitments under third-party contracts of approximately $ 121 m illion for capital expenditures at our properties, of whi ch $ 47 million relates to the expansion project at the Bonnet Creek complex. The Bonnet Creek expansion project includes additional meeting space for the Signia by Hilton Orlando Bonnet Creek and the Waldorf Astoria Orlando. Our contracts contain clauses that allow us to cancel all or some portion of the work. If cancellation of a contract occurred, our commitment would be any costs incurred up to the cancellation date, in addition to any costs associated with the discharge of the contract. We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums, and may make certain indemnifications or guarantees to select buyers of our hotels as part of a sale process. We are also involved in claims and litigation that is not in the ordinary course of business in connection with the spin-off from Hilton. The spin-off agreements provide that Hilton will indemnify us from certain of these claims as well as require us to indemnify Hilton for other claims. In addition, losses related to certain contingent liabilities could be apportioned to us under the spin-off agreements. In connection with our obligation to indemnify Hilton under the spin-off agreements, we have reserved approximately $ 8 million as of September 30, 2022 related to litigation with respect to an audit by the Australian Tax Office (“ATO”) of Hilton related to the sale of the Hilton Sydney in June 2015. This amount could change as the litigation of the ATO’s claim progresses. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 : Subsequent Events In October 2022, the joint ventures that own and operate the DoubleTree Hotel Las Vegas Airport sold the hotel for gross proceeds of approximately $ 22 million, and our pro-rata share of the gross proceeds was approximately $ 11 million. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 18, 2022. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance. |
Reclassifications | Reclassifications Certain line items on the condensed consolidated balance sheets as of December 31, 2021 have been reclassified to conform to the current period presentation. |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summary of Assets and Liabilities Held for Sale and Dispositions | Hotel Location Month Sold Hampton Inn & Suites Memphis - Shady Grove Memphis, Tennessee April 2022 Hilton Chicago/Oak Brook Suites Chicago, Illinois May 2022 Homewood Suites by Hilton Seattle Convention Center Pike Street Seattle, Washington June 2022 Hilton Garden Inn Chicago/Oakbrook Terrace Chicago, Illinois July 2022 Hilton Garden Inn LAX/El Segundo El Segundo, California September 2022 Hotel Location Month Sold W New Orleans - French Quarter New Orleans, Louisiana April 2021 Hotel Indigo San Diego Gaslamp Quarter (1) San Diego, California June 2021 Courtyard Washington Capitol Hill Navy Yard (1) Washington, D.C. June 2021 Hotel Adagio, Autograph Collection San Francisco, California July 2021 Le Meridien San Francisco San Francisco, California August 2021 (1) Sold as a portfolio in the same transaction. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were: September 30, 2022 December 31, 2021 (in millions) Land $ 3,317 $ 3,333 Buildings and leasehold improvements 6,509 6,606 Furniture and equipment 988 1,005 Construction-in-progress 140 82 10,954 11,026 Accumulated depreciation and amortization ( 2,662 ) ( 2,515 ) $ 8,292 $ 8,511 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Consolidated Variable Interest Entities And Investments In Affiliates [Abstract] | |
Schedule of Assets and Liabilities Included in Consolidated Balance Sheets | Our condensed consolidated balance sheets include the following assets and liabilities of these entities: September 30, 2022 December 31, 2021 (in millions) Property and equipment, net $ 207 $ 209 Cash and cash equivalents 25 18 Restricted cash 1 6 Accounts receivable, net 5 3 Prepaid expenses 2 1 Debt 206 208 Accounts payable and accrued expenses 9 7 Due to hotel manager 1 1 Other liabilities 4 3 |
Schedule of Investment in Affiliates | Investments in affiliates were: Ownership % September 30, 2022 December 31, 2021 (in millions) Hilton San Diego Bayfront (1) 25 % $ — $ 11 All others (5 hotels) 20 % - 50 % 4 4 $ 4 $ 15 (1) In June 2022, we sold our ownership interests in the joint ventures that own and operate the Hilton San Diego Bayfront . Refer to Note 3: "Dispositions" for additional information. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt balances and associated interest rates as of September 30, 2022 were: Principal balance as of Interest Rate Maturity Date September 30, 2022 December 31, 2021 (in millions) SF Mortgage Loan (1) 4.11 % November 2023 $ 725 $ 725 HHV Mortgage Loan (1) 4.20 % November 2026 1,275 1,275 Other mortgage loans Average rate of 4.34 % 2023 to 2027 (2) 497 503 Revolver (3) L + 1.80 % (4) December 2023 — — 2019 Term Facility (3) L + 1.70 % (4) August 2024 78 78 2025 Senior Secured Notes (5) 7.50 % June 2025 650 650 2028 Senior Secured Notes (5) 5.88 % October 2028 725 725 2029 Senior Secured Notes (5) 4.88 % May 2029 750 750 4,700 4,706 Add: unamortized premium 3 4 Less: unamortized deferred financing costs and ( 33 ) ( 38 ) $ 4,670 $ 4,672 (1) In October 2016, we entered into a $ 725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF Mortgage Loan”) and a $ 1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV Mortgage Loan”). (2) Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender with six months of notice. As of September 30, 2022, Park had not received notice from the lender. (3) In August 2019, the Company, our Operating Company and PK Domestic entered into a term loan facility (the “2019 Term Facility”). As of September 30, 2022 , we had $ 901 million of available capacity under our revolving credit facility ("Revolver"). (4) In May 2020, we amended our credit and term loan facilities to add a LIBOR floor of 25 basis points . Additionally, upon exiting the covenant relief period under our credit facilities in July 2022, the applicable margin on the interest rate of the Revolver and 2019 Term Facility decreased by 1.20 % and 0.95 %, respectively. (5) In May and September 2020, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 650 million of senior secured notes due 2025 (“2025 Senior Secured Notes”) and an aggregate of $ 725 million of senior secured notes due 2028 (“2028 Senior Secured Notes”), respectively. Additionally, in May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 750 million of senior secured notes due 2029 (“2029 Senior Secured Notes”). |
Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option | The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of September 30, 2022 were: Year (in millions) 2022 $ 2 2023 889 2024 85 2025 657 2026 1,563 Thereafter (1) 1,504 $ 4,700 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Debt and Hierarchy Level Used to Estimate Fair Values | The fair value of our debt and the hierarchy level we used to estimate fair values are shown below: September 30, 2022 December 31, 2021 Hierarchy Carrying Fair Value Carrying Fair Value (in millions) Liabilities: SF Mortgage Loan 3 $ 725 $ 681 $ 725 $ 733 HHV Mortgage Loan 3 1,275 1,133 1,275 1,282 Other mortgage loans 3 497 460 503 491 2019 Term Facility 3 78 76 78 76 2025 Senior Secured Notes 1 650 641 650 688 2028 Senior Secured Notes 1 725 621 725 761 2029 Senior Secured Notes 1 750 609 750 771 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards ("RSAs") | Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the nine months ended September 30, 2022: Number of Shares Weighted-Average Unvested at January 1, 2022 789,322 $ 22.52 Granted 457,046 18.38 Vested ( 366,400 ) 22.88 Forfeited ( 38,485 ) 20.28 Unvested at September 30, 2022 841,483 $ 20.22 |
Schedule of Performance Stock Units ("PSUs") | The following table provides a summary of PSUs for the nine months ended September 30, 2022: Number of Shares Weighted-Average Unvested at January 1, 2022 972,074 $ 22.59 Granted 392,843 21.93 Forfeited ( 166,974 ) 34.47 Unvested at September 30, 2022 1,197,943 $ 20.71 |
Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model | The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility 57.5 % Dividend yield (1) — Risk-free rate 1.7 % Expected term 3 years (1) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions, except per share amounts) Numerator: Net income (loss) attributable to stockholders, net $ 35 $ ( 86 ) $ 128 $ ( 392 ) Denominator: Weighted average shares outstanding – basic 224 236 229 236 Unvested restricted shares — — — — Weighted average shares outstanding – diluted 224 236 229 236 Earnings (loss) per share – Basic (1) $ 0.15 $ ( 0.36 ) $ 0.55 $ ( 1.66 ) Earnings (loss) per share – Diluted (1) $ 0.15 $ ( 0.36 ) $ 0.55 $ ( 1.66 ) (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenues from Consolidated Hotels to Condensed Combined Consolidated Amounts and Net Loss to Hotel Adjusted EBITDA | The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and net income (loss) to Hotel Adjusted EBITDA: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in millions) Revenues: Total consolidated hotel revenues $ 643 $ 408 $ 1,782 $ 876 Other revenues 19 15 54 35 Total revenues $ 662 $ 423 $ 1,836 $ 911 Net income (loss) $ 40 $ ( 82 ) $ 138 $ ( 387 ) Other revenues ( 19 ) ( 15 ) ( 54 ) ( 35 ) Depreciation and amortization expense 67 68 204 213 Corporate general and administrative expense 16 14 48 48 Casualty and impairment loss, net 3 2 4 7 Other operating expenses 18 14 52 34 (Gain) loss on sales of assets, net ( 14 ) 11 ( 13 ) 5 Interest income ( 4 ) — ( 5 ) — Interest expense 61 66 185 195 Equity in (earnings) losses from investments in affiliates ( 1 ) — ( 6 ) 6 Income tax benefit ( 3 ) ( 3 ) ( 2 ) ( 2 ) Other (gain) loss, net ( 1 ) 5 ( 98 ) 7 Other items 4 4 11 ( 1 ) Hotel Adjusted EBITDA $ 167 $ 84 $ 464 $ 90 |
Schedule of Total Assets by Consolidated Hotels, Reconciled to Total Assets | The following table presents total assets for our consolidated hotels, reconciled to total assets: September 30, 2022 December 31, 2021 (in millions) Consolidated hotels $ 9,778 $ 9,724 All other 8 19 Total assets $ 9,786 $ 9,743 |
Organization and Recent Events
Organization and Recent Events - Additional Information (Detail) - $ / shares | May 05, 2019 | Jan. 03, 2017 |
Park Intermediate Holdings LLC [Member] | ||
Organization [Line Items] | ||
Percentage of ownership interest | 100% | |
Chesapeake Lodging Trust [Member] | ||
Organization [Line Items] | ||
Business acquisition,par value per common share | $ 0.01 | |
Business acquisition, cash consideration transferred, per share | $ 11 | |
Business acquisition, consideration transferred number of shares per share | 0.628 | |
Fractional shares of common stock to be issued in merger agreement | 0 |
Dispositions - Additional Infor
Dispositions - Additional Information (Detail) $ in Millions | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) Hotel | Sep. 30, 2021 USD ($) Hotel | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of hotel portfolio properties sold | Hotel | 5 | 5 | |
Gross proceeds on sale of hotel portfolio properties | $ 149 | $ 477 | |
Net gain (loss) on selling cost of hotel portfolio properties | $ 92 | $ 15 | $ (5) |
Hilton San Diego Bayfront [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gross proceeds on sale of hotel portfolio properties | 157 | ||
Disposal group, interest in the debt in joint venture | $ 55 |
Dispositions - Summary of Hotel
Dispositions - Summary of Hotel Portfolio Properties Sold (Detail) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
W New Orleans - French Quarter [Member] | |||
Business Acquisition [Line Items] | |||
Location | New Orleans, Louisiana | ||
Month Sold | 2021-04 | ||
Hotel Indigo San Diego Gaslamp Quarter [Member] | |||
Business Acquisition [Line Items] | |||
Location | [1] | San Diego, California | |
Month Sold | [1] | 2021-06 | |
Courtyard Washington Capitol Hill Navy Yard [Member] | |||
Business Acquisition [Line Items] | |||
Location | [1] | Washington, D.C. | |
Month Sold | [1] | 2021-06 | |
Hotel Adagio, Autograph Collection [Member] | |||
Business Acquisition [Line Items] | |||
Location | San Francisco, California | ||
Month Sold | 2021-07 | ||
Le Meridien San Francisco [Member] | |||
Business Acquisition [Line Items] | |||
Location | San Francisco, California | ||
Month Sold | 2021-08 | ||
Hampton Inn & Suites Memphis-Shady Grove [Member] | |||
Business Acquisition [Line Items] | |||
Location | Memphis, Tennessee | ||
Month Sold | 2022-04 | ||
Hilton Chicago/Oak Brook Suites | |||
Business Acquisition [Line Items] | |||
Location | Chicago, Illinois | ||
Month Sold | 2022-05 | ||
Homewood Suites By Hilton Seattle Convention Center Pike Street [Member] | |||
Business Acquisition [Line Items] | |||
Location | Seattle, Washington | ||
Month Sold | 2022-06 | ||
Hilton Garden Inn Chicago/Oak Brook [Member] | |||
Business Acquisition [Line Items] | |||
Location | Chicago, Illinois | ||
Month Sold | 2022-07 | ||
Hilton Garden Inn LAX/El Segundo [Member] | |||
Business Acquisition [Line Items] | |||
Location | El Segundo, California | ||
Month Sold | 2022-09 | ||
[1] Sold as a portfolio in the same transaction. |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 3,317 | $ 3,333 |
Buildings and leasehold improvements | 6,509 | 6,606 |
Furniture and equipment | 988 | 1,005 |
Construction-in-progress | 140 | 82 |
Property and equipment, gross | 10,954 | 11,026 |
Accumulated depreciation and amortization | (2,662) | (2,515) |
Property and equipment, net | $ 8,292 | $ 8,511 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 67 | $ 68 | $ 203 | $ 212 |
Gain (loss) on sale of assets and asset impairment charges | $ (5) |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Additional Information (Detail) $ in Millions | Sep. 30, 2022 USD ($) Entity | Dec. 31, 2021 USD ($) |
Subsequent Event [Line Items] | ||
Number of consolidated VIEs | Entity | 3 | |
Debt of unconsolidated joint ventures | $ | $ 722 | $ 943 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Assets and Liabilities Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Property and equipment, net | $ 8,292 | $ 8,511 |
Cash and cash equivalents | 971 | 688 |
Restricted cash | 29 | 75 |
Accounts receivable, net | 144 | 96 |
Prepaid expenses | 40 | 35 |
Other assets | 39 | 69 |
Debt | 4,670 | 4,672 |
Accounts payable and accrued expenses | 254 | 156 |
Due to hotel managers | 123 | 111 |
Other liabilities | 177 | 174 |
Consolidated VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Property and equipment, net | 207 | 209 |
Cash and cash equivalents | 25 | 18 |
Restricted cash | 1 | 6 |
Accounts receivable, net | 5 | 3 |
Prepaid expenses | 2 | 1 |
Debt | 206 | 208 |
Accounts payable and accrued expenses | 9 | 7 |
Due to hotel managers | 1 | 1 |
Other liabilities | $ 4 | $ 3 |
Consolidated Variable Interes_5
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Investments in Affiliates (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investments in affiliates | $ 4 | $ 15 | |
Hilton San Diego Bayfront [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership Percentage | [1] | 25% | |
Investments in affiliates | [1] | 0 | $ 11 |
All others (5 hotels) [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments in affiliates | $ 4 | $ 4 | |
All others (5 hotels) [Member] | Minimum [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership Percentage | 20% | ||
All others (5 hotels) [Member] | Maximum [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership Percentage | 50% | ||
[1] In June 2022, we sold our ownership interests in the joint ventures that own and operate the Hilton San Diego Bayfront . Refer to Note 3: "Dispositions" for additional information. |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2022 | Dec. 31, 2021 | Oct. 31, 2016 | ||||
Debt Instrument [Line Items] | ||||||
Debt and financing lease obligations, gross | $ 4,700 | $ 4,706 | ||||
Add: unamortized premium | 3 | 4 | ||||
Less: unamortized deferred financing costs and discount | (33) | (38) | ||||
Debt | 4,670 | 4,672 | ||||
SF Mortgage Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 725 | [1] | 725 | [1] | $ 725 | |
Debt instrument, interest rate, stated percentage | [1] | 4.11% | ||||
Maturity Date | [1] | 2023-11 | ||||
HHV Mortgage Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 1,275 | [1] | 1,275 | [1] | $ 1,275 | |
Debt instrument, interest rate, stated percentage | [1] | 4.20% | ||||
Maturity Date | [1] | 2026-11 | ||||
Mortgage Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 497 | 503 | ||||
Debt, weighted average interest rate | 4.34% | |||||
Maturity Date, start year | [2] | 2023 | ||||
Maturity Date, end year | [2] | 2027 | ||||
2025 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Secured Notes | [3] | $ 650 | 650 | |||
Debt instrument, interest rate, stated percentage | [3] | 7.50% | ||||
Maturity Date | [3] | 2025-06 | ||||
2028 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Secured Notes | [3] | $ 725 | 725 | |||
Debt instrument, interest rate, stated percentage | [3] | 5.88% | ||||
Maturity Date | [3] | 2028-10 | ||||
2029 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Secured Notes | [3] | $ 750 | 750 | |||
Debt instrument, interest rate, stated percentage | [3] | 4.88% | ||||
Maturity Date | [3] | 2029-05 | ||||
2019 Term Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | [4] | $ 78 | 78 | |||
Maturity Date | [4] | 2024-08 | ||||
2019 Term Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 1.70% | |||||
Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | [4] | $ 0 | $ 0 | |||
Maturity Date | [4] | 2023-12 | ||||
Revolver [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | 1.80% | |||||
[1] In October 2016, we entered into a $ 725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF Mortgage Loan”) and a $ 1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV Mortgage Loan”). Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender with six months of notice. As of September 30, 2022, Park had not received notice from the lender. In May and September 2020, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 650 million of senior secured notes due 2025 (“2025 Senior Secured Notes”) and an aggregate of $ 725 million of senior secured notes due 2028 (“2028 Senior Secured Notes”), respectively. Additionally, in May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 750 million of senior secured notes due 2029 (“2029 Senior Secured Notes”). In August 2019, the Company, our Operating Company and PK Domestic entered into a term loan facility (the “2019 Term Facility”). As of September 30, 2022 , we had $ 901 million of available capacity under our revolving credit facility ("Revolver"). (4) In May 2020, we amended our credit and term loan facilities to add a LIBOR floor of 25 basis points . Additionally, upon exiting the covenant relief period under our credit facilities in July 2022, the applicable margin on the interest rate of the Revolver and 2019 Term Facility decreased by 1.20 % and 0.95 %, respectively. |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | ||||||||
Jul. 31, 2022 | May 31, 2020 | Sep. 30, 2022 | Dec. 31, 2021 | May 31, 2021 | Sep. 30, 2020 | Oct. 31, 2016 | ||||
2019 Term Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, gross | [1] | $ 78 | $ 78 | |||||||
Debt Instrument Decreased Rate | 0.95% | |||||||||
Revolver [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, gross | [1] | 0 | 0 | |||||||
Debt instrument description of interest rate | LIBOR floor of 25 basis points | |||||||||
Available credit capacity | 901 | |||||||||
Debt Instrument Decreased Rate | 1.20% | |||||||||
SF Mortgage Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, gross | 725 | [2] | 725 | [2] | $ 725 | |||||
HHV Mortgage Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, gross | $ 1,275 | [2] | $ 1,275 | [2] | $ 1,275 | |||||
Hilton Denver City Center Mortgage Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Voluntary prepayment maturity date, end year | 2042 | |||||||||
PK Domestic and PK Finance Co-Issuer Inc [Member] | 2025 Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Secured Notes | $ 650 | |||||||||
PK Domestic and PK Finance Co-Issuer Inc [Member] | 2028 Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Secured Notes | $ 725 | |||||||||
PK Domestic and PK Finance Co-Issuer Inc [Member] | 2029 Senior Secured Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Secured Notes | $ 750 | |||||||||
[1] In August 2019, the Company, our Operating Company and PK Domestic entered into a term loan facility (the “2019 Term Facility”). As of September 30, 2022 , we had $ 901 million of available capacity under our revolving credit facility ("Revolver"). (4) In May 2020, we amended our credit and term loan facilities to add a LIBOR floor of 25 basis points . Additionally, upon exiting the covenant relief period under our credit facilities in July 2022, the applicable margin on the interest rate of the Revolver and 2019 Term Facility decreased by 1.20 % and 0.95 %, respectively. In October 2016, we entered into a $ 725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF Mortgage Loan”) and a $ 1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV Mortgage Loan”). |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Restricted cash | $ 29 | $ 75 |
CMBS and mortgage loans [Member] | ||
Debt Instrument [Line Items] | ||
Restricted cash | 6 | $ 60 |
HHV Mortgage Loan And Hilton Denver City Center Secured Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Gross | $ 92 |
Debt - Debt Maturities, Assumin
Debt - Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option (Detail) $ in Millions | Sep. 30, 2022 USD ($) | |
Debt Disclosure [Abstract] | ||
2022 | $ 2 | |
2023 | 889 | |
2024 | 85 | |
2025 | 657 | |
2026 | 1,563 | |
Thereafter | 1,504 | [1] |
Debt and capital lease obligations, gross | $ 4,700 | |
[1] Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Debt and Hierarchy Level Used to Estimate Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying amount [Member] | SF Mortgage Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 725 | $ 725 |
Carrying amount [Member] | HHV Mortgage Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 1,275 | 1,275 |
Carrying amount [Member] | Mortgage Loans [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 497 | 503 |
Carrying amount [Member] | 2019 Term Facility [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 78 | 78 |
Carrying amount [Member] | 2025 Senior Secured Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 650 | 650 |
Carrying amount [Member] | 2028 Senior Secured Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 725 | 725 |
Carrying amount [Member] | 2029 Senior Secured Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 750 | 750 |
Fair Value [Member] | SF Mortgage Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 681 | 733 |
Fair Value [Member] | HHV Mortgage Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 1,133 | 1,282 |
Fair Value [Member] | Mortgage Loans [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 460 | 491 |
Fair Value [Member] | 2019 Term Facility [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 76 | 76 |
Fair Value [Member] | 2025 Senior Secured Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 641 | 688 |
Fair Value [Member] | 2028 Senior Secured Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 621 | 761 |
Fair Value [Member] | 2029 Senior Secured Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 609 | $ 771 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes [Line Items] | ||||
Income Tax Expense (Benefit) | $ (3) | $ (3) | $ (2) | $ (2) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Nov. 30, 2020 d $ / shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) | Jun. 30, 2022 | Sep. 30, 2022 USD ($) Target shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock, authorized shares | 6,000,000,000 | 6,000,000,000 | 6,000,000,000 | ||||
Compensation expense | $ | $ 4 | $ 5 | $ 13 | $ 15 | |||
Unrecognized compensation costs related to unvested awards | $ | $ 21 | $ 21 | |||||
Unrecognized compensation costs related to unvested awards, weighted-average period | 0 years | ||||||
Total fair value of shares vested | $ | $ 7 | $ 18 | |||||
2017 Employee Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserved for future issuance | 2,315,269 | 2,315,269 | |||||
2017 Employee Plan [Member] | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock, authorized shares | 8,000,000 | 8,000,000 | |||||
2017 Director Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Shares of common stock reserved for future issuance | 407,210 | 407,210 | |||||
2017 Director Plan [Member] | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock, authorized shares | 950,000 | 950,000 | |||||
Performance Stock Units ("PSUs") [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Share-based compensation arrangement by share-based payment award performance period | 3 years | ||||||
Market capitalization | $ | $ 1,000 | $ 1,000 | |||||
Vesting rights | zero to 200 | ||||||
Performance Stock Units ("PSUs") [Member] | Special Awards [Member] | Eight Share Price Targets [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting rights | One-eighth | ||||||
Consecutive trading day period | d | 20 | ||||||
PSUs remaining performance period forfeited | 4 years | ||||||
Share price target achieved | Target | 6 | ||||||
Total share price targets | Target | 8 | ||||||
Percentage of awards granted vested | 75% | ||||||
Performance Stock Units ("PSUs") [Member] | Maximum [Member] | Special Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting rights | 200 | ||||||
Average closing sales price per share, | $ / shares | $ 25 | ||||||
Performance Stock Units ("PSUs") [Member] | Minimum [Member] | Special Awards [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Average closing sales price per share, | $ / shares | $ 11 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Restricted Stock Awards ("RSAs") (Detail) - Restricted stock awards (RSAs) [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 789,322 |
Number of Shares, Granted | shares | 457,046 |
Number of Shares, Vested | shares | (366,400) |
Number of Shares, Forfeited | shares | (38,485) |
Number of Shares, Ending balance | shares | 841,483 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 22.52 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 18.38 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 22.88 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 20.28 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 20.22 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Performance Stock Units ("PSUs") (Detail) - Performance Stock Units ("PSUs") [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 972,074 |
Number of Shares, Granted | shares | 392,843 |
Number of Shares, Forfeited | shares | (166,974) |
Number of Shares, Ending balance | shares | 1,197,943 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 22.59 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 21.93 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 34.47 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 20.71 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model (Detail) | 9 Months Ended | |
Sep. 30, 2022 | ||
Share-Based Payment Arrangement [Abstract] | ||
Expected volatility | 57.50% | |
Dividend yield | 0% | [1] |
Risk-free rate | 1.70% | |
Expected term | 3 years | |
[1] Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest. |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Numerator: | |||||
Net income (loss) attributable to stockholders, net of earnings allocated to participating securities | $ 35 | $ (86) | $ 128 | $ (392) | |
Denominator: | |||||
Weighted average shares outstanding – basic | 224,000,000 | 236,000,000 | 229,000,000 | 236,000,000 | |
Unvested restricted shares | 0 | 0 | 0 | 0 | |
Weighted average shares outstanding – diluted | 224,000,000 | 236,000,000 | 229,000,000 | 236,000,000 | |
Earnings (loss) per share - Basic | [1] | $ 0.15 | $ (0.36) | $ 0.55 | $ (1.66) |
Earnings (loss) per share - Diluted | [1] | $ 0.15 | $ (0.36) | $ 0.55 | $ (1.66) |
[1] Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of operating business segments | 2 |
Number of reportable segment | 1 |
Business Segment Information _2
Business Segment Information - Reconciliation of Revenues from Consolidated Hotels to Condensed Combined Consolidated Amounts and Net Loss to Hotel Adjusted EBITDA (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||||
Total revenues | $ 662 | $ 423 | $ 1,836 | $ 911 | ||||
Net income (loss) | 40 | $ 154 | $ (56) | (82) | $ (114) | $ (191) | 138 | (387) |
Depreciation and amortization expense | 67 | 68 | 204 | 213 | ||||
Corporate general and administrative expense | 16 | 14 | 48 | 48 | ||||
Casualty and impairment loss, net | 3 | 2 | 4 | 7 | ||||
Other operating expenses | 18 | 14 | 52 | 34 | ||||
(Gain) loss on sales of assets, net | (14) | 11 | (13) | 5 | ||||
Interest income | (4) | 0 | (5) | 0 | ||||
Interest expense | 61 | 66 | 185 | 195 | ||||
Equity in (earnings) losses from investments in affiliates | (1) | 0 | (6) | 6 | ||||
Income tax benefit | (3) | (3) | (2) | (2) | ||||
Other (gain) loss, net | (1) | 5 | (98) | 7 | ||||
Other items | 4 | 4 | 11 | (1) | ||||
Hotel Adjusted EBITDA | 167 | 84 | 464 | 90 | ||||
Total consolidated hotel revenue [Member] | ||||||||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||||
Total revenues | 643 | 408 | 1,782 | 876 | ||||
Other [Member] | ||||||||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||||
Total revenues | $ 19 | $ 15 | $ 54 | $ 35 |
Business Segment Information _3
Business Segment Information - Schedule of Total Assets by Consolidated Hotels, Reconciled to Total Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 9,786 | $ 9,743 |
Consolidated Hotels [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 9,778 | 9,724 |
All Other [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 8 | $ 19 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Commitments [Line Items] | ||||
Casualty and impairment loss, net | $ 3 | $ 2 | $ 4 | $ 7 |
Purchase commitment, remaining minimum amount committed | 121 | 121 | ||
Reserve for ongoing claims | 8 | 8 | ||
Hurricanes Ian and Fiona [Member] | ||||
Other Commitments [Line Items] | ||||
Casualty and impairment loss, net | 2 | |||
Bonnet Creek complex [Member] | ||||
Other Commitments [Line Items] | ||||
Purchase commitment, remaining minimum amount committed | $ 47 | $ 47 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] - DoubleTree Hotel Las Vegas Airport [Member] $ in Millions | 1 Months Ended |
Oct. 31, 2022 USD ($) | |
Subsequent Event [Line Items] | |
Gross proceeds from sale of hotel | $ 22 |
Pro-rata share Proceeds | $ 11 |