Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
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 | 215,629,872 | |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Property and equipment, net | $ 8,198 | $ 8,301 |
Intangibles, net | 43 | 43 |
Cash and cash equivalents | 842 | 906 |
Restricted cash | 33 | 33 |
Accounts receivable, net of allowance for doubtful accounts of $2 and $2 | 130 | 129 |
Prepaid expenses | 55 | 58 |
Other assets | 42 | 47 |
Operating lease right-of-use assets | 210 | 214 |
TOTAL ASSETS (variable interest entities - $231 and $237) | 9,553 | 9,731 |
Liabilities | ||
Debt | 4,566 | 4,617 |
Accounts payable and accrued expenses | 244 | 220 |
Due to hotel managers | 117 | 141 |
Other liabilities | 207 | 228 |
Operating lease liabilities | 231 | 234 |
Total liabilities (variable interest entities - $218 and $219) | 5,365 | 5,440 |
Commitments and contingencies - refer to Note 12 | ||
Stockholders' Equity | ||
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, , 216,317,656 shares issued and 215,630,695 shares outstandingas of March 31, 2023 and 224,573,858 shares issued and 224,061,745 shares outstanding as of December 31, 2022 | 2 | 2 |
Additional paid-in capital | 4,216 | 4,321 |
Retained earnings | 19 | 16 |
Total stockholders' equity | 4,237 | 4,339 |
Noncontrolling interests | (49) | (48) |
Total equity | 4,188 | 4,291 |
TOTAL LIABILITIES AND EQUITY | $ 9,553 | $ 9,731 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts receivable | $ 2 | $ 2 |
Total assets | 9,553 | 9,731 |
Total liabilities | $ 5,365 | $ 5,440 |
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 | 216,317,656 | 224,573,858 |
Common stock, outstanding shares | 215,630,695 | 224,061,745 |
Consolidated VIEs [Member] | ||
Total assets | $ 231 | $ 237 |
Total liabilities | $ 218 | $ 219 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Revenues | |||
Total revenues | $ 648 | $ 479 | |
Operating expenses | |||
Other property-level | 60 | 50 | |
Management fees | 30 | 22 | |
Casualty loss | 1 | 0 | |
Depreciation and amortization | 64 | 69 | |
Corporate general and administrative | 16 | 16 | |
Other | 20 | 16 | |
Total expenses | 583 | 478 | |
Gain on sales of assets, net | 15 | 0 | |
Operating income | 80 | 1 | |
Interest income | 10 | 0 | |
Interest expense | (60) | (62) | |
Equity in earnings from investments in affiliates | 4 | 0 | |
Other gain, net | 1 | 5 | |
Income (loss) before income taxes | 35 | (56) | |
Income tax expense | 2 | 0 | |
Net income (loss) | 33 | (56) | |
Net income attributable to noncontrolling interests | 0 | (1) | |
Net income (loss) attributable to stockholders | $ 33 | $ (57) | |
Earnings (loss) per share: | |||
Earnings (loss) per share - Basic | [1] | $ 0.15 | $ (0.24) |
Earnings (loss) per share - Diluted | [1] | $ 0.15 | $ (0.24) |
Weighted average shares outstanding - Basic | 220 | 235 | |
Weighted average shares outstanding - Diluted | 221 | 235 | |
Rooms [Member] | |||
Revenues | |||
Total revenues | $ 382 | $ 292 | |
Operating expenses | |||
Expenses | 107 | 85 | |
Food and Beverage [Member] | |||
Revenues | |||
Total revenues | 181 | 110 | |
Operating expenses | |||
Expenses | 127 | 87 | |
Ancillary Hotel [Member] | |||
Revenues | |||
Total revenues | 65 | 61 | |
Other [Member] | |||
Revenues | |||
Total revenues | 20 | 16 | |
Other Departmental and Support [Member] | |||
Operating expenses | |||
Expenses | $ 158 | $ 133 | |
[1] Per share amounts are calculated based on unrounded numbers. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities: | ||
Net income (loss) | $ 33 | $ (56) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 64 | 69 |
Gain on sales of assets, net | (15) | 0 |
Casualty loss | 1 | 0 |
Equity in earnings from investments in affiliates | (4) | 0 |
Other gain, net | 0 | (1) |
Share-based compensation expense | 4 | 4 |
Amortization of deferred financing costs | 2 | 3 |
Distributions from unconsolidated affiliates | 6 | 0 |
Changes in operating assets and liabilities | 13 | 25 |
Net cash provided by operating activities | 104 | 44 |
Investing Activities: | ||
Capital expenditures for property and equipment | (54) | (21) |
Acquisitions, net | (11) | 0 |
Proceeds from asset dispositions, net | 116 | 0 |
Contributions to unconsolidated affiliates | (2) | 0 |
Net cash provided by (used in) investing activities | 49 | (21) |
Financing Activities: | ||
Repayments of credit facilities | (50) | 0 |
Repayments of mortgage debt | (2) | (2) |
Debt issuance costs | (1) | (3) |
Dividends paid | (56) | 0 |
Distributions to noncontrolling interests, net | (1) | 0 |
Tax withholdings on share-based compensation | (2) | (3) |
Repurchase of common stock | (105) | (61) |
Net cash used in financing activities | (217) | (69) |
Net decrease in cash and cash equivalents and restricted cash | (64) | (46) |
Cash and cash equivalents and restricted cash, beginning of period | 939 | 763 |
Cash and cash equivalents and restricted cash, end of period | 875 | 717 |
Non-cash financing activities: | ||
Dividends declared but unpaid | $ 32 | $ 2 |
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] | Non-Controlling Interests [Member] | |
Balance at Dec. 31, 2021 | $ 4,403 | $ 2 | $ 4,533 | $ (83) | $ (49) | |
Balance (shares) at Dec. 31, 2021 | 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, 2022 | $ 4,291 | $ 2 | 4,321 | 16 | (48) | |
Balance (shares) at Dec. 31, 2022 | 224,061,745 | 224 | ||||
Share-based compensation, net | $ 2 | 2 | ||||
Share-based compensation, net (Shares) | 1 | |||||
Net income (loss) | 33 | 33 | ||||
Dividends and dividend equivalents | [1] | (32) | (32) | |||
Distributions to noncontrolling interests | (1) | (1) | ||||
Repurchase of common stock | (105) | (105) | ||||
Repurchases of common stock (Shares) | (9) | |||||
Balance at Mar. 31, 2023 | $ 4,188 | $ 2 | $ 4,216 | $ 19 | $ (49) | |
Balance (shares) at Mar. 31, 2023 | 215,630,695 | 216 | ||||
[1] Dividends declared per common share were $ 0.15 and $ 0.01 for the three months ended March 31, 20 23 and 2022, respectively . |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share | $ 0.15 | $ 0.01 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization | Note 1 : 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 of 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 direct subsidiary of Park Parent, became a member of 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. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 23, 2023. 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 audited condensed consolidated balance sheet as of December 31, 2022 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, 2022, filed with the SEC on February 23, 2023, contains a discussion of significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2022. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2023 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Note 3 : Acquisitions and Dispositions Acquisitions In March 2023, we purchased two parcels of land, including all improvements, adjacent to the Hilton Hawaiian Village Waikiki Beach Resort, for approximately $ 18 million, including transaction costs. We accounted for the purchase as an acquisition of an asset, and the entire purchase price was allocated to land. Dispositions In February 2023, we sold the Hilton Miami Airport hotel for gross proceeds of $ 118.25 million. We recognized a net gain of approximate ly $ 15 million, which is i ncluded in gain on sale of assets, net in our condensed consolidated statements of operations. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4 : Property and Equipment Property and equipment were: March 31, 2023 December 31, 2022 (in millions) Land $ 3,272 $ 3,317 Buildings and leasehold improvements 6,469 6,512 Furniture and equipment 993 994 Construction-in-progress 211 201 10,945 11,024 Accumulated depreciation ( 2,747 ) ( 2,723 ) $ 8,198 $ 8,301 Depreciation of property and equipment was $ 64 million and $ 68 million during the three months ended March 31, 2023 and 2022, respectively . |
Consolidated Variable Interest
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 (in millions) Property and equipment, net $ 208 $ 208 Cash and cash equivalents 14 21 Restricted cash 2 2 Accounts receivable, net 5 4 Prepaid expenses 2 2 Debt 204 205 Accounts payable and accrued expenses 9 8 Due to hotel manager 1 2 Other liabilities 4 4 Unconsolidated Entities Four of our hotels are owned by unconsolidated joint ventures in which we hold an interest, are accounted for under the equity method and had total debt of approximately $ 721 million as of both March 31, 2023 and December 31, 2022 . Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 6 : Debt Debt balances and associated interest rates as of March 31, 2023 were: Principal balance as of Interest Rate Maturity Date March 31, 2023 December 31, 2022 (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 4.35 % 2023 to 2027 (2) 467 469 Revolver (3) SOFR + 2.10 % December 2026 — 50 2025 Senior Notes (4) 7.50 % June 2025 650 650 2028 Senior Notes (4) 5.88 % October 2028 725 725 2029 Senior Notes (4) 4.88 % May 2029 750 750 4,592 4,644 Add: unamortized premium 2 3 Less: unamortized deferred financing costs ( 28 ) ( 30 ) $ 4,566 $ 4,617 (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 March 31, 2023, Park had not received notice from the lender. (3) In February 2023, we fully repaid the $ 50 million outstanding balance under our revolving credit facility ("Revolver"). The Revolver permits one or more standby letters of credit, up to a maximum aggregate outstanding balance of $ 50 million, to be issued on behalf of us. As of March 31, 2023, we had approximately $ 4 million outstanding on a standby letter of credit and $ 946 million of available capacity under our Revolver. (4) In May and September 2020, our Operating Company, PK Domestic and PK Finance Co-Issuer Inc. ("PK Finance") issued an aggregate of $ 650 million of senior notes due 2025 (“2025 Senior Notes”) and an aggregate of $ 725 million of senior notes due 2028 (“2028 Senior Notes”), respectively. Additionally, in May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 750 million of senior notes due 2029 (“2029 Senior Notes”). We are required to deposit with lenders certain cash reserves for restricted uses. As of March 31, 2023 and December 31, 2022, our condensed consolidated balance sheets include d $ 5 m illion and $ 6 million of restricted cash, respectively, related to our mortgag e loans. Debt Maturities The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of March 31, 2023 were: Year (in millions) 2023 $ 861 2024 7 2025 657 2026 1,563 2027 30 Thereafter (1) 1,474 $ 4,592 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Hierarchy Carrying Fair Value Carrying Fair Value (in millions) Liabilities: SF Mortgage Loan 3 $ 725 $ 697 $ 725 $ 692 HHV Mortgage Loan 3 1,275 1,138 1,275 1,142 Other mortgage loans 3 467 434 469 435 Revolver 3 — — 50 50 2025 Senior Notes 1 650 660 650 652 2028 Senior Notes 1 725 668 725 661 2029 Senior Notes 1 750 646 750 635 |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 8 : Share-Based Compensation We issue equity-based awards to our employees pursuant to the 2017 Omnibus Incentive Plan (the “2017 Employee Plan”) and our non-employee directors pursuant to the 2017 Stock Plan for Non-Employee Directors (the “2017 Director Plan”), both of which are amended and restated from time to time. An amendment and restatement of the 2017 Employee Plan was approved by our Board of Directors in February 2023 and approved by our stockholders in April 2023 to, among other changes, increase the number of shares available to be issued by 6,070,000 , from 8,000,000 to 14,070,000 shares. As of March 31, 2023, 1,429,141 shares of common stock remain available for future issuance, which excludes the 6,070,000 additional shares that were approved in April 2023. The 2017 Director Plan provides that a maximum of 950,000 shares of our common stock may be issued, and as of March 31, 2023, 383,258 shares of common stock remain available for future issuance. For both the three months ended March 31, 2023 and 2022, we recognized $ 4 million of share-based compensation expense. As of March 31, 2023, unrecognized compensation expense was $ 32 million, which is expected to be recognized over a weighted-average period of 2.1 years. The total fair value of shares vested (calculated as the number of shares multiplied by the vesting date share price) for both the three months ended March 31, 2023 and 2022 was $ 6 million. 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 three months ended March 31, 2023: Number of Shares Weighted-Average Unvested at January 1, 2023 843,846 $ 20.19 Granted 566,259 13.79 Vested ( 447,467 ) 20.97 Forfeited ( 6,961 ) 15.99 Unvested at March 31, 2023 955,677 $ 16.07 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 March 31, 2023 , 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 three months ended March 31, 2023: Number of Shares Weighted-Average Unvested at January 1, 2023 1,198,325 $ 20.71 Granted 590,425 19.96 Forfeited ( 261,554 ) 24.80 Unvested at March 31, 2023 1,527,196 $ 19.72 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 48.0 % Dividend yield (1) — Risk-free rate 4.3 % 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 | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions, except per share amounts) Numerator: Net income (loss) attributable to stockholders, net $ 33 $ ( 57 ) Denominator: Weighted average shares outstanding – basic 220 235 Unvested restricted shares 1 — Weighted average shares outstanding – diluted 221 235 Earnings (loss) per share – Basic (1) $ 0.15 $ ( 0.24 ) Earnings (loss) per share – Diluted (1) $ 0.15 $ ( 0.24 ) (1) Per share amounts are calculated based on unrounded numbers. Certain of our outstanding equity awards were excluded from the above calculation of EPS for the three months ended March 31, 2023 and 2022 because their effect would have been anti-dilutive. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 10 : Business Segment Information As of March 31, 2023 , 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, presented herein, is calculated as EBITDA from hotel operations, adjusted to exclude the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and thus excluded from management's analysis in making day to day operating decisions and evaluations of our operating performance against other companies within our industry: • 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 March 31, 2023 2022 (in millions) Revenues: Total consolidated hotel revenues $ 628 $ 463 Other revenues 20 16 Total revenues $ 648 $ 479 Net income (loss) $ 33 $ ( 56 ) Other revenues ( 20 ) ( 16 ) Depreciation and amortization expense 64 69 Corporate general and administrative expense 16 16 Casualty loss 1 — Other operating expenses 20 16 Gain on sales of assets, net ( 15 ) — Interest income ( 10 ) — Interest expense 60 62 Equity in earnings from investments in affiliates ( 4 ) — Income tax expense 2 — Other gain, net ( 1 ) ( 5 ) Other items 6 3 Hotel Adjusted EBITDA $ 152 $ 89 The following table presents total assets for our consolidated hotels, reconciled to total assets: March 31, 2023 December 31, 2022 (in millions) Consolidated hotels $ 9,549 $ 9,726 All other 4 5 Total assets $ 9,553 $ 9,731 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 : Commitments and Contingencies As of March 31, 2023, we had outstanding commitments under third-party contracts of approximately $ 168 m illion for capital expenditures at our properties, of whi ch $ 51 million relates to projects at the Bonnet Creek complex, including the meeting space expansion project and renovation of guestrooms, existing meeting space, lobbies, golf course and other recreational amenities, $ 39 million relates to the complete renovation of all guestrooms, public spaces, and hotel infrastructure at the Casa Marina Key West, Curio Collection, and $ 30 million relates to the Tapa Tower guestroom renovations at the Hilton Hawaiian Village Waikiki Beach Resort. 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 March 31, 2023 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. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 23, 2023. |
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 audited condensed consolidated balance sheet as of December 31, 2022 have been reclassified to conform to the current period presentation. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment were: March 31, 2023 December 31, 2022 (in millions) Land $ 3,272 $ 3,317 Buildings and leasehold improvements 6,469 6,512 Furniture and equipment 993 994 Construction-in-progress 211 201 10,945 11,024 Accumulated depreciation ( 2,747 ) ( 2,723 ) $ 8,198 $ 8,301 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 (in millions) Property and equipment, net $ 208 $ 208 Cash and cash equivalents 14 21 Restricted cash 2 2 Accounts receivable, net 5 4 Prepaid expenses 2 2 Debt 204 205 Accounts payable and accrued expenses 9 8 Due to hotel manager 1 2 Other liabilities 4 4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt balances and associated interest rates as of March 31, 2023 were: Principal balance as of Interest Rate Maturity Date March 31, 2023 December 31, 2022 (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 4.35 % 2023 to 2027 (2) 467 469 Revolver (3) SOFR + 2.10 % December 2026 — 50 2025 Senior Notes (4) 7.50 % June 2025 650 650 2028 Senior Notes (4) 5.88 % October 2028 725 725 2029 Senior Notes (4) 4.88 % May 2029 750 750 4,592 4,644 Add: unamortized premium 2 3 Less: unamortized deferred financing costs ( 28 ) ( 30 ) $ 4,566 $ 4,617 (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 March 31, 2023, Park had not received notice from the lender. (3) In February 2023, we fully repaid the $ 50 million outstanding balance under our revolving credit facility ("Revolver"). The Revolver permits one or more standby letters of credit, up to a maximum aggregate outstanding balance of $ 50 million, to be issued on behalf of us. As of March 31, 2023, we had approximately $ 4 million outstanding on a standby letter of credit and $ 946 million of available capacity under our Revolver. (4) In May and September 2020, our Operating Company, PK Domestic and PK Finance Co-Issuer Inc. ("PK Finance") issued an aggregate of $ 650 million of senior notes due 2025 (“2025 Senior Notes”) and an aggregate of $ 725 million of senior notes due 2028 (“2028 Senior Notes”), respectively. Additionally, in May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 750 million of senior notes due 2029 (“2029 Senior 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 March 31, 2023 were: Year (in millions) 2023 $ 861 2024 7 2025 657 2026 1,563 2027 30 Thereafter (1) 1,474 $ 4,592 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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: March 31, 2023 December 31, 2022 Hierarchy Carrying Fair Value Carrying Fair Value (in millions) Liabilities: SF Mortgage Loan 3 $ 725 $ 697 $ 725 $ 692 HHV Mortgage Loan 3 1,275 1,138 1,275 1,142 Other mortgage loans 3 467 434 469 435 Revolver 3 — — 50 50 2025 Senior Notes 1 650 660 650 652 2028 Senior Notes 1 725 668 725 661 2029 Senior Notes 1 750 646 750 635 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023: Number of Shares Weighted-Average Unvested at January 1, 2023 843,846 $ 20.19 Granted 566,259 13.79 Vested ( 447,467 ) 20.97 Forfeited ( 6,961 ) 15.99 Unvested at March 31, 2023 955,677 $ 16.07 |
Schedule of Performance Stock Units ("PSUs") | The following table provides a summary of PSUs for the three months ended March 31, 2023: Number of Shares Weighted-Average Unvested at January 1, 2023 1,198,325 $ 20.71 Granted 590,425 19.96 Forfeited ( 261,554 ) 24.80 Unvested at March 31, 2023 1,527,196 $ 19.72 |
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 48.0 % Dividend yield (1) — Risk-free rate 4.3 % 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) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions, except per share amounts) Numerator: Net income (loss) attributable to stockholders, net $ 33 $ ( 57 ) Denominator: Weighted average shares outstanding – basic 220 235 Unvested restricted shares 1 — Weighted average shares outstanding – diluted 221 235 Earnings (loss) per share – Basic (1) $ 0.15 $ ( 0.24 ) Earnings (loss) per share – Diluted (1) $ 0.15 $ ( 0.24 ) (1) Per share amounts are calculated based on unrounded numbers. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 2022 (in millions) Revenues: Total consolidated hotel revenues $ 628 $ 463 Other revenues 20 16 Total revenues $ 648 $ 479 Net income (loss) $ 33 $ ( 56 ) Other revenues ( 20 ) ( 16 ) Depreciation and amortization expense 64 69 Corporate general and administrative expense 16 16 Casualty loss 1 — Other operating expenses 20 16 Gain on sales of assets, net ( 15 ) — Interest income ( 10 ) — Interest expense 60 62 Equity in earnings from investments in affiliates ( 4 ) — Income tax expense 2 — Other gain, net ( 1 ) ( 5 ) Other items 6 3 Hotel Adjusted EBITDA $ 152 $ 89 |
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: March 31, 2023 December 31, 2022 (in millions) Consolidated hotels $ 9,549 $ 9,726 All other 4 5 Total assets $ 9,553 $ 9,731 |
Organization - Additional Infor
Organization - 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 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended |
Feb. 28, 2023 USD ($) | Mar. 31, 2023 USD ($) Parcel | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net gain (loss) on selling cost of hotel portfolio properties | $ 15,000 | |
Hilton Miami Airport [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gross proceeds on sale of hotel portfolio properties | $ 118,250 | |
Land Adjacent To Hilton Hawaiian Village Waikiki Beach Resort [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Area of land including improvements | Parcel | 2 | |
Acquisition costs | $ 18,000 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 3,272 | $ 3,317 |
Buildings and leasehold improvements | 6,469 | 6,512 |
Furniture and equipment | 993 | 994 |
Construction-in-progress | 211 | 201 |
Property and equipment, gross | 10,945 | 11,024 |
Accumulated depreciation | (2,747) | (2,723) |
Property and equipment, net | $ 8,198 | $ 8,301 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 64 | $ 68 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Additional Information (Detail) $ in Millions | Mar. 31, 2023 USD ($) JointVenture Entity | Dec. 31, 2022 USD ($) JointVenture |
Subsequent Event [Line Items] | ||
Number of consolidated VIEs | Entity | 3 | |
Debt of unconsolidated joint ventures | $ | $ 721 | $ 721 |
Number of unconsolidated joint ventures | JointVenture | 4 | 4 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Property and equipment, net | $ 8,198 | $ 8,301 |
Cash and cash equivalents | 842 | 906 |
Restricted cash | 33 | 33 |
Accounts receivable, net | 130 | 129 |
Prepaid expenses | 55 | 58 |
Debt | 4,566 | 4,617 |
Accounts payable and accrued expenses | 244 | 220 |
Due to hotel managers | 117 | 141 |
Other liabilities | 207 | 228 |
Consolidated VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Property and equipment, net | 208 | 208 |
Cash and cash equivalents | 14 | 21 |
Restricted cash | 2 | 2 |
Accounts receivable, net | 5 | 4 |
Prepaid expenses | 2 | 2 |
Debt | 204 | 205 |
Accounts payable and accrued expenses | 9 | 8 |
Due to hotel managers | 1 | 2 |
Other liabilities | $ 4 | $ 4 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2016 | ||||
Debt Instrument [Line Items] | ||||||
Debt and financing lease obligations, gross | $ 4,592 | $ 4,644 | ||||
Add: unamortized premium | 2 | 3 | ||||
Less: unamortized deferred financing costs and discount | (28) | (30) | ||||
Debt | 4,566 | 4,617 | ||||
SF CMBS 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 CMBS 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 | $ 467 | 469 | ||||
Debt, weighted average interest rate | 4.35% | |||||
Maturity Date, start year | [2] | 2023 | ||||
Maturity Date, end year | [2] | 2027 | ||||
2025 Senior 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 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 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 | ||||
Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | [4] | $ 0 | $ 50 | |||
Maturity Date | [4] | 2026-12 | ||||
Revolver [Member] | SOFR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | [4] | 2.10% | ||||
[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 March 31, 2023, Park had not received notice from the lender. In May and September 2020, our Operating Company, PK Domestic and PK Finance Co-Issuer Inc. ("PK Finance") issued an aggregate of $ 650 million of senior notes due 2025 (“2025 Senior Notes”) and an aggregate of $ 725 million of senior notes due 2028 (“2028 Senior Notes”), respectively. Additionally, in May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $ 750 million of senior notes due 2029 (“2029 Senior Notes”). In February 2023, we fully repaid the $ 50 million outstanding balance under our revolving credit facility ("Revolver"). The Revolver permits one or more standby letters of credit, up to a maximum aggregate outstanding balance of $ 50 million, to be issued on behalf of us. As of March 31, 2023, we had approximately $ 4 million outstanding on a standby letter of credit and $ 946 million of available capacity under our Revolver. |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||||||||
Feb. 28, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | May 31, 2021 | Sep. 30, 2020 | May 31, 2020 | Oct. 31, 2016 | ||||
Revolver [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, gross | [1] | $ 0 | $ 50 | |||||||
Repayments of long-term debt | $ 50 | |||||||||
Line of credit, maximum borrowing capacity | $ 50 | |||||||||
Available credit capacity | 946 | |||||||||
Revolver [Member] | Standby Letters of Credit [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, outstanding amount | 4 | |||||||||
SF CMBS Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, gross | 725 | [2] | 725 | [2] | $ 725 | |||||
HHV CMBS 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 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Notes | $ 650 | |||||||||
PK Domestic and PK Finance Co-Issuer Inc [Member] | 2028 Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Notes | $ 725 | |||||||||
PK Domestic and PK Finance Co-Issuer Inc [Member] | 2029 Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior Notes | $ 750 | |||||||||
[1] In February 2023, we fully repaid the $ 50 million outstanding balance under our revolving credit facility ("Revolver"). The Revolver permits one or more standby letters of credit, up to a maximum aggregate outstanding balance of $ 50 million, to be issued on behalf of us. As of March 31, 2023, we had approximately $ 4 million outstanding on a standby letter of credit and $ 946 million of available capacity under our Revolver. 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Restricted cash | $ 33 | $ 33 |
CMBS and mortgage loans [Member] | ||
Debt Instrument [Line Items] | ||
Restricted cash | $ 5 | $ 6 |
Debt - Debt Maturities, Assumin
Debt - Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option (Detail) $ in Millions | Mar. 31, 2023 USD ($) | |
Debt Disclosure [Abstract] | ||
2023 | $ 861 | |
2024 | 7 | |
2025 | 657 | |
2026 | 1,563 | |
2027 | 30 | |
Thereafter | 1,474 | [1] |
Debt and capital lease obligations, gross | $ 4,592 | |
[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 | Mar. 31, 2023 | Dec. 31, 2022 |
Carrying amount [Member] | SF CMBS Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 725 | $ 725 |
Carrying amount [Member] | HHV CMBS 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 | 467 | 469 |
Carrying amount [Member] | Revolver [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 0 | 50 |
Carrying amount [Member] | 2025 Senior Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 650 | 650 |
Carrying amount [Member] | 2028 Senior Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 725 | 725 |
Carrying amount [Member] | 2029 Senior Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 750 | 750 |
Fair Value [Member] | SF CMBS Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 697 | 692 |
Fair Value [Member] | HHV CMBS Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 1,138 | 1,142 |
Fair Value [Member] | Mortgage Loans [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 434 | 435 |
Fair Value [Member] | Revolver [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 0 | 50 |
Fair Value [Member] | 2025 Senior Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 660 | 652 |
Fair Value [Member] | 2028 Senior Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 668 | 661 |
Fair Value [Member] | 2029 Senior Notes [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 646 | $ 635 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2023 shares | Nov. 30, 2020 d $ / shares | Mar. 31, 2023 USD ($) Target shares | Mar. 31, 2022 USD ($) | Jun. 30, 2022 | Dec. 31, 2022 shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, authorized shares | 6,000,000,000 | 6,000,000,000 | ||||
Compensation expense | $ | $ 4 | |||||
Unrecognized compensation costs related to unvested awards | $ | $ 32 | |||||
Unrecognized compensation costs related to unvested awards, weighted-average period | 2 years 1 month 6 days | |||||
Total fair value of shares vested | $ | $ 6 | $ 6 | ||||
2017 Employee Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares of common stock reserved for future issuance | 1,429,141 | |||||
2017 Employee Plan [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, authorized shares | 8,000,000 | |||||
2017 Employee Plan [Member] | Subsequent Event [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Additional shares approved | 6,070,000 | |||||
2017 Employee Plan [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, authorized shares | 14,070,000 | |||||
2017 Director Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares of common stock reserved for future issuance | 383,258 | |||||
2017 Director Plan [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock, authorized shares | 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 | |||||
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] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 843,846 |
Number of Shares, Granted | shares | 566,259 |
Number of Shares, Vested | shares | (447,467) |
Number of Shares, Forfeited | shares | (6,961) |
Number of Shares, Ending balance | shares | 955,677 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 20.19 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 13.79 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 20.97 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 15.99 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 16.07 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Performance Stock Units ("PSUs") (Detail) - Performance Stock Units ("PSUs") [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 1,198,325 |
Number of Shares, Granted | shares | 590,425 |
Number of Shares, Forfeited | shares | (261,554) |
Number of Shares, Ending balance | shares | 1,527,196 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 20.71 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 19.96 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 24.80 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 19.72 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model (Detail) | 3 Months Ended | |
Mar. 31, 2023 | ||
Share-Based Payment Arrangement [Abstract] | ||
Expected volatility | 48% | |
Dividend yield | 0% | [1] |
Risk-free rate | 4.30% | |
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 | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Numerator: | |||
Net income (loss) attributable to stockholders, net of earnings allocated to participating securities | $ 33 | $ (57) | |
Denominator: | |||
Weighted average shares outstanding – basic | 220,000,000 | 235,000,000 | |
Unvested restricted shares | 1 | 0 | |
Weighted average shares outstanding – diluted | 221,000,000 | 235,000,000 | |
Earnings (loss) per share - Basic | [1] | $ 0.15 | $ (0.24) |
Earnings (loss) per share - Diluted | [1] | $ 0.15 | $ (0.24) |
[1] Per share amounts are calculated based on unrounded numbers. |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||
Total revenues | $ 648 | $ 479 |
Net income (loss) | 33 | (56) |
Depreciation and amortization expense | 64 | 69 |
Corporate general and administrative expense | 16 | 16 |
Casualty loss | 1 | 0 |
Other operating expenses | 20 | 16 |
Gain on sales of assets, net | (15) | 0 |
Interest income | (10) | 0 |
Interest expense | 60 | 62 |
Equity in earnings from investments in affiliates | (4) | 0 |
Income tax expense | 2 | 0 |
Other gain, net | (1) | (5) |
Other items | 6 | 3 |
Hotel Adjusted EBITDA | 152 | 89 |
Total consolidated hotel revenue [Member] | ||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||
Total revenues | 628 | 463 |
Other [Member] | ||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||
Total revenues | $ 20 | $ 16 |
Business Segment Information _3
Business Segment Information - Schedule of Total Assets by Consolidated Hotels, Reconciled to Total Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 9,553 | $ 9,731 |
Consolidated Hotels [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 9,549 | 9,726 |
All Other [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 4 | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Mar. 31, 2023 USD ($) |
Other Commitments [Line Items] | |
Purchase commitment, remaining minimum amount committed | $ 168 |
Reserve for ongoing claims | 8 |
Hilton Hawaiian Village Waikiki Beach Resort [Member] | |
Other Commitments [Line Items] | |
Purchase commitment, remaining minimum amount committed | 30 |
Bonnet Creek complex [Member] | |
Other Commitments [Line Items] | |
Purchase commitment, remaining minimum amount committed | 51 |
Casa Marina Key West, Curio Collection [Member] | |
Other Commitments [Line Items] | |
Purchase commitment, remaining minimum amount committed | $ 39 |