Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-34521 | |
Entity Registrant Name | HYATT HOTELS CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1480589 | |
Entity Address, Address Line One | 150 North Riverside Plaza | |
Entity Address, Address Line Two | 8th Floor | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60606 | |
City Area Code | 312 | |
Local Phone Number | 750-1234 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value | |
Trading Symbol | H | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001468174 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 48,101,088 | |
Common Class B | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 59,017,749 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUES: | ||||
Total revenues | $ 1,541 | $ 851 | $ 4,303 | $ 1,952 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||
Depreciation and amortization | 96 | 71 | 320 | 219 |
Other direct costs | 73 | 31 | 209 | 78 |
Selling, general, and administrative | 108 | 69 | 295 | 250 |
Direct and selling, general, and administrative expenses | 1,396 | 844 | 3,966 | 2,170 |
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | (12) | (1) | (89) | 35 |
Equity earnings (losses) from unconsolidated hospitality ventures | 2 | (12) | (6) | 8 |
Interest expense | (38) | (40) | (116) | (123) |
Gains (losses) on sales of real estate | (1) | 307 | 250 | 412 |
Asset impairments | (9) | 0 | (19) | (2) |
Other income (loss), net | (24) | (3) | (53) | 34 |
INCOME BEFORE INCOME TAXES | 63 | 258 | 304 | 146 |
PROVISION FOR INCOME TAXES | (35) | (138) | (143) | (339) |
NET INCOME (LOSS) | 28 | 120 | 161 | (193) |
NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 28 | $ 120 | $ 161 | $ (193) |
EARNINGS (LOSSES) PER SHARE—Basic | ||||
Net income (loss) (in dollars per share) | $ 0.25 | $ 1.17 | $ 1.46 | $ (1.89) |
Net income (loss) attributable to Hyatt Hotels Corporation (in dollars per share) | 0.25 | 1.17 | 1.46 | (1.89) |
EARNINGS (LOSSES) PER SHARE—Diluted | ||||
Net income (loss) (in dollars per share) | 0.25 | 1.15 | 1.44 | (1.89) |
Net income (loss) attributable to Hyatt Hotels Corporation (in dollars per share) | $ 0.25 | $ 1.15 | $ 1.44 | $ (1.89) |
Owned and leased hotels | ||||
REVENUES: | ||||
Total revenues | $ 309 | $ 263 | $ 911 | $ 558 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||
Costs of goods and services sold | 236 | 208 | 675 | 506 |
Net management, franchise, and other fees | ||||
REVENUES: | ||||
Total revenues | 215 | 104 | 555 | 243 |
Management, franchise, and other fees | ||||
REVENUES: | ||||
Total revenues | 224 | 113 | 582 | 269 |
Contra revenue | ||||
REVENUES: | ||||
Total revenues | (9) | (9) | (27) | (26) |
Distribution and destination management | ||||
REVENUES: | ||||
Total revenues | 244 | 0 | 746 | 0 |
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||
Costs of goods and services sold | 186 | 0 | 586 | 0 |
Other revenues | ||||
REVENUES: | ||||
Total revenues | 68 | 28 | 206 | 69 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
REVENUES: | ||||
Total revenues | 705 | 456 | 1,885 | 1,082 |
Costs incurred on behalf of managed and franchised properties | ||||
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: | ||||
Costs of goods and services sold | $ 697 | $ 465 | $ 1,881 | $ 1,117 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 28 | $ 120 | $ 161 | $ (193) |
Other comprehensive income (loss), net of taxes: | ||||
Foreign currency translation adjustments, net of tax of $— for the three and nine months ended September 30, 2022 and September 30, 2021 | (22) | (24) | (35) | (53) |
Unrealized gains on derivative activity, net of tax of $— for the three and nine months ended September 30, 2022 and September 30, 2021 | 2 | 1 | 5 | 5 |
Unrealized losses on available-for-sale debt securities, net of tax of $— for the three and nine months ended September 30, 2022 and September 30, 2021 | (5) | 0 | (15) | (1) |
Other comprehensive loss | (25) | (23) | (45) | (49) |
COMPREHENSIVE INCOME (LOSS) | 3 | 97 | 116 | (242) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HYATT HOTELS CORPORATION | $ 3 | $ 97 | $ 116 | $ (242) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - Parentheticals - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gains on derivative activity, tax | 0 | 0 | 0 | 0 |
Unrealized losses on available-for-sale debt securities, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,223 | $ 960 | |
Restricted cash | 356 | [1] | 57 |
Short-term investments | 151 | 227 | |
Receivables, net of allowances of $58 and $53 at September 30, 2022 and December 31, 2021, respectively | 702 | 633 | |
Inventories | 9 | 10 | |
Prepaids and other assets | 128 | 149 | |
Prepaid income taxes | 35 | 26 | |
Assets held for sale | 30 | 0 | |
Total current assets | 2,634 | 2,062 | |
Equity method investments | 182 | 216 | |
Property and equipment, net | 2,361 | 2,848 | |
Financing receivables, net of allowances of $43 and $69 at September 30, 2022 and December 31, 2021, respectively | 63 | 41 | |
Operating lease right-of-use assets | 370 | 446 | |
Goodwill | 3,120 | 2,965 | |
Intangibles, net | 1,749 | 1,977 | |
Deferred tax assets | 11 | 14 | |
Other assets | 1,912 | 2,034 | |
TOTAL ASSETS | 12,402 | 12,603 | |
CURRENT LIABILITIES: | |||
Current maturities of long-term debt | 654 | 10 | |
Accounts payable | 402 | 523 | |
Accrued expenses and other current liabilities | 445 | 299 | |
Current contract liabilities | 1,219 | 1,178 | |
Accrued compensation and benefits | 195 | 187 | |
Current operating lease liabilities | 36 | 35 | |
Liabilities held for sale | 6 | 0 | |
Total current liabilities | 2,957 | 2,232 | |
Long-term debt | 3,150 | 3,968 | |
Long-term contract liabilities | 1,481 | 1,349 | |
Long-term operating lease liabilities | 293 | 349 | |
Other long-term liabilities | 1,075 | 1,139 | |
Total liabilities | 8,956 | 9,037 | |
Commitments and contingencies (see Note 12) | |||
EQUITY: | |||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding at September 30, 2022 and December 31, 2021 | 0 | 0 | |
Common stock | 1 | 1 | |
Additional paid-in capital | 404 | 640 | |
Retained earnings | 3,328 | 3,167 | |
Accumulated other comprehensive loss | (290) | (245) | |
Total stockholders' equity | 3,443 | 3,563 | |
Noncontrolling interests in consolidated subsidiaries | 3 | 3 | |
Total equity | 3,446 | 3,566 | |
TOTAL LIABILITIES AND EQUITY | $ 12,402 | $ 12,603 | |
[1](1) Restricted cash generally represents debt service on bonds, escrow deposits, and other arrangements. At September 30, 2022, restricted cash included cash in escrow for the redemption of our floating rate senior notes due 2023 (see Note 9). |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - Parentheticals - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts receivable, current | $ 58 | $ 53 |
Financing receivable, allowance for credit loss | $ 43 | $ 69 |
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares, outstanding (in shares) | 48,412,428 | 50,322,050 |
Common stock, shares, issued (in shares) | 48,412,428 | 50,322,050 |
Common Class B | ||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 391,012,161 | 391,647,683 |
Common stock, shares, outstanding (in shares) | 59,017,749 | 59,653,271 |
Common stock, shares, issued (in shares) | 59,017,749 | 59,653,271 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income (loss) | $ 161 | $ (193) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 320 | 219 | ||
Gains on sales of real estate | (250) | (412) | ||
Amortization of share awards | 47 | 49 | ||
Amortization of operating lease right-of-use assets | 25 | 20 | ||
Deferred income taxes | (7) | 210 | ||
Asset impairments | 19 | 2 | ||
Equity (earnings) losses from unconsolidated hospitality ventures | 6 | (8) | ||
Loss on extinguishment of debt | 8 | 0 | ||
Contra revenue | 27 | 26 | ||
Unrealized (gains) losses, net | 68 | (20) | ||
Distributions from unconsolidated hospitality ventures | 11 | 0 | ||
Working capital changes and other | (32) | 316 | ||
Net cash provided by operating activities | 403 | 209 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of marketable securities and short-term investments | (780) | (693) | ||
Proceeds from marketable securities and short-term investments | 886 | 1,002 | ||
Contributions to equity method and other investments | (7) | (28) | ||
Return of equity method and other investments | 38 | 25 | ||
Acquisitions, net of cash acquired | (174) | (237) | ||
Capital expenditures | (142) | (65) | ||
Issuance of financing receivables | (22) | (20) | ||
Proceeds from sales of real estate, net of cash disposed | 590 | 759 | ||
Other investing activities | 41 | (5) | ||
Net cash provided by investing activities | 430 | 738 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Repayments and repurchases of debt | (17) | (258) | ||
Repurchases of common stock | (263) | 0 | ||
Proceeds from issuance of Class A common stock, net of offering costs of $— and $25, respectively | 0 | 575 | ||
Utilization of restricted cash for legal defeasance of Series 2005 Bonds | (8) | 0 | ||
Other financing activities | (17) | (17) | ||
Net cash provided by (used in) financing activities | (305) | 300 | ||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 26 | (3) | ||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, INCLUDING CASH, CASH EQUIVALENTS, AND RESTRICTED CASH CLASSIFIED WITHIN CURRENT ASSETS HELD FOR SALE | 554 | 1,244 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH RECLASSIFIED TO ASSETS HELD FOR SALE | (2) | 0 | ||
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 552 | 1,244 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR | 1,065 | 1,237 | ||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD | 1,617 | 2,481 | ||
Supplemental disclosure of cash flow information: | ||||
Cash and cash equivalents | 1,223 | 2,418 | ||
Restricted cash | [1] | 356 | 15 | [2] |
Restricted cash included in other assets | [1],[2] | 38 | 48 | |
Total cash, cash equivalents, and restricted cash | 1,617 | 2,481 | ||
Cash paid during the period for interest | 95 | 116 | ||
Cash paid (received) during the period for income taxes, net | 87 | (244) | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 33 | 27 | ||
Non-cash investing and financing activities are as follows: | ||||
Non-cash contributions to equity method and other investments (Note 12) | 0 | 42 | ||
Change in accrued capital expenditures | 5 | 1 | ||
Non-cash right-of-use assets obtained in exchange for operating lease liabilities | 20 | 16 | ||
Non-cash legal defeasance of Series 2005 Bonds (see Note 6) | 166 | 0 | ||
Non-cash reduction in right-of-use assets and operating lease liabilities for lease reassessment | 12 | 0 | ||
Non-cash held-to-maturity debt security received (see Note 6) | 19 | 0 | ||
Non-cash repurchases of common stock (see Note 13) | $ 16 | $ 0 | ||
[1](1) Restricted cash generally represents debt service on bonds, escrow deposits, and other arrangements. At September 30, 2022, restricted cash included cash in escrow for the redemption of our floating rate senior notes due 2023 (see Note 9).[2](1) Restricted cash generally represents debt service on bonds, escrow deposits, and other arrangements. At September 30, 2022, restricted cash included cash in escrow for the redemption of our floating rate senior notes due 2023 (see Note 9). |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - Parenthetical - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Common stock net issuance costs | $ 0 | $ 25 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Consolidated Subsidiaries | Common Class A | Common Class A Common Stock Amount | Common Class B | Common Class B Common Stock Amount | |
Common stock, shares, beginning balance (in shares) at Dec. 31, 2020 | 39,250,241 | 62,038,918 | ||||||||
Balance, beginning of period at Dec. 31, 2020 | $ 3,214,000,000 | $ 13,000,000 | $ 3,389,000,000 | $ (192,000,000) | $ 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | (349,000,000) | (304,000,000) | (45,000,000) | |||||||
Employee stock plan issuance (in shares) | 10,992 | |||||||||
Employee stock plan issuance | 1,000,000 | 1,000,000 | ||||||||
Class share conversions (in shares) | 800,169 | (800,169) | ||||||||
Share-based payment activity (in shares) | 462,103 | |||||||||
Share-based payment activity | 22,000,000 | 22,000,000 | ||||||||
Common stock, shares, ending balance (in shares) at Mar. 31, 2021 | 40,523,505 | 61,238,749 | ||||||||
Balance, end of period at Mar. 31, 2021 | 2,888,000,000 | 36,000,000 | 3,085,000,000 | (237,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Common stock, shares, beginning balance (in shares) at Dec. 31, 2020 | 39,250,241 | 62,038,918 | ||||||||
Balance, beginning of period at Dec. 31, 2020 | 3,214,000,000 | 13,000,000 | 3,389,000,000 | (192,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | (242,000,000) | |||||||||
Repurchases of common stock | 0 | |||||||||
Common stock, shares, ending balance (in shares) at Sep. 30, 2021 | 50,287,596 | 59,653,271 | ||||||||
Balance, end of period at Sep. 30, 2021 | 3,589,000,000 | 630,000,000 | 3,196,000,000 | (241,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Common stock, shares, beginning balance (in shares) at Mar. 31, 2021 | 40,523,505 | 61,238,749 | ||||||||
Balance, beginning of period at Mar. 31, 2021 | 2,888,000,000 | 36,000,000 | 3,085,000,000 | (237,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | 10,000,000 | (9,000,000) | 19,000,000 | |||||||
Employee stock plan issuance (in shares) | 9,603 | |||||||||
Employee stock plan issuance | 1,000,000 | 1,000,000 | ||||||||
Class share conversions (in shares) | 614,831 | (614,831) | ||||||||
Share-based payment activity (in shares) | 11,150 | |||||||||
Share-based payment activity | 10,000,000 | 10,000,000 | ||||||||
Common stock, shares, ending balance (in shares) at Jun. 30, 2021 | 41,159,089 | 60,623,918 | ||||||||
Balance, end of period at Jun. 30, 2021 | 2,909,000,000 | 47,000,000 | 3,076,000,000 | (218,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | 97,000,000 | 120,000,000 | (23,000,000) | |||||||
Employee stock plan issuance (in shares) | 12,129 | |||||||||
Class share conversions (in shares) | 970,647 | (970,647) | ||||||||
Share-based payment activity (in shares) | 95,731 | |||||||||
Share-based payment activity | 8,000,000 | 8,000,000 | ||||||||
Issuance of Class A common stock (in shares) | 8,050,000 | |||||||||
Issuance of Class A common stock | 575,000,000 | 575,000,000 | ||||||||
Common stock, shares, ending balance (in shares) at Sep. 30, 2021 | 50,287,596 | 59,653,271 | ||||||||
Balance, end of period at Sep. 30, 2021 | 3,589,000,000 | 630,000,000 | 3,196,000,000 | (241,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Common stock, shares, beginning balance (in shares) at Dec. 31, 2021 | 50,322,050 | 50,322,050 | 59,653,271 | 59,653,271 | ||||||
Balance, beginning of period at Dec. 31, 2021 | 3,566,000,000 | 640,000,000 | 3,167,000,000 | (245,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | (59,000,000) | (73,000,000) | 14,000,000 | |||||||
Employee stock plan issuance (in shares) | 12,221 | |||||||||
Employee stock plan issuance | 1,000,000 | 1,000,000 | ||||||||
Class share conversions (in shares) | 635,522 | (635,522) | ||||||||
Share-based payment activity (in shares) | 303,355 | |||||||||
Share-based payment activity | 16,000,000 | 16,000,000 | ||||||||
Common stock, shares, ending balance (in shares) at Mar. 31, 2022 | 51,273,148 | 59,017,749 | ||||||||
Balance, end of period at Mar. 31, 2022 | 3,524,000,000 | 657,000,000 | 3,094,000,000 | (231,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Common stock, shares, beginning balance (in shares) at Dec. 31, 2021 | 50,322,050 | 50,322,050 | 59,653,271 | 59,653,271 | ||||||
Balance, beginning of period at Dec. 31, 2021 | 3,566,000,000 | 640,000,000 | 3,167,000,000 | (245,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | 116,000,000 | |||||||||
Common stock, shares, ending balance (in shares) at Sep. 30, 2022 | 48,412,428 | 48,412,428 | 59,017,749 | 59,017,749 | ||||||
Balance, end of period at Sep. 30, 2022 | 3,446,000,000 | 404,000,000 | 3,328,000,000 | (290,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Common stock, shares, beginning balance (in shares) at Mar. 31, 2022 | 51,273,148 | 59,017,749 | ||||||||
Balance, beginning of period at Mar. 31, 2022 | 3,524,000,000 | 657,000,000 | 3,094,000,000 | (231,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | 172,000,000 | 206,000,000 | (34,000,000) | |||||||
Repurchases of common stock (in shares) | (1,210,402) | |||||||||
Repurchases of common stock | (101,000,000) | (101,000,000) | ||||||||
Employee stock plan issuance (in shares) | 13,963 | |||||||||
Employee stock plan issuance | 1,000,000 | 1,000,000 | ||||||||
Share-based payment activity (in shares) | 19,623 | |||||||||
Share-based payment activity | 16,000,000 | 16,000,000 | ||||||||
Common stock, shares, ending balance (in shares) at Jun. 30, 2022 | 50,096,332 | 59,017,749 | ||||||||
Balance, end of period at Jun. 30, 2022 | 3,612,000,000 | 573,000,000 | 3,300,000,000 | (265,000,000) | 3,000,000 | $ 1,000,000 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income (loss) | 3,000,000 | 28,000,000 | (25,000,000) | |||||||
Repurchases of common stock (in shares) | (1,865,489) | |||||||||
Repurchases of common stock | (162,000,000) | (162,000,000) | ||||||||
Liability for repurchases of common stock | [1] | (16,000,000) | (16,000,000) | |||||||
Employee stock plan issuance (in shares) | 18,143 | |||||||||
Employee stock plan issuance | 2,000,000 | 2,000,000 | ||||||||
Share-based payment activity (in shares) | 163,442 | |||||||||
Share-based payment activity | 7,000,000 | 7,000,000 | ||||||||
Common stock, shares, ending balance (in shares) at Sep. 30, 2022 | 48,412,428 | 48,412,428 | 59,017,749 | 59,017,749 | ||||||
Balance, end of period at Sep. 30, 2022 | $ 3,446,000,000 | $ 404,000,000 | $ 3,328,000,000 | $ (290,000,000) | $ 3,000,000 | $ 1,000,000 | $ 0 | |||
[1] (1) Represents repurchases of 189,000 shares for $16 million that were initiated prior to September 30, 2022 , but settled in the fourth quarter of 2022. At September 30, 2022 , the shares were included in shares outstanding and the liability was recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheet. |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Hyatt Hotels Corporation, a Delaware corporation, and its consolidated subsidiaries (collectively, "Hyatt Hotels Corporation") has offerings that consist of full service hotels, select service hotels, all-inclusive resorts, and other forms of residential, vacation ownership, and condominium units. We also offer travel distribution and destination management services through ALG Vacations and a paid membership program through the Unlimited Vacation Club. A t September 30, 2022, our hotel portfolio included 536 full service hotels, comprising 175,294 rooms throughout the world; 553 select service hotels, comprising 80,754 rooms, of which 442 hotels are located in the United States; and 122 all-inclusive resorts, comprising 38,840 rooms. At September 30, 2022, our portfolio of properties operated in 72 c ountries around the world. Additionally, through strategic relationships, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and operate under other tradenames or marks owned by such hotels or licensed by third parties. Unless otherwise specified or required by the context, references in this Quarterly Report on Form 10-Q to "Hyatt," the "Company," "we," "us," or "our" mean Hyatt Hotels Corporation and its consolidated subsidiaries. As used in these Notes and throughout this Quarterly Report on Form 10-Q: • "condominium units" refer to whole ownership residential units (condominium and private residences) that we provide services to and, in some cases management of, the rental programs and/or homeowner associations associated with such units; • "hospitality ventures" refers to entities in which we own less than a 100% equity interest; • "hotel portfolio" refers to our full service hotels, including our wellness resorts, our select service hotels, and our all-inclusive resorts; • "loyalty program" refers to the World of Hyatt guest loyalty program that is operated for the benefit of participating properties and generates substantial repeat guest business by rewarding frequent stays with points that can be redeemed for hotel nights and other valuable rewards; • "properties," "portfolio of properties," or "property portfolio" refer to our hotel portfolio and residential, vacation ownership, and condominium units in our offering, including under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt Residence Club, Hyatt Place, Hyatt House, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Vivid Hotels & Resorts, Alua Hotels & Resorts, and Sunscape Resorts & Spas brands; • "residential units" refer to residential units that we manage, own, or to which we provide services or license our trademarks (such as serviced apartments and Hyatt-branded residential units) that are typically part of a mixed-use project and located either adjacent to or near a full service hotel that is a member of our portfolio of properties or in unique leisure locations; and • "vacation ownership units" refer to the fractional and timeshare vacation ownership properties with respect to which we license our trademarks and that are part of the Hyatt Residence Club. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete annual financial statements. As a result, this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the "2021 Form 10-K"). We have eliminated all intercompany accounts and transactions in our condensed consolidated financial statements. We consolidate entities under our control, including entities where we are deemed to be the primary beneficiary. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Adopted Accounting Standards Government Assistance —In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2021-10 ("ASU 2021-10"), Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . ASU 2021-10 requires annual disclosures that are expected to increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity's financial statements. The provisions of ASU 2021-10 are effective for fiscal years beginning after December 31, 2021, and we adopted ASU 2021-10 on January 1, 2022. We are currently evaluating the impact of ASU 2021-10 on our annual disclosures and do not expect a material impact to the Notes to our consolidated financial statements. Future Adoption of Accounting Standards Reference Rate Reform —In March 2020, the FASB issued Accounting Standards Update No. 2020-04 ("ASU 2020-04"), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 provides optional expedients and exceptions that we can elect to adopt, subject to meeting certain criteria, regarding contract modifications, hedging relationships, and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform. The provisions of ASU 2020-04 are available through December 31, 2022, and we are currently assessing the impact of adopting ASU 2020-04. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues The following tables present our revenues disaggregated by the nature of the product or service: Three Months Ended September 30, 2022 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Apple Leisure Group Corporate and other Eliminations Total Rooms revenues $ 196 $ — $ — $ — $ 15 $ — $ (7) $ 204 Food and beverage 69 — — — — — — 69 Other 35 — — — 1 — — 36 Owned and leased hotels 300 — — — 16 — (7) 309 Base management fees — 60 12 11 10 — (9) 84 Incentive management fees — 15 11 8 12 — (3) 43 Franchise fees — 49 1 2 — — — 52 Other fees — 3 2 9 18 13 — 45 Management, franchise, and other fees — 127 26 30 40 13 (12) 224 Contra revenue — (5) (1) (2) (1) — — (9) Net management, franchise, and other fees — 122 25 28 39 13 (12) 215 Distribution and destination management — — — — 244 — — 244 Other revenues — 28 — — 37 3 — 68 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 614 37 27 27 — — 705 Total $ 300 $ 764 $ 62 $ 55 $ 363 $ 16 $ (19) $ 1,541 Nine Months Ended September 30, 2022 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Apple Leisure Group Corporate and other Eliminations Total Rooms revenues $ 572 $ — $ — $ — $ 19 $ — $ (21) $ 570 Food and beverage 225 — — — — — — 225 Other 115 — — — 1 — — 116 Owned and leased hotels 912 — — — 20 — (21) 911 Base management fees — 167 28 28 27 — (27) 223 Incentive management fees — 45 21 23 48 — (9) 128 Franchise fees — 133 2 4 — — — 139 Other fees — 9 7 11 31 34 — 92 Management, franchise, and other fees — 354 58 66 106 34 (36) 582 Contra revenue — (17) (3) (6) (1) — — (27) Net management, franchise, and other fees — 337 55 60 105 34 (36) 555 Distribution and destination management — — — — 746 — — 746 Other revenues — 91 — — 104 9 2 206 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,632 100 71 82 — — 1,885 Total $ 912 $ 2,060 $ 155 $ 131 $ 1,057 $ 43 $ (55) $ 4,303 Three Months Ended September 30, 2021 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 167 $ — $ — $ — $ — $ (5) $ 162 Food and beverage 64 — — — — — 64 Other 37 — — — — — 37 Owned and leased hotels 268 — — — — (5) 263 Base management fees — 41 10 7 — (8) 50 Incentive management fees — 6 4 3 — (3) 10 Franchise fees — 35 — 1 — — 36 Other fees — 3 2 1 11 — 17 Management, franchise, and other fees — 85 16 12 11 (11) 113 Contra revenue — (5) (1) (3) — — (9) Net management, franchise, and other fees — 80 15 9 11 (11) 104 Other revenues — 24 — — 3 1 28 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 412 26 18 — — 456 Total $ 268 $ 516 $ 41 $ 27 $ 14 $ (15) $ 851 Nine Months Ended September 30, 2021 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 346 $ — $ — $ — $ — $ (11) $ 335 Food and beverage 127 — — — — — 127 Other 96 — — — — — 96 Owned and leased hotels 569 — — — — (11) 558 Base management fees — 87 27 13 — (17) 110 Incentive management fees — 11 15 8 — (4) 30 Franchise fees — 80 1 1 — — 82 Other fees — 11 8 3 25 — 47 Management, franchise, and other fees — 189 51 25 25 (21) 269 Contra revenue — (14) (3) (9) — — (26) Net management, franchise, and other fees — 175 48 16 25 (21) 243 Other revenues — 60 — — 8 1 69 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 966 70 46 — — 1,082 Total $ 569 $ 1,201 $ 118 $ 62 $ 33 $ (31) $ 1,952 Contract Balances Our contract assets, included in receivables, net on our condensed consolidated balance sheets, were $2 million and insignificant at September 30, 2022 and December 31, 2021, respectively. As our profitability hurdles are generally calculated on a full-year basis, we expect our contract assets to be insignificant at year end. Contract liabilities were comprised of the following: September 30, 2022 December 31, 2021 Deferred revenue related to the paid membership program $ 987 $ 833 Deferred revenue related to the loyalty program 904 814 Deferred revenue related to travel distribution and destination management services 613 629 Advanced deposits 59 61 Initial fees received from franchise owners 44 42 Deferred revenue related to insurance programs 6 52 Other deferred revenue 87 96 Total contract liabilities $ 2,700 $ 2,527 Revenue recognized during the three months ended September 30, 2022 and September 30, 2021 included in the contract liabilities balance at the beginning of each year was $153 million and $83 million, respectively. Revenue recognized during the nine months ended September 30, 2022 and September 30, 2021 included in the contract liabilities balance at the beginning of the year was $822 million and $230 million, respectively. This revenue primarily relates to travel distribution and destination management services, the loyalty program, and the paid membership program. Revenue Allocated to Remaining Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted revenue expected to be recognized in future periods was approximately $490 million at September 30, 2022, approximately 20% of which we expect to recognize over the next 12 months, with the remainder to be recognized thereafter. |
DEBT AND EQUITY SECURITIES
DEBT AND EQUITY SECURITIES | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
DEBT AND EQUITY SECURITIES | DEBT AND EQUITY SECURITIES Equity Method Investments Equity method investments were $182 million and $216 million at September 30, 2022 and December 31, 2021, respectively. During the nine months ended September 30, 2022, we received $23 million of proceeds related to the sale of our ownership interest in an equity method investment and recognized a $4 million pre-tax g ain in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss), net of a $5 million reclassification from accumulated other comprehensive loss (see Note 13). During the nine months ended September 30, 2021, we received $17 million of proceeds related to sales activity of certain equity method investments and recognized an insignificant net loss in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss). During the nine months ended September 30, 2021, we purchased our hospitality venture partner's interest in the entities that own Grand Hyatt São Paulo for $6 million of cash, and we repaid the $78 million third-party mortgage loan on the property. We recognized a $69 million pre-tax gain in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss) (see Note 6). Marketable Securities We hold marketable securities with readily determinable fair values to fund certain operating programs and for investment purposes. We periodically transfer available cash and cash equivalents to purchase marketable securities for investment purposes. Marketable Securities Held to Fund Operating Programs —Marketable securities held to fund operating programs, which are recorded at fair value on our condensed consolidated balance sheets, were as follows: September 30, 2022 December 31, 2021 Loyalty program (Note 8) $ 673 $ 601 Deferred compensation plans held in rabbi trusts (Note 8 and Note 10) 401 543 Captive insurance company (Note 8) 107 148 Total marketable securities held to fund operating programs $ 1,181 $ 1,292 Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments (279) (173) Marketable securities held to fund operating programs included in other assets $ 902 $ 1,119 At September 30, 2022 and December 31, 2021, marketable securities held to fund operating programs included: • $164 million and $141 million, respectively, of available-for-sale ("AFS") debt securities with contractual maturity dates ranging from 2023 through 2069. The fair value of our AFS debt securities approximates amortized cost; • $138 million and $4 million, respectively, of time deposits classified as held-to-maturity ("HTM") debt securities with contractual maturity dates ranging from 2022 through 2026. The fair value of our time deposits approximates amortized cost; • $60 million and $89 million, respectively, of equity securities with a readily determinable fair value. Net unrealized and realized gains (losses) from marketable securities held to fund operating programs recognized on our condensed consolidated financial statements were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Unrealized gains (losses), net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ (12) $ (4) $ (90) $ 19 Other income (loss), net (Note 18) (12) (3) (42) (8) Other comprehensive loss (Note 13) (5) — (15) (1) Realized gains, net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ — $ 3 $ 1 $ 16 Other income (loss), net (Note 18) — 1 — 1 Marketable Securities Held for Investment Purposes —Marketable securities held for investment purposes, which are recorded at cost or fair value, depending on the nature of the investment, on our condensed consolidated balance sheets, were as follows: September 30, 2022 December 31, 2021 Interest-bearing money market funds $ 477 $ 231 Common shares in Playa N.V. (Note 8) 71 97 Time deposits (1) 43 255 Total marketable securities held for investment purposes $ 591 $ 583 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (520) (486) Marketable securities held for investment purposes included in other assets $ 71 $ 97 (1) Time deposits have contractual maturity dates in 2022. We hold common shares in Playa Hotels & Resorts N.V. ("Playa N.V."), which are accounted for as an equity security with a readily determinable fair value as we do not have the ability to significantly influence the operations of the entity. We did not sell any shares of common stock during the nine months ended September 30, 2022 or September 30, 2021. Net unrealized gains (losses) recognized on our condensed consolidated statements of income (loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Other income (loss), net (Note 18) $ (12) $ 10 $ (26) $ 28 Fair Value —We measure marketable securities held to fund operating programs and held for investment purposes at fair value on a recurring basis: September 30, 2022 Cash and cash equivalents Short-term investments Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 613 $ 613 $ — $ — Mutual funds 461 — — 461 Common shares in Playa N.V. 71 — — 71 Level Two - Significant Other Observable Inputs Time deposits 181 35 143 3 U.S. government obligations 231 — 2 229 U.S. government agencies 55 — 2 53 Corporate debt securities 111 — 4 107 Mortgage-backed securities 21 — — 21 Asset-backed securities 23 — — 23 Municipal and provincial notes and bonds 5 — — 5 Total $ 1,772 $ 648 $ 151 $ 973 December 31, 2021 Cash and cash equivalents Short-term investments Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 397 $ 397 $ — $ — Mutual funds 632 — — 632 Common shares in Playa N.V. 97 — — 97 Level Two - Significant Other Observable Inputs Time deposits 259 35 221 3 U.S. government obligations 235 — — 235 U.S. government agencies 58 — — 58 Corporate debt securities 137 — 6 131 Mortgage-backed securities 24 — — 24 Asset-backed securities 28 — — 28 Municipal and provincial notes and bonds 8 — — 8 Total $ 1,875 $ 432 $ 227 $ 1,216 During the nine months ended September 30, 2022 and September 30, 2021, there were no transfers between levels of the fair value hierarchy. We do not have nonfinancial assets or nonfinancial liabilities required to be measured at fair value on a recurring basis. Other Investments HTM Debt Securities —We also hold investments in third-party entities related to certain of our hotels, which are redeemable on various dates through 2062 and are recorded as HTM debt securities within other assets on our condensed consolidated balance sheets: September 30, 2022 December 31, 2021 HTM debt securities $ 94 $ 91 Less: allowance for credit losses (30) (38) Total HTM debt securities, net of allowances $ 64 $ 53 The following table summarizes the activity in our HTM debt securities allowance for credit losses: 2022 2021 Allowance at January 1 $ 38 $ 21 Provisions (reversals), net (1) 2 8 Allowance at June 30 $ 40 $ 29 Provisions (reversals), net (10) 2 Allowance at September 30 $ 30 $ 31 (1) Provisions for credit losses were partially or fully offset by interest income recognized in the same periods (see Note 18). We estimated the fair value of these HTM debt securities to be approximately $80 million and $77 million at September 30, 2022 and December 31, 2021, respectively. The fair values of our investments in preferred shares, which are classified as Level Three in the fair value hierarchy, are estimated using internally developed discounted cash flow models based on current market inputs for similar types of arrangements. The primary sensitivity in these models is based on the selection of appropriate discount rates. Fluctuations in these assumptions could result in different estimates of fair value. The remaining HTM debt securities are classified as Level Two in the fair value hierarchy due to the use and weighting of multiple market inputs being considered in the final price of the security. Equity Securities Without a Readily Determinable Fair Value —At both September 30, 2022 and December 31, 2021, we held $12 million |
RECEIVABLES
RECEIVABLES | 9 Months Ended |
Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
RECEIVABLES | RECEIVABLES Receivables At September 30, 2022 and December 31, 2021, we had $702 million and $633 million of net receivables, respectively, recorded on our condensed consolidated balance sheets. The following table summarizes the activity in our receivables allowance for credit losses: 2022 2021 Allowance at January 1 $ 53 $ 56 Provisions (reversals), net 13 5 Other (7) (3) Allowance at June 30 $ 59 $ 58 Provisions (reversals), net — 1 Other (1) (1) Allowance at September 30 $ 58 $ 58 Financing Receivables September 30, 2022 December 31, 2021 Unsecured financing to hotel owners $ 131 $ 133 Less: current portion of financing receivables, included in receivables, net (25) (23) Less: allowance for credit losses (43) (69) Total long-term financing receivables, net of allowances $ 63 $ 41 Allowance for Credit Losses— The following table summarizes the activity in our unsecured financing receivables allowance for credit losses: 2022 2021 Allowance at January 1 $ 69 $ 114 Provisions (reversals), net (7) 6 Write-offs (1) — Foreign currency exchange, net (1) — Allowance at June 30 $ 60 $ 120 Provisions (reversals), net (2) — Write-offs (1) (14) (60) Foreign currency exchange, net (1) (3) Allowance at September 30 $ 43 $ 57 (1) The amount written off during the three months ended September 30, 2022 primarily related to loans with a third-party that were sold. The amount written off during the three months ended September 30, 2021 related to a financing arrangement with a hotel owner, which was legally waived. Credit Monitoring— Our unsecured financing receivables were as follows: September 30, 2022 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 130 $ (42) $ 88 $ 21 Other financing arrangements 1 (1) — — Total unsecured financing receivables $ 131 $ (43) $ 88 $ 21 December 31, 2021 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 130 $ (67) $ 63 $ 47 Other financing arrangements 3 (2) 1 — Total unsecured financing receivables $ 133 $ (69) $ 64 $ 47 Fair Value— We estimated the fair value of financing receivables to be approximately $120 million and $88 million at September 30, 2022 and December 31, 2021, respectively. The fair values, which are classified as Level Three in the fair value hierarchy, are estimated using discounted future cash flow models. The principal inputs used are projected future cash flows and the discount rate, which is generally the effective interest rate of the loan. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions Hotel Irvine —During the three months ended September 30, 2022, we acquired Hotel Irvine from an unrelated third party for $135 million, net of closing costs and proration adjustments. Upon completion of the asset acquisition, we recorded $135 million of property and equipment within our owned and leased hotels segment on our condensed consolidated balance sheet. Apple Leisure Group —During the year ended December 31, 2021, we acquired 100% of the outstanding limited partnership interests in Casablanca Global Intermediate Holdings L.P., doing business as Apple Leisure Group ("ALG"), and 100% of the outstanding ordinary shares of Casablanca Global GP Limited, its general partner, in a business combination for a purchase price of $2.7 billion (the "ALG Acquisition"). The transaction included $69 million of contingent consideration payable upon achieving certain targets related to ALG's outstanding travel credits; however, we did not record a contingent liability as the achievement was not considered probable as of the acquisition date. We closed on the transaction on November 1, 2021 and paid $2,718 million of cash, inclusive of $39 million of purchase price adjustments for amounts due back to the seller that were recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheet at December 31, 2021 and paid during the nine months ended September 30, 2022. Net assets acquired were determined as follows: Cash paid, net of cash acquired $ 2,718 Cash and cash equivalents acquired 460 Restricted cash acquired 16 Net assets acquired $ 3,194 The acquisition includes (i) management and marketing agreements for operating and pipeline hotels, primarily across Mexico, the Caribbean, Central America, and Europe, and brand names affiliated with ALG resorts; (ii) customer relationships and brand names related to ALG Vacations; and (iii) customer relationships and a brand name associated with the Unlimited Vacation Club paid membership program. Our condensed consolidated balance sheets at both September 30, 2022 and December 31, 2021 reflect preliminary estimates of the fair value of the assets acquired and liabilities assumed based on available information as of the acquisition date. The fair values of intangible assets acquired are estimated using either discounted future cash flow models or the relief from royalty method, both of which include revenue projections based on the expected contract terms and long-term growth rates, which are primarily Level Three assumptions. The fair values of performance guarantee liabilities assumed are estimated using scenario-based weighting, which utilizes a Monte Carlo simulation to model the probability of possible outcomes. The valuation methodology includes assumptions and judgments regarding probability weighting, discount rates, volatility, and hotel operating results as well as qualitative factors, which are primarily Level Three assumptions (see Note 12). The remaining assets and liabilities were recorded at their carrying values, which approximate their fair values. During 2022, the fair values of certain assets acquired and liabilities assumed were revised. The measurement period adjustments primarily resulted from the refinement of certain assumptions, including contract terms, renewal periods, and useful lives, which affected the underlying cash flows in the valuation and were based on facts and circumstances that existed at the acquisition date. Measurement period adjustments recorded on our condensed consolidated balance sheet at September 30, 2022 primarily include a $111 million increase in other long-term liabilities, largely due to performance guarantees (see Note 12); a $42 million decrease in intangibles, net; and a $16 million decrease in property and equipment, net, all of which contributed to a corresponding $177 million increase to goodwill. During the nine months ended September 30, 2022, we recognized a reduction of expenses of approximately $4 million and an increase in expenses of approximately $11 million on our condensed consolidated statements of income (loss), primarily related to amortization, that would have been recognized during the six months ended June 30, 2022 and the year ended December 31, 2021, respectively, if the measurement period adjustments would have been made as of the acquisition date. We will finalize the fair values of the assets acquired and liabilities assumed in the fourth quarter of 2022. We will continue to evaluate the contracts acquired and the underlying inputs and assumptions used in our valuation of assets acquired and liabilities assumed. The estimates, along with any related tax impacts, are subject to change during the measurement period, which is up to one year from the acquisition date. The following table summarizes the preliminary fair value of the identifiable net assets acquired at the acquisition date recorded on the Apple Leisure Group segment: Cash and cash equivalents $ 460 Restricted cash 16 Receivables 168 Prepaids and other assets 59 Property and equipment 6 Financing receivables, net 19 Operating lease right-of-use assets 79 Goodwill (1) 2,854 Indefinite-lived intangibles (2) 499 Management agreement intangibles (3) 484 Customer relationships intangibles (4) 608 Other intangibles 15 Other assets 40 Total assets acquired $ 5,307 Accounts payable $ 255 Accrued expenses and other current liabilities 98 Current contract liabilities (5) 638 Accrued compensation and benefits 49 Current operating lease liabilities 8 Long-term contract liabilities (5) 745 Long-term operating lease liabilities 71 Other long-term liabilities 249 Total liabilities assumed $ 2,113 Total net assets acquired attributable to Hyatt Hotels Corporation $ 3,194 ( 1) The goodwill is attributable to the growth opportunities we expect to realize by expanding our footprint in all-inclusive luxury and resort travel, increasing choices and experiences for guests, and enhancing end-to-end leisure travel offerings. Goodwill of $36 million is tax deductible. (2) Includes intangible assets related to various ALG brand names. (3) Amortized over useful lives of approximately 1 to 19 years, with a weighted-average useful life of approximately 11 years. (4) Amortized over useful lives of 4 to 11 years, with a weighted-average useful life of approximately 8 years. (5) Contract liabilities assumed were recorded at carrying value at the date of acquisition. Land —During the three months ended September 30, 2021, we acquired $7 million of land through an asset acquisition from an unrelated third party to develop a hotel in Tempe, Arizona. Alila Ventana Big Sur —During the nine months ended September 30, 2021, we completed an asset acquisition of Alila Ventana Big Sur for $146 million, net of closing costs and proration adjustments, which primarily consisted of $149 million of property and equipment. The seller is indirectly owned by a limited partnership affiliated with the brother of our Executive Chairman. The acquisition was identified as replacement property in a potential reverse like-kind exchange; however, we sold the property before a suitable replacement property was identified. During the three months ended September 30, 2021, we sold the property to an unrelated third party for approximately $148 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $2 million pre-tax gain, which was recognized in gains (losses) on sales of real estate on our condensed consolidated statements of income (loss) during the three months ended September 30, 2021. The operating results and financial position of this hotel during our period of ownership remain within our owned and leased hotels segment. Grand Hyatt São Paulo —We previously held a 50% interest in the entities that own Grand Hyatt São Paulo, and we accounted for the investment as an unconsolidated hospitality venture under the equity method. During the nine months ended September 30, 2021, we purchased the remaining 50% interest for $6 million of cash. Additionally, we repaid the $78 million third-party mortgage loan on the property and were released from our debt repayment guarantee. The transaction was accounted for as an asset acquisition, and we recognized a $69 million pre-tax gain related to the transaction in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss). The pre-tax gain is primarily attributable to a $42 million reversal of other long-term liabilities associated with our equity method investment and a $22 million reclassification from accumulated other comprehensive loss (see Note 13). Net assets acquired were determined as follows: Cash paid $ 6 Repayment of third-party mortgage loan 78 Fair value of our previously-held equity method investment 6 Net assets acquired $ 90 Upon acquisition, we recorded $101 million of property and equipment and $11 million of deferred tax liabilities within our owned and leased hotels segment on our condensed consolidated balance sheet. Dispositions The Confidante Miami Beach —During the nine months ended September 30, 2022, we sold The Confidante Miami Beach to an unrelated third party for approximately $227 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $24 million pre-tax gain, which was recognized in gains (losses) on sales of real estate on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2022. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. The Driskill —During the nine months ended September 30, 2022, we sold The Driskill to an unrelated third party for approximately $119 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $51 million pre-tax gain, which was recognized in gains (losses) on sales of real estate on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2022. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Grand Hyatt San Antonio River Walk —During the nine months ended September 30, 2022, we sold Grand Hyatt San Antonio River Walk to an unrelated third party and accounted for the transaction as an asset disposition. We received approximately $109 million of cash consideration, net of closing costs; a $19 million HTM debt security as additional consideration; and $18 million from the release of restricted cash held for debt service related to Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A and Contract Revenue Bonds, Senior Taxable Series 2005B (collectively, the "Series 2005 Bonds"). At the time of sale, we had $166 million of outstanding debt related to the Series 2005 Bonds, inclusive of accrued interest and net of $4 million of unamortized discounts, which was legally defeased in conjunction with the sale (see Note 9). Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $137 million pre-tax gain, which was recognized in gains (losses) on sales of real estate on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2022. In connection with the disposition, we recognized a $7 million goodwill impairment charge in asset impairments on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2022. The assets disposed represented the entirety of the reporting unit and therefore, no business operations remained to support the related goodwill, which was therefore impaired. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Indian Wells Resort & Spa —During the nine months ended September 30, 2022, we sold Hyatt Regency Indian Wells Resort & Spa to an unrelated third party for approximately $136 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $40 million pre-tax gain, which was recognized in gains (losses) on sales of real estate on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2022. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Lake Tahoe Resort, Spa and Casino —During the three months ended September 30, 2021, we sold Hyatt Regency Lake Tahoe Resort, Spa and Casino to an unrelated third party for approximately $343 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $305 million pre-tax gain, which was recognized in gains (losses) on sales of real estate on our condensed consolidated statements of income (loss) during the three months ended September 30, 2021. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Hyatt Regency Lost Pines Resort and Spa —During the nine months ended September 30, 2021, we sold Hyatt Regency Lost Pines Resort and Spa to an unrelated third party for approximately $268 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $104 million pre-tax gain, which was recognized in gains (losses) on sales of real estate on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2021. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment. Held For Sale Hyatt Regency Greenwich —During the three months ended September 30, 2022, we signed a purchase and sale agreement to sell Hyatt Regency Greenwich for a sales price of $40 million. At September 30, 2022, the related assets and liabilities were classified as held for sale within our owned and leased hotels segment on our condensed consolidated balance sheet. Assets held for sale were $26 million, which primarily consisted of $25 million of property and equipment, net, and liabilities held for sale were $3 million, of which $1 million related to contract liabilities. On October 5, 2022, we completed the sale of the property to an unrelated third party and entered into a long-term management agreement. Hyatt Regency Mainz —During the three months ended September 30, 2022, we signed a share purchase agreement to sell the share of the entity that is the operating lessee of Hyatt Regency Mainz for a nominal amount. At September 30, 2022, the related assets and liabilities were classified as held for sale within our owned and leased hotels segment on our condensed consolidated balance sheet. Assets held for sale were $4 million, of which $2 million related to cash and cash equivalents, and liabilities held for sale were $3 million, which primarily consisted of $2 million of accrued expenses. On October 1, 2022, we completed the sale of the entity to an unrelated third party and entered into a long-term franchise agreement. |
INTANGIBLES, NET
INTANGIBLES, NET | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES, NET | INTANGIBLES, NET September 30, 2022 Weighted- December 31, 2021 Management and franchise agreement intangibles $ 803 14 $ 835 Brand and other indefinite-lived intangibles 618 — 646 Customer relationships intangibles 608 8 586 Other intangibles 22 5 58 Intangibles 2,051 2,125 Less: accumulated amortization (302) (148) Intangibles, net $ 1,749 $ 1,977 Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amortization expense $ 45 $ 6 $ 156 $ 20 |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS September 30, 2022 December 31, 2021 Management and franchise agreement assets constituting payments to customers (1) $ 633 $ 571 Marketable securities held to fund the loyalty program (Note 4) 404 439 Marketable securities held to fund rabbi trusts (Note 4) 401 543 Marketable securities held for captive insurance company (Note 4) 97 137 Deferred costs related to the paid membership program 85 14 Long-term investments (Note 4) 76 65 Common shares in Playa N.V. (Note 4) 71 97 Long-term restricted cash 38 48 Other 107 120 Total other assets $ 1,912 $ 2,034 (1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At September 30, 2022 and December 31, 2021, we had $3,804 million and $3,978 million, respectively, of total debt, which included $654 million and $10 million, respectively, recorded in current maturities of long-term debt on our condensed consolidated balance sheets. On October 1, 2022, we redeemed our floating rate senior notes due 2023 for approximately $302 million, inclusive of $300 million of aggregate principal and $2 million of accrued interest. The debt was recorded in current maturities of long-term debt on our condensed consolidated balance sheet at September 30, 2022 as we irrevocably exercised our right to redeem the debt prior to the contractual maturity date. On October 28, 2022, we redeemed our 3.375% senior notes due 2023 for approximately $353 million, inclusive of $350 million of aggregate principal and $3 million of accrued interest. The debt was recorded in current maturities of long-term debt on our condensed consolidated balance sheet at September 30, 2022 based on the contractual maturity date. Revolving Credit Facility —During the nine months ended September 30, 2022, we entered into a new credit agreement with a syndicate of lenders that provides for a $1.5 billion senior unsecured revolving credit facility (the "revolving credit facility") that matures in May 2027. The credit agreement refinanced and replaced in its entirety our Second Amended and Restated Credit Agreement dated as of January 6, 2014, as amended (the "prior revolving credit facility"). The credit agreement provides for the issuance of revolving loans to us in U.S. dollars and, subject to a sublimit of $250 million, certain other currencies, and the issuance of up to $300 million of letters of credit. We have the option during the term of the revolving credit facility to increase the facility by an aggregate amount of up to an additional $500 million provided that, among other things, new and/or existing lenders agree to provide commitments for the increased amount. We may prepay any outstanding aggregate principal amount, in whole or in part, at any time, subject to certain restrictions and upon proper notice. The credit agreement contains customary affirmative, negative, and financial covenants; representations and warranties; and default provisions. During the nine months ended September 30, 2022 and September 30, 2021, we had no borrowings or repayments on our revolving credit facility or our prior revolving credit facility. At both September 30, 2022 and December 31, 2021, we had no balance outstanding on our revolving credit facility or our prior revolving credit facility. At September 30, 2022, we had $1,496 million of borrowing capacity available under our revolving credit facility, net of letters of credit outstanding. Fair Value —We estimate the fair value of debt, excluding finance leases, which consists of the notes below (collectively, the "Senior Notes") and other long-term debt. • $300 million of floating rate senior notes due 2023 • $350 million of 3.375% senior notes due 2023 • $700 million of 1.300% senior notes due 2023 • $750 million of 1.800% senior notes due 2024 • $450 million of 5.375% senior notes due 2025 • $400 million of 4.850% senior notes due 2026 • $400 million of 4.375% senior notes due 2028 • $450 million of 5.750% senior notes due 2030 Our Senior Notes are classified as Level Two due to the use and weighting of multiple market inputs in the final price of the security. We estimated the fair value of other debt instruments using a discounted cash flow analysis based on current market inputs for similar types of arrangements. Based on the lack of available market data, we have classified our revolving credit facility, as applicable, and other debt instruments as Level Three. The primary sensitivity in these models is based on the selection of appropriate discount rates. Fluctuations in our assumptions will result in different estimates of fair value. September 30, 2022 Carrying value Fair value Quoted prices in active markets for identical assets (Level One) Significant other observable inputs (Level Two) Significant unobservable inputs (Level Three) Debt (1) $ 3,816 $ 3,673 $ — $ 3,642 $ 31 (1) Excludes $6 million of finance lease obligations and $18 million of unamortized discounts and deferred financing fees. December 31, 2021 Carrying value Fair value Quoted prices in active markets for identical assets (Level One) Significant other observable inputs (Level Two) Significant unobservable inputs (Level Three) Debt (2) $ 4,000 $ 4,230 $ — $ 4,193 $ 37 (2) Excludes $7 million of finance lease obligations and $29 million of unamortized discounts and deferred financing fees. Senior Notes Repurchases —During the nine months ended September 30, 2022, we repurchased $4 million of our senior notes due 2024, $1 million of our senior notes due 2028, and $10 million of our senior notes due 2030 in the open market. Series 2005 Bonds —During the nine months ended September 30, 2022, the Series 2005 Bonds were legally defeased in conjunction with the sale of Grand Hyatt San Antonio River Walk (see Note 6). The Series 2005 Bonds had $166 million outstanding prior to defeasance, inclusive of accrued interest and net of $4 million of unamortized discounts, and we recognized an $8 million loss on extinguishment of debt related to restricted cash utilized to defease the debt. The loss was recognized in other income (loss), net on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2022 (see Note 18). |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES September 30, 2022 December 31, 2021 Deferred compensation plans funded by rabbi trusts (Note 4) $ 401 $ 543 Income taxes payable 353 281 Guarantee liabilities (Note 12) 125 92 Deferred income taxes (Note 11) 76 93 Self-insurance liabilities (Note 12) 64 66 Other 56 64 Total other long-term liabilities $ 1,075 $ 1,139 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe provision for income taxes for the three months ended September 30, 2022 and September 30, 2021 was $35 million and $138 million, respectively. The decrease was driven by the sale of Hyatt Regency Lake Tahoe Resort, Spa and Casino in 2021. The provision for income taxes for the nine months ended September 30, 2022 and September 30, 2021 was $143 million and $339 million, respectively. The decrease was driven by the impact of a non-cash expense to record a valuation allowance on U.S. federal and state deferred tax assets in the first quarter of 2021 as a result of entering into a three-year cumulative U.S. pre-tax loss position during the period. At September 30, 2022 and December 31, 2021, we had a valuation allowance recorded against our U.S. deferred tax assets. Given our U.S. current earnings and projected future earnings, we believe it is reasonably possible that, within the next twelve months, sufficient positive evidence may be available to support the conclusion that all or a portion of the valuation allowance will no longer be required. However, the timing and amount of the valuation allowance release is dependent on the level of future profitability we are reasonably expected to achieve . Release of the valuation allowance would result in a decrease to income tax expense in the period the release is recorded. We are subject to audits by federal, state, and foreign tax authorities. U.S. tax years 2018 through 2020 are currently under field exam. U.S. tax years 2009 through 2011 are before the U.S. Tax Court concerning the tax treatment of the loyalty program. The U.S. Tax Court trial proceedings occurred during April 2022 and the trial outcome is pending, subject to the U.S. Tax Court Judge's ruling. During the year ended December 31, 2021, we received a Notice of Proposed Adjustment for tax years 2015 through 2017 related to the loyalty program issue. As a result, U.S. tax years 2009 through 2017 are pending the outcome of the issue currently in U.S. Tax Court. If the IRS' position to include loyalty program contributions as taxable income to the Company is upheld, it would result in an income tax payment of $229 million (including $71 million of estimated interest, net of federal tax benefit) for all assessed years. We believe we have an adequate uncertain tax liability recorded in connection with this matter. At September 30, 2022 and December 31, 2021, total unrecognized tax benefits recorded in other long-term liabilities on our condensed consolidated balance sheets were $254 million and $205 million, respectively, of which $232 million and $186 million, respectively, would impact the effective tax rate if recognized. While it is reasonably possible that the amount of uncertain tax benefits associated with the U.S. treatment of the loyalty program could significantly change within the next 12 months, at this time, the Company is not able to estimate the range by which the reasonably possible outcomes of the pending litigation could impact our uncertain tax benefits within the next 12 months. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the ordinary course of business, we enter into various commitments, guarantees, surety and other bonds, and letter of credit agreements. Commitments —At September 30, 2022, we are committed, under certain conditions, to lend, provide certain consideration to, or invest in, various business ventures up to $307 million, net of any related letters of credit. Performance Guarantees —Certain of our contractual agreements with third-party hotel owners require us to guarantee payments to the owners if specified levels of operating profit are not achieved by their hotels. Except as described below, at September 30, 2022, our performance guarantees have $122 million of remaining maximum exposure and expire between 2022 and 2042. We acquired certain management agreements in the ALG Acquisition with performance guarantees expiring between 2022 and 2045. Our condensed consolidated balance sheet at September 30, 2022 reflects preliminary estimates of the fair value of the performance guarantee liabilities assumed based on information that was available as of the date of acquisition. The performance guarantees are based on annual performance levels. Contract terms within the management agreements limit our exposure, and therefore, we are unable to reasonably estimate our maximum potential future payments. In the fourth quarter of 2022, we will complete our review of the agreements acquired in the ALG Acquisition and the contractual obligations therein (see Note 6). At September 30, 2022 and December 31, 2021, we had $104 million and $52 million, respectively, of total performance guarantee liabilities, which included $93 million and $41 million, respectively, recorded in other long-term liabilities. At both September 30, 2022 and December 31, 2021, we had $11 million recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets. Additionally, we enter into certain management contracts where we have the right, but not an obligation, to make payments to certain hotel owners if their hotels do not achieve specified levels of operating profit. If we choose not to fund the shortfall, the hotel owner has the option to terminate the management contract. At September 30, 2022 and December 31, 2021, we had $6 million and $7 million, respectively, recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets related to these performance cure payments. Debt Repayment Guarantees —We enter into various debt repayment guarantees in order to assist hotel owners and unconsolidated hospitality ventures in obtaining third-party financing or to obtain more favorable borrowing terms. Geographical region Maximum potential future payments Maximum exposure net of recoverability from third parties Other long-term liabilities recorded at September 30, 2022 Other long-term liabilities recorded at December 31, 2021 Year of guarantee expiration United States (1), (2) $ 102 $ 42 $ 4 $ 10 various, through 2024 All foreign (1), (3) 202 192 28 41 various, through 2031 Total $ 304 $ 234 $ 32 $ 51 (1) We have agreements with our unconsolidated hospitality venture partners and a certain hotel owner to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash or HTM debt security. (2) Certain agreements give us the ability to assume control of the property if defined funding thresholds are met or if certain events occur. (3) Certain debt repayment guarantees are denominated in Indian rupees and translated using exchange rates at September 30, 2022. We have the contractual right to recover amounts funded from an unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be approximately $90 million, taking into account our partner's 50% ownership interest in the unconsolidated hospitality venture. Under certain events or conditions, we have the right to force the sale of the properties in order to recover amounts funded. At September 30, 2022, we are not aware, nor have we received any notification, that our unconsolidated hospitality ventures or the hotel owner are not current on their debt service obligations where we have provided a debt repayment guarantee. Guarantee Liabilities Fair Value —We estimated the fair value of our guarantees to be approximately $126 million and $87 million at September 30, 2022 and December 31, 2021, respectively. Based on the lack of available market data, we have classified our guarantees as Level Three in the fair value hierarchy. Insurance —We obtain commercial insurance for potential losses for general liability, workers' compensation, automobile liability, employment practices, crime, property, cyber risk, and other miscellaneous coverages. A portion of the risk is retained on a self-insurance basis primarily through a U.S.-based and licensed captive insurance company that is a wholly owned subsidiary of Hyatt and generally insures our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. Reserves for losses in our captive insurance company to be paid within 12 months are $38 million and $34 million at September 30, 2022 and December 31, 2021, respectively, and are recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets. Reserves for losses in our captive insurance company to be paid in future periods are $64 million and $66 million at September 30, 2022 and December 31, 2021, respectively, and are recorded in other long-term liabilities on our condensed consolidated balance sheets. Collective Bargaining Agreements —At September 30, 2022, approximately 21% of our U.S.-based employees were covered by various collective bargaining agreements, generally providing for basic pay rates, working hours, other conditions of employment, and orderly settlement of labor disputes. Certain employees are covered by union-sponsored, multi-employer pension and health plans pursuant to agreements between various unions and us. Generally, labor relations have been maintained in a normal and satisfactory manner, and we believe our employee relations are good. Surety and Other Bonds —Surety and other bonds issued on our behalf were $47 million at September 30, 2022 and primarily relate to workers' compensation, taxes, licenses, construction liens, and utilities related to our lodging operations. Letters of Credit —Letters of credit outstanding on our behalf at September 30, 2022 were $268 million, which primarily relate to our ongoing operations, collateral for customer deposits associated with ALG Vacations, collateral for estimated insurance claims, and securitization of our performance under our debt repayment guarantees associated with the hotel properties in India, which are only called on if we default on our guarantees. Of the letters of credit outstanding, $4 million reduces the available capacity under our revolving credit facility (see Note 9). Capital Expenditures —As part of our ongoing business operations, expenditures are required to complete renovation projects that have been approved. Other —We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender's recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof. In conjunction with financing obtained for our unconsolidated hospitality ventures and certain managed hotels, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions or actions of the other unconsolidated hospitality venture partners or respective hotel owners. As a result of certain dispositions, we have agreed to provide customary indemnifications to third-party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. We are subject, from time to time, to various claims and contingencies related to lawsuits, taxes, and environmental matters, as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. Although the ultimate liability for these matters cannot be determined at this point, based on information currently available, we do not expect the ultimate resolution of such claims and litigation to have a material effect on our condensed consolidated financial statements. During the year ended December 31, 2018, we received a notice from the Indian tax authorities assessing additional service tax on our operations in India. We appealed this decision and do not believe a loss is probable, and therefore, we have not recorded a liability in connection with this matter. At September 30, 2022, our maximum exposure is not expected to exceed $18 million. |
EQUITY
EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of insignificant tax impacts, were as follows: Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2022 Foreign currency translation adjustments $ (219) $ (22) $ — $ (241) Unrealized losses on AFS debt securities (11) (5) — (16) Unrecognized pension cost (4) — — (4) Unrealized gains (losses) on derivative instruments (1) (31) — 2 (29) Accumulated other comprehensive loss $ (265) $ (27) $ 2 $ (290) (1) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2022 Foreign currency translation adjustments (2) $ (206) $ (40) $ 5 $ (241) Unrealized losses on AFS debt securities (1) (15) — (16) Unrecognized pension cost (4) — — (4) Unrealized gains (losses) on derivative instruments (3) (34) — 5 (29) Accumulated other comprehensive loss $ (245) $ (55) $ 10 $ (290) (2) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the disposition of our ownership interest in an unconsolidated hospitality venture (see Note 4). (3) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. We expect to reclassify $6 million of losses over the next 12 months. Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2021 Foreign currency translation adjustments $ (174) $ (24) $ — $ (198) Unrealized gains (losses) on AFS debt securities — — — — Unrecognized pension cost (7) — — (7) Unrealized gains (losses) on derivative instruments (4) (37) — 1 (36) Accumulated other comprehensive loss $ (218) $ (24) $ 1 $ (241) (4) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2021 Foreign currency translation adjustments (5) $ (145) $ (33) $ (20) $ (198) Unrealized gains (losses) on AFS debt securities 1 (1) — — Unrecognized pension cost (7) — — (7) Unrealized gains (losses) on derivative instruments (6) (41) — 5 (36) Accumulated other comprehensive loss $ (192) $ (34) $ (15) $ (241) (5) The amount reclassified from accumulated other comprehensive loss included realized net gains recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the acquisition of the remaining interest in the entities which own Grand Hyatt São Paulo (see Note 6) and the disposition of our ownership interest in certain unconsolidated hospitality ventures (see Note 4). (6) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. Share Repurchases —During 2019 and 2018, our board of directors authorized the repurchase of up to $750 million and $750 million, respectively, of our common stock. These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan or an accelerated share repurchase transaction, at prices we deem appropriate and subject to market conditions, applicable law, and other factors deemed relevant in our sole discretion. The common stock repurchase program applies to our Class A and Class B common stock. The common stock repurchase program does not obligate us to repurchase any dollar amount or number of shares of common stock and the program may be suspended or discontinued at any time. During the nine months ended September 30, 2022, we repurchased 3,075,891 shares of Class A common stock. The shares of common stock were repurchased at a weighted-average price of $85.56 per share for an aggregate purchase price of $263 million, excluding insignificant related expenses. The shares repurchased during the nine months ended September 30, 2022 represented approximately 3% of our total shares of common stock outstanding at December 31, 2021. The shares of Class A common stock repurchased in the open market were retired and returned to the status of authorized and unissued shares. At September 30, 2022, we had $665 million remaining under the share repurchase authorization. During October 2022, we repurchased 327,556 shares of Class A common stock. The shares of common stock were repurchased at a weighted-average price of $82.56 for an aggregate purchase price of $27 million, excluding insignificant related expenses. The shares of Class A common stock repurchased in the open market were retired and returned to the status of authorized and unissued shares. Included in the October repurchases were 189,000 shares that were initiated prior to September 30, 2022, but not settled until October 2022. At September 30, 2022, we had a $16 million liability recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheet related to these shares. At October 31, 2022, we had $638 million remaining under the share repurchase authorization. During the nine months ended September 30, 2021, we did not repurchase common stock. Common Stock Issuance —During the three months ended September 30, 2021, we completed an underwritten public offering of our Class A common stock at a price of $74.50 per share (the "common stock issuance"). We issued and sold 8,050,000 shares, including 1,050,000 shares issued in connection with the full exercise of the underwriters' over-allotment option. We received $575 million of net proceeds from the common stock issuance, after deducting approximately $25 million of underwriting discounts and other offering expenses. We used the proceeds from the common stock issuance to fund a portion of the ALG Acquisition. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION As part of our Long-Term Incentive Plan, we award time-vested stock appreciation rights ("SARs"), time-vested restricted stock units ("RSUs"), and performance-vested restricted stock units ("PSUs") to certain employees and non-employee directors. In addition, non-employee directors may elect to receive their annual fees and/or annual equity retainers in the form of shares of our Class A common stock. Compensation expense and unearned compensation presented below exclude amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as these expenses have been and will continue to be reimbursed by our third-party hotel owners and are recognized in revenues for the reimbursement of costs incurred on behalf of managed and franchised properties and costs incurred on behalf of managed and franchised properties on our condensed consolidated statements of income (loss). Stock-based compensation expense recognized in selling, general, and administrative expenses on our condensed consolidated statements of income (loss) related to these awards was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 SARs $ — $ — $ 11 $ 10 RSUs 6 3 30 19 PSUs 1 3 6 13 Total $ 7 $ 6 $ 47 $ 42 SARs —During the nine months ended September 30, 2022, we granted 359,113 SARs to employees with a weighted-average grant date fair value of $37.56. During the nine months ended September 30, 2021, we granted 396,889 SARs to employees with a weighted-average grant date fair value of $28.68. RSUs —During the nine months ended September 30, 2022, we granted 539,818 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $91.81. During the nine months ended September 30, 2021, we granted 423,079 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $80.12. PSUs —During the nine months ended September 30, 2022, we granted 176,756 PSUs to employees with a weighted-average grant date fair value of $81.14. During the nine months ended September 30, 2021, we granted 153,256 PSUs to employees with a weighted-average grant date fair value of $82.02. Our total unearned compensation for our stock-based compensation programs at September 30, 2022 was $3 million for SARs, $33 million for RSUs, and $19 million for PSUs, which will primarily be recognized in stock-based compensation expense over a weighted-average period of two years. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS In addition to those included elsewhere in the Notes to our condensed consolidated financial statements, related-party transactions entered into by us are summarized as follows: Legal Services —A partner in a law firm that provided services to us throughout 2022 and 2021 is the brother-in-law of our Executive Chairman. During the three and nine months ended September 30, 2022, we incurred $4 million and $10 million, respectively, of legal fees with this firm. During the three and nine months ended September 30, 2021, we incurred $5 million and $7 million, respectively, of legal fees with this firm. At September 30, 2022 and December 31, 2021, we had $7 million and insignificant amounts, respectively, due to the law firm. Equity Method Investments —We have equity method investments in entities that own, operate, manage, or franchise properties for which we receive management, franchise, or license fees. We recognized $7 million and $3 million of fees during the three months ended September 30, 2022 and September 30, 2021, respectively. During the nine months ended September 30, 2022 and September 30, 2021, we recognized $17 million and $7 million of fees, respectively. In addition, in some cases we provide loans (see Note 5) or guarantees (see Note 12) to these entities. During both the three months ended September 30, 2022 and September 30, 2021, we recognized $2 million of income related to these guarantees. During the nine months ended September 30, 2022 and September 30, 2021, we recognized $5 million and $4 million, respectively, of income related to these guarantees. At September 30, 2022 and December 31, 2021, we had $50 million and $29 million, respectively, of net receivables due from these properties. Our ownership interest in these unconsolidated hospitality ventures varies from 24% to 50%. Class B Share Conversion —During the nine months ended September 30, 2022, 635,522 shares of Class B common stock were converted on a share-for-share basis into shares of Class A common stock, $0.01 par value per share. During the nine months ended September 30, 2021, 2,385,647 shares of Class B common stock were converted on a share-for-share basis into shares of Class A common stock, $0.01 par value per share. The shares of Class B common stock that were converted into shares of Class A common stock have been retired, thereby reducing the shares of Class B common stock authorized and outstanding. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM is our President and Chief Executive Officer. F o llowing the ALG Acquisition during the year ended December 31, 2021, ALG is managed as a separate reportable segment, but in the future, we may realign our reportable segments after integrating aspects of ALG's business. We define our reportable segments as follows: • Owned and leased hotels —This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations, and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card program and are eliminated in consolidation. • Americas management and franchising —This segment derives its earnings primarily from a combination of hotel management services and licensing of our portfolio of brands to franchisees located in the United States, Canada, the Caribbean, Mexico, Central America, and South America, as well as revenues from residential management operations. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to payroll at managed properties where the Company is the employer, as well as costs associated with sales, reservations, digital and technology, digital media, and marketing services (collectively, "system-wide services") and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation. • ASPAC management and franchising —This segment derives its earnings primarily from a combination of hotel management services and licensing of our portfolio of brands to franchisees located in Southeast Asia, Greater China, Australia, New Zealand, South Korea, Japan, and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. • EAME/SW Asia management and franchising —This segment derives its earnings primarily from a combination of hotel management services and licensing of our portfolio of brands to franchisees located in Europe, Africa, the Middle East, India, Central Asia, and Nepal. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation. • Apple Leisure Group —This segment derives its earnings from distribution and destination management services offered through ALG Vacations; management and marketing services primarily for all-inclusive ALG resorts located in Mexico, the Caribbean, Central America, South America, and Europe; and through a paid membership program offering benefits exclusively at ALG resorts in Mexico, the Caribbean, and Central America. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate to certain system-wide services provided on behalf of owners of ALG resorts. The Company is planning a geographic realignment of its EAME/SW Asia and ASPAC segments, which is expected to be effective on January 1, 2023. After the realignment, the segments will be described as EAME management and franchising ("EAME"), which will consist of our management and franchising of properties located in Europe, Africa, the Middle East, and Central Asia, and ASPAC management and franchising, which will consist of our management and franchising of properties located in Greater China, East and Southeast Asia, the Indian subcontinent, and Oceania. Our CODM evaluates performance based on owned and leased hotels revenues; management, franchise, and other fees revenues; distribution and destination management revenues; other revenues; and Adjusted EBITDA. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA based on our ownership percentage of each owned and leased venture, adjusted to exclude interest expense; benefit (provision) for income taxes; depreciation and amortization; amortization of management and franchise agreement assets and performance cure payments, which constitute payments to customers ("Contra revenue"); revenues for the reimbursement of costs incurred on behalf of managed and franchised properties; costs incurred on behalf of managed and franchised properties that we intend to recover over the long term; equity earnings (losses) from unconsolidated hospitality ventures; stock-based compensation expense; gains (losses) on sales of real estate and other; asset impairments; and other income (loss), net. The table below shows summarized consolidated financial information by segment. Included within corporate and other are results related to our co-branded credit card program and unallocated corporate expenses. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Owned and leased hotels Owned and leased hotels revenues $ 300 $ 268 $ 912 $ 569 Intersegment revenues (1) 7 5 21 11 Adjusted EBITDA 66 51 219 34 Depreciation and amortization 45 58 141 175 Americas management and franchising Management, franchise, and other fees revenues 127 85 354 189 Contra revenue (5) (5) (17) (14) Other revenues 28 24 91 60 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 614 412 1,632 966 Intersegment revenues (1) 9 10 30 20 Adjusted EBITDA 114 74 316 156 Depreciation and amortization 5 5 16 16 ASPAC management and franchising Management, franchise, and other fees revenues 26 16 58 51 Contra revenue (1) (1) (3) (3) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 37 26 100 70 Adjusted EBITDA 15 6 26 21 Depreciation and amortization — — 1 2 EAME/SW Asia management and franchising Management, franchise, and other fees revenues 30 12 66 25 Contra revenue (2) (3) (6) (9) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 27 18 71 46 Intersegment revenues (1) 3 1 6 1 Adjusted EBITDA 21 5 40 4 Apple Leisure Group Owned and leased hotels revenues 16 — 20 — Management, franchise, and other fees revenues 40 — 106 — Contra revenue (1) — (1) — Distribution and destination management revenues 244 — 746 — Other revenues 37 — 104 — Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 27 — 82 — Adjusted EBITDA 78 — 188 — Depreciation and amortization 40 — 142 — Corporate and other Revenues 16 14 43 33 Intersegment revenues (1) — (1) (2) (1) Adjusted EBITDA (42) (26) (114) (71) Depreciation and amortization 6 8 20 26 Eliminations Revenues (1) (19) (15) (55) (31) Adjusted EBITDA — — 1 1 TOTAL Revenues $ 1,541 $ 851 $ 4,303 $ 1,952 Adjusted EBITDA 252 110 676 145 Depreciation and amortization 96 71 320 219 (1) Intersegment revenues are included in management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations. The table below provides a reconciliation of our net income (loss) attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income (loss) attributable to Hyatt Hotels Corporation $ 28 $ 120 $ 161 $ (193) Interest expense 38 40 116 123 Provision for income taxes 35 138 143 339 Depreciation and amortization 96 71 320 219 EBITDA 197 369 740 488 Contra revenue 9 9 27 26 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (705) (456) (1,885) (1,082) Costs incurred on behalf of managed and franchised properties 697 465 1,881 1,117 Equity (earnings) losses from unconsolidated hospitality ventures (2) 12 6 (8) Stock-based compensation expense (Note 14) 7 6 47 42 (Gains) losses on sales of real estate (Note 6) 1 (307) (250) (412) Asset impairments 9 — 19 2 Other (income) loss, net (Note 18) 24 3 53 (34) Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 15 9 38 6 Adjusted EBITDA $ 252 $ 110 $ 676 $ 145 |
EARNINGS (LOSSES) PER SHARE
EARNINGS (LOSSES) PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSSES) PER SHARE | EARNINGS (LOSSES) PER SHARE The calculation of basic and diluted earnings (losses) per share, including a reconciliation of the numerator and denominator, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 28 $ 120 $ 161 $ (193) Net income (loss) attributable to noncontrolling interests — — — — Net income (loss) attributable to Hyatt Hotels Corporation $ 28 $ 120 $ 161 $ (193) Denominator: Basic weighted-average shares outstanding (1) 109,077,476 102,298,714 109,730,293 101,910,558 Share-based compensation 1,946,515 1,688,833 2,062,150 — Diluted weighted-average shares outstanding (1) 111,023,991 103,987,547 111,792,443 101,910,558 Basic Earnings (Losses) Per Share: Net income (loss) $ 0.25 $ 1.17 $ 1.46 $ (1.89) Net income (loss) attributable to noncontrolling interests — — — — Net income (loss) attributable to Hyatt Hotels Corporation $ 0.25 $ 1.17 $ 1.46 $ (1.89) Diluted Earnings (Losses) Per Share: Net income (loss) $ 0.25 $ 1.15 $ 1.44 $ (1.89) Net income (loss) attributable to noncontrolling interests — — — — Net income (loss) attributable to Hyatt Hotels Corporation $ 0.25 $ 1.15 $ 1.44 $ (1.89) (1) The computations reflect a reduction in shares outstanding at September 30, 2022 for the repurchases of 189,000 shares that were initiated prior to September 30, 2022, but settled in October 2022. The computations of diluted net earnings (losses) per share for the three and nine months ended September 30, 2022 and September 30, 2021 do not include the following shares of Class A common stock assumed to be issued as stock-settled SARs and RSUs because they are anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 SARs 10,900 4,500 9,300 1,242,900 RSUs 2,800 3,400 1,900 562,800 |
OTHER INCOME (LOSS), NET
OTHER INCOME (LOSS), NET | 9 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (LOSS), NET | OTHER INCOME (LOSS), NET Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restructuring expenses (1) $ (26) $ (3) $ (26) $ (3) Unrealized gains (losses), net (Note 4) (24) 7 (68) 20 Foreign currency gains (losses), net (10) — (12) 7 Performance guarantee expense (Note 12) (4) (3) (12) (8) Transaction costs (2) — (19) (1) (19) Loss on extinguishment of debt (Note 9) — — (8) — Depreciation recovery 4 4 12 13 Release and amortization of performance guarantee liability (Note 12) 10 1 17 2 Credit loss reversals (provisions), net (Note 4 and Note 5) 12 (2) 17 (12) Interest income 14 7 29 21 Other, net — 5 (1) 13 Other income (loss), net $ (24) $ (3) $ (53) $ 34 (1) During the three and nine months ended September 30, 2022, we recognized $26 million of restructuring expenses for severance costs related to the redevelopment of an owned hotel. (2) During the three and nine months ended September 30, 2021, we recognized $19 million of transaction costs related to the ALG Acquisition. |
RECENTLY ISSUED ACCOUNTING PR_2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q, and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete annual financial statements. |
Principles of Consolidation | We have eliminated all intercompany accounts and transactions in our condensed consolidated financial statements. We consolidate entities under our control, including entities where we are deemed to be the primary beneficiary. |
Adopted Accounting Standards and Future Adoption of Accounting Standards | Adopted Accounting Standards Government Assistance —In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2021-10 ("ASU 2021-10"), Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance . ASU 2021-10 requires annual disclosures that are expected to increase the transparency of transactions involving government grants, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity's financial statements. The provisions of ASU 2021-10 are effective for fiscal years beginning after December 31, 2021, and we adopted ASU 2021-10 on January 1, 2022. We are currently evaluating the impact of ASU 2021-10 on our annual disclosures and do not expect a material impact to the Notes to our consolidated financial statements. Future Adoption of Accounting Standards Reference Rate Reform —In March 2020, the FASB issued Accounting Standards Update No. 2020-04 ("ASU 2020-04"), Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . ASU 2020-04 provides optional expedients and exceptions that we can elect to adopt, subject to meeting certain criteria, regarding contract modifications, hedging relationships, and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform. The provisions of ASU 2020-04 are available through December 31, 2022, and we are currently assessing the impact of adopting ASU 2020-04. |
Revenue Allocated to Remaining Performance Obligations | Revenue Allocated to Remaining Performance ObligationsRevenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. |
Insurance | Insurance—We obtain commercial insurance for potential losses for general liability, workers' compensation, automobile liability, employment practices, crime, property, cyber risk, and other miscellaneous coverages. A portion of the risk is retained on a self-insurance basis primarily through a U.S.-based and licensed captive insurance company that is a wholly owned subsidiary of Hyatt and generally insures our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. |
Commitments and Contingencies Other | Other —We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender's recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof. In conjunction with financing obtained for our unconsolidated hospitality ventures and certain managed hotels, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions or actions of the other unconsolidated hospitality venture partners or respective hotel owners. As a result of certain dispositions, we have agreed to provide customary indemnifications to third-party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire. We are subject, from time to time, to various claims and contingencies related to lawsuits, taxes, and environmental matters, as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. Although the ultimate liability for these matters cannot be determined at this point, based on information currently available, we do not expect the ultimate resolution of such claims and litigation to have a material effect on our condensed consolidated financial statements. |
Segment Information | SEGMENT INFORMATION Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM is our President and Chief Executive Officer. F o llowing the ALG Acquisition during the year ended December 31, 2021, ALG is managed as a separate reportable segment, but in the future, we may realign our reportable segments after integrating aspects of ALG's business. We define our reportable segments as follows: • Owned and leased hotels —This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations, and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card program and are eliminated in consolidation. • Americas management and franchising —This segment derives its earnings primarily from a combination of hotel management services and licensing of our portfolio of brands to franchisees located in the United States, Canada, the Caribbean, Mexico, Central America, and South America, as well as revenues from residential management operations. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to payroll at managed properties where the Company is the employer, as well as costs associated with sales, reservations, digital and technology, digital media, and marketing services (collectively, "system-wide services") and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation. • ASPAC management and franchising —This segment derives its earnings primarily from a combination of hotel management services and licensing of our portfolio of brands to franchisees located in Southeast Asia, Greater China, Australia, New Zealand, South Korea, Japan, and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. • EAME/SW Asia management and franchising —This segment derives its earnings primarily from a combination of hotel management services and licensing of our portfolio of brands to franchisees located in Europe, Africa, the Middle East, India, Central Asia, and Nepal. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation. • Apple Leisure Group —This segment derives its earnings from distribution and destination management services offered through ALG Vacations; management and marketing services primarily for all-inclusive ALG resorts located in Mexico, the Caribbean, Central America, South America, and Europe; and through a paid membership program offering benefits exclusively at ALG resorts in Mexico, the Caribbean, and Central America. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These reimbursed costs relate to certain system-wide services provided on behalf of owners of ALG resorts. The Company is planning a geographic realignment of its EAME/SW Asia and ASPAC segments, which is expected to be effective on January 1, 2023. After the realignment, the segments will be described as EAME management and franchising ("EAME"), which will consist of our management and franchising of properties located in Europe, Africa, the Middle East, and Central Asia, and ASPAC management and franchising, which will consist of our management and franchising of properties located in Greater China, East and Southeast Asia, the Indian subcontinent, and Oceania. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present our revenues disaggregated by the nature of the product or service: Three Months Ended September 30, 2022 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Apple Leisure Group Corporate and other Eliminations Total Rooms revenues $ 196 $ — $ — $ — $ 15 $ — $ (7) $ 204 Food and beverage 69 — — — — — — 69 Other 35 — — — 1 — — 36 Owned and leased hotels 300 — — — 16 — (7) 309 Base management fees — 60 12 11 10 — (9) 84 Incentive management fees — 15 11 8 12 — (3) 43 Franchise fees — 49 1 2 — — — 52 Other fees — 3 2 9 18 13 — 45 Management, franchise, and other fees — 127 26 30 40 13 (12) 224 Contra revenue — (5) (1) (2) (1) — — (9) Net management, franchise, and other fees — 122 25 28 39 13 (12) 215 Distribution and destination management — — — — 244 — — 244 Other revenues — 28 — — 37 3 — 68 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 614 37 27 27 — — 705 Total $ 300 $ 764 $ 62 $ 55 $ 363 $ 16 $ (19) $ 1,541 Nine Months Ended September 30, 2022 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Apple Leisure Group Corporate and other Eliminations Total Rooms revenues $ 572 $ — $ — $ — $ 19 $ — $ (21) $ 570 Food and beverage 225 — — — — — — 225 Other 115 — — — 1 — — 116 Owned and leased hotels 912 — — — 20 — (21) 911 Base management fees — 167 28 28 27 — (27) 223 Incentive management fees — 45 21 23 48 — (9) 128 Franchise fees — 133 2 4 — — — 139 Other fees — 9 7 11 31 34 — 92 Management, franchise, and other fees — 354 58 66 106 34 (36) 582 Contra revenue — (17) (3) (6) (1) — — (27) Net management, franchise, and other fees — 337 55 60 105 34 (36) 555 Distribution and destination management — — — — 746 — — 746 Other revenues — 91 — — 104 9 2 206 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 1,632 100 71 82 — — 1,885 Total $ 912 $ 2,060 $ 155 $ 131 $ 1,057 $ 43 $ (55) $ 4,303 Three Months Ended September 30, 2021 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 167 $ — $ — $ — $ — $ (5) $ 162 Food and beverage 64 — — — — — 64 Other 37 — — — — — 37 Owned and leased hotels 268 — — — — (5) 263 Base management fees — 41 10 7 — (8) 50 Incentive management fees — 6 4 3 — (3) 10 Franchise fees — 35 — 1 — — 36 Other fees — 3 2 1 11 — 17 Management, franchise, and other fees — 85 16 12 11 (11) 113 Contra revenue — (5) (1) (3) — — (9) Net management, franchise, and other fees — 80 15 9 11 (11) 104 Other revenues — 24 — — 3 1 28 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 412 26 18 — — 456 Total $ 268 $ 516 $ 41 $ 27 $ 14 $ (15) $ 851 Nine Months Ended September 30, 2021 Owned and leased hotels Americas management and franchising ASPAC management and franchising EAME/SW Asia management and franchising Corporate and other Eliminations Total Rooms revenues $ 346 $ — $ — $ — $ — $ (11) $ 335 Food and beverage 127 — — — — — 127 Other 96 — — — — — 96 Owned and leased hotels 569 — — — — (11) 558 Base management fees — 87 27 13 — (17) 110 Incentive management fees — 11 15 8 — (4) 30 Franchise fees — 80 1 1 — — 82 Other fees — 11 8 3 25 — 47 Management, franchise, and other fees — 189 51 25 25 (21) 269 Contra revenue — (14) (3) (9) — — (26) Net management, franchise, and other fees — 175 48 16 25 (21) 243 Other revenues — 60 — — 8 1 69 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties — 966 70 46 — — 1,082 Total $ 569 $ 1,201 $ 118 $ 62 $ 33 $ (31) $ 1,952 |
Summary of Contract Liability | Contract liabilities were comprised of the following: September 30, 2022 December 31, 2021 Deferred revenue related to the paid membership program $ 987 $ 833 Deferred revenue related to the loyalty program 904 814 Deferred revenue related to travel distribution and destination management services 613 629 Advanced deposits 59 61 Initial fees received from franchise owners 44 42 Deferred revenue related to insurance programs 6 52 Other deferred revenue 87 96 Total contract liabilities $ 2,700 $ 2,527 |
DEBT AND EQUITY SECURITIES (Tab
DEBT AND EQUITY SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities Held to Fund Operating Programs | Marketable securities held to fund operating programs, which are recorded at fair value on our condensed consolidated balance sheets, were as follows: September 30, 2022 December 31, 2021 Loyalty program (Note 8) $ 673 $ 601 Deferred compensation plans held in rabbi trusts (Note 8 and Note 10) 401 543 Captive insurance company (Note 8) 107 148 Total marketable securities held to fund operating programs $ 1,181 $ 1,292 Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments (279) (173) Marketable securities held to fund operating programs included in other assets $ 902 $ 1,119 |
Schedule of Net Gains and Interest Income from Marketable Securities Held to Fund Operating Programs | Net unrealized and realized gains (losses) from marketable securities held to fund operating programs recognized on our condensed consolidated financial statements were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Unrealized gains (losses), net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ (12) $ (4) $ (90) $ 19 Other income (loss), net (Note 18) (12) (3) (42) (8) Other comprehensive loss (Note 13) (5) — (15) (1) Realized gains, net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts $ — $ 3 $ 1 $ 16 Other income (loss), net (Note 18) — 1 — 1 |
Schedule of Marketable Securities Held for Investment Purposes | Marketable securities held for investment purposes, which are recorded at cost or fair value, depending on the nature of the investment, on our condensed consolidated balance sheets, were as follows: September 30, 2022 December 31, 2021 Interest-bearing money market funds $ 477 $ 231 Common shares in Playa N.V. (Note 8) 71 97 Time deposits (1) 43 255 Total marketable securities held for investment purposes $ 591 $ 583 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (520) (486) Marketable securities held for investment purposes included in other assets $ 71 $ 97 (1) Time deposits have contractual maturity dates in 2022. |
Schedule of Unrealized Gain (Loss) on Investments | Net unrealized gains (losses) recognized on our condensed consolidated statements of income (loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Other income (loss), net (Note 18) $ (12) $ 10 $ (26) $ 28 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | We measure marketable securities held to fund operating programs and held for investment purposes at fair value on a recurring basis: September 30, 2022 Cash and cash equivalents Short-term investments Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 613 $ 613 $ — $ — Mutual funds 461 — — 461 Common shares in Playa N.V. 71 — — 71 Level Two - Significant Other Observable Inputs Time deposits 181 35 143 3 U.S. government obligations 231 — 2 229 U.S. government agencies 55 — 2 53 Corporate debt securities 111 — 4 107 Mortgage-backed securities 21 — — 21 Asset-backed securities 23 — — 23 Municipal and provincial notes and bonds 5 — — 5 Total $ 1,772 $ 648 $ 151 $ 973 December 31, 2021 Cash and cash equivalents Short-term investments Other assets Level One - Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 397 $ 397 $ — $ — Mutual funds 632 — — 632 Common shares in Playa N.V. 97 — — 97 Level Two - Significant Other Observable Inputs Time deposits 259 35 221 3 U.S. government obligations 235 — — 235 U.S. government agencies 58 — — 58 Corporate debt securities 137 — 6 131 Mortgage-backed securities 24 — — 24 Asset-backed securities 28 — — 28 Municipal and provincial notes and bonds 8 — — 8 Total $ 1,875 $ 432 $ 227 $ 1,216 |
Schedule of Debt Securities, Held-to-maturity | We also hold investments in third-party entities related to certain of our hotels, which are redeemable on various dates through 2062 and are recorded as HTM debt securities within other assets on our condensed consolidated balance sheets: September 30, 2022 December 31, 2021 HTM debt securities $ 94 $ 91 Less: allowance for credit losses (30) (38) Total HTM debt securities, net of allowances $ 64 $ 53 |
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table summarizes the activity in our HTM debt securities allowance for credit losses: 2022 2021 Allowance at January 1 $ 38 $ 21 Provisions (reversals), net (1) 2 8 Allowance at June 30 $ 40 $ 29 Provisions (reversals), net (10) 2 Allowance at September 30 $ 30 $ 31 (1) Provisions for credit losses were partially or fully offset by interest income recognized in the same periods (see Note 18). |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Accounts Receivable, Allowance for Credit Loss | The following table summarizes the activity in our receivables allowance for credit losses: 2022 2021 Allowance at January 1 $ 53 $ 56 Provisions (reversals), net 13 5 Other (7) (3) Allowance at June 30 $ 59 $ 58 Provisions (reversals), net — 1 Other (1) (1) Allowance at September 30 $ 58 $ 58 |
Schedule of Financing Receivables | Financing Receivables September 30, 2022 December 31, 2021 Unsecured financing to hotel owners $ 131 $ 133 Less: current portion of financing receivables, included in receivables, net (25) (23) Less: allowance for credit losses (43) (69) Total long-term financing receivables, net of allowances $ 63 $ 41 |
Schedule of Allowance for Losses and Impairments | The following table summarizes the activity in our unsecured financing receivables allowance for credit losses: 2022 2021 Allowance at January 1 $ 69 $ 114 Provisions (reversals), net (7) 6 Write-offs (1) — Foreign currency exchange, net (1) — Allowance at June 30 $ 60 $ 120 Provisions (reversals), net (2) — Write-offs (1) (14) (60) Foreign currency exchange, net (1) (3) Allowance at September 30 $ 43 $ 57 (1) The amount written off during the three months ended September 30, 2022 primarily related to loans with a third-party that were sold. The amount written off during the three months ended September 30, 2021 related to a financing arrangement with a hotel owner, which was legally waived. |
Schedule of Credit Monitoring | Our unsecured financing receivables were as follows: September 30, 2022 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 130 $ (42) $ 88 $ 21 Other financing arrangements 1 (1) — — Total unsecured financing receivables $ 131 $ (43) $ 88 $ 21 December 31, 2021 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 130 $ (67) $ 63 $ 47 Other financing arrangements 3 (2) 1 — Total unsecured financing receivables $ 133 $ (69) $ 64 $ 47 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Identifiable Net Assets Acquired | Net assets acquired were determined as follows: Cash paid, net of cash acquired $ 2,718 Cash and cash equivalents acquired 460 Restricted cash acquired 16 Net assets acquired $ 3,194 The following table summarizes the preliminary fair value of the identifiable net assets acquired at the acquisition date recorded on the Apple Leisure Group segment: Cash and cash equivalents $ 460 Restricted cash 16 Receivables 168 Prepaids and other assets 59 Property and equipment 6 Financing receivables, net 19 Operating lease right-of-use assets 79 Goodwill (1) 2,854 Indefinite-lived intangibles (2) 499 Management agreement intangibles (3) 484 Customer relationships intangibles (4) 608 Other intangibles 15 Other assets 40 Total assets acquired $ 5,307 Accounts payable $ 255 Accrued expenses and other current liabilities 98 Current contract liabilities (5) 638 Accrued compensation and benefits 49 Current operating lease liabilities 8 Long-term contract liabilities (5) 745 Long-term operating lease liabilities 71 Other long-term liabilities 249 Total liabilities assumed $ 2,113 Total net assets acquired attributable to Hyatt Hotels Corporation $ 3,194 ( 1) The goodwill is attributable to the growth opportunities we expect to realize by expanding our footprint in all-inclusive luxury and resort travel, increasing choices and experiences for guests, and enhancing end-to-end leisure travel offerings. Goodwill of $36 million is tax deductible. (2) Includes intangible assets related to various ALG brand names. (3) Amortized over useful lives of approximately 1 to 19 years, with a weighted-average useful life of approximately 11 years. (4) Amortized over useful lives of 4 to 11 years, with a weighted-average useful life of approximately 8 years. (5) Contract liabilities assumed were recorded at carrying value at the date of acquisition. |
Schedule of Asset Acquisition | Net assets acquired were determined as follows: Cash paid $ 6 Repayment of third-party mortgage loan 78 Fair value of our previously-held equity method investment 6 Net assets acquired $ 90 |
INTANGIBLES, NET (Tables)
INTANGIBLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | September 30, 2022 Weighted- December 31, 2021 Management and franchise agreement intangibles $ 803 14 $ 835 Brand and other indefinite-lived intangibles 618 — 646 Customer relationships intangibles 608 8 586 Other intangibles 22 5 58 Intangibles 2,051 2,125 Less: accumulated amortization (302) (148) Intangibles, net $ 1,749 $ 1,977 |
Schedule of Indefinite-Lived Intangible Assets | September 30, 2022 Weighted- December 31, 2021 Management and franchise agreement intangibles $ 803 14 $ 835 Brand and other indefinite-lived intangibles 618 — 646 Customer relationships intangibles 608 8 586 Other intangibles 22 5 58 Intangibles 2,051 2,125 Less: accumulated amortization (302) (148) Intangibles, net $ 1,749 $ 1,977 |
Schedule of Intangible Assets Amortization Expense | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Amortization expense $ 45 $ 6 $ 156 $ 20 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | September 30, 2022 December 31, 2021 Management and franchise agreement assets constituting payments to customers (1) $ 633 $ 571 Marketable securities held to fund the loyalty program (Note 4) 404 439 Marketable securities held to fund rabbi trusts (Note 4) 401 543 Marketable securities held for captive insurance company (Note 4) 97 137 Deferred costs related to the paid membership program 85 14 Long-term investments (Note 4) 76 65 Common shares in Playa N.V. (Note 4) 71 97 Long-term restricted cash 38 48 Other 107 120 Total other assets $ 1,912 $ 2,034 (1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Fair Value, by Balance Sheet Grouping | Our Senior Notes are classified as Level Two due to the use and weighting of multiple market inputs in the final price of the security. We estimated the fair value of other debt instruments using a discounted cash flow analysis based on current market inputs for similar types of arrangements. Based on the lack of available market data, we have classified our revolving credit facility, as applicable, and other debt instruments as Level Three. The primary sensitivity in these models is based on the selection of appropriate discount rates. Fluctuations in our assumptions will result in different estimates of fair value. September 30, 2022 Carrying value Fair value Quoted prices in active markets for identical assets (Level One) Significant other observable inputs (Level Two) Significant unobservable inputs (Level Three) Debt (1) $ 3,816 $ 3,673 $ — $ 3,642 $ 31 (1) Excludes $6 million of finance lease obligations and $18 million of unamortized discounts and deferred financing fees. December 31, 2021 Carrying value Fair value Quoted prices in active markets for identical assets (Level One) Significant other observable inputs (Level Two) Significant unobservable inputs (Level Three) Debt (2) $ 4,000 $ 4,230 $ — $ 4,193 $ 37 (2) Excludes $7 million of finance lease obligations and $29 million of unamortized discounts and deferred financing fees. |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Liabilities [Abstract] | |
Schedule of Other Long-Term Liabilities | September 30, 2022 December 31, 2021 Deferred compensation plans funded by rabbi trusts (Note 4) $ 401 $ 543 Income taxes payable 353 281 Guarantee liabilities (Note 12) 125 92 Deferred income taxes (Note 11) 76 93 Self-insurance liabilities (Note 12) 64 66 Other 56 64 Total other long-term liabilities $ 1,075 $ 1,139 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Debt Repayment and Other Guarantees | We enter into various debt repayment guarantees in order to assist hotel owners and unconsolidated hospitality ventures in obtaining third-party financing or to obtain more favorable borrowing terms. Geographical region Maximum potential future payments Maximum exposure net of recoverability from third parties Other long-term liabilities recorded at September 30, 2022 Other long-term liabilities recorded at December 31, 2021 Year of guarantee expiration United States (1), (2) $ 102 $ 42 $ 4 $ 10 various, through 2024 All foreign (1), (3) 202 192 28 41 various, through 2031 Total $ 304 $ 234 $ 32 $ 51 (1) We have agreements with our unconsolidated hospitality venture partners and a certain hotel owner to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash or HTM debt security. (2) Certain agreements give us the ability to assume control of the property if defined funding thresholds are met or if certain events occur. |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of insignificant tax impacts, were as follows: Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2022 Foreign currency translation adjustments $ (219) $ (22) $ — $ (241) Unrealized losses on AFS debt securities (11) (5) — (16) Unrecognized pension cost (4) — — (4) Unrealized gains (losses) on derivative instruments (1) (31) — 2 (29) Accumulated other comprehensive loss $ (265) $ (27) $ 2 $ (290) (1) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2022 Foreign currency translation adjustments (2) $ (206) $ (40) $ 5 $ (241) Unrealized losses on AFS debt securities (1) (15) — (16) Unrecognized pension cost (4) — — (4) Unrealized gains (losses) on derivative instruments (3) (34) — 5 (29) Accumulated other comprehensive loss $ (245) $ (55) $ 10 $ (290) (2) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the disposition of our ownership interest in an unconsolidated hospitality venture (see Note 4). (3) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. We expect to reclassify $6 million of losses over the next 12 months. Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2021 Foreign currency translation adjustments $ (174) $ (24) $ — $ (198) Unrealized gains (losses) on AFS debt securities — — — — Unrecognized pension cost (7) — — (7) Unrealized gains (losses) on derivative instruments (4) (37) — 1 (36) Accumulated other comprehensive loss $ (218) $ (24) $ 1 $ (241) (4) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. Balance at Current period other comprehensive income (loss) before reclassification Amount reclassified from accumulated other comprehensive loss Balance at September 30, 2021 Foreign currency translation adjustments (5) $ (145) $ (33) $ (20) $ (198) Unrealized gains (losses) on AFS debt securities 1 (1) — — Unrecognized pension cost (7) — — (7) Unrealized gains (losses) on derivative instruments (6) (41) — 5 (36) Accumulated other comprehensive loss $ (192) $ (34) $ (15) $ (241) (5) The amount reclassified from accumulated other comprehensive loss included realized net gains recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the acquisition of the remaining interest in the entities which own Grand Hyatt São Paulo (see Note 6) and the disposition of our ownership interest in certain unconsolidated hospitality ventures (see Note 4). (6) The amount reclassified from accumulated other comprehensive loss represented realized losses recognized in interest expense related to the settlement of interest rate locks. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Compensation Expense Related to Long-Term Incentive Plan | Stock-based compensation expense recognized in selling, general, and administrative expenses on our condensed consolidated statements of income (loss) related to these awards was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 SARs $ — $ — $ 11 $ 10 RSUs 6 3 30 19 PSUs 1 3 6 13 Total $ 7 $ 6 $ 47 $ 42 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summarized Consolidated Financial Information by Segment | The table below shows summarized consolidated financial information by segment. Included within corporate and other are results related to our co-branded credit card program and unallocated corporate expenses. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Owned and leased hotels Owned and leased hotels revenues $ 300 $ 268 $ 912 $ 569 Intersegment revenues (1) 7 5 21 11 Adjusted EBITDA 66 51 219 34 Depreciation and amortization 45 58 141 175 Americas management and franchising Management, franchise, and other fees revenues 127 85 354 189 Contra revenue (5) (5) (17) (14) Other revenues 28 24 91 60 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 614 412 1,632 966 Intersegment revenues (1) 9 10 30 20 Adjusted EBITDA 114 74 316 156 Depreciation and amortization 5 5 16 16 ASPAC management and franchising Management, franchise, and other fees revenues 26 16 58 51 Contra revenue (1) (1) (3) (3) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 37 26 100 70 Adjusted EBITDA 15 6 26 21 Depreciation and amortization — — 1 2 EAME/SW Asia management and franchising Management, franchise, and other fees revenues 30 12 66 25 Contra revenue (2) (3) (6) (9) Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 27 18 71 46 Intersegment revenues (1) 3 1 6 1 Adjusted EBITDA 21 5 40 4 Apple Leisure Group Owned and leased hotels revenues 16 — 20 — Management, franchise, and other fees revenues 40 — 106 — Contra revenue (1) — (1) — Distribution and destination management revenues 244 — 746 — Other revenues 37 — 104 — Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties 27 — 82 — Adjusted EBITDA 78 — 188 — Depreciation and amortization 40 — 142 — Corporate and other Revenues 16 14 43 33 Intersegment revenues (1) — (1) (2) (1) Adjusted EBITDA (42) (26) (114) (71) Depreciation and amortization 6 8 20 26 Eliminations Revenues (1) (19) (15) (55) (31) Adjusted EBITDA — — 1 1 TOTAL Revenues $ 1,541 $ 851 $ 4,303 $ 1,952 Adjusted EBITDA 252 110 676 145 Depreciation and amortization 96 71 320 219 (1) Intersegment revenues are included in management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations. |
Schedule of Reconciliation of Consolidated Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation | The table below provides a reconciliation of our net income (loss) attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net income (loss) attributable to Hyatt Hotels Corporation $ 28 $ 120 $ 161 $ (193) Interest expense 38 40 116 123 Provision for income taxes 35 138 143 339 Depreciation and amortization 96 71 320 219 EBITDA 197 369 740 488 Contra revenue 9 9 27 26 Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties (705) (456) (1,885) (1,082) Costs incurred on behalf of managed and franchised properties 697 465 1,881 1,117 Equity (earnings) losses from unconsolidated hospitality ventures (2) 12 6 (8) Stock-based compensation expense (Note 14) 7 6 47 42 (Gains) losses on sales of real estate (Note 6) 1 (307) (250) (412) Asset impairments 9 — 19 2 Other (income) loss, net (Note 18) 24 3 53 (34) Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 15 9 38 6 Adjusted EBITDA $ 252 $ 110 $ 676 $ 145 |
EARNINGS (LOSSES) PER SHARE (Ta
EARNINGS (LOSSES) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of the Calculation of Basic and Diluted Earnings (Losses) Per Share | The calculation of basic and diluted earnings (losses) per share, including a reconciliation of the numerator and denominator, is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income (loss) $ 28 $ 120 $ 161 $ (193) Net income (loss) attributable to noncontrolling interests — — — — Net income (loss) attributable to Hyatt Hotels Corporation $ 28 $ 120 $ 161 $ (193) Denominator: Basic weighted-average shares outstanding (1) 109,077,476 102,298,714 109,730,293 101,910,558 Share-based compensation 1,946,515 1,688,833 2,062,150 — Diluted weighted-average shares outstanding (1) 111,023,991 103,987,547 111,792,443 101,910,558 Basic Earnings (Losses) Per Share: Net income (loss) $ 0.25 $ 1.17 $ 1.46 $ (1.89) Net income (loss) attributable to noncontrolling interests — — — — Net income (loss) attributable to Hyatt Hotels Corporation $ 0.25 $ 1.17 $ 1.46 $ (1.89) Diluted Earnings (Losses) Per Share: Net income (loss) $ 0.25 $ 1.15 $ 1.44 $ (1.89) Net income (loss) attributable to noncontrolling interests — — — — Net income (loss) attributable to Hyatt Hotels Corporation $ 0.25 $ 1.15 $ 1.44 $ (1.89) (1) The computations reflect a reduction in shares outstanding at September 30, 2022 for the repurchases of 189,000 shares that were initiated prior to September 30, 2022, but settled in October 2022. |
Schedule of Antidilutive Securities Excluded from Computation of Losses Per Share | The computations of diluted net earnings (losses) per share for the three and nine months ended September 30, 2022 and September 30, 2021 do not include the following shares of Class A common stock assumed to be issued as stock-settled SARs and RSUs because they are anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 SARs 10,900 4,500 9,300 1,242,900 RSUs 2,800 3,400 1,900 562,800 |
OTHER INCOME (LOSS), NET (Table
OTHER INCOME (LOSS), NET (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Loss), Net | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Restructuring expenses (1) $ (26) $ (3) $ (26) $ (3) Unrealized gains (losses), net (Note 4) (24) 7 (68) 20 Foreign currency gains (losses), net (10) — (12) 7 Performance guarantee expense (Note 12) (4) (3) (12) (8) Transaction costs (2) — (19) (1) (19) Loss on extinguishment of debt (Note 9) — — (8) — Depreciation recovery 4 4 12 13 Release and amortization of performance guarantee liability (Note 12) 10 1 17 2 Credit loss reversals (provisions), net (Note 4 and Note 5) 12 (2) 17 (12) Interest income 14 7 29 21 Other, net — 5 (1) 13 Other income (loss), net $ (24) $ (3) $ (53) $ 34 (1) During the three and nine months ended September 30, 2022, we recognized $26 million of restructuring expenses for severance costs related to the redevelopment of an owned hotel. (2) During the three and nine months ended September 30, 2021, we recognized $19 million of transaction costs related to the ALG Acquisition. |
ORGANIZATION (Details)
ORGANIZATION (Details) | Sep. 30, 2022 hotel room country |
Organization | |
Number of countries in which entity operates | country | 72 |
Full Service | |
Organization | |
Number of hotels operated or franchised | 536 |
Number of rooms operated or franchised | room | 175,294 |
Number of hotels operated or marketed | 122 |
Number of rooms operated or marketed | room | 38,840 |
Select Service | |
Organization | |
Number of hotels operated or franchised | 553 |
Number of rooms operated or franchised | room | 80,754 |
Select Service | United States | |
Organization | |
Number of hotels operated or franchised | 442 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,541 | $ 851 | $ 4,303 | $ 1,952 |
Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 309 | 263 | 911 | 558 |
Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 204 | 162 | 570 | 335 |
Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 69 | 64 | 225 | 127 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 36 | 37 | 116 | 96 |
Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 215 | 104 | 555 | 243 |
Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 224 | 113 | 582 | 269 |
Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 84 | 50 | 223 | 110 |
Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43 | 10 | 128 | 30 |
Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 52 | 36 | 139 | 82 |
Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 45 | 17 | 92 | 47 |
Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (9) | (9) | (27) | (26) |
Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 244 | 0 | 746 | 0 |
Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 68 | 28 | 206 | 69 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 705 | 456 | 1,885 | 1,082 |
Operating Segments | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 300 | 268 | 912 | 569 |
Operating Segments | Owned and leased hotels | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 300 | 268 | 912 | 569 |
Operating Segments | Owned and leased hotels | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 196 | 167 | 572 | 346 |
Operating Segments | Owned and leased hotels | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 69 | 64 | 225 | 127 |
Operating Segments | Owned and leased hotels | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35 | 37 | 115 | 96 |
Operating Segments | Owned and leased hotels | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | Owned and leased hotels | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Americas management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 764 | 516 | 2,060 | 1,201 |
Operating Segments | Americas management and franchising | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Americas management and franchising | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Americas management and franchising | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Americas management and franchising | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Americas management and franchising | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 122 | 80 | 337 | 175 |
Operating Segments | Americas management and franchising | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 127 | 85 | 354 | 189 |
Operating Segments | Americas management and franchising | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 60 | 41 | 167 | 87 |
Operating Segments | Americas management and franchising | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15 | 6 | 45 | 11 |
Operating Segments | Americas management and franchising | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49 | 35 | 133 | 80 |
Operating Segments | Americas management and franchising | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3 | 3 | 9 | 11 |
Operating Segments | Americas management and franchising | Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (5) | (5) | (17) | (14) |
Operating Segments | Americas management and franchising | Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | Americas management and franchising | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28 | 24 | 91 | 60 |
Operating Segments | Americas management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 614 | 412 | 1,632 | 966 |
Operating Segments | ASPAC management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62 | 41 | 155 | 118 |
Operating Segments | ASPAC management and franchising | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | ASPAC management and franchising | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | ASPAC management and franchising | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | ASPAC management and franchising | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | ASPAC management and franchising | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 25 | 15 | 55 | 48 |
Operating Segments | ASPAC management and franchising | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 26 | 16 | 58 | 51 |
Operating Segments | ASPAC management and franchising | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12 | 10 | 28 | 27 |
Operating Segments | ASPAC management and franchising | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11 | 4 | 21 | 15 |
Operating Segments | ASPAC management and franchising | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 0 | 2 | 1 |
Operating Segments | ASPAC management and franchising | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2 | 2 | 7 | 8 |
Operating Segments | ASPAC management and franchising | Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (1) | (1) | (3) | (3) |
Operating Segments | ASPAC management and franchising | Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | ASPAC management and franchising | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | ASPAC management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37 | 26 | 100 | 70 |
Operating Segments | EAME/SW Asia management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 55 | 27 | 131 | 62 |
Operating Segments | EAME/SW Asia management and franchising | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | EAME/SW Asia management and franchising | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | EAME/SW Asia management and franchising | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | EAME/SW Asia management and franchising | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | EAME/SW Asia management and franchising | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 28 | 9 | 60 | 16 |
Operating Segments | EAME/SW Asia management and franchising | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30 | 12 | 66 | 25 |
Operating Segments | EAME/SW Asia management and franchising | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11 | 7 | 28 | 13 |
Operating Segments | EAME/SW Asia management and franchising | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8 | 3 | 23 | 8 |
Operating Segments | EAME/SW Asia management and franchising | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2 | 1 | 4 | 1 |
Operating Segments | EAME/SW Asia management and franchising | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9 | 1 | 11 | 3 |
Operating Segments | EAME/SW Asia management and franchising | Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (2) | (3) | (6) | (9) |
Operating Segments | EAME/SW Asia management and franchising | Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | EAME/SW Asia management and franchising | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | EAME/SW Asia management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27 | 18 | 71 | 46 |
Operating Segments | Apple Leisure Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 363 | 1,057 | ||
Operating Segments | Apple Leisure Group | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16 | 0 | 20 | 0 |
Operating Segments | Apple Leisure Group | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15 | 19 | ||
Operating Segments | Apple Leisure Group | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | Apple Leisure Group | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1 | 1 | ||
Operating Segments | Apple Leisure Group | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 39 | 105 | ||
Operating Segments | Apple Leisure Group | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40 | 0 | 106 | 0 |
Operating Segments | Apple Leisure Group | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10 | 27 | ||
Operating Segments | Apple Leisure Group | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12 | 48 | ||
Operating Segments | Apple Leisure Group | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Segments | Apple Leisure Group | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 18 | 31 | ||
Operating Segments | Apple Leisure Group | Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (1) | 0 | (1) | 0 |
Operating Segments | Apple Leisure Group | Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 244 | 0 | 746 | 0 |
Operating Segments | Apple Leisure Group | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37 | 0 | 104 | 0 |
Operating Segments | Apple Leisure Group | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27 | 0 | 82 | 0 |
Corporate and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16 | 14 | 43 | 33 |
Corporate and other | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13 | 11 | 34 | 25 |
Corporate and other | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13 | 11 | 34 | 25 |
Corporate and other | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13 | 11 | 34 | 25 |
Corporate and other | Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Corporate and other | Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Corporate and other | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3 | 3 | 9 | 8 |
Corporate and other | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (19) | (15) | (55) | (31) |
Eliminations | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (7) | (5) | (21) | (11) |
Eliminations | Rooms revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (7) | (5) | (21) | (11) |
Eliminations | Food and beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Net management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (12) | (11) | (36) | (21) |
Eliminations | Management, franchise, and other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (12) | (11) | (36) | (21) |
Eliminations | Base management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (9) | (8) | (27) | (17) |
Eliminations | Incentive management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (3) | (3) | (9) | (4) |
Eliminations | Franchise fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Other fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Contra revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Distribution and destination management | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | ||
Eliminations | Other revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 1 | 2 | 1 |
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Eliminations | Owned and leased hotels | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (7) | (5) | (21) | (11) |
Eliminations | Americas management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | (9) | (10) | (30) | (20) |
Eliminations | EAME/SW Asia management and franchising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ (3) | $ (1) | $ (6) | $ (1) |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Liability Balances (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | $ 2,700 | $ 2,527 |
Deferred revenue related to the paid membership program | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 987 | 833 |
Deferred revenue related to the loyalty program | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 904 | 814 |
Deferred revenue related to travel distribution and destination management services | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 613 | 629 |
Advanced deposits | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 59 | 61 |
Initial fees received from franchise owners | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 44 | 42 |
Deferred revenue related to insurance programs | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 6 | 52 |
Other deferred revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | $ 87 | $ 96 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||||
Contract assets | $ 2 | $ 2 | $ 0 | ||
Revenue recognized from opening balance | $ 153 | $ 83 | $ 822 | $ 230 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 490 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent recognized | 20% |
Remaining performance obligation, period | 12 months |
DEBT AND EQUITY SECURITIES - Na
DEBT AND EQUITY SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule of Debt and Equity Method Investments | |||||
Equity method investments | $ 182 | $ 182 | $ 216 | ||
Foreign currency translation adjustment | 10 | $ (15) | |||
HTM debt securities | 64 | 64 | 53 | ||
Held-to-maturity securities, fair value | 80 | 80 | 77 | ||
Equity securities without a readily determinable fair value | 12 | 12 | 12 | ||
Held for Operating Programs | |||||
Schedule of Debt and Equity Method Investments | |||||
Available-for-sale debt securities | 164 | 164 | 141 | ||
Equity securities | 60 | 60 | 89 | ||
Held for Operating Programs | Affiliated Entity | World Of Hyatt | |||||
Schedule of Debt and Equity Method Investments | |||||
HTM debt securities | 138 | 138 | |||
Held for Operating Programs | Affiliated Entity | Xenia | |||||
Schedule of Debt and Equity Method Investments | |||||
HTM debt securities | $ 4 | ||||
Grand Hyatt Sao Paulo | |||||
Schedule of Debt and Equity Method Investments | |||||
Cash acquired | 6 | ||||
Repayment of third-party mortgage loan | $ 78 | 78 | |||
Gain on asset acquisition | 69 | ||||
Foreign currency translation adjustments | |||||
Schedule of Debt and Equity Method Investments | |||||
Foreign currency translation adjustment | $ 0 | 0 | 5 | (20) | |
Owned and leased hotels | |||||
Schedule of Debt and Equity Method Investments | |||||
Equity method investment, net sales proceeds | 23 | 17 | |||
Equity method investment, realized gain on disposal | $ 0 | 4 | $ 0 | ||
Owned and leased hotels | Foreign currency translation adjustments | |||||
Schedule of Debt and Equity Method Investments | |||||
Foreign currency translation adjustment | $ 5 |
DEBT AND EQUITY SECURITIES - He
DEBT AND EQUITY SECURITIES - Held to Fund Operating Programs (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Held for Operating Programs | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | $ 1,181 | $ 1,292 |
Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments | (279) | (173) |
Marketable securities held to fund operating programs included in other assets | 902 | 1,119 |
Loyalty program | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | 673 | 601 |
Deferred compensation plans held in rabbi trusts | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | 401 | 543 |
Captive insurance company | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | $ 107 | $ 148 |
DEBT AND EQUITY SECURITIES - Ga
DEBT AND EQUITY SECURITIES - Gain (loss) on Investments Held to Fund Operating Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unrealized gains (losses), net | ||||
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | $ (12) | $ (4) | $ (90) | $ 19 |
Other income (loss), net (Note 18) | (12) | (3) | (42) | (8) |
Other comprehensive loss (Note 13) | (5) | 0 | (15) | (1) |
Realized gains, net | ||||
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | 0 | 3 | 1 | 16 |
Other income (loss), net (Note 18) | $ 0 | $ 1 | $ 0 | $ 1 |
DEBT AND EQUITY SECURITIES - _2
DEBT AND EQUITY SECURITIES - Held for Investment Purposes (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Schedule of Investments | ||
Common shares in Playa N.V. (Note 8) | $ 71 | $ 97 |
Held for Investment Purposes | ||
Schedule of Investments | ||
Interest-bearing money market funds | 477 | 231 |
Common shares in Playa N.V. (Note 8) | 71 | 97 |
Time deposits | 43 | 255 |
Total marketable securities held to fund operating programs | 591 | 583 |
Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments | (520) | (486) |
Marketable securities held for investment purposes included in other assets | $ 71 | $ 97 |
DEBT AND EQUITY SECURITIES - Co
DEBT AND EQUITY SECURITIES - Common Shares of Playa N.V (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Playa Hotels & Resorts N.V. | ||||
Schedule of Investments | ||||
Other income (loss), net (Note 18) | $ (12) | $ 10 | $ (26) | $ 28 |
DEBT AND EQUITY SECURITIES - Fa
DEBT AND EQUITY SECURITIES - Fair Value of Investments (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | $ 1,772 | $ 1,875 |
Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 613 | 397 |
Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 461 | 632 |
Level One - Quoted Prices in Active Markets for Identical Assets | Common shares in Playa N.V. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 71 | 97 |
Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 181 | 259 |
Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 231 | 235 |
Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 55 | 58 |
Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 111 | 137 |
Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 21 | 24 |
Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 23 | 28 |
Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 5 | 8 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 648 | 432 |
Cash and cash equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 613 | 397 |
Cash and cash equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Cash and cash equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Common shares in Playa N.V. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 35 | 35 |
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 151 | 227 |
Short-term investments | Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | Level One - Quoted Prices in Active Markets for Identical Assets | Common shares in Playa N.V. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Short-term investments | Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 143 | 221 |
Short-term investments | Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 2 | 0 |
Short-term investments | Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 2 | 0 |
Short-term investments | Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 4 | 6 |
Short-term investments | Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Short-term investments | Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Short-term investments | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 0 | 0 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 973 | 1,216 |
Other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 461 | 632 |
Other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Common shares in Playa N.V. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 71 | 97 |
Other assets | Level Two - Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 3 | 3 |
Other assets | Level Two - Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 229 | 235 |
Other assets | Level Two - Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 53 | 58 |
Other assets | Level Two - Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 107 | 131 |
Other assets | Level Two - Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 21 | 24 |
Other assets | Level Two - Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | 23 | 28 |
Other assets | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available-for-sale debt securities | $ 5 | $ 8 |
DEBT AND EQUITY SECURITIES - Sc
DEBT AND EQUITY SECURITIES - Schedule of Debt and Equity Securities HTM (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||||||
HTM debt securities | $ 94 | $ 91 | ||||
Less: allowance for credit losses | (30) | $ (40) | (38) | $ (31) | $ (29) | $ (21) |
Total HTM debt securities, net of allowances | $ 64 | $ 53 |
DEBT AND EQUITY SECURITIES - Ac
DEBT AND EQUITY SECURITIES - Activity in HTM Debt Security Allowance (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 40 | $ 29 | $ 38 | $ 21 |
Provisions (reversals), net | (10) | 2 | 2 | 8 |
Ending balance | $ 30 | $ 31 | $ 40 | $ 29 |
RECEIVABLES - Accounts Receivab
RECEIVABLES - Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||
Net receivables | $ 702 | $ 633 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance beginning balance | 59 | $ 58 | $ 53 | $ 56 | |
Provisions (reversals), net | 0 | 1 | 13 | 5 | |
Other | (1) | (1) | (7) | (3) | |
Allowance ending balance | $ 58 | $ 58 | $ 59 | $ 58 |
RECEIVABLES - Schedule of Finan
RECEIVABLES - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable | ||||||
Less: allowance for credit losses | $ (43) | $ (69) | ||||
Total long-term financing receivables, net of allowances | 63 | 41 | ||||
Unsecured Financing | ||||||
Accounts, Notes, Loans and Financing Receivable | ||||||
Unsecured financing to hotel owners | 131 | 133 | ||||
Less: current portion of financing receivables, included in receivables, net | (25) | (23) | ||||
Less: allowance for credit losses | (43) | $ (60) | (69) | $ (57) | $ (120) | $ (114) |
Total long-term financing receivables, net of allowances | $ 63 | $ 41 |
RECEIVABLES - Allowance for Los
RECEIVABLES - Allowance for Losses and Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for Losses and Impairments | ||||
Allowance beginning balance | $ 69 | |||
Allowance ending balance | $ 43 | |||
Unsecured Financing | ||||
Allowance for Losses and Impairments | ||||
Allowance beginning balance | 60 | $ 120 | 69 | $ 114 |
Provisions (reversals), net | (2) | 0 | (7) | 6 |
Write-offs | (14) | (60) | (1) | 0 |
Foreign currency exchange, net | (1) | (3) | (1) | 0 |
Allowance ending balance | $ 43 | $ 57 | $ 60 | $ 120 |
RECEIVABLES - Credit Monitoring
RECEIVABLES - Credit Monitoring (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Unsecured Financing Receivables | ||||||
Related allowance | $ (43) | $ (69) | ||||
Unsecured Financing | ||||||
Unsecured Financing Receivables | ||||||
Gross loan balance (principal and interest) | 131 | 133 | ||||
Related allowance | (43) | $ (60) | (69) | $ (57) | $ (120) | $ (114) |
Net financing receivables | 88 | 64 | ||||
Gross receivables on nonaccrual status | 21 | 47 | ||||
Unsecured Financing | Loans | ||||||
Unsecured Financing Receivables | ||||||
Gross loan balance (principal and interest) | 130 | 130 | ||||
Related allowance | (42) | (67) | ||||
Net financing receivables | 88 | 63 | ||||
Gross receivables on nonaccrual status | 21 | 47 | ||||
Unsecured Financing | Other financing arrangements | ||||||
Unsecured Financing Receivables | ||||||
Gross loan balance (principal and interest) | 1 | 3 | ||||
Related allowance | (1) | (2) | ||||
Net financing receivables | 0 | 1 | ||||
Gross receivables on nonaccrual status | $ 0 | $ 0 |
RECEIVABLES - Narrative (Detail
RECEIVABLES - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Significant unobservable inputs (Level Three) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Financing receivables | $ 120 | $ 88 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Acquisitions Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 01, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||||||
Gains (losses) on sales of real estate | $ (1) | $ 307 | $ 250 | $ 412 | ||||
Net income (loss) | 28 | 120 | 161 | (193) | ||||
Alila Ventana Big Su | ||||||||
Business Acquisition [Line Items] | ||||||||
Assets disposals | 148 | |||||||
Gains (losses) on sales of real estate | 2 | |||||||
Land | ||||||||
Business Acquisition [Line Items] | ||||||||
Asset acquisition | $ 7 | |||||||
Assumptions Adjustment | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income (loss) | 0 | |||||||
Hotel Irvine | ||||||||
Business Acquisition [Line Items] | ||||||||
Asset acquisition | 135 | |||||||
Property and equipment acquired | 135 | |||||||
Alila Ventana Big Su | ||||||||
Business Acquisition [Line Items] | ||||||||
Asset acquisition | 146 | |||||||
Property and equipment acquired | $ 149 | |||||||
Grand Hyatt Sao Paulo | ||||||||
Business Acquisition [Line Items] | ||||||||
Property and equipment acquired | 101 | |||||||
Asset acquisition, voting rights acquired | 50% | 50% | ||||||
Cash paid | $ 6 | |||||||
Repayment of third-party mortgage loan | $ 78 | 78 | ||||||
Gain on asset acquisition | 69 | |||||||
Reversal of long term liabilities | 42 | |||||||
Currency translation loss reclassified | $ 22 | |||||||
Deferred tax liabilities | $ 11 | 11 | ||||||
Grand Hyatt Sao Paulo | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity method investment, ownership percentage | 50% | |||||||
Casablanca Global GP Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interest acquired | 100% | |||||||
Apple Leisure Group | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership interest acquired | 100% | |||||||
ALG Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Purchase price | $ 2,700 | |||||||
Outstanding liability balance | 69 | |||||||
Net assets acquired | $ 2,718 | |||||||
Purchase price adjustments | $ 39 | |||||||
Business combination, other long term liabilities | 111 | |||||||
Decrease in intangibles | 42 | |||||||
Reduction of property plant and equipment | 16 | |||||||
Increase in goodwill | $ 177 | |||||||
ALG Acquisition | Assumptions Adjustment | ||||||||
Business Acquisition [Line Items] | ||||||||
Net income (expense) | $ 4 | $ (11) |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Net Assets Acquired (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Nov. 01, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Cash paid, net of cash acquired | $ 174 | $ 237 | |
ALG Acquisition | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Cash paid, net of cash acquired | $ 2,718 | ||
Cash and cash equivalents acquired | 460 | ||
Restricted cash acquired | 16 | ||
Net assets acquired | $ 3,194 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS - Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Nov. 01, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,120 | $ 2,965 | |
Management agreement intangibles | Minimum | |||
Business Acquisition [Line Items] | |||
Weighted- average useful lives in years | 1 year | ||
Management agreement intangibles | Maximum | |||
Business Acquisition [Line Items] | |||
Weighted- average useful lives in years | 19 years | ||
Management agreement intangibles | Weighted Average | |||
Business Acquisition [Line Items] | |||
Weighted- average useful lives in years | 11 years | ||
Customer relationships intangibles | |||
Business Acquisition [Line Items] | |||
Weighted- average useful lives in years | 8 years | ||
Customer relationships intangibles | Minimum | |||
Business Acquisition [Line Items] | |||
Weighted- average useful lives in years | 4 years | ||
Customer relationships intangibles | Maximum | |||
Business Acquisition [Line Items] | |||
Weighted- average useful lives in years | 11 years | ||
Customer relationships intangibles | Weighted Average | |||
Business Acquisition [Line Items] | |||
Weighted- average useful lives in years | 8 years | ||
Apple Leisure Group | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 460 | ||
Restricted cash | 16 | ||
Receivables | 168 | ||
Prepaids and other assets | 59 | ||
Property and equipment | 6 | ||
Financing receivables, net | 19 | ||
Operating lease right-of-use assets | 79 | ||
Goodwill | 2,854 | ||
Indefinite-lived intangibles | 499 | ||
Other assets | 40 | ||
Total assets acquired | 5,307 | ||
Accounts payable | 255 | ||
Accrued expenses and other current liabilities | 98 | ||
Current contract liabilities | 638 | ||
Accrued compensation and benefits | 49 | ||
Current operating lease liabilities | 8 | ||
Long-term contract liabilities | 745 | ||
Long-term operating lease liabilities | 71 | ||
Other long-term liabilities | 249 | ||
Total liabilities assumed | 2,113 | ||
Total net assets acquired attributable to Hyatt Hotels Corporation | 3,194 | ||
Goodwill expected tax deductible amount | $ 36 | ||
Apple Leisure Group | Management agreement intangibles | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 484 | ||
Apple Leisure Group | Customer relationships intangibles | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 608 | ||
Apple Leisure Group | Other intangibles | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | $ 15 |
ACQUISITIONS AND DISPOSITIONS_4
ACQUISITIONS AND DISPOSITIONS - Schedule of Assets Acquired and Liabilities Assumed (Details) - Grand Hyatt Sao Paulo $ in Millions | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Asset Acquisition [Line Items] | |
Cash paid | $ 6 |
Repayment of third-party mortgage loan | 78 |
Fair value of our previously-held equity method investment | 6 |
Net assets acquired | $ 90 |
ACQUISITIONS AND DISPOSITIONS_5
ACQUISITIONS AND DISPOSITIONS - Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Contract Revenue Bonds | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Long-term debt | $ 166 | ||
Unamortized discount | 4 | ||
The Confidante | Disposal Group, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | 227 | ||
Pre-tax gain | 24 | ||
The Driskill | Disposal Group, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | 119 | ||
Pre-tax gain | 51 | ||
Grand Hyatt San Antonio River Walk | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | 109 | ||
Pre-tax gain | 137 | ||
Held-to-maturity debt security | 19 | ||
Disposal group, including discontinued operation, release of restricted cash | 18 | ||
Goodwill impairment charges | 7 | ||
Grand Hyatt San Antonio River Walk | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Contract Revenue Bonds | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Long-term debt | 166 | ||
Unamortized discount | 4 | ||
Hyatt Regency Indian Wells Resort & Spa | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | 136 | ||
Pre-tax gain | 40 | ||
Hyatt Regency Lake Tahoe Resort Spa And Casino | Disposal Group, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | $ 343 | $ 343 | |
Gains on sales of real estate | 305 | ||
Hyatt Regency Lost Pines Resort and Spa | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | $ 268 | 268 | |
Pre-tax gain | $ 104 | ||
Hyatt Regency Greenwich | Disposal Group, Held-for-sale, Not Discontinued Operations | Owned and leased hotels | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | 40 | ||
Assets held-for-sale | 26 | ||
Property plant and equipment held for sale | 25 | ||
Disposal of liabilities | 3 | ||
Disposal group, contract liabilities | 1 | ||
Hyatt Regency Mainz | Disposal Group, Held-for-sale, Not Discontinued Operations | Owned and leased hotels | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets held-for-sale | 4 | ||
Disposal of liabilities | 3 | ||
Cash and cash equivalents held for sale | 2 | ||
Disposal group, including discontinued operation, accrued liabilities | $ 2 |
INTANGIBLES, NET - Schedule of
INTANGIBLES, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangibles | $ 2,051 | $ 2,125 |
Less: accumulated amortization | (302) | (148) |
Intangibles, net | 1,749 | 1,977 |
Brand and other indefinite-lived intangibles | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Brand and other indefinite-lived intangibles | 618 | 646 |
Management and franchise agreement intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | $ 803 | 835 |
Weighted- average useful lives in years | 14 years | |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | $ 608 | 586 |
Weighted- average useful lives in years | 8 years | |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | $ 22 | $ 58 |
Weighted- average useful lives in years | 5 years |
INTANGIBLES, NET - Amortization
INTANGIBLES, NET - Amortization Expense Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 45 | $ 6 | $ 156 | $ 20 |
INTANGIBLES, NET - Narrative (D
INTANGIBLES, NET - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Apple Leisure Group | ||
Segment Reporting Information | ||
Impairment of intangible assets | $ 9 | $ 12 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Assets, Noncurrent [Abstract] | ||
Management and franchise agreement assets constituting payments to customers | $ 633 | $ 571 |
Marketable securities held to fund the loyalty program (Note 4) | 404 | 439 |
Marketable securities held to fund rabbi trusts (Note 4) | 401 | 543 |
Marketable securities held for captive insurance company (Note 4) | 97 | 137 |
Deferred costs related to the paid membership program | 85 | 14 |
Long-term investments (Note 4) | 76 | 65 |
Common shares in Playa N.V. (Note 4) | 71 | 97 |
Long-term restricted cash | 38 | 48 |
Other | 107 | 120 |
Total other assets | $ 1,912 | $ 2,034 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Oct. 28, 2022 | Oct. 01, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument | |||||||
Long-term debt and lease obligation | $ 3,804,000,000 | $ 3,804,000,000 | $ 3,978,000,000 | ||||
Current maturities of long-term debt | 654,000,000 | 654,000,000 | 10,000,000 | ||||
Revolving credit facility, outstanding balance | 0 | 0 | $ 0 | ||||
Loss on extinguishment of debt | 0 | $ 0 | 8,000,000 | $ 0 | |||
Contract Revenue Bonds | |||||||
Debt Instrument | |||||||
Long-term debt | 166,000,000 | 166,000,000 | |||||
Unamortized discount | 4,000,000 | 4,000,000 | |||||
Loss on extinguishment of debt | 8,000,000 | ||||||
2023 Floating Rate Notes | Senior Notes | |||||||
Debt Instrument | |||||||
Long-term debt, face value | 300,000,000 | 300,000,000 | |||||
3.375% Senior Notes Due 2023 | Subsequent Event | |||||||
Debt Instrument | |||||||
Repayments of long-term debt | $ 353,000,000 | ||||||
Repurchased face amount | 350,000,000 | ||||||
Accrued interest | $ 3,000,000 | ||||||
3.375% Senior Notes Due 2023 | Senior Notes | |||||||
Debt Instrument | |||||||
Long-term debt, face value | $ 350,000,000 | $ 350,000,000 | |||||
3.375% Senior Notes Due 2023 | Senior Notes | Subsequent Event | |||||||
Debt Instrument | |||||||
Debt instrument, stated percent | 3.375% | ||||||
2023 Fixed Rate Notes | Senior Notes | |||||||
Debt Instrument | |||||||
Debt instrument, stated percent | 1.30% | 1.30% | |||||
Long-term debt, face value | $ 700,000,000 | $ 700,000,000 | |||||
2024 Notes | Senior Notes | |||||||
Debt Instrument | |||||||
Debt instrument, stated percent | 1.80% | 1.80% | |||||
Long-term debt, face value | $ 750,000,000 | $ 750,000,000 | |||||
Repurchases senior notes | $ 4,000,000 | $ 4,000,000 | |||||
2025 Notes | Senior Notes | |||||||
Debt Instrument | |||||||
Debt instrument, stated percent | 5.375% | 5.375% | |||||
Long-term debt, face value | $ 450,000,000 | $ 450,000,000 | |||||
2026 Notes | Senior Notes | |||||||
Debt Instrument | |||||||
Debt instrument, stated percent | 4.85% | 4.85% | |||||
Long-term debt, face value | $ 400,000,000 | $ 400,000,000 | |||||
2028 Notes | Senior Notes | |||||||
Debt Instrument | |||||||
Debt instrument, stated percent | 4.375% | 4.375% | |||||
Long-term debt, face value | $ 400,000,000 | $ 400,000,000 | |||||
Repurchases senior notes | $ 1,000,000 | $ 1,000,000 | |||||
2030 Notes | Senior Notes | |||||||
Debt Instrument | |||||||
Debt instrument, stated percent | 5.75% | 5.75% | |||||
Long-term debt, face value | $ 450,000,000 | $ 450,000,000 | |||||
Repurchases senior notes | 10,000,000 | 10,000,000 | |||||
Senior Notes Due 2023 | Subsequent Event | |||||||
Debt Instrument | |||||||
Repayments of long-term debt | $ 302,000,000 | ||||||
Repurchased face amount | 300,000,000 | ||||||
Accrued interest | $ 2,000,000 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument | |||||||
Revolving credit facility, remaining borrowing capacity | 1,496,000,000 | 1,496,000,000 | |||||
Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument | |||||||
Line of credit commitment | 1,500,000,000 | 1,500,000,000 | |||||
Sublimit | 250,000,000 | 250,000,000 | |||||
Additional borrowing capacity | 500,000,000 | 500,000,000 | |||||
Letter of Credit | |||||||
Debt Instrument | |||||||
Maximum borrowing capacity | 268,000,000 | 268,000,000 | |||||
Letter of Credit | Line of Credit | |||||||
Debt Instrument | |||||||
Maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 |
DEBT - Fair Value (Details)
DEBT - Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Finance lease obligations | $ 6 | $ 7 |
Unamortized discount and deferred financing fees | 18 | 29 |
Quoted prices in active markets for identical assets (Level One) | ||
Debt Instrument | ||
Debt | 0 | 0 |
Significant other observable inputs (Level Two) | ||
Debt Instrument | ||
Debt | 3,642 | 4,193 |
Significant unobservable inputs (Level Three) | ||
Debt Instrument | ||
Debt | 31 | 37 |
Carrying value | ||
Debt Instrument | ||
Debt | 3,816 | 4,000 |
Fair value | ||
Debt Instrument | ||
Debt | $ 3,673 | $ 4,230 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Other Liabilities [Abstract] | ||
Deferred compensation plans funded by rabbi trusts (Note 4) | $ 401 | $ 543 |
Income taxes payable | 353 | 281 |
Guarantee liabilities (Note 12) | 125 | 92 |
Deferred income taxes (Note 11) | 76 | 93 |
Self-insurance liabilities (Note 12) | 64 | 66 |
Other | 56 | 64 |
Total other long-term liabilities | $ 1,075 | $ 1,139 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||||
Provision for income taxes | $ 35 | $ 138 | $ 143 | $ 339 | |
Estimated income tax liability based on taxing authority’s assessment | 18 | ||||
Unrecognized tax benefits | 254 | 254 | $ 205 | ||
Amount of unrecognized tax benefits that would affect the tax rate if recognized | $ 232 | 232 | $ 186 | ||
Settlement with Taxing Authority | |||||
Income Tax Contingency [Line Items] | |||||
Estimated income tax liability based on taxing authority’s assessment | 229 | ||||
Federal tax benefit | $ 71 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments and Performance Guarantees Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Performance Guarantee | ||
Loss Contingencies | ||
Remaining maximum exposure | $ 122 | |
Guarantor obligations, liability, current carrying value | 104 | $ 52 |
Performance Guarantee | Other long-term Liabilities | ||
Loss Contingencies | ||
Guarantor obligations, liability, current carrying value | 93 | 41 |
Performance Guarantee | Accrued Expenses and Other Current Liabilities | ||
Loss Contingencies | ||
Guarantor obligations, liability, current carrying value | 11 | 11 |
Performance Test Clause Guarantee | ||
Loss Contingencies | ||
Guarantor obligations, liability, current carrying value | 6 | $ 7 |
Various Business Ventures | ||
Loss Contingencies | ||
Commitment to loan or investment | $ 307 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Debt Guarantees (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Loss Contingencies | ||
Other long-term liabilities recorded | $ 125 | $ 92 |
Debt Repayment and Other Guarantees | ||
Loss Contingencies | ||
Maximum potential future payments | 304 | |
Maximum exposure net of recoverability from third parties | 234 | |
Other long-term liabilities recorded | 32 | 51 |
Debt Repayment and Other Guarantees | Hotel Properties in India | Joint Venture | ||
Loss Contingencies | ||
Maximum exposure net of recoverability from third parties | $ 90 | |
Debt repayment and other guarantees, equity method investment, ownership percentage | 50% | |
Debt Repayment and Other Guarantees | United States | ||
Loss Contingencies | ||
Maximum potential future payments | $ 102 | |
Maximum exposure net of recoverability from third parties | 42 | |
Other long-term liabilities recorded | 4 | 10 |
Debt Repayment and Other Guarantees | Non-US | ||
Loss Contingencies | ||
Maximum potential future payments | 202 | |
Maximum exposure net of recoverability from third parties | 192 | |
Other long-term liabilities recorded | $ 28 | $ 41 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Guarantee Liabilities Fair Value Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Guarantees, fair value disclosure | $ 126 | $ 87 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Insurance, Collective Bargaining Agreements, Surety Bonds, and Letters of Credit, and Other Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Loss Contingencies | ||
Self insurance reserve, current | $ 38 | $ 34 |
Self-insurance reserve, noncurrent | 64 | $ 66 |
Surety bonds | 47 | |
Estimated income tax liability based on taxing authority’s assessment | 18 | |
Letter of Credit | ||
Loss Contingencies | ||
Maximum borrowing capacity | 268 | |
Reducing capacity under revolving credit facility | $ 4 | |
Various US | ||
Loss Contingencies | ||
Multiemployer plans, collective-bargaining arrangement, percentage of participants | 21% |
EQUITY - Accumulated Other Comp
EQUITY - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 3,612 | $ 2,909 | $ 3,566 | $ 3,214 |
Current period other comprehensive income (loss) before reclassification | (55) | (34) | ||
Amount reclassified from accumulated other comprehensive loss | 10 | (15) | ||
Balance, end of period | 3,446 | 3,589 | 3,446 | 3,589 |
Interest Rate Contract | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Amount of loss reclassified from accumulated other comprehensive loss | 6 | |||
Foreign currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (219) | (174) | (206) | (145) |
Current period other comprehensive income (loss) before reclassification | (22) | (24) | (40) | (33) |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | 5 | (20) |
Balance, end of period | (241) | (198) | (241) | (198) |
Unrealized losses on AFS debt securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (11) | 0 | (1) | 1 |
Current period other comprehensive income (loss) before reclassification | (5) | 0 | (15) | (1) |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Balance, end of period | (16) | 0 | (16) | 0 |
Unrecognized pension cost | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (4) | (7) | (4) | (7) |
Current period other comprehensive income (loss) before reclassification | 0 | 0 | 0 | 0 |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Balance, end of period | (4) | (7) | (4) | (7) |
Unrealized gains (losses) on derivative instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (31) | (37) | (34) | (41) |
Current period other comprehensive income (loss) before reclassification | 0 | 0 | 0 | 0 |
Amount reclassified from accumulated other comprehensive loss | 2 | 1 | 5 | 5 |
Balance, end of period | (29) | (36) | (29) | (36) |
Accumulated other comprehensive loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (265) | (218) | (245) | (192) |
Current period other comprehensive income (loss) before reclassification | (27) | (24) | ||
Amount reclassified from accumulated other comprehensive loss | 2 | 1 | ||
Balance, end of period | $ (290) | $ (241) | $ (290) | $ (241) |
EQUITY - Share Repurchase (Deta
EQUITY - Share Repurchase (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | |
Subsequent Event [Line Items] | |||||||
Stock repurchase program, authorized amount (up to) | $ 750,000,000 | $ 750,000,000 | |||||
Stock repurchased during period (in shares) | 3,075,891 | ||||||
Weighted-average price per share (in dollars per share) | $ 85.56 | ||||||
Aggregate purchase price | $ 263,000,000 | ||||||
Shares repurchased as a percentage of total common stock outstanding | 3% | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 665,000,000 | $ 665,000,000 | |||||
Repurchases of common stock | $ 162,000,000 | $ 101,000,000 | $ 0 | ||||
Value of shares repurchased and not settled yet | $ 16,000,000 | $ 0 | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Stock repurchased during period (in shares) | 327,556 | ||||||
Weighted-average price per share (in dollars per share) | $ 82.56 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 638,000,000 | ||||||
Repurchases of common stock | $ 27,000,000 | ||||||
Shares repurchased and not settled yet | 189,000 | ||||||
Value of shares repurchased and not settled yet | $ 16,000,000 |
EQUITY - Common Stock Offering
EQUITY - Common Stock Offering (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Class of Stock [Line Items] | |||
Common stock net issuance costs | $ 0 | $ 25 | |
Public Offering | |||
Class of Stock [Line Items] | |||
Common stock price (in dollars per share) | $ 74.50 | $ 74.50 | |
Number of shares issued | 8,050,000 | ||
Net proceeds | $ 575 | ||
Common stock net issuance costs | $ 25 | ||
Over-Allotment Option | |||
Class of Stock [Line Items] | |||
Number of shares issued | 1,050,000 |
STOCK-BASED COMPENSATION - Comp
STOCK-BASED COMPENSATION - Compensation Expense Related to Long-Term Incentive Plan (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | $ 7 | $ 6 | $ 47 | $ 42 |
SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | 0 | 0 | 11 | 10 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | 6 | 3 | 30 | 19 |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Compensation expense | $ 1 | $ 3 | $ 6 | $ 13 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 359,113 | 396,889 |
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 37.56 | $ 28.68 |
Total unearned compensation | $ 3 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 539,818 | 423,079 |
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 91.81 | $ 80.12 |
Total unearned compensation | $ 33 | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 176,756 | 153,256 |
Grants in period, weighted-average fair value at grant date (in dollars per share) | $ 81.14 | $ 82.02 |
Total unearned compensation | $ 19 | |
SARs ,RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Amortization period, deferred compensation expense | 2 years |
RELATED-PARTY TRANSACTIONS - Le
RELATED-PARTY TRANSACTIONS - Legal Services (Details) - Family Member of Management - Related Party Legal Services - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction | |||||
Legal services | $ 4 | $ 5 | $ 10 | $ 7 | |
Due to related party | $ 7 | $ 7 | $ 0 |
RELATED-PARTY TRANSACTIONS - Eq
RELATED-PARTY TRANSACTIONS - Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Minimum | Unconsolidated Hospitality Ventures | |||||
Related Party Transaction | |||||
Equity method investment, ownership percentage | 24% | 24% | |||
Maximum | Unconsolidated Hospitality Ventures | |||||
Related Party Transaction | |||||
Equity method investment, ownership percentage | 50% | 50% | |||
Equity Method Investee | |||||
Related Party Transaction | |||||
Net receivables from related parties | $ 50 | $ 50 | $ 29 | ||
Franchise or License Fees | Equity Method Investee | |||||
Related Party Transaction | |||||
Revenue from related parties | 7 | $ 3 | 17 | $ 7 | |
Related Parties Guarantees | Equity Method Investee | |||||
Related Party Transaction | |||||
Revenue from related parties | $ 2 | $ 2 | $ 5 | $ 4 |
RELATED-PARTY TRANSACTIONS - Sh
RELATED-PARTY TRANSACTIONS - Share Conversion (Details) - $ / shares | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Common Class B | |||
Related Party Transaction | |||
Conversion of stock, shares converted (in shares) | 635,522 | 2,385,647 | |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 | |
Common Class A | |||
Related Party Transaction | |||
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Legal Services Narrative (Details) - Related Party Legal Services - Family Member of Management - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction | |||||
Legal services | $ 4 | $ 5 | $ 10 | $ 7 | |
Related Party Transaction, Due from (to) Related Party | $ 7 | $ 7 | $ 0 |
SEGMENT INFORMATION - Summarize
SEGMENT INFORMATION - Summarized Consolidated Financial Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information | ||||
Total revenues | $ 1,541 | $ 851 | $ 4,303 | $ 1,952 |
Adjusted EBITDA | 252 | 110 | 676 | 145 |
Depreciation and amortization | 96 | 71 | 320 | 219 |
Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 309 | 263 | 911 | 558 |
Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 224 | 113 | 582 | 269 |
Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | (9) | (9) | (27) | (26) |
Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 68 | 28 | 206 | 69 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 705 | 456 | 1,885 | 1,082 |
Distribution and destination management | ||||
Segment Reporting Information | ||||
Total revenues | 244 | 0 | 746 | 0 |
Operating Segments | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 300 | 268 | 912 | 569 |
Adjusted EBITDA | 66 | 51 | 219 | 34 |
Depreciation and amortization | 45 | 58 | 141 | 175 |
Operating Segments | Owned and leased hotels | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 300 | 268 | 912 | 569 |
Operating Segments | Owned and leased hotels | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Owned and leased hotels | Distribution and destination management | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Americas management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 764 | 516 | 2,060 | 1,201 |
Adjusted EBITDA | 114 | 74 | 316 | 156 |
Depreciation and amortization | 5 | 5 | 16 | 16 |
Operating Segments | Americas management and franchising | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | Americas management and franchising | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 127 | 85 | 354 | 189 |
Operating Segments | Americas management and franchising | Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | (5) | (5) | (17) | (14) |
Operating Segments | Americas management and franchising | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 28 | 24 | 91 | 60 |
Operating Segments | Americas management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 614 | 412 | 1,632 | 966 |
Operating Segments | Americas management and franchising | Distribution and destination management | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | ||
Operating Segments | ASPAC management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 62 | 41 | 155 | 118 |
Adjusted EBITDA | 15 | 6 | 26 | 21 |
Depreciation and amortization | 0 | 0 | 1 | 2 |
Operating Segments | ASPAC management and franchising | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | ASPAC management and franchising | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 26 | 16 | 58 | 51 |
Operating Segments | ASPAC management and franchising | Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | (1) | (1) | (3) | (3) |
Operating Segments | ASPAC management and franchising | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | ASPAC management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 37 | 26 | 100 | 70 |
Operating Segments | ASPAC management and franchising | Distribution and destination management | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | ||
Operating Segments | EAME/SW Asia management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | 55 | 27 | 131 | 62 |
Adjusted EBITDA | 21 | 5 | 40 | 4 |
Operating Segments | EAME/SW Asia management and franchising | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | EAME/SW Asia management and franchising | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 30 | 12 | 66 | 25 |
Operating Segments | EAME/SW Asia management and franchising | Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | (2) | (3) | (6) | (9) |
Operating Segments | EAME/SW Asia management and franchising | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Operating Segments | EAME/SW Asia management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 27 | 18 | 71 | 46 |
Operating Segments | EAME/SW Asia management and franchising | Distribution and destination management | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Apple Leisure Group | ||||
Segment Reporting Information | ||||
Total revenues | 363 | 1,057 | ||
Adjusted EBITDA | 78 | 0 | 188 | 0 |
Depreciation and amortization | 40 | 0 | 142 | 0 |
Operating Segments | Apple Leisure Group | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | 16 | 0 | 20 | 0 |
Operating Segments | Apple Leisure Group | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | 40 | 0 | 106 | 0 |
Operating Segments | Apple Leisure Group | Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | (1) | 0 | (1) | 0 |
Operating Segments | Apple Leisure Group | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 37 | 0 | 104 | 0 |
Operating Segments | Apple Leisure Group | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 27 | 0 | 82 | 0 |
Operating Segments | Apple Leisure Group | Distribution and destination management | ||||
Segment Reporting Information | ||||
Total revenues | 244 | 0 | 746 | 0 |
Operating Segments | Corporate and other | ||||
Segment Reporting Information | ||||
Adjusted EBITDA | (42) | (26) | (114) | (71) |
Depreciation and amortization | 6 | 8 | 20 | 26 |
Operating Segments | Corporate and other | Revenues | ||||
Segment Reporting Information | ||||
Total revenues | 16 | 14 | 43 | 33 |
Eliminations | ||||
Segment Reporting Information | ||||
Total revenues | (19) | (15) | (55) | (31) |
Adjusted EBITDA | 0 | 0 | 1 | 1 |
Eliminations | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | (7) | (5) | (21) | (11) |
Eliminations | Management, franchise, and other fees | ||||
Segment Reporting Information | ||||
Total revenues | (12) | (11) | (36) | (21) |
Eliminations | Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Eliminations | Other revenues | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 1 | 2 | 1 |
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | 0 | 0 |
Eliminations | Distribution and destination management | ||||
Segment Reporting Information | ||||
Total revenues | 0 | 0 | ||
Eliminations | Owned and leased hotels | ||||
Segment Reporting Information | ||||
Total revenues | (7) | (5) | (21) | (11) |
Eliminations | Americas management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | (9) | (10) | (30) | (20) |
Eliminations | EAME/SW Asia management and franchising | ||||
Segment Reporting Information | ||||
Total revenues | (3) | (1) | (6) | (1) |
Eliminations | Corporate and other | ||||
Segment Reporting Information | ||||
Total revenues | $ 0 | $ 1 | $ 2 | $ 1 |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Net Income Attributable to Hyatt Hotels Corporation to EBITDA and a Reconciliation of EBITDA to Consolidated Adjusted EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information | ||||
Net income (loss) attributable to Hyatt Hotels Corporation | $ 28 | $ 120 | $ 161 | $ (193) |
Interest expense | 38 | 40 | 116 | 123 |
Provision for income taxes | 35 | 138 | 143 | 339 |
Depreciation and amortization | 96 | 71 | 320 | 219 |
EBITDA | 197 | 369 | 740 | 488 |
Total revenues | (1,541) | (851) | (4,303) | (1,952) |
Equity (earnings) losses from unconsolidated hospitality ventures | (2) | 12 | 6 | (8) |
Stock-based compensation expense (Note 14) | 7 | 6 | 47 | 42 |
(Gains) losses on sales of real estate (Note 6) | 1 | (307) | (250) | (412) |
Asset impairments | 9 | 0 | 19 | 2 |
Other (income) loss, net (Note 18) | 24 | 3 | 53 | (34) |
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA | 15 | 9 | 38 | 6 |
Adjusted EBITDA | 252 | 110 | 676 | 145 |
Contra revenue | ||||
Segment Reporting Information | ||||
Total revenues | 9 | 9 | 27 | 26 |
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Total revenues | (705) | (456) | (1,885) | (1,082) |
Costs incurred on behalf of managed and franchised properties | ||||
Segment Reporting Information | ||||
Costs incurred on behalf of managed and franchised properties | $ 697 | $ 465 | $ 1,881 | $ 1,117 |
EARNINGS (LOSSES) PER SHARE - S
EARNINGS (LOSSES) PER SHARE - Schedule of the Calculation of Basic and Diluted Earnings (Losses) Per Share (Details) - 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) | $ 28 | $ 120 | $ 161 | $ (193) |
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Hyatt Hotels Corporation | $ 28 | $ 120 | $ 161 | $ (193) |
Denominator: | ||||
Basic weighted-average shares outstanding (in shares) | 109,077,476 | 102,298,714 | 109,730,293 | 101,910,558 |
Share-based compensation (in shares) | 1,946,515 | 1,688,833 | 2,062,150 | 0 |
Diluted weighted-average shares outstanding (in shares) | 111,023,991 | 103,987,547 | 111,792,443 | 101,910,558 |
Basic Earnings (Losses) Per Share: | ||||
Net income (loss) (in dollars per share) | $ 0.25 | $ 1.17 | $ 1.46 | $ (1.89) |
Net income (loss) attributable to noncontrolling interests (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Hyatt Hotels Corporation (in dollars per share) | 0.25 | 1.17 | 1.46 | (1.89) |
Diluted Earnings (Losses) Per Share: | ||||
Net income (loss) (in dollars per share) | 0.25 | 1.15 | 1.44 | (1.89) |
Net income (loss) attributable to noncontrolling interests (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Hyatt Hotels Corporation (in dollars per share) | $ 0.25 | $ 1.15 | $ 1.44 | $ (1.89) |
EARNINGS (LOSSES) PER SHARE - A
EARNINGS (LOSSES) PER SHARE - Anti-Dilutive Shares Issued (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
SARs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 10,900 | 4,500 | 9,300 | 1,242,900 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,800 | 3,400 | 1,900 | 562,800 |
OTHER INCOME (LOSS), NET (Detai
OTHER INCOME (LOSS), NET (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Restructuring expenses | $ (26) | $ (3) | $ (26) | $ (3) |
Unrealized gains (losses), net (Note 4) | (24) | 7 | (68) | 20 |
Foreign currency gains (losses), net | (10) | 0 | (12) | 7 |
Performance guarantee expense (Note 12) | (4) | (3) | (12) | (8) |
Transaction costs | 0 | (19) | (1) | (19) |
Loss on extinguishment of debt (Note 9) | 0 | 0 | (8) | 0 |
Depreciation recovery | 4 | 4 | 12 | 13 |
Release and amortization of performance guarantee liability (Note 12) | 10 | 1 | 17 | 2 |
Credit loss reversals (provisions), net (Note 4 and Note 5) | 12 | (2) | 17 | (12) |
Interest income | 14 | 7 | 29 | 21 |
Other, net | 0 | 5 | (1) | 13 |
Other income (loss), net | $ (24) | $ (3) | $ (53) | $ 34 |