Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-34521 | |
Entity Registrant Name | HYATT HOTELS CORPORATION | |
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, $0.01 par value | |
Trading Symbol | H | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001468174 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Class A | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 45,179,171 | |
Class B common stock | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 56,003,598 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
REVENUES: | ||
Total revenues | $ 1,714 | $ 1,680 |
DIRECT AND GENERAL AND ADMINISTRATIVE EXPENSES: | ||
General and administrative | 172 | 157 |
Other direct costs | 45 | 98 |
Integration costs | 4 | 4 |
Depreciation and amortization | 92 | 98 |
Total direct and general and administrative expenses | 1,673 | 1,604 |
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | 24 | 18 |
Equity earnings (losses) from unconsolidated hospitality ventures | 75 | (2) |
Interest expense | (38) | (33) |
Gains on sales of real estate and other | 403 | 0 |
Asset impairments | (17) | (2) |
Other income (loss), net | 53 | 48 |
Income before income taxes | 541 | 105 |
Provision for income taxes | (19) | (47) |
Net income | 522 | 58 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Hyatt Hotels Corporation | $ 522 | $ 58 |
EARNINGS PER CLASS A AND CLASS B SHARE: | ||
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | $ 5.08 | $ 0.55 |
EARNINGS PER CLASS A AND CLASS B SHARE: | ||
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | $ 4.93 | $ 0.53 |
Net fees | ||
REVENUES: | ||
Total revenues | $ 249 | $ 221 |
Gross fees | ||
REVENUES: | ||
Total revenues | 262 | 231 |
Base management fees | ||
REVENUES: | ||
Total revenues | 98 | 91 |
Incentive management fees | ||
REVENUES: | ||
Total revenues | 64 | 57 |
Franchise and other fees | ||
REVENUES: | ||
Total revenues | 100 | 83 |
Contra revenue | ||
REVENUES: | ||
Total revenues | (13) | (10) |
Owned and leased | ||
REVENUES: | ||
Total revenues | 309 | 314 |
DIRECT AND GENERAL AND ADMINISTRATIVE EXPENSES: | ||
Costs of goods and services sold | 250 | 240 |
Distribution | ||
REVENUES: | ||
Total revenues | 319 | 328 |
DIRECT AND GENERAL AND ADMINISTRATIVE EXPENSES: | ||
Costs of goods and services sold | 274 | 258 |
Other revenues | ||
REVENUES: | ||
Total revenues | 35 | 88 |
Revenues for reimbursed costs | ||
REVENUES: | ||
Total revenues | 802 | 729 |
Reimbursed costs | ||
DIRECT AND GENERAL AND ADMINISTRATIVE EXPENSES: | ||
Costs of goods and services sold | $ 836 | $ 749 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 522 | $ 58 |
Other comprehensive income (loss), net of taxes: | ||
Foreign currency translation adjustments, net of tax of $4 and $— for the three months ended March 31, 2024 and March 31, 2023, respectively | (18) | 15 |
Derivative instrument adjustments, net of tax of $— for the three months ended March 31, 2024 and March 31, 2023 | 0 | 1 |
Pension liabilities adjustments, net of tax of $— for the three months ended March 31, 2024 and March 31, 2023 | (1) | 0 |
Available-for-sale debt securities unrealized fair value adjustments, net of tax of $1 and $— for the three months ended March 31, 2024 and March 31, 2023, respectively | (3) | 3 |
Other comprehensive income (loss) | (22) | 19 |
Comprehensive income | 500 | 77 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Hyatt Hotels Corporation | $ 500 | $ 77 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - Parentheticals - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $ 4 | $ 0 |
Derivative instrument adjustments, tax | 0 | 0 |
Pension liabilities adjustments, tax | 0 | 0 |
Available-for-sale debt securities unrealized fair value adjustments, tax | $ 1 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 740 | $ 881 | |
Restricted cash | 16 | [1],[2] | 34 |
Short-term investments | 54 | 15 | |
Receivables, net of allowances of $51 and $50 at March 31, 2024 and December 31, 2023, respectively | 895 | 883 | |
Inventories | 9 | 9 | |
Prepaids and other assets | 193 | 195 | |
Prepaid income taxes | 58 | 51 | |
Assets held for sale | 42 | 62 | |
Total current assets | 2,007 | 2,130 | |
Equity method investments | 277 | 211 | |
Property and equipment, net | 2,258 | 2,340 | |
Financing receivables, net of allowances of $40 and $42 at March 31, 2024 and December 31, 2023, respectively | 136 | 73 | |
Operating lease right-of-use assets | 343 | 369 | |
Goodwill | 2,273 | 3,205 | |
Intangibles, net | 1,565 | 1,670 | |
Deferred tax assets | 434 | 358 | |
Other assets | 2,426 | 2,477 | |
TOTAL ASSETS | 11,719 | 12,833 | |
CURRENT LIABILITIES: | |||
Current maturities of long-term debt | 751 | 751 | |
Accounts payable | 539 | 493 | |
Accrued expenses and other current liabilities | 439 | 468 | |
Current contract liabilities | 1,464 | 1,598 | |
Accrued compensation and benefits | 145 | 210 | |
Current operating lease liabilities | 37 | 41 | |
Liabilities held for sale | 7 | 17 | |
Total current liabilities | 3,382 | 3,578 | |
Long-term debt | 2,304 | 2,305 | |
Long-term contract liabilities | 750 | 1,759 | |
Long-term operating lease liabilities | 252 | 273 | |
Other long-term liabilities | 1,371 | 1,351 | |
Total liabilities | 8,059 | 9,266 | |
Commitments and contingencies (see Note 12) | |||
EQUITY: | |||
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding at both March 31, 2024 and December 31, 2023 | 0 | 0 | |
Common stock | 1 | 1 | |
Additional paid-in capital | 0 | 0 | |
Retained earnings | 3,853 | 3,738 | |
Accumulated other comprehensive loss | (197) | (175) | |
Total stockholders' equity | 3,657 | 3,564 | |
Noncontrolling interests in consolidated subsidiaries | 3 | 3 | |
Total equity | 3,660 | 3,567 | |
TOTAL LIABILITIES AND EQUITY | $ 11,719 | $ 12,833 | |
[1](1) Restricted cash generally represents collateral for certain obligations, escrow deposits, and other arrangements.[2] (1) Restricted cash generally represents collateral for certain obligations, escrow deposits, and other arrangements. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - Parentheticals - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Allowance for doubtful accounts receivable, current | $ 51 | $ 50 |
Financing receivable, allowance for credit loss | $ 40 | $ 42 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A common stock | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares, issued (in shares) | 45,162,644 | 44,275,818 |
Common stock, shares, outstanding (in shares) | 45,162,644 | 44,275,818 |
Class B common stock | ||
Common stock, par or stated value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 387,998,010 | 390,751,535 |
Common stock, shares, issued (in shares) | 56,003,598 | 58,757,123 |
Common stock, shares, outstanding (in shares) | 56,003,598 | 58,757,123 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ 522 | $ 58 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 92 | 98 | |||||
Gains on sales of real estate and other | (403) | 0 | |||||
Amortization of share awards | 31 | 31 | |||||
Amortization of operating lease right-of-use assets | 10 | 9 | |||||
Deferred income taxes | (87) | (19) | |||||
Asset impairments | 17 | 2 | |||||
Equity (earnings) losses from unconsolidated hospitality ventures | (75) | 2 | |||||
Contra revenue | 13 | 10 | |||||
Unrealized gains, net | (13) | (43) | |||||
Contingent consideration liability fair value adjustment | (4) | 0 | |||||
Working capital changes and other | 139 | 77 | |||||
Net cash provided by operating activities | 242 | 225 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of marketable securities and short-term investments | (310) | (35) | |||||
Proceeds from marketable securities and short-term investments | 175 | 86 | |||||
Contributions to equity method and other investments | (6) | (31) | |||||
Acquisitions, net of cash acquired | 0 | (125) | |||||
Capital expenditures | (34) | (30) | |||||
Issuance of financing receivables | 0 | (13) | |||||
Proceeds from sales of real estate and other, net of cash disposed | 214 | 0 | |||||
Other investing activities | 3 | (1) | |||||
Net cash provided by (used in) investing activities | 42 | (149) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repurchases of common stock | (388) | (106) | |||||
Dividends paid | (15) | 0 | |||||
Repayments and repurchases of debt | (1) | (14) | |||||
Payment of withholding taxes for stock-based compensation | (40) | (13) | |||||
Net cash used in financing activities | (444) | (133) | |||||
Effect of exchange rate changes on cash | (2) | (4) | |||||
Net decrease in cash, cash equivalents, and restricted cash, including cash, cash equivalents, and restricted cash classified within current assets held for sale | (162) | (61) | |||||
Net change in cash, cash equivalents, and restricted cash classified as assets held for sale | 3 | 0 | |||||
Net decrease in cash, cash equivalents, and restricted cash | (159) | (61) | |||||
Cash, cash equivalents, and restricted cash—Beginning of year | 919 | 1,067 | |||||
Cash, cash equivalents, and restricted cash—End of period | 760 | 1,006 | $ 1,067 | ||||
Supplemental disclosure of cash flow information: | |||||||
Cash and cash equivalents | 740 | 948 | $ 881 | ||||
Restricted cash | 16 | [1],[2] | 20 | [1],[2] | 34 | ||
Restricted cash included in other assets | [1],[2] | 4 | 38 | ||||
Total cash, cash equivalents, and restricted cash | 760 | 1,006 | 1,067 | $ 919 | |||
Cash paid during the period for interest | 39 | 19 | |||||
Cash paid during the period for income taxes | 15 | 16 | |||||
Cash paid for amounts included in the measurement of operating lease liabilities | 12 | 11 | |||||
Non-cash investing and financing activities are as follows: | |||||||
Change in accrued capital expenditures | (2) | 4 | |||||
Non-cash contributions to equity method and other investments (Note 4) | 20 | 0 | |||||
Non-cash issuance of financing receivable (Note 6) | 41 | 0 | |||||
Non-cash right-of-use assets obtained in exchange for operating lease liabilities | 3 | 4 | |||||
Non-cash repurchases of common stock (Note 13) | 0 | 8 | $ 9 | ||||
Non-cash redemption of financing receivable | 0 | 20 | |||||
Non-cash contingent consideration liability assumed in acquisition (Note 6) | $ 0 | $ 107 | |||||
[1](1) Restricted cash generally represents collateral for certain obligations, escrow deposits, and other arrangements.[2] (1) Restricted cash generally represents collateral for certain obligations, escrow deposits, and other arrangements. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Subsidiaries | Class A common stock | Class A common stock Common Stock Amount | Class B common stock | Class B common stock Common Stock Amount | |
Common stock, shares, beginning balance (in shares) at Dec. 31, 2022 | 47,482,787 | 58,917,749 | ||||||||
Balance, beginning of period at Dec. 31, 2022 | $ 3,702 | $ 318 | $ 3,622 | $ (242) | $ 3 | $ 1 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income | 77 | 58 | 19 | |||||||
Repurchases of common stock (in shares) | [1] | (1,018,931) | ||||||||
Repurchases of common stock | [1] | (98) | (98) | |||||||
Liability for repurchases of common stock | [2] | (8) | (8) | |||||||
Employee stock plan issuance (in shares) | 13,925 | |||||||||
Employee stock plan issuance | 1 | 1 | ||||||||
Share-based payment activity (in shares) | 366,917 | |||||||||
Share-based payment activity | 22 | 22 | ||||||||
Cash dividends declared | 0 | $ 0 | $ 0 | |||||||
Common stock, shares, ending balance (in shares) at Mar. 31, 2023 | 46,844,698 | 58,917,749 | ||||||||
Balance, end of period at Mar. 31, 2023 | 3,696 | 235 | 3,680 | (223) | 3 | $ 1 | $ 0 | |||
Common stock, shares, beginning balance (in shares) at Dec. 31, 2023 | 44,275,818 | 44,275,818 | 58,757,123 | 58,757,123 | ||||||
Balance, beginning of period at Dec. 31, 2023 | 3,567 | 0 | 3,738 | (175) | 3 | $ 1 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Total comprehensive income | 500 | 522 | (22) | |||||||
Repurchases of common stock (in shares) | [1] | (528,427) | (1,987,229) | |||||||
Repurchases of common stock | [1] | (389) | (2) | (387) | ||||||
Employee stock plan issuance (in shares) | 13,475 | |||||||||
Employee stock plan issuance | 2 | 2 | ||||||||
Share-based payment activity (in shares) | 635,482 | |||||||||
Share-based payment activity | (5) | (5) | ||||||||
Cash dividends declared | (15) | (15) | $ (6) | $ (9) | ||||||
Class share conversions (in shares) | 766,296 | 766,296 | (766,296) | (766,296) | ||||||
Common stock, shares, ending balance (in shares) at Mar. 31, 2024 | 45,162,644 | 45,162,644 | 56,003,598 | 56,003,598 | ||||||
Balance, end of period at Mar. 31, 2024 | $ 3,660 | $ 0 | $ 3,853 | $ (197) | $ 3 | $ 1 | $ 0 | |||
[1] (1) Includes a $1 million liability for the 1% U.S. federal excise tax on certain share repurchases enacted by the Inflation Reduction Act of 2022. (2) Represents repurchases of 73,368 shares for $8 million that were initiated prior to March 31, 2023, but settled in the second quarter of 2023. |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - Parenthetical - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend declared (in dollars per share) | $ 0.15 | |
Excise tax | $ 1 | $ 1 |
Shares repurchased and not settled yet (in shares) | 73,368 | |
Non-cash repurchases of common stock | $ 0 | $ 8 |
ORGANIZATION
ORGANIZATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Hyatt Hotels Corporation, a Delaware corporation, and its consolidated subsidiaries have offerings that consist of full service hotels and resorts, select service hotels, all-inclusive resorts, and other properties, including timeshare, fractional, and other forms of residential and vacation units. We also offer distribution and destination management services through ALG Vacations and a boutique and luxury global travel platform through Mr & Mrs Smith. A t March 31, 2024, our hotel portfolio included 1,341 hotels, comprising 323,405 rooms throughout the world, of which 699 hotels are located in the United States, comprising 156,851 rooms, and 124 are all-inclusive resorts, comprising 42,412 rooms. At March 31, 2024, our portfolio of properties operated in 78 c ountries around the world. Additionally, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and operate under other trade names 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 ("Quarterly Report") 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: • "hospitality ventures" refer 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 and vacation units that we operate, manage, franchise, own, lease, develop, license, or to which we provide services or license our trademarks, including under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt Vacation Club, Hyatt Place, Hyatt House, Hyatt Studios, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Dream Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Impression by Secrets, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt 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 units" refer to the fractional and timeshare vacation properties we license our trademarks to and that are part of the Hyatt Vacation 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 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, 2023 (the "2023 Form 10-K"). We have eliminated all intercompany accounts and transactions in our condensed consolidated financial statements. We consolidate entities under our control, including entities where we are deemed to be the primary beneficiary. Management believes the accompanying condensed consolidated financial statements reflect all adjustments, which are all of a normal recurring nature, considered necessary for a fair presentation of the interim periods. Segment Realignment —During the three months ended March 31, 2024, we realigned our reportable segments to align with our business strategy, the organizational changes for certain members of our leadership team, and the manner in which our chief operating decision maker ("CODM") assesses performance and makes decisions regarding the allocation of resources. The segment realignment had no impact on our condensed consolidated financial position or results of operations. Prior period segment results have been recast to reflect our new reportable segments. See Note 16 for a summary of our revised reportable segments and summarized consolidated financial information by segment. In conjunction with the segment realignment, certain financial statement line item descriptions were revised within our condensed consolidated statements of income. The composition of the accounts within these financial statement line items remains unchanged. The changes include: New financial statement line item Previously-used financial statement line item Owned and leased revenues Owned and leased hotels revenues Franchise and other fee revenues Franchise, license, and other fee revenues Revenues for reimbursed costs Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties General and administrative expenses (1) Selling, general, and administrative expenses Integration costs (2) Selling, general, and administrative expenses Owned and leased expenses Owned and leased hotels expenses Reimbursed costs Costs incurred on behalf of managed and franchised properties (1) Excludes integration costs. (2) Includes expenses incurred related to the integration of recently acquired businesses, including certain compensation expenses, professional fees, sales and marketing expenses, and technology expenses. Additionally, distribution and destination management revenues and expenses are not presented as the accounts under these previously-used financial statement line items are now included in the following: Distribution revenues —Represents revenues derived from the ALG Vacations business, which were previously recognized in distribution and destination management revenues, and commission fee revenues related to Mr & Mrs Smith, which were previously recognized in other fee revenues. Distribution expenses —Consists of expenses related to the ALG Vacations business, which were previously recognized in distribution and destination management expenses, and general and administrative expenses related to Mr & Mrs Smith, which were previously recognized in selling, general, and administrative expenses. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Summary of Significant Accounting Policies Our significant accounting policies are detailed in Part IV, Item 15, "Exhibits and Financial Statement Schedule—Note 2 to our Consolidated Financial Statements" within the 2023 Form 10-K. During the three months ended March 31, 2024, we completed a restructuring of the entity that owns the Unlimited Vacation Club paid membership program business and sold 80% of the entity to an unrelated third party for $80 million. As a result of the transaction, we deconsolidated the entity as we no longer have a controlling financial interest and accounted for our remaining 20% ownership interest as an equity method investment in an unconsolidated hospitality venture (the "UVC Transaction"). For additional information about the UVC Transaction, see Note 4. Our accounting policies have been updated as follows: Variable Interest Entities —We determine at the inception of each arrangement whether an entity in which we have made an investment or in which we have other variable interests is considered a variable interest entity ("VIE"). We consolidate VIEs when we are the primary beneficiary. We are the primary beneficiary of a VIE when we have the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If we are not the primary beneficiary of a VIE, we account for the investment or other variable interests in a VIE in accordance with the applicable GAAP. On a quarterly basis, we determine whether any changes in the interest or relationship with the entity impact the determination of whether we are still the primary beneficiary. Adopted Accounting Standards Reference Rate Reform —In March 2020, the Financial Accounting Standards Board ("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 ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB issued Accounting Standards Update No. 2022-06 ("ASU 2022-06"), Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . ASU 2022-06 was effective upon issuance and defers the sunset date of Topic 848 by two years, extending the provisions of ASU 2020-04 through December 31, 2024. During the year ended December 31, 2023, we adopted the provisions of ASU 2020-04. We amended certain LIBOR-based contracts during the three months ended March 31, 2024 and the year ended December 31, 2023, and we are in the process of converting other LIBOR-based contracts to alternative reference rates. ASU 2020-04 did not materially impact our condensed consolidated financial statements upon adoption and is not expected to have a material future impact as we apply optional expedients or exceptions. Future Adoption of Accounting Standards Disclosure Improvements —In October 2023, the FASB issued Accounting Standards Update No. 2023-06 ("ASU 2023-06"), Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative . ASU 2023-06 modifies the disclosure and presentation requirements for certain FASB Accounting Standards Codification topics to align with the regulations of the Securities and Exchange Commission ("SEC"). The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from its regulations becomes effective, if the SEC removes the disclosure by June 30, 2027. The provisions of ASU 2023-06 are to be applied prospectively, with early adoption prohibited. We do not expect the adoption of ASU 2023-06 to have a material impact on our condensed consolidated financial statements and accompanying Notes. Segment Reporting —In November 2023, the FASB issued Accounting Standards Update No. 2023-07 ("ASU 2023-07"), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to evaluate segment performance. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and require retrospective adoption for all prior periods presented. We are currently assessing the impact of adopting ASU 2023-07. Income Taxes —In December 2023, the FASB issued Accounting Standards Update No. 2023-09 ("ASU 2023-09"), Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires enhanced annual income tax disclosures, including (1) disaggregation of effective tax rate reconciliation categories, (2) additional information for reconciling items that meet a quantitative threshold, and (3) income taxes paid by jurisdiction. The provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively for all prior periods presented. We are currently assessing the impact of adopting ASU 2023-09. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenues See Note 16 for our revenues disaggregated by the nature of the product or service. Contract Balances Contract assets, included in receivables, net on our condensed consolidated balance sheets, were $2 million and insignificant at March 31, 2024 and December 31, 2023, 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: March 31, 2024 December 31, 2023 Deferred revenue related to the loyalty program $ 1,214 $ 1,130 Deferred revenue related to distribution and destination management services 695 719 Advanced deposits 66 57 Deferred revenue related to insurance programs 54 75 Initial fees received from franchise owners 45 45 Deferred revenue related to the paid membership program (1) — 1,204 Other deferred revenue 140 127 Total contract liabilities $ 2,214 $ 3,357 (1) The change from December 31, 2023 is due to balances written off to gains on sale of real estate and other on our condensed consolidated statements of income during the three months ended March 31, 2024 as a result of the UVC Transaction (see Note 4). Revenue recognized during the three months ended March 31, 2024 and March 31, 2023 included in the contract liabilities balance at the beginning of each year was $623 million and $654 million, respectively. This revenue primarily relates to distribution and destination management services and the loyalty 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 $120 million at March 31, 2024, approximately 15% 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 | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
DEBT AND EQUITY SECURITIES | DEBT AND EQUITY SECURITIES We invest in debt and equity securities that we believe are strategically and operationally important to our business. These investments take the form of (i) equity method investments where we have the ability to significantly influence the operations of the entity, (ii) marketable securities held to fund operating programs and for investment purposes, and (iii) other types of investments. Equity Method Investments Equity method investments were $277 million and $211 million at March 31, 2024 and December 31, 2023, respectively. Unconsolidated hospitality venture in India —During the year ended December 31, 2023, one of our unconsolidated hospitality ventures in India publicly filed a draft red herring prospectus with the Securities and Exchange Board of India in conjunction with a proposed initial public offering ("IPO") of equity shares, subject to market conditions and regulatory approvals. On February 28, 2024, our unconsolidated hospitality venture completed its IPO on the BSE Limited and National Stock Exchange of India Limited stock exchanges and issued 50,000,000 equity shares. Both prior and subsequent to the IPO, we hold 86,251,192 equity shares in the entity. At March 31, 2024, the price per share of the principal market for the equity shares was ₹517.55 (approximately $6.21 using exchange rates as of March 31, 2024). As a result of the IPO, our ownership interest in the unconsolidated hospitality venture was diluted from 50.0% to 38.8%. As we maintain the ability to significantly influence the operations of the entity, we recorded an increase to our equity method investment and recognized a $79 million non-cash pre-tax dilution gain in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income during the three months ended March 31, 2024. UVC Transaction —During the three months ended March 31, 2024, we completed the UVC Transaction and accounted for the sale of our controlling financial interest in the entity as a business disposition. We received $41 million of proceeds, net of $39 million of cash disposed; recorded a $20 million equity method investment representing the fair value of our retained investment in the entity; and recorded $86 million of guarantee liabilities as described below. The transaction resulted in a $231 million pre-tax gain, which was recognized in gains on sales of real estate and other on our condensed consolidated statements of income during the three months ended March 31, 2024. We will continue to manage the Unlimited Vacation Club business under a long-term management agreement and license and royalty agreement. The operating results of the Unlimited Vacation Club business prior to the UVC Transaction are reported within our distribution segment. The fair value of our retained investment in the entity was determined using a Black-Scholes-Merton option-pricing model of our common shares in the entity. The valuation methodology includes assumptions and judgments regarding volatility and discount rates, which are primarily Level Three assumptions. In conjunction with the transaction, we agreed to guarantee up to $70 million of our hospitality venture partner's investment upon the occurrence of certain events, and we recorded a $25 million guarantee liability at fair value in other long-term liabilities on our condensed consolidated balance sheet (see Note 10). The fair value was estimated using the with and without method, which includes projected cash flows based on contract terms. The valuation methodology includes assumptions and judgments regarding discount rates and length of time, which are primarily Level Three assumptions. Additionally, we agreed to indemnify the unconsolidated hospitality venture, the primary obligor to the foreign taxing authorities, for obligations the entity may incur as a result of uncertain tax positions. Following the transaction, we accounted for the indemnification as a guarantee. We derecognized the long-term income taxes payable related to the uncertain tax positions and recorded a $61 million guarantee liability at fair value in other long-term liabilities on our condensed consolidated balance sheet at March 31, 2024 (see Note 10). The fair value of the indemnification was estimated using a probability-based weighting approach to determine the likelihood of payment of the tax liability, penalties, and interest related to the 2013 through 2018 tax years. The valuation methodology includes assumptions and judgments regarding probability weighting, discount rates, and expected timing of cash flows, which are primarily Level Three assumptions. At March 31, 2024, the indemnification had a maximum exposure of $100 million. The entity that owns the Unlimited Vacation Club business is classified as a VIE in which we hold a variable interest but are not the primary beneficiary, and we account for our common ownership interest as an equity method investment. At March 31, 2024, we had $19 million and $82 million recorded in equity method investments and other long-term liabilities, respectively, on our condensed consolidated balance sheet related to this unconsolidated VIE. At March 31, 2024, our maximum exposure to loss was $189 million, which includes the carrying amount of our equity method investment and the maximum exposure under the aforementioned guarantee and indemnification (see Note 12). 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: March 31, 2024 December 31, 2023 Loyalty program (Note 8) $ 816 $ 807 Deferred compensation plans held in rabbi trusts (Note 8 and Note 10) 526 489 Captive insurance company (Note 8) 136 94 Total marketable securities held to fund operating programs $ 1,478 $ 1,390 Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments (280) (320) Marketable securities held to fund operating programs included in other assets $ 1,198 $ 1,070 At March 31, 2024 and December 31, 2023, marketable securities held to fund operating programs included: • $470 million and $330 million, respectively, of available-for-sale ("AFS") debt securities with contractual maturity dates ranging from 2024 through 2069. The amortized cost of our AFS debt securities approximates fair value; • $25 million, in both periods, of time deposits classified as held-to-maturity ("HTM") debt securities with a contractual maturity date in 2025. The amortized cost of our time deposits approximates fair value; • $16 million and $15 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 March 31, 2024 2023 Unrealized gains (losses), net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1) $ 22 $ 17 Revenues for reimbursed costs (2) 11 9 Other income (loss), net (Note 18) — 6 Other comprehensive income (loss) (Note 13) (4) 3 Realized gains, net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1) $ 2 $ 1 Revenues for reimbursed costs (2) 1 — (1) Unrealized and realized gains recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts are offset by amounts recognized in owned and leased expenses and general and administrative expenses with no impact on net income. (2) Unrealized and realized gains recognized in revenues for reimbursed costs related to investments held to fund rabbi trusts are offset by amounts recognized in reimbursed costs with no impact on net income. 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: March 31, 2024 December 31, 2023 Interest-bearing money market funds $ 234 $ 284 Common shares in Playa N.V. (Note 8) 118 105 Time deposits (1) 14 11 Total marketable securities held for investment purposes $ 366 $ 400 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (247) (294) Marketable securities held for investment purposes included in other assets $ 119 $ 106 (1) Time deposits have contractual maturities on various dates through 2025. The amortized cost of our time deposits approximates fair value. 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 of these common shares during the three months ended March 31, 2024 or March 31, 2023. Net unrealized gains recognized on our condensed consolidated statements of income were as follows: Three Months Ended March 31, 2024 2023 Other income (loss), net (Note 18) $ 13 $ 37 Fair Value —We measure marketable securities at fair value on a recurring basis: March 31, 2024 Cash and cash equivalents Short-term investments Other assets Level One—Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 465 $ 465 $ — $ — Mutual funds and exchange-traded funds 532 — — 532 Common shares 128 — — 128 Level Two—Significant Other Observable Inputs Time deposits 39 3 10 26 U.S. government obligations 325 5 16 304 U.S. government agencies 27 — — 27 Corporate debt securities 274 — 28 246 Mortgage-backed securities 22 — — 22 Asset-backed securities 28 — — 28 Municipal and provincial notes and bonds 4 — — 4 Total $ 1,844 $ 473 $ 54 $ 1,317 December 31, 2023 Cash and cash equivalents Short-term investments Other assets Level One—Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 599 $ 599 $ — $ — Mutual funds and exchange-traded funds 495 — — 495 Common shares 114 — — 114 Level Two—Significant Other Observable Inputs Time deposits 36 — 10 26 U.S. government obligations 250 — — 250 U.S. government agencies 37 — — 37 Corporate debt securities 212 — 5 207 Mortgage-backed securities 19 — — 19 Asset-backed securities 24 — — 24 Municipal and provincial notes and bonds 4 — — 4 Total $ 1,790 $ 599 $ 15 $ 1,176 During the three months ended March 31, 2024 and March 31, 2023, 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 hold investments in third-party entities associated with certain of our hotels. The investments are redeemable on various dates through 2062 and recorded as HTM debt securities within other assets on our condensed consolidated balance sheets: March 31, 2024 December 31, 2023 HTM debt securities $ 53 $ 53 Less: allowance for credit losses (13) (13) Total HTM debt securities, net of allowances $ 40 $ 40 The following table summarizes the activity in our HTM debt securities allowance for credit losses: 2024 2023 Allowance at January 1 $ 13 $ 31 Provisions, net (1) — 1 Allowance at March 31 $ 13 $ 32 (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 $42 million and $41 million at March 31, 2024 and December 31, 2023, 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 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. Convertible Debt Security —During the three months ended March 31, 2023, we invested in a $30 million convertible debt security associated with a franchised property, which is classified as AFS and recorded in other assets on our condensed consolidated balance sheets. The investment has a contractual maturity date in 2029. The convertible debt investment is remeasured at fair value on a recurring basis and is classified as Level Three in the fair value hierarchy. We estimated the fair value of this investment to be $39 million at both March 31, 2024 and December 31, 2023. The fair value is estimated using a discounted future cash flow model, and the primary sensitivity in the model is the selection of an appropriate discount rate. Fluctuations in our assumptions could result in different estimates of fair value. During the three months ended March 31, 2024 and March 31, 2023, we recognized an insignificant amount and no amount of unrealized gains or losses, respectively, on our investment. Equity Securities Without a Readily Determinable Fair Value —At both March 31, 2024 and December 31, 2023, we held $16 million of investments in equity securities without a readily determinable fair value, which are recorded within other assets on our condensed consolidated balance sheets and represent investments in entities where we do not have the ability to significantly influence the operations of the entity. |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Mar. 31, 2024 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
RECEIVABLES | RECEIVABLES Receivables At March 31, 2024 and December 31, 2023, we had $895 million and $883 million, respectively, of net receivables recorded on our condensed consolidated balance sheets. The following table summarizes the activity in our receivables allowance for credit losses: 2024 2023 Allowance at January 1 $ 50 $ 63 Provisions, net 3 3 Write-offs (2) (3) Allowance at March 31 $ 51 $ 63 Financing Receivables March 31, 2024 December 31, 2023 Unsecured financing to hotel owners $ 199 $ 137 Less: current portion of financing receivables, included in receivables, net (23) (22) Less: allowance for credit losses (40) (42) Total long-term financing receivables, net of allowances $ 136 $ 73 Allowance for Credit Losses— The following table summarizes the activity in our unsecured financing receivables allowance for credit losses: 2024 2023 Allowance at January 1 $ 42 $ 44 Reversals, net (1) (1) Foreign currency exchange, net (1) — Allowance at March 31 $ 40 $ 43 Credit Monitoring— Our unsecured financing receivables were as follows: March 31, 2024 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 191 $ (38) $ 153 $ 21 Other financing arrangements 8 (2) 6 — Total unsecured financing receivables $ 199 $ (40) $ 159 $ 21 December 31, 2023 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 128 $ (39) $ 89 $ 22 Other financing arrangements 9 (3) 6 — Total unsecured financing receivables $ 137 $ (42) $ 95 $ 22 Fair Value— We estimated the fair value of financing receivables to be approximately $185 million and $133 million at March 31, 2024 and December 31, 2023, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions Mr & Mrs Smith —During the year ended December 31, 2023, we acquired 100% of the outstanding shares of Smith Global Limited, doing business as Mr & Mrs Smith, in a business combination through a locked box structure. The enterprise value of £53 million was subject to customary adjustments related to indebtedness and net working capital as of the locked box date, as well as a value accrual representing the economic value from the locked box date through the acquisition date. We closed on the transaction on June 2, 2023 and paid cash of £58 million (approximately $72 million using exchange rates as of the acquisition date). Net assets acquired were determined as follows: Cash paid, net of cash acquired $ 50 Cash acquired 22 Net assets acquired $ 72 The acquisition includes technology related to a boutique and luxury global travel platform, brand name, and relationships with affiliated hotel owners. Our condensed consolidated balance sheets at both March 31, 2024 and December 31, 2023 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 discounted future cash flow models, the relief from royalty method, or a cost-based approach. Depending on the valuation method, these estimates include revenue projections based on long-term growth rates, expected attrition, historical cost information, and/or an obsolescence factor, all of which are primarily Level Three assumptions. The remaining assets and liabilities were recorded at their carrying values, which approximate their fair values. We will continue to evaluate the contracts acquired and the underlying inputs and assumptions used in our valuation of assets acquired and liabilities assumed. Accordingly, these estimates, along with any related tax impacts, are subject to change during the measurement period, which is up to one year from the date of acquisition. The following table summarizes the preliminary fair value of the identifiable net assets acquired at the acquisition date: Cash and cash equivalents $ 22 Receivables 6 Prepaids and other assets 1 Goodwill (1) 39 Indefinite-lived intangibles (2) 12 Customer relationships intangibles (3) 12 Other intangibles (4) 16 Deferred tax assets 2 Total assets acquired $ 110 Accounts payable $ 1 Accrued expenses and other current liabilities 7 Current contract liabilities 17 Long-term contract liabilities 3 Other long-term liabilities 10 Total liabilities assumed $ 38 Total net assets acquired attributable to Hyatt Hotels Corporation $ 72 ( 1) The goodwill, which is recorded on the distribution segment, is attributable to growth opportunities we expect to realize through direct booking access to properties within the Mr & Mrs Smith platform through our distribution channels. Goodwill is not tax deductible. (2) Relates to the Mr & Mrs Smith brand name. (3) Amortized over a useful life of 12 years. (4) Amortized over a useful life of 10 years. Dream Hotel Group —During the three months ended March 31, 2023, a Hyatt affiliate acquired 100% of the limited liability company interests of each of Chatwal Hotels & Resorts, LLC, DHG Manager, LLC, and each of the subsidiaries of DHG Manager, LLC (collectively, Dream Hotel Group) for $125 million of base consideration, subject to customary adjustments related to working capital and indebtedness, and up to an additional $175 million of contingent consideration to be paid through 2028 upon the achievement of certain milestones related to the development of additional hotels and/or potential new hotels previously identified by the sellers. We closed on the transaction on February 2, 2023 and paid $125 million of cash. Upon acquisition, we recorded a $107 million contingent consideration liability at fair value in other long-term liabilities on our condensed consolidated balance sheet. The fair value was estimated using a Monte Carlo simulation to model the likelihood of achieving the agreed-upon milestones based on available information as of the acquisition date. The valuation methodology includes assumptions and judgments regarding the discount rate, estimated probability of achieving the milestones, and expected timing of payments, which are primarily Level Three assumptions. Net assets acquired were determined as follows: Cash paid $ 125 Fair value of contingent consideration 107 Net assets acquired $ 232 The acquisition includes management and license agreements for both operating and additional hotels that are expected to open in the future, primarily across North America, and the affiliated trade names for three lifestyle hotel brands. Following the acquisition date, fee revenues and operating expenses of Dream Hotel Group were recognized on our condensed consolidated statements of income and were insignificant for the period from the acquisition date through March 31, 2023. Our condensed consolidated balance sheets at both March 31, 2024 and December 31, 2023 reflect 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 were 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 remaining assets and liabilities were recorded at their carrying values, which approximate their fair values. During the year ended December 31, 2023, the fair values of certain assets acquired and liabilities assumed were finalized. The measurement period adjustments primarily resulted from the refinement of certain assumptions, including contract terms 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 December 31, 2023 include a $21 million decrease in intangibles, net with a corresponding increase to goodwill. The following table summarizes the fair value of the identifiable net assets acquired at the acquisition date: Receivables $ 1 Goodwill (1) 62 Indefinite-lived intangibles (2) 20 Management agreement intangibles (3) 143 Other intangibles (2) 7 Total assets acquired $ 233 Long-term contract liabilities $ 1 Total liabilities assumed $ 1 Total net assets acquired attributable to Hyatt Hotels Corporation $ 232 (1) The goodwill, which is tax deductible and recorded on the management and franchising segment, is attributable to the growth opportunities we expect to realize by expanding our lifestyle offerings and providing global travelers with an increased number of elevated hospitality experiences. (2) Includes intangible assets related to the Dream Hotels, The Chatwal, and Unscripted Hotels brand names. Certain brand names are amortized over useful lives of 20 years. (3) Amortized over useful lives of approximately 9 to 22 years, with a weighted-average useful life of approximately 17 years. During the three months ended March 31, 2023, we recognized $7 million of transaction costs, primarily related to regulatory, financial advisory, and legal fees, in other income (loss), net on our condensed consolidated statements of income (see Note 18). Dispositions Hyatt Regency Aruba Resort Spa and Casino —During the three months ended March 31, 2024, we sold the shares of the entities that own Hyatt Regency Aruba Resort Spa and Casino to an unrelated third party and accounted for the transaction as an asset disposition. We received $173 million of proceeds, net of cash disposed, closing costs, and proration adjustments, and issued a $41 million unsecured financing receivable with a maturity date greater than one year (see Note 5). Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $172 million pre-tax gain, which was recognized in gains on sales of real estate and other on our condensed consolidated statements of income during the three months ended March 31, 2024. In connection with the disposition, we recognized a $15 million goodwill impairment charge in asset impairments on our condensed consolidated statements of income during the three months ended March 31, 2024. 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 segment. At December 31, 2023, we classified the assets and liabilities as held for sale on our condensed consolidated balance sheet. Held for Sale Park Hyatt Zurich —During the three months ended March 31, 2024, we signed an asset transfer agreement to sell Park Hyatt Zurich for a sales price of 270 million Swiss Francs ("CHF") (approximately $300 million using exchange rates as of the closing date), including CHF 41 million (approximately $45 million) of seller financing. At March 31, 2024, the related assets and liabilities were classified as held for sale within our owned and leased segment on our condensed consolidated balance sheet. Assets held for sale were $42 million, which primarily consists of $40 million of property and equipment, net, and liabilities held for sale were $7 million, of which $2 million relates to accrued expenses and other current liabilities. On April 4, 2024, we completed the sale of the property to an unrelated third party and entered into a long-term management agreement. |
INTANGIBLES, NET
INTANGIBLES, NET | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES, NET | INTANGIBLES, NET March 31, 2024 Weighted- average useful lives in years Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles 15 $ 903 $ (266) $ 637 Brand and other indefinite-lived intangibles — 608 — 608 Customer relationships intangibles 10 410 (116) 294 Other intangibles 11 32 (6) 26 Total $ 1,953 $ (388) $ 1,565 December 31, 2023 Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles $ 906 $ (248) $ 658 Brand and other indefinite-lived intangibles 608 — 608 Customer relationships intangibles 620 (243) 377 Other intangibles 33 (6) 27 Total $ 2,167 $ (497) $ 1,670 Three Months Ended March 31, 2024 2023 Amortization expense $ 36 $ 44 |
OTHER ASSETS
OTHER ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS March 31, 2024 December 31, 2023 Management and hotel services agreement and franchise agreement assets constituting payments to customers (1) $ 884 $ 896 Marketable securities held to fund the loyalty program (Note 4) 595 495 Marketable securities held to fund rabbi trusts (Note 4) 526 489 Common shares in Playa N.V. (Note 4) 118 105 Long-term investments (Note 4) 96 96 Marketable securities held for captive insurance company (Note 4) 77 86 Deferred costs related to the paid membership program — 194 Other 130 116 Total other assets $ 2,426 $ 2,477 (1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At March 31, 2024 and December 31, 2023, we had $3,055 million and $3,056 million, respectively, of total debt, which included $751 million, in both periods, recorded in current maturities of long-term debt on our condensed consolidated balance sheets. Senior Notes Repurchases —During the three months ended March 31, 2023, we repurchased $13 million of our senior notes due 2023 in the open market. Revolving Credit Facility —During the three months ended March 31, 2024 and March 31, 2023, we had no borrowings or repayments on our revolving credit facility in effect for each of the respective periods. At both March 31, 2024 and December 31, 2023, we had no balance outstanding. At March 31, 2024, we had $1,496 million of borrowing capacity available under our revolving credit facility, net of letters of credit outstanding. Fair Value —We estimated the fair value of debt, which consists of the notes below (collectively, the "Senior Notes") and other long-term debt, excluding finance leases. • $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 • $600 million of 5.750% senior notes due 2027 • $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. We classified our other debt instruments and revolving credit facility, if applicable, as Level Three based on the lack of available market data. 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. March 31, 2024 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) $ 3,062 $ 3,053 $ — $ 3,025 $ 28 (1) Excludes $5 million of finance lease obligations and $12 million of unamortized discounts and deferred financing fees. December 31, 2023 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) $ 3,063 $ 3,062 $ — $ 3,032 $ 30 (2) Excludes $6 million of finance lease obligations and $13 million of unamortized discounts and deferred financing fees. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES March 31, 2024 December 31, 2023 Deferred compensation plans funded by rabbi trusts (Note 4) $ 526 $ 489 Income taxes payable 337 407 Guarantee liabilities (Note 12) 209 142 Contingent consideration liability (Note 12) 111 115 Self-insurance liabilities (Note 12) 74 73 Deferred income taxes (Note 11) 48 66 Other 66 59 Total other long-term liabilities $ 1,371 $ 1,351 |
TAXES
TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
TAXES | TAXES The provision for income taxes for the three months ended March 31, 2024 and March 31, 2023 was $19 million and $47 million, respectively. The decrease in the provision for income taxes for the three months ended March 31, 2024, compared to the three months ended March 31, 2023, was primarily due to a non-cash tax benefit as a result of the release of a valuation allowance on certain foreign deferred tax assets. This decrease was partially offset by the earnings impact from both the sale of Hyatt Regency Aruba Resort Spa and Casino and the UVC Transaction recognized during the three months ended March 31, 2024. 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 have been subject to a U.S. Tax Court case concerning the tax treatment of the loyalty program in which the Internal Revenue Service is asserting that loyalty program contributions are taxable income to the Company. U.S. tax years 2012 through 2017 are pending the outcome of the issue currently in U.S. Tax Court. The Tax Court issued an opinion on October 2, 2023 related to the aforementioned case and determined that the Company must recognize approximately $12 million in net taxable income for the tax years 2009 through 2011, but that the Company need not recognize approximately $228 million in net taxable income that preceded 2009. The Company is evaluating the Tax Court's decision and potential appeal options. In order to appeal the Tax Court's ruling, the Company would be required to pay the tax liability and interest related to the 2009 through 2011 tax years as determined by the Tax Court, which is estimated to be $2 million. If the Company were to appeal and the Tax Court's opinion is upheld on appeal, the estimated income tax payment due for the subsequent years 2012 through 2024 is $236 million, including $35 million of estimated interest, net of federal benefit. We believe we have an adequate uncertain tax liability recorded in accordance with Accounting Standards Codification 740, Income Taxes , for this matter and believe that the ultimate outcome of this matter will not have a material effect on our consolidated financial position, results of operations, or liquidity. At March 31, 2024 and December 31, 2023, total unrecognized tax benefits recorded in other long-term liabilities on our condensed consolidated balance sheets were $289 million and $301 million, respectively, of which $92 million and $120 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, we are not able to estimate the range by which the reasonably possible outcomes of the pending litigation could impact our uncertain benefits within the next 12 months. Through a prior acquisition, we assumed an assessment of additional corporate income tax related to disallowed deductions taken on historical tax returns from the Mexican tax authorities that was in process of being appealed. During the three months ended March 31, 2024, we appealed the assessment to a higher court. Our filing position is more likely than not to be sustained, and therefore, we do not have an uncertain tax liability recorded for this matter. At March 31, 2024, the unrecognized tax liability is approximately $37 million. Further, the Mexican tax authorities disallowed credits taken on historical tax returns, resulting in additional value added tax. In accordance with Accounting Standards Codification 450, Contingencies , we have not recorded a liability in connection with this matter as we do not believe a loss is probable. At March 31, 2024, our maximum exposure is not expected to exceed $14 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, we are committed, under certain conditions, to lend, provide certain consideration to, or invest in various business ventures up to $462 million, net of any related letters of credit. Performance Guarantees —Certain of our contractual agreements with third-party 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 March 31, 2024, our performance guarantees had $98 million of remaining maximum exposure and expire between 2024 and 2042. Through acquisitions, we acquired certain management and hotel services agreements with performance guarantees based on annual performance levels and with expiration dates between 2027 and 2045. Contract terms within certain management and hotel services agreements limit our exposure, and therefore, we are unable to reasonably estimate our maximum potential future payments. At March 31, 2024 and December 31, 2023, we had $93 million and $99 million, respectively, of total performance guarantee liabilities, which included $85 million and $91 million, respectively, recorded in other long-term liabilities. At both March 31, 2024 and December 31, 2023, we had $8 million recorded in accrued expenses and other current liabilities on our condensed consolidated balance sheets. Additionally, we enter into certain management and hotel services agreements 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 contract. At March 31, 2024 and December 31, 2023, we had no amount and an insignificant amount, 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 third-party owners, franchisees, and unconsolidated hospitality ventures in obtaining third-party financing or to obtain more favorable borrowing terms. Geographical region Maximum potential future payments (1) Maximum exposure net of recoverability from third parties (1) Other long-term liabilities recorded at March 31, 2024 Other long-term liabilities recorded at December 31, 2023 Year of guarantee expiration (2) United States (3), (4) $ 140 $ 41 $ 27 $ 30 various, through 2027 All foreign (3), (5) 84 62 15 21 various, through 2034 Total $ 224 $ 103 $ 42 $ 51 (1) Our maximum exposure is generally based on a specified percentage of the total principal due upon borrower default. (2) Certain underlying debt agreements have extension periods which are not reflected in the year of guarantee expiration. (3) We have agreements with our unconsolidated hospitality venture partners or the respective third-party owners or franchisees to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash or HTM debt security. (4) Certain agreements give us the ability to assume control of the property if defined funding thresholds are met or if certain events occur. (5) Under a certain debt repayment guarantee associated with hotel properties in India, we have the contractual right to recover amounts funded from an unconsolidated hospitality venture, which is a related party, and therefore, we expect our maximum exposure for this guarantee to be approximately $25 million, taking into account our partner's 50% reimbursement commitment. At March 31, 2024, we are not aware, nor have we received any notification, that our third-party owners, franchisees, or unconsolidated hospitality ventures are not current on their debt service obligations where we have provided a debt repayment guarantee. Other Guarantees —We may be obligated to fund up to $170 million related to certain guarantees as a result of the UVC Transaction (see Note 4). At March 31, 2024, we had $82 million of guarantee liabilities recorded in other long-term liabilities on our condensed consolidated balance sheet associated with these guarantees. Guarantee Liabilities Fair Value —We estimated the fair value of our guarantees to be $228 million and $148 million at March 31, 2024 and December 31, 2023, respectively. Based on the lack of available market data, we have classified our guarantees as Level Three in the fair value hierarchy. Contingent Consideration Fair Value —We may pay up to an additional $175 million of contingent consideration through 2028 as a result of our acquisition of Dream Hotel Group (see Note 6). At March 31, 2024, we had $174 million of potential future consideration remaining. The contingent consideration liability, which is remeasured at fair value on a recurring basis and is classified as Level Three in the fair value hierarchy, is recorded in other long-term liabilities on our condensed consolidated balance sheets. The following table summarizes the change in fair value recognized in other income (loss), net on our condensed consolidated statements of income: 2024 2023 Fair value at January 1 $ 115 $ — Fair value as of acquisition date (Note 6) — 107 Change in fair value (Note 18) (4) — Fair value at March 31 (Note 10) $ 111 $ 107 Insurance —We obtain insurance for potential losses from general liability, property, automobile, aviation, environmental, workers' compensation, employment practices, crime, cyber, and other miscellaneous risks. A portion of these risks is retained 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 $41 million at both March 31, 2024 and December 31, 2023 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 $74 million and $73 million at March 31, 2024 and December 31, 2023, respectively, and are recorded in other long-term liabilities on our condensed consolidated balance sheets (see Note 10). Collective Bargaining Agreements —At March 31, 2024, 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 $246 million at March 31, 2024 and primarily relate to our insurance programs, litigation, taxes, licenses, liens, and utilities for our lodging operations. Letters of Credit —Letters of credit outstanding on our behalf at March 31, 2024 were $157 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 certain debt repayment guarantees, which are only called on if the borrower defaults on its obligations or 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 or franchised 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 the respective third-party owners or franchisees. 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 (see Note 11), 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 March 31, 2024, our maximum exposure is not expected to exceed $19 million. |
EQUITY
EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
EQUITY | EQUITY Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax impacts, were as follows: Balance at Current period other comprehensive loss before reclassification Amount reclassified from accumulated other comprehensive loss Balance at March 31, 2024 Foreign currency translation adjustments (1) $ (156) $ (21) $ 3 $ (174) AFS debt securities unrealized fair value adjustments 4 (3) — 1 Pension liabilities adjustments (2) — — (1) (1) Derivative instrument adjustments (3) (23) (1) 1 (23) Accumulated other comprehensive loss $ (175) $ (25) $ 3 $ (197) (1) The amount reclassified from accumulated other comprehensive loss included realized losses recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the dilution of our ownership interest in an unconsolidated hospitality venture in India (Note 4). (2) The amount reclassified from accumulated other comprehensive loss primarily included realized gains recognized in gains on sales of real estate and other related to the UVC Transaction (Note 4). (3) The amount reclassified from accumulated other comprehensive loss included realized losses recognized in interest expense related to the settlement of interest rate locks. We expect to reclassify $5 million of losses, net of insignificant tax impacts, over the next 12 months. Balance at Current period other comprehensive income before reclassification Amount reclassified from accumulated other comprehensive loss Balance at Foreign currency translation adjustments $ (202) $ 15 $ — $ (187) AFS debt securities unrealized fair value adjustments (11) 3 — (8) Derivative instrument adjustments (4) (29) — 1 (28) Accumulated other comprehensive loss $ (242) $ 18 $ 1 $ (223) (4) The amount reclassified from accumulated other comprehensive loss included realized losses recognized in interest expense related to the settlement of interest rate locks. Share Repurchases —On December 18, 2019 and May 10, 2023, our board of directors authorized repurchases of up to $750 million and $1,055 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. At March 31, 2024, we had $773 million remaining under the total share repurchase authorization. During the three months ended March 31, 2024, we repurchased 2,515,656 shares of Class A and Class B common stock. The shares of common stock were repurchased at a weighted-average price of $154.09 per share for an aggregate purchase price of $388 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, while the shares of Class B common stock repurchased were retired and the total number of authorized Class B shares was reduced by the number of shares retired (see Note 15). During the three months ended March 31, 2023, we repurchased 1,018,931 shares of Class A common stock. The shares of common stock were repurchased at a weighted-average price of $104.50 per share for an aggregate purchase price of $106 million, excluding insignificant related expenses. The shares repurchased included the repurchase of 106,116 shares for $9 million, which was initiated prior to December 31, 2022, but settled during the three months ended March 31, 2023. In addition to the aforementioned share repurchases, we initiated the repurchase of 73,368 shares for $8 million prior to March 31, 2023, but did not settle the repurchases until April 2023. Dividend —The following tables summarize dividends declared to Class A and Class B stockholders of record: Three Months Ended March 31, 2024 2023 Class A common stock $ 6 $ — Class B common stock 9 — Total cash dividends declared $ 15 $ — Date declared Dividend per share amount for Class A and Class B Date of record Date paid February 14, 2024 $ 0.15 February 28, 2024 March 12, 2024 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
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 (i) 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 owners and are recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income and (ii) insignificant amounts related to employees of our owned and leased hotels recognized in owned and leased expenses on our condensed consolidated statements of income. Stock-based compensation expense recognized in general and administrative expenses, distribution expenses, and integration costs on our condensed consolidated statements of income related to these awards was as follows: Three Months Ended March 31, 2024 2023 SARs $ 12 $ 11 RSUs 16 17 PSUs 3 4 Total $ 31 $ 32 SARs —During the three months ended March 31, 2024, we granted 219,570 SARs to employees with a weighted-average grant date fair value of $68.83. During the three months ended March 31, 2023, we granted 284,912 SARs to employees with a weighted-average grant date fair value of $48.54. RSUs —During the three months ended March 31, 2024, we granted 280,081 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $156.91. During the three months ended March 31, 2023, we granted 405,464 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $111.70. PSUs —During the three months ended March 31, 2024 and March 31, 2023, we did not grant any PSUs under our LTIP. Our total unearned compensation for our stock-based compensation programs at March 31, 2024 was $4 million for SARs, $48 million for RSUs, and $17 million for PSUs, which will be recognized in general and administrative expenses, distribution expenses, and integration costs over a weighted-average period of two years with respect to SARs and PSUs and three years with respect to RSUs. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
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 2024 and 2023 is the brother-in-law of our Executive Chairman. During the three months ended March 31, 2024 and March 31, 2023, we incurred $6 million and $4 million, respectively, of legal fees with this firm. At March 31, 2024 and December 31, 2023, we had $6 million and $2 million, respectively, due to the law firm. Equity Method Investments —We have equity method investments in entities that own, operate, manage, or franchise properties or other hospitality-related businesses, including the Unlimited Vacation Club paid membership program, for which we receive management, franchise, license, or royalty fees. We recognized $15 million and $6 million of fee revenues during the three months ended March 31, 2024 and March 31, 2023, respectively. In addition, in some cases we provide loans (see Note 5) or guarantees (see Note 4 and Note 12) to these entities. During the three months ended March 31, 2024 and March 31, 2023, we recognized $1 million and $2 million, respectively, of income related to these guarantees. At March 31, 2024 and December 31, 2023, we had $74 million and $43 million, respectively, of net receivables due from these entities, inclusive of $44 million and $21 million, respectively, classified as financing receivables on our condensed consolidated balance sheets. Our ownership interest in these unconsolidated hospitality ventures varies from 20% to 50%. In addition to the aforementioned fees, we provide services related to sales and revenue management, marketing, global property and guest services (including reservation and customer support), digital and technology, and digital media (collectively, "system-wide services") on behalf of owners of managed and franchised properties and administer the loyalty program for the benefit of Hyatt's portfolio of properties. These expenses have been, and will continue to be, reimbursed by our third-party owners and franchisees and are recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income. Class B Share Conversion —During the three months ended March 31, 2024, 766,296 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. Class B Share Repurchase —During the three months ended March 31, 2024, we repurchased 1,987,229 shares of Class B common stock at a weighted-average price of $156.67 per share, for an aggregate purchase price of approximately $312 million. The shares of Class B common stock were repurchased in privately negotiated transactions from a limited liability company owned directly and indirectly by trusts for the benefit of certain Pritzker family members and a private foundation affiliated with certain Pritzker family members and were retired subsequent to March 31, 2024, thereby reducing the shares of Class B common stock authorized and outstanding by the repurchased share amount. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
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 CODM to assess performance and make decisions regarding the allocation of resources. Our CODM is our President and Chief Executive Officer. We define our reportable segments as follows: • Management and franchising —This segment derives its earnings primarily from the provision of management, franchising, and hotel services, or the licensing of our intellectual property to, (i) our property portfolio, (ii) our co-branded credit card programs, and (iii) other hospitality-related businesses, including the Unlimited Vacation Club following the UVC Transaction. This segment also includes revenues for reimbursed costs primarily related to payroll at managed properties where we are the employer, as well as costs associated with 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 our owned and leased hotels and commission fees earned from certain ALG Vacations bookings, both of which are eliminated in consolidation. • Owned and leased —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 unconsolidated hospitality ventures' Adjusted EBITDA, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany management fee expenses paid to our management and franchising segment, 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 programs and are eliminated in consolidation. • Distribution —This segment derives its earnings from distribution and destination management services offered through ALG Vacations and the boutique and luxury global travel platform offered through Mr & Mrs Smith. Prior to the UVC Transaction, this segment also included earnings from a paid membership program offering benefits exclusively at certain all-inclusive resorts in Mexico, the Caribbean, and Central America. Adjusted EBITDA includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Within overhead, we include unallocated corporate expenses. Our CODM evaluates performance based on gross fee revenues; owned and leased revenues; distribution revenues; other revenues; and Adjusted EBITDA. Our CODM does not evaluate our operating segments using discrete asset information. 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 hotel services agreement and franchise agreement assets and performance cure payments, which constitute payments to customers ("Contra revenue"); revenues for reimbursed costs; reimbursed costs 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. Summarized consolidated financial information by segment was as follows: Three Months Ended March 31, 2024 Management and franchising Owned and leased Distribution Overhead Eliminations Total Base management fees $ 107 $ — $ — $ — $ (9) $ 98 Incentive management fees 68 — — — (4) 64 Franchise and other fees 102 — — — (2) 100 Gross fees 277 — — — (15) 262 Contra revenue (13) — — — — (13) Net fees 264 — — — (15) 249 Rooms and packages — 194 — — (7) 187 Food and beverage — 83 — — — 83 Other — 39 — — — 39 Owned and leased — 316 — — (7) 309 Distribution — — 319 — — 319 Other revenues 9 — 26 — — 35 Revenues for reimbursed costs 802 — — — — 802 Total revenues $ 1,075 $ 316 $ 345 $ — $ (22) $ 1,714 Intersegment revenues (1) $ 15 $ 7 $ — $ — $ — $ 22 Adjusted EBITDA $ 203 $ 60 $ 39 $ (51) $ 1 $ 252 Depreciation and amortization $ 19 $ 44 $ 21 $ 8 $ — $ 92 (1) Intersegment revenues are included in gross fee revenues, owned and leased revenues, and other revenues and eliminated in Eliminations. Three Months Ended March 31, 2023 Management and franchising Owned and leased Distribution Overhead Eliminations Total Base management fees $ 100 $ — $ — $ — $ (9) $ 91 Incentive management fees 62 — — — (5) 57 Franchise and other fees 85 — — — (2) 83 Gross fees 247 — — — (16) 231 Contra revenue (10) — — — — (10) Net fees 237 — — — (16) 221 Rooms and packages — 198 — — (8) 190 Food and beverage — 85 — — — 85 Other — 39 — — — 39 Owned and leased — 322 — — (8) 314 Distribution — — 328 — — 328 Other revenues 47 — 41 — — 88 Revenues for reimbursed costs 729 — — — — 729 Total revenues $ 1,013 $ 322 $ 369 $ — $ (24) $ 1,680 Intersegment revenues (1) $ 16 $ 8 $ — $ — $ — $ 24 Adjusted EBITDA $ 184 $ 71 $ 58 $ (46) $ 1 $ 268 Depreciation and amortization $ 19 $ 46 $ 27 $ 6 $ — $ 98 (1) Intersegment revenues are included in gross fee revenues, owned and leased revenues, and other revenues and eliminated in Eliminations. The table below provides a reconciliation of net income attributable to Hyatt Hotels Corporation to consolidated Adjusted EBITDA: Three Months Ended March 31, 2024 2023 Net income attributable to Hyatt Hotels Corporation $ 522 $ 58 Interest expense 38 33 Provision for income taxes 19 47 Depreciation and amortization 92 98 Contra revenue 13 10 Revenues for reimbursed costs (802) (729) Reimbursed costs 836 749 Equity (earnings) losses from unconsolidated hospitality ventures (75) 2 Stock-based compensation expense (Note 14) 31 32 Gains on sales of real estate and other (Note 4 and Note 6) (403) — Asset impairments 17 2 Other (income) loss, net (Note 18) (53) (48) Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 17 14 Adjusted EBITDA $ 252 $ 268 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The calculation of basic and diluted earnings per Class A and Class B share, including a reconciliation of the numerator and denominator, is as follows: Three Months Ended March 31, 2024 2023 Numerator: Net income $ 522 $ 58 Net income attributable to noncontrolling interests — — Net income attributable to Hyatt Hotels Corporation $ 522 $ 58 Denominator: Basic weighted-average shares outstanding (1) 102,777,418 106,389,110 Stock-based compensation 3,126,173 2,541,102 Diluted weighted-average shares outstanding (1) 105,903,591 108,930,212 Basic Earnings Per Class A and Class B Share: Net income $ 5.08 $ 0.55 Net income attributable to noncontrolling interests — — Net income attributable to Hyatt Hotels Corporation $ 5.08 $ 0.55 Diluted Earnings Per Class A and Class B Share: Net income $ 4.93 $ 0.53 Net income attributable to noncontrolling interests — — Net income attributable to Hyatt Hotels Corporation $ 4.93 $ 0.53 (1) The computations reflect a reduction in shares outstanding at March 31, 2023 for the repurchases of 73,368 shares that were initiated prior to March 31, 2023, but settled in the second quarter of 2023 (see Note 13). The computations of diluted earnings per Class A and Class B share for the three months ended March 31, 2024 and March 31, 2023 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 March 31, 2024 2023 SARs 1,800 7,000 RSUs 2,800 1,400 |
OTHER INCOME (LOSS), NET
OTHER INCOME (LOSS), NET | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (LOSS), NET | OTHER INCOME (LOSS), NET Three Months Ended March 31, 2024 2023 Interest income $ 22 $ 17 Unrealized gains, net (Note 4) 13 43 Guarantee amortization income (Note 12) 11 3 Depreciation recovery 6 4 Contingent consideration liability fair value adjustment (Note 12) 4 — Transaction costs (Note 6) (1) (7) Guarantee expense (Note 12) (3) (11) Other, net 1 (1) Other income (loss), net $ 53 $ 48 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 23, 2024, we sold Hyatt Regency San Antonio Riverwalk to an unrelated third party for approximately $230 million and entered into a long-term management agreement for the property. On May 1, 2024, we sold Hyatt Regency Green Bay to an unrelated third party for approximately $5 million and entered into a long-term franchise agreement for the property. On May 8, 2024, our board of directors authorized the repurchase of up to an additional $1 billion of our common stock. Following the authorization, we had approximately $1.8 billion remaining under the total share repurchase authorization. |
RECENTLY ISSUED ACCOUNTING PR_2
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 Reference Rate Reform —In March 2020, the Financial Accounting Standards Board ("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 ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB issued Accounting Standards Update No. 2022-06 ("ASU 2022-06"), Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 . ASU 2022-06 was effective upon issuance and defers the sunset date of Topic 848 by two years, extending the provisions of ASU 2020-04 through December 31, 2024. During the year ended December 31, 2023, we adopted the provisions of ASU 2020-04. We amended certain LIBOR-based contracts during the three months ended March 31, 2024 and the year ended December 31, 2023, and we are in the process of converting other LIBOR-based contracts to alternative reference rates. ASU 2020-04 did not materially impact our condensed consolidated financial statements upon adoption and is not expected to have a material future impact as we apply optional expedients or exceptions. Future Adoption of Accounting Standards Disclosure Improvements —In October 2023, the FASB issued Accounting Standards Update No. 2023-06 ("ASU 2023-06"), Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative . ASU 2023-06 modifies the disclosure and presentation requirements for certain FASB Accounting Standards Codification topics to align with the regulations of the Securities and Exchange Commission ("SEC"). The effective date for each amendment will be the date on which the SEC's removal of that related disclosure from its regulations becomes effective, if the SEC removes the disclosure by June 30, 2027. The provisions of ASU 2023-06 are to be applied prospectively, with early adoption prohibited. We do not expect the adoption of ASU 2023-06 to have a material impact on our condensed consolidated financial statements and accompanying Notes. Segment Reporting —In November 2023, the FASB issued Accounting Standards Update No. 2023-07 ("ASU 2023-07"), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to evaluate segment performance. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and require retrospective adoption for all prior periods presented. We are currently assessing the impact of adopting ASU 2023-07. Income Taxes —In December 2023, the FASB issued Accounting Standards Update No. 2023-09 ("ASU 2023-09"), Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires enhanced annual income tax disclosures, including (1) disaggregation of effective tax rate reconciliation categories, (2) additional information for reconciling items that meet a quantitative threshold, and (3) income taxes paid by jurisdiction. The provisions of ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively for all prior periods presented. We are currently assessing the impact of adopting ASU 2023-09. |
Revenue Allocated to Remaining Performance Obligations | Revenue Allocated to Remaining Performance Obligations |
Insurance | Insurance |
Commitments and Contingencies | Other —We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender's recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof. In conjunction with financing obtained for our unconsolidated hospitality ventures and certain managed or franchised 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 the respective third-party owners or franchisees. 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 (see Note 11), 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 Realignment | Segment Realignment —During the three months ended March 31, 2024, we realigned our reportable segments to align with our business strategy, the organizational changes for certain members of our leadership team, and the manner in which our chief operating decision maker ("CODM") assesses performance and makes decisions regarding the allocation of resources. The segment realignment had no impact on our condensed consolidated financial position or results of operations. Prior period segment results have been recast to reflect our new reportable segments. See Note 16 for a summary of our revised reportable segments and summarized consolidated financial information by segment. In conjunction with the segment realignment, certain financial statement line item descriptions were revised within our condensed consolidated statements of income. The composition of the accounts within these financial statement line items remains unchanged. The changes include: New financial statement line item Previously-used financial statement line item Owned and leased revenues Owned and leased hotels revenues Franchise and other fee revenues Franchise, license, and other fee revenues Revenues for reimbursed costs Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties General and administrative expenses (1) Selling, general, and administrative expenses Integration costs (2) Selling, general, and administrative expenses Owned and leased expenses Owned and leased hotels expenses Reimbursed costs Costs incurred on behalf of managed and franchised properties (1) Excludes integration costs. (2) Includes expenses incurred related to the integration of recently acquired businesses, including certain compensation expenses, professional fees, sales and marketing expenses, and technology expenses. Additionally, distribution and destination management revenues and expenses are not presented as the accounts under these previously-used financial statement line items are now included in the following: Distribution revenues —Represents revenues derived from the ALG Vacations business, which were previously recognized in distribution and destination management revenues, and commission fee revenues related to Mr & Mrs Smith, which were previously recognized in other fee revenues. Distribution expenses —Consists of expenses related to the ALG Vacations business, which were previously recognized in distribution and destination management expenses, and general and administrative expenses related to Mr & Mrs Smith, which were previously recognized in selling, general, and administrative expenses. Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the CODM to assess performance and make decisions regarding the allocation of resources. Our CODM is our President and Chief Executive Officer. We define our reportable segments as follows: • Management and franchising —This segment derives its earnings primarily from the provision of management, franchising, and hotel services, or the licensing of our intellectual property to, (i) our property portfolio, (ii) our co-branded credit card programs, and (iii) other hospitality-related businesses, including the Unlimited Vacation Club following the UVC Transaction. This segment also includes revenues for reimbursed costs primarily related to payroll at managed properties where we are the employer, as well as costs associated with 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 our owned and leased hotels and commission fees earned from certain ALG Vacations bookings, both of which are eliminated in consolidation. • Owned and leased —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 unconsolidated hospitality ventures' Adjusted EBITDA, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany management fee expenses paid to our management and franchising segment, 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 programs and are eliminated in consolidation. • Distribution —This segment derives its earnings from distribution and destination management services offered through ALG Vacations and the boutique and luxury global travel platform offered through Mr & Mrs Smith. Prior to the UVC Transaction, this segment also included earnings from a paid membership program offering benefits exclusively at certain all-inclusive resorts in Mexico, the Caribbean, and Central America. Adjusted EBITDA includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Within overhead, we include unallocated corporate expenses. Our CODM evaluates performance based on gross fee revenues; owned and leased revenues; distribution revenues; other revenues; and Adjusted EBITDA. Our CODM does not evaluate our operating segments using discrete asset information. 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 hotel services agreement and franchise agreement assets and performance cure payments, which constitute payments to customers ("Contra revenue"); revenues for reimbursed costs; reimbursed costs 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. Summarized consolidated financial information by segment was as follows: Three Months Ended March 31, 2024 Management and franchising Owned and leased Distribution Overhead Eliminations Total Base management fees $ 107 $ — $ — $ — $ (9) $ 98 Incentive management fees 68 — — — (4) 64 Franchise and other fees 102 — — — (2) 100 Gross fees 277 — — — (15) 262 Contra revenue (13) — — — — (13) Net fees 264 — — — (15) 249 Rooms and packages — 194 — — (7) 187 Food and beverage — 83 — — — 83 Other — 39 — — — 39 Owned and leased — 316 — — (7) 309 Distribution — — 319 — — 319 Other revenues 9 — 26 — — 35 Revenues for reimbursed costs 802 — — — — 802 Total revenues $ 1,075 $ 316 $ 345 $ — $ (22) $ 1,714 Intersegment revenues (1) $ 15 $ 7 $ — $ — $ — $ 22 Adjusted EBITDA $ 203 $ 60 $ 39 $ (51) $ 1 $ 252 Depreciation and amortization $ 19 $ 44 $ 21 $ 8 $ — $ 92 (1) Intersegment revenues are included in gross fee revenues, owned and leased revenues, and other revenues and eliminated in Eliminations. |
Comprehensive Text Block List (
Comprehensive Text Block List (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Text Block [Abstract] | |
Schedule of Financial Statement Line Items Realignment | The changes include: New financial statement line item Previously-used financial statement line item Owned and leased revenues Owned and leased hotels revenues Franchise and other fee revenues Franchise, license, and other fee revenues Revenues for reimbursed costs Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties General and administrative expenses (1) Selling, general, and administrative expenses Integration costs (2) Selling, general, and administrative expenses Owned and leased expenses Owned and leased hotels expenses Reimbursed costs Costs incurred on behalf of managed and franchised properties (1) Excludes integration costs. (2) Includes expenses incurred related to the integration of recently acquired businesses, including certain compensation expenses, professional fees, sales and marketing expenses, and technology expenses. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of of Contract Liability | Contract liabilities were comprised of the following: March 31, 2024 December 31, 2023 Deferred revenue related to the loyalty program $ 1,214 $ 1,130 Deferred revenue related to distribution and destination management services 695 719 Advanced deposits 66 57 Deferred revenue related to insurance programs 54 75 Initial fees received from franchise owners 45 45 Deferred revenue related to the paid membership program (1) — 1,204 Other deferred revenue 140 127 Total contract liabilities $ 2,214 $ 3,357 (1) The change from December 31, 2023 is due to balances written off to gains on sale of real estate and other on our condensed consolidated statements of income during the three months ended March 31, 2024 as a result of the UVC Transaction (see Note 4). |
DEBT AND EQUITY SECURITIES (Tab
DEBT AND EQUITY SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: March 31, 2024 December 31, 2023 Loyalty program (Note 8) $ 816 $ 807 Deferred compensation plans held in rabbi trusts (Note 8 and Note 10) 526 489 Captive insurance company (Note 8) 136 94 Total marketable securities held to fund operating programs $ 1,478 $ 1,390 Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments (280) (320) Marketable securities held to fund operating programs included in other assets $ 1,198 $ 1,070 |
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 March 31, 2024 2023 Unrealized gains (losses), net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1) $ 22 $ 17 Revenues for reimbursed costs (2) 11 9 Other income (loss), net (Note 18) — 6 Other comprehensive income (loss) (Note 13) (4) 3 Realized gains, net Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1) $ 2 $ 1 Revenues for reimbursed costs (2) 1 — (1) Unrealized and realized gains recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts are offset by amounts recognized in owned and leased expenses and general and administrative expenses with no impact on net income. (2) Unrealized and realized gains recognized in revenues for reimbursed costs related to investments held to fund rabbi trusts are offset by amounts recognized in reimbursed costs with no impact on net income. |
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: March 31, 2024 December 31, 2023 Interest-bearing money market funds $ 234 $ 284 Common shares in Playa N.V. (Note 8) 118 105 Time deposits (1) 14 11 Total marketable securities held for investment purposes $ 366 $ 400 Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (247) (294) Marketable securities held for investment purposes included in other assets $ 119 $ 106 (1) Time deposits have contractual maturities on various dates through 2025. The amortized cost of our time deposits approximates fair value. |
Schedule of Unrealized Gain (Loss) on Investments | Net unrealized gains recognized on our condensed consolidated statements of income were as follows: Three Months Ended March 31, 2024 2023 Other income (loss), net (Note 18) $ 13 $ 37 |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | We measure marketable securities at fair value on a recurring basis: March 31, 2024 Cash and cash equivalents Short-term investments Other assets Level One—Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 465 $ 465 $ — $ — Mutual funds and exchange-traded funds 532 — — 532 Common shares 128 — — 128 Level Two—Significant Other Observable Inputs Time deposits 39 3 10 26 U.S. government obligations 325 5 16 304 U.S. government agencies 27 — — 27 Corporate debt securities 274 — 28 246 Mortgage-backed securities 22 — — 22 Asset-backed securities 28 — — 28 Municipal and provincial notes and bonds 4 — — 4 Total $ 1,844 $ 473 $ 54 $ 1,317 December 31, 2023 Cash and cash equivalents Short-term investments Other assets Level One—Quoted Prices in Active Markets for Identical Assets Interest-bearing money market funds $ 599 $ 599 $ — $ — Mutual funds and exchange-traded funds 495 — — 495 Common shares 114 — — 114 Level Two—Significant Other Observable Inputs Time deposits 36 — 10 26 U.S. government obligations 250 — — 250 U.S. government agencies 37 — — 37 Corporate debt securities 212 — 5 207 Mortgage-backed securities 19 — — 19 Asset-backed securities 24 — — 24 Municipal and provincial notes and bonds 4 — — 4 Total $ 1,790 $ 599 $ 15 $ 1,176 |
Schedule of Debt Securities, Held-to-maturity | We hold investments in third-party entities associated with certain of our hotels. The investments are redeemable on various dates through 2062 and recorded as HTM debt securities within other assets on our condensed consolidated balance sheets: March 31, 2024 December 31, 2023 HTM debt securities $ 53 $ 53 Less: allowance for credit losses (13) (13) Total HTM debt securities, net of allowances $ 40 $ 40 |
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: 2024 2023 Allowance at January 1 $ 13 $ 31 Provisions, net (1) — 1 Allowance at March 31 $ 13 $ 32 (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) | 3 Months Ended |
Mar. 31, 2024 | |
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: 2024 2023 Allowance at January 1 $ 50 $ 63 Provisions, net 3 3 Write-offs (2) (3) Allowance at March 31 $ 51 $ 63 |
Schedule of Financing Receivables | Financing Receivables March 31, 2024 December 31, 2023 Unsecured financing to hotel owners $ 199 $ 137 Less: current portion of financing receivables, included in receivables, net (23) (22) Less: allowance for credit losses (40) (42) Total long-term financing receivables, net of allowances $ 136 $ 73 |
Schedule of Allowance for Losses and Impairments | The following table summarizes the activity in our unsecured financing receivables allowance for credit losses: 2024 2023 Allowance at January 1 $ 42 $ 44 Reversals, net (1) (1) Foreign currency exchange, net (1) — Allowance at March 31 $ 40 $ 43 |
Schedule of Credit Monitoring | Our unsecured financing receivables were as follows: March 31, 2024 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 191 $ (38) $ 153 $ 21 Other financing arrangements 8 (2) 6 — Total unsecured financing receivables $ 199 $ (40) $ 159 $ 21 December 31, 2023 Gross loan balance (principal and interest) Related allowance Net financing receivables Gross receivables on nonaccrual status Loans $ 128 $ (39) $ 89 $ 22 Other financing arrangements 9 (3) 6 — Total unsecured financing receivables $ 137 $ (42) $ 95 $ 22 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | Net assets acquired were determined as follows: Cash paid, net of cash acquired $ 50 Cash acquired 22 Net assets acquired $ 72 |
Schedule of Identifiable Net Assets Acquired | The following table summarizes the preliminary fair value of the identifiable net assets acquired at the acquisition date: Cash and cash equivalents $ 22 Receivables 6 Prepaids and other assets 1 Goodwill (1) 39 Indefinite-lived intangibles (2) 12 Customer relationships intangibles (3) 12 Other intangibles (4) 16 Deferred tax assets 2 Total assets acquired $ 110 Accounts payable $ 1 Accrued expenses and other current liabilities 7 Current contract liabilities 17 Long-term contract liabilities 3 Other long-term liabilities 10 Total liabilities assumed $ 38 Total net assets acquired attributable to Hyatt Hotels Corporation $ 72 ( 1) The goodwill, which is recorded on the distribution segment, is attributable to growth opportunities we expect to realize through direct booking access to properties within the Mr & Mrs Smith platform through our distribution channels. Goodwill is not tax deductible. (2) Relates to the Mr & Mrs Smith brand name. (3) Amortized over a useful life of 12 years. (4) Amortized over a useful life of 10 years. Net assets acquired were determined as follows: Cash paid $ 125 Fair value of contingent consideration 107 Net assets acquired $ 232 The following table summarizes the fair value of the identifiable net assets acquired at the acquisition date: Receivables $ 1 Goodwill (1) 62 Indefinite-lived intangibles (2) 20 Management agreement intangibles (3) 143 Other intangibles (2) 7 Total assets acquired $ 233 Long-term contract liabilities $ 1 Total liabilities assumed $ 1 Total net assets acquired attributable to Hyatt Hotels Corporation $ 232 (1) The goodwill, which is tax deductible and recorded on the management and franchising segment, is attributable to the growth opportunities we expect to realize by expanding our lifestyle offerings and providing global travelers with an increased number of elevated hospitality experiences. (2) Includes intangible assets related to the Dream Hotels, The Chatwal, and Unscripted Hotels brand names. Certain brand names are amortized over useful lives of 20 years. (3) Amortized over useful lives of approximately 9 to 22 years, with a weighted-average useful life of approximately 17 years. |
INTANGIBLES, NET (Tables)
INTANGIBLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | March 31, 2024 Weighted- average useful lives in years Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles 15 $ 903 $ (266) $ 637 Brand and other indefinite-lived intangibles — 608 — 608 Customer relationships intangibles 10 410 (116) 294 Other intangibles 11 32 (6) 26 Total $ 1,953 $ (388) $ 1,565 December 31, 2023 Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles $ 906 $ (248) $ 658 Brand and other indefinite-lived intangibles 608 — 608 Customer relationships intangibles 620 (243) 377 Other intangibles 33 (6) 27 Total $ 2,167 $ (497) $ 1,670 |
Schedule of Indefinite-Lived Intangible Assets | March 31, 2024 Weighted- average useful lives in years Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles 15 $ 903 $ (266) $ 637 Brand and other indefinite-lived intangibles — 608 — 608 Customer relationships intangibles 10 410 (116) 294 Other intangibles 11 32 (6) 26 Total $ 1,953 $ (388) $ 1,565 December 31, 2023 Gross carrying value Accumulated amortization Net carrying value Management and hotel services agreement and franchise agreement intangibles $ 906 $ (248) $ 658 Brand and other indefinite-lived intangibles 608 — 608 Customer relationships intangibles 620 (243) 377 Other intangibles 33 (6) 27 Total $ 2,167 $ (497) $ 1,670 |
Schedule of Intangible Assets Amortization Expense | Three Months Ended March 31, 2024 2023 Amortization expense $ 36 $ 44 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | March 31, 2024 December 31, 2023 Management and hotel services agreement and franchise agreement assets constituting payments to customers (1) $ 884 $ 896 Marketable securities held to fund the loyalty program (Note 4) 595 495 Marketable securities held to fund rabbi trusts (Note 4) 526 489 Common shares in Playa N.V. (Note 4) 118 105 Long-term investments (Note 4) 96 96 Marketable securities held for captive insurance company (Note 4) 77 86 Deferred costs related to the paid membership program — 194 Other 130 116 Total other assets $ 2,426 $ 2,477 (1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. We classified our other debt instruments and revolving credit facility, if applicable, as Level Three based on the lack of available market data. 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. March 31, 2024 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) $ 3,062 $ 3,053 $ — $ 3,025 $ 28 (1) Excludes $5 million of finance lease obligations and $12 million of unamortized discounts and deferred financing fees. December 31, 2023 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) $ 3,063 $ 3,062 $ — $ 3,032 $ 30 (2) Excludes $6 million of finance lease obligations and $13 million of unamortized discounts and deferred financing fees. |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities [Abstract] | |
Schedule of Other Long-Term Liabilities | March 31, 2024 December 31, 2023 Deferred compensation plans funded by rabbi trusts (Note 4) $ 526 $ 489 Income taxes payable 337 407 Guarantee liabilities (Note 12) 209 142 Contingent consideration liability (Note 12) 111 115 Self-insurance liabilities (Note 12) 74 73 Deferred income taxes (Note 11) 48 66 Other 66 59 Total other long-term liabilities $ 1,371 $ 1,351 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Debt Repayment and Other Guarantees | We enter into various debt repayment guarantees in order to assist third-party owners, franchisees, and unconsolidated hospitality ventures in obtaining third-party financing or to obtain more favorable borrowing terms. Geographical region Maximum potential future payments (1) Maximum exposure net of recoverability from third parties (1) Other long-term liabilities recorded at March 31, 2024 Other long-term liabilities recorded at December 31, 2023 Year of guarantee expiration (2) United States (3), (4) $ 140 $ 41 $ 27 $ 30 various, through 2027 All foreign (3), (5) 84 62 15 21 various, through 2034 Total $ 224 $ 103 $ 42 $ 51 (1) Our maximum exposure is generally based on a specified percentage of the total principal due upon borrower default. (2) Certain underlying debt agreements have extension periods which are not reflected in the year of guarantee expiration. (3) We have agreements with our unconsolidated hospitality venture partners or the respective third-party owners or franchisees to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash or HTM debt security. (4) Certain agreements give us the ability to assume control of the property if defined funding thresholds are met or if certain events occur. (5) Under a certain debt repayment guarantee associated with hotel properties in India, we have the contractual right to recover amounts funded from an unconsolidated hospitality venture, which is a related party, and therefore, we expect our maximum exposure for this guarantee to be approximately $25 million, taking into account our partner's 50% reimbursement commitment. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The contingent consideration liability, which is remeasured at fair value on a recurring basis and is classified as Level Three in the fair value hierarchy, is recorded in other long-term liabilities on our condensed consolidated balance sheets. The following table summarizes the change in fair value recognized in other income (loss), net on our condensed consolidated statements of income: 2024 2023 Fair value at January 1 $ 115 $ — Fair value as of acquisition date (Note 6) — 107 Change in fair value (Note 18) (4) — Fair value at March 31 (Note 10) $ 111 $ 107 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax impacts, were as follows: Balance at Current period other comprehensive loss before reclassification Amount reclassified from accumulated other comprehensive loss Balance at March 31, 2024 Foreign currency translation adjustments (1) $ (156) $ (21) $ 3 $ (174) AFS debt securities unrealized fair value adjustments 4 (3) — 1 Pension liabilities adjustments (2) — — (1) (1) Derivative instrument adjustments (3) (23) (1) 1 (23) Accumulated other comprehensive loss $ (175) $ (25) $ 3 $ (197) (1) The amount reclassified from accumulated other comprehensive loss included realized losses recognized in equity earnings (losses) from unconsolidated hospitality ventures related to the dilution of our ownership interest in an unconsolidated hospitality venture in India (Note 4). (2) The amount reclassified from accumulated other comprehensive loss primarily included realized gains recognized in gains on sales of real estate and other related to the UVC Transaction (Note 4). (3) The amount reclassified from accumulated other comprehensive loss included realized losses recognized in interest expense related to the settlement of interest rate locks. We expect to reclassify $5 million of losses, net of insignificant tax impacts, over the next 12 months. Balance at Current period other comprehensive income before reclassification Amount reclassified from accumulated other comprehensive loss Balance at Foreign currency translation adjustments $ (202) $ 15 $ — $ (187) AFS debt securities unrealized fair value adjustments (11) 3 — (8) Derivative instrument adjustments (4) (29) — 1 (28) Accumulated other comprehensive loss $ (242) $ 18 $ 1 $ (223) (4) The amount reclassified from accumulated other comprehensive loss included realized losses recognized in interest expense related to the settlement of interest rate locks. |
Schedule of Dividends Payable | The following tables summarize dividends declared to Class A and Class B stockholders of record: Three Months Ended March 31, 2024 2023 Class A common stock $ 6 $ — Class B common stock 9 — Total cash dividends declared $ 15 $ — Date declared Dividend per share amount for Class A and Class B Date of record Date paid February 14, 2024 $ 0.15 February 28, 2024 March 12, 2024 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Compensation Expense Related to Long-Term Incentive Plan | Stock-based compensation expense recognized in general and administrative expenses, distribution expenses, and integration costs on our condensed consolidated statements of income related to these awards was as follows: Three Months Ended March 31, 2024 2023 SARs $ 12 $ 11 RSUs 16 17 PSUs 3 4 Total $ 31 $ 32 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Summarized Consolidated Financial Information by Segment | Summarized consolidated financial information by segment was as follows: Three Months Ended March 31, 2024 Management and franchising Owned and leased Distribution Overhead Eliminations Total Base management fees $ 107 $ — $ — $ — $ (9) $ 98 Incentive management fees 68 — — — (4) 64 Franchise and other fees 102 — — — (2) 100 Gross fees 277 — — — (15) 262 Contra revenue (13) — — — — (13) Net fees 264 — — — (15) 249 Rooms and packages — 194 — — (7) 187 Food and beverage — 83 — — — 83 Other — 39 — — — 39 Owned and leased — 316 — — (7) 309 Distribution — — 319 — — 319 Other revenues 9 — 26 — — 35 Revenues for reimbursed costs 802 — — — — 802 Total revenues $ 1,075 $ 316 $ 345 $ — $ (22) $ 1,714 Intersegment revenues (1) $ 15 $ 7 $ — $ — $ — $ 22 Adjusted EBITDA $ 203 $ 60 $ 39 $ (51) $ 1 $ 252 Depreciation and amortization $ 19 $ 44 $ 21 $ 8 $ — $ 92 (1) Intersegment revenues are included in gross fee revenues, owned and leased revenues, and other revenues and eliminated in Eliminations. Three Months Ended March 31, 2023 Management and franchising Owned and leased Distribution Overhead Eliminations Total Base management fees $ 100 $ — $ — $ — $ (9) $ 91 Incentive management fees 62 — — — (5) 57 Franchise and other fees 85 — — — (2) 83 Gross fees 247 — — — (16) 231 Contra revenue (10) — — — — (10) Net fees 237 — — — (16) 221 Rooms and packages — 198 — — (8) 190 Food and beverage — 85 — — — 85 Other — 39 — — — 39 Owned and leased — 322 — — (8) 314 Distribution — — 328 — — 328 Other revenues 47 — 41 — — 88 Revenues for reimbursed costs 729 — — — — 729 Total revenues $ 1,013 $ 322 $ 369 $ — $ (24) $ 1,680 Intersegment revenues (1) $ 16 $ 8 $ — $ — $ — $ 24 Adjusted EBITDA $ 184 $ 71 $ 58 $ (46) $ 1 $ 268 Depreciation and amortization $ 19 $ 46 $ 27 $ 6 $ — $ 98 (1) Intersegment revenues are included in gross fee revenues, owned and leased 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 net income attributable to Hyatt Hotels Corporation to consolidated Adjusted EBITDA: Three Months Ended March 31, 2024 2023 Net income attributable to Hyatt Hotels Corporation $ 522 $ 58 Interest expense 38 33 Provision for income taxes 19 47 Depreciation and amortization 92 98 Contra revenue 13 10 Revenues for reimbursed costs (802) (729) Reimbursed costs 836 749 Equity (earnings) losses from unconsolidated hospitality ventures (75) 2 Stock-based compensation expense (Note 14) 31 32 Gains on sales of real estate and other (Note 4 and Note 6) (403) — Asset impairments 17 2 Other (income) loss, net (Note 18) (53) (48) Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA 17 14 Adjusted EBITDA $ 252 $ 268 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of the Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted earnings per Class A and Class B share, including a reconciliation of the numerator and denominator, is as follows: Three Months Ended March 31, 2024 2023 Numerator: Net income $ 522 $ 58 Net income attributable to noncontrolling interests — — Net income attributable to Hyatt Hotels Corporation $ 522 $ 58 Denominator: Basic weighted-average shares outstanding (1) 102,777,418 106,389,110 Stock-based compensation 3,126,173 2,541,102 Diluted weighted-average shares outstanding (1) 105,903,591 108,930,212 Basic Earnings Per Class A and Class B Share: Net income $ 5.08 $ 0.55 Net income attributable to noncontrolling interests — — Net income attributable to Hyatt Hotels Corporation $ 5.08 $ 0.55 Diluted Earnings Per Class A and Class B Share: Net income $ 4.93 $ 0.53 Net income attributable to noncontrolling interests — — Net income attributable to Hyatt Hotels Corporation $ 4.93 $ 0.53 (1) The computations reflect a reduction in shares outstanding at March 31, 2023 for the repurchases of 73,368 shares that were initiated prior to March 31, 2023, but settled in the second quarter of 2023 (see Note 13). |
Schedule of Antidilutive Securities Excluded from Computation of Losses Per Share | The computations of diluted earnings per Class A and Class B share for the three months ended March 31, 2024 and March 31, 2023 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 March 31, 2024 2023 SARs 1,800 7,000 RSUs 2,800 1,400 |
OTHER INCOME (LOSS), NET (Table
OTHER INCOME (LOSS), NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Loss), Net | Three Months Ended March 31, 2024 2023 Interest income $ 22 $ 17 Unrealized gains, net (Note 4) 13 43 Guarantee amortization income (Note 12) 11 3 Depreciation recovery 6 4 Contingent consideration liability fair value adjustment (Note 12) 4 — Transaction costs (Note 6) (1) (7) Guarantee expense (Note 12) (3) (11) Other, net 1 (1) Other income (loss), net $ 53 $ 48 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Mar. 31, 2024 country hotel room |
Organization | |
Number of hotels operated or franchised | hotel | 1,341 |
Number of rooms operated or franchised | room | 323,405 |
Number of countries in which entity operates | country | 78 |
United States | |
Organization | |
Number of hotels operated or franchised | hotel | 699 |
Number of rooms operated or franchised | room | 156,851 |
Full Service | |
Organization | |
Number of hotels operated or marketed | hotel | 124 |
Number of rooms operated or marketed | room | 42,412 |
RECENTLY ISSUED ACCOUNTING PR_3
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) - Disposal Group, Disposed of by Sale - Unlimited Vacation Club $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percent prior to disposal | 80% |
Disposal group, consideration | $ 80 |
Ownership interest percentage after disposal | 20% |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |||
Contract asset | $ 2 | $ 0 | |
Revenue recognized from opening balance | $ 623 | $ 654 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of of Contract Liability (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | $ 2,214 | $ 3,357 |
Deferred revenue related to the loyalty program | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 1,214 | 1,130 |
Deferred revenue related to distribution and destination management services | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 695 | 719 |
Advanced deposits | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 66 | 57 |
Deferred revenue related to insurance programs | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 54 | 75 |
Initial fees received from franchise owners | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 45 | 45 |
Deferred revenue related to the paid membership program | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | 0 | 1,204 |
Other deferred revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total contract liabilities | $ 140 | $ 127 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 120 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percent recognized | 15% |
Remaining performance obligation, period | 12 months |
DEBT AND EQUITY SECURITIES - Na
DEBT AND EQUITY SECURITIES - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2024 shares | Mar. 31, 2024 USD ($) $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) venture | Mar. 31, 2024 ₨ / shares | Feb. 27, 2024 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | $ 277 | $ 211 | ||||
Other long-term liabilities | 1,371 | 1,351 | ||||
Maximum exposure to loss | 189 | |||||
HTM debt securities | 40 | 40 | ||||
Held-to-maturity securities, fair value | 42 | 41 | ||||
Equity securities without a readily determinable fair value | 16 | 16 | ||||
Held for Operating Programs | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt securities, available-for-sale | 470 | 330 | ||||
Equity securities | 16 | 15 | ||||
Convertible Debt Securities | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Payment to acquire AFS securities | $ 30 | |||||
Variable Interest Entity, Not Primary Beneficiary | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | 19 | |||||
Other long-term liabilities | 82 | |||||
Level Three - Significant Unobservable Inputs | Convertible Debt Securities | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt securities, available-for-sale | 39 | 39 | ||||
Disposal Group, Disposed of by Sale | Unlimited Vacation Club | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from divestiture of businesses | 41 | |||||
Cash divested from deconsolidation | 39 | |||||
Gains on sales of real estate | 231 | |||||
World of Hyatt | Held for Operating Programs | Affiliated Entity | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
HTM debt securities | $ 25 | $ 25 | ||||
IPO | Unconsolidated Hospitality Ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of shares issued (in shares) | shares | 50,000,000 | |||||
Sale of stock, price per share (in dollars per share) | (per share) | $ 6.21 | ₨ 517.55 | ||||
Unconsolidated Hospitality Ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of unconsolidated hospitality ventures | venture | 1 | |||||
Number of shares owned (in shares) | shares | 86,251,192 | |||||
Equity method investment, ownership percentage | 38.80% | 50% | ||||
Unconsolidated Hospitality Ventures | Level Three - Significant Unobservable Inputs | Tax Obligation Guarantee | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Maximum potential future payments | $ 100 | |||||
Unlimited Vacation Club | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | 20 | |||||
Gain on dilution | 79 | |||||
Unlimited Vacation Club | Level Three - Significant Unobservable Inputs | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantor obligations, liability, current carrying value | 86 | |||||
Unlimited Vacation Club | Level Three - Significant Unobservable Inputs | Partner's Investment Guarantee | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantor obligations, liability, current carrying value | 25 | |||||
Maximum potential future payments | 70 | |||||
Unlimited Vacation Club | Level Three - Significant Unobservable Inputs | Tax Obligation Guarantee | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Guarantor obligations, liability, current carrying value | $ 61 |
DEBT AND EQUITY SECURITIES - Sc
DEBT AND EQUITY SECURITIES - Schedule of Marketable Securities Held to Fund Operating Programs (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Held for Operating Programs | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | $ 1,478 | $ 1,390 |
Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments | (280) | (320) |
Marketable securities held to fund operating programs included in other assets | 1,198 | 1,070 |
Loyalty program | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | 816 | 807 |
Deferred compensation plans held in rabbi trusts | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | 526 | 489 |
Captive insurance company | ||
Schedule of Investments | ||
Total marketable securities held to fund operating programs | $ 136 | $ 94 |
DEBT AND EQUITY SECURITIES - _2
DEBT AND EQUITY SECURITIES - Schedule of Net Gains and Interest Income from Marketable Securities Held to Fund Operating Programs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unrealized gains (losses), net | ||
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | $ 22 | $ 17 |
Revenues for reimbursed costs | 11 | 9 |
Other income (loss), net (Note 18) | 0 | 6 |
Other comprehensive income (loss) (Note 13) | (4) | 3 |
Realized gains, net | ||
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts | 2 | 1 |
Revenues for reimbursed costs | $ 1 | $ 0 |
DEBT AND EQUITY SECURITIES - _3
DEBT AND EQUITY SECURITIES - Schedule of Marketable Securities Held for Investment Purposes (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Investments | ||
Common shares in Playa N.V. (Note 8) | $ 118 | $ 105 |
Held for Investment Purposes | ||
Schedule of Investments | ||
Interest-bearing money market funds | 234 | 284 |
Common shares in Playa N.V. (Note 8) | 118 | 105 |
Time deposits | 14 | 11 |
Total marketable securities held to fund operating programs | 366 | 400 |
Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments | (247) | (294) |
Marketable securities held for investment purposes included in other assets | $ 119 | $ 106 |
DEBT AND EQUITY SECURITIES - _4
DEBT AND EQUITY SECURITIES - Schedule of Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Playa Hotels & Resorts N.V. | ||
Schedule of Investments | ||
Other income (loss), net (Note 18) | $ 13 | $ 37 |
DEBT AND EQUITY SECURITIES - _5
DEBT AND EQUITY SECURITIES - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | $ 1,844 | $ 1,790 |
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 | 465 | 599 |
Level One—Quoted Prices in Active Markets for Identical Assets | Mutual funds and exchange-traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 532 | 495 |
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 | 128 | 114 |
Level Two—Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 39 | 36 |
Level Two—Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 325 | 250 |
Level Two—Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 27 | 37 |
Level Two—Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 274 | 212 |
Level Two—Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 22 | 19 |
Level Two—Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 28 | 24 |
Level Two—Significant Other Observable Inputs | Municipal and provincial notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 4 | 4 |
Cash and cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 473 | 599 |
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 | 465 | 599 |
Cash and cash equivalents | Level One—Quoted Prices in Active Markets for Identical Assets | Mutual funds and exchange-traded 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 | ||
Debt securities, available-for-sale | 3 | 0 |
Cash and cash equivalents | Level Two—Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 5 | 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 | ||
Debt securities, available-for-sale | 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 | ||
Debt securities, available-for-sale | 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 | ||
Debt securities, available-for-sale | 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 | ||
Debt securities, available-for-sale | 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 | ||
Debt securities, available-for-sale | 0 | 0 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 54 | 15 |
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 and exchange-traded 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 | ||
Debt securities, available-for-sale | 10 | 10 |
Short-term investments | Level Two—Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 16 | 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 | ||
Debt securities, available-for-sale | 0 | 0 |
Short-term investments | Level Two—Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 28 | 5 |
Short-term investments | Level Two—Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 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 | ||
Debt securities, available-for-sale | 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 | ||
Debt securities, available-for-sale | 0 | 0 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total | 1,317 | 1,176 |
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 and exchange-traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 532 | 495 |
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 | 128 | 114 |
Other assets | Level Two—Significant Other Observable Inputs | Time deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 26 | 26 |
Other assets | Level Two—Significant Other Observable Inputs | U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 304 | 250 |
Other assets | Level Two—Significant Other Observable Inputs | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 27 | 37 |
Other assets | Level Two—Significant Other Observable Inputs | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 246 | 207 |
Other assets | Level Two—Significant Other Observable Inputs | Mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 22 | 19 |
Other assets | Level Two—Significant Other Observable Inputs | Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, available-for-sale | 28 | 24 |
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 | ||
Debt securities, available-for-sale | $ 4 | $ 4 |
DEBT AND EQUITY SECURITIES - _6
DEBT AND EQUITY SECURITIES - Schedule of Debt and Equity Securities HTM (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||||
HTM debt securities | $ 53 | $ 53 | ||
Less: allowance for credit losses | (13) | (13) | $ (32) | $ (31) |
Total HTM debt securities, net of allowances | $ 40 | $ 40 |
DEBT AND EQUITY SECURITIES - _7
DEBT AND EQUITY SECURITIES - Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 13 | $ 31 |
Provisions, net | 0 | 1 |
Ending balance | $ 13 | $ 32 |
RECEIVABLES - Schedule of Accou
RECEIVABLES - Schedule of Accounts Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||
Net receivables | $ 895 | $ 883 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance beginning balance | 50 | $ 63 | |
Provisions, net | 3 | 3 | |
Write-offs | (2) | (3) | |
Allowance ending balance | $ 51 | $ 63 |
RECEIVABLES - Schedule of Finan
RECEIVABLES - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable | ||||
Less: allowance for credit losses | $ (40) | $ (42) | ||
Total long-term financing receivables, net of allowances | 136 | 73 | ||
Unsecured Financing | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Unsecured financing to hotel owners | 199 | 137 | ||
Less: current portion of financing receivables, included in receivables, net | (23) | (22) | ||
Less: allowance for credit losses | $ (40) | $ (42) | $ (43) | $ (44) |
RECEIVABLES - Schedule of Allow
RECEIVABLES - Schedule of Allowance for Losses and Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance for Losses and Impairments | ||
Allowance beginning balance | $ 42 | |
Allowance ending balance | 40 | |
Unsecured Financing | ||
Allowance for Losses and Impairments | ||
Allowance beginning balance | 42 | $ 44 |
Reversals, net | (1) | (1) |
Foreign currency exchange, net | (1) | 0 |
Allowance ending balance | $ 40 | $ 43 |
RECEIVABLES - Schedule of Credi
RECEIVABLES - Schedule of Credit Monitoring (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Unsecured Financing Receivables | ||||
Related allowance | $ (40) | $ (42) | ||
Unsecured Financing | ||||
Unsecured Financing Receivables | ||||
Gross loan balance (principal and interest) | 199 | 137 | ||
Related allowance | (40) | (42) | $ (43) | $ (44) |
Net financing receivables | 159 | 95 | ||
Gross receivables on nonaccrual status | 21 | 22 | ||
Unsecured Financing | Loans | ||||
Unsecured Financing Receivables | ||||
Gross loan balance (principal and interest) | 191 | 128 | ||
Related allowance | (38) | (39) | ||
Net financing receivables | 153 | 89 | ||
Gross receivables on nonaccrual status | 21 | 22 | ||
Unsecured Financing | Other financing arrangements | ||||
Unsecured Financing Receivables | ||||
Gross loan balance (principal and interest) | 8 | 9 | ||
Related allowance | (2) | (3) | ||
Net financing receivables | 6 | 6 | ||
Gross receivables on nonaccrual status | $ 0 | $ 0 |
RECEIVABLES - Narrative (Detail
RECEIVABLES - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Significant unobservable inputs (Level Three) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ||
Financing receivables | $ 185 | $ 133 |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Acquisitions Narrative (Details) £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jun. 02, 2023 USD ($) | Jun. 02, 2023 GBP (£) | Feb. 02, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | |
Business Acquisition [Line Items] | |||||||
Cash paid | $ 0 | $ 125 | |||||
Contingent consideration liability (Note 12) | 111 | $ 115 | |||||
Mr & Mrs Smith | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, remaining interest percent acquired in acquisition | 100% | ||||||
Net assets acquired | £ | £ 53 | ||||||
Purchase price | $ 72 | £ 58 | |||||
Cash paid | $ 50 | ||||||
Dream Hotel Group | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, remaining interest percent acquired in acquisition | 100% | ||||||
Purchase price | $ 232 | ||||||
Cash paid | 125 | $ 125 | |||||
Additional consideration | 175 | $ 174 | |||||
Contingent consideration liability (Note 12) | $ 107 | ||||||
Decrease in intangibles | $ 21 | ||||||
Increase in goodwill | $ 21 | ||||||
Acquisition related costs | $ 7 |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Schedule of Net Assets Acquired (Details) £ in Millions, $ in Millions | 3 Months Ended | |||||
Jun. 02, 2023 USD ($) | Jun. 02, 2023 GBP (£) | Feb. 02, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Cash paid, net of cash acquired | $ 0 | $ 125 | ||||
Fair value of contingent consideration | $ 111 | $ 115 | ||||
Mr & Mrs Smith | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Cash paid, net of cash acquired | $ 50 | |||||
Cash acquired | 22 | |||||
Net assets acquired | $ 72 | £ 58 | ||||
Dream Hotel Group | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Cash paid, net of cash acquired | $ 125 | $ 125 | ||||
Fair value of contingent consideration | 107 | |||||
Net assets acquired | $ 232 |
ACQUISITIONS AND DISPOSITIONS_3
ACQUISITIONS AND DISPOSITIONS - Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 02, 2023 | Feb. 02, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,273 | $ 3,205 | ||
Customer relationships intangibles | ||||
Business Acquisition [Line Items] | ||||
Weighted- average useful lives in years | 10 years | |||
Mr & Mrs Smith | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 22 | |||
Receivables | 6 | |||
Prepaids and other assets | 1 | |||
Goodwill | 39 | |||
Indefinite-lived intangibles | 12 | |||
Deferred tax assets | 2 | |||
Total assets acquired | 110 | |||
Accounts payable | 1 | |||
Accrued expenses and other current liabilities | 7 | |||
Current contract liabilities | 17 | |||
Long-term contract liabilities | 3 | |||
Other long-term liabilities | 10 | |||
Total liabilities assumed | 38 | |||
Total net assets acquired attributable to Hyatt Hotels Corporation | 72 | |||
Mr & Mrs Smith | Customer relationships intangibles | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | $ 12 | |||
Weighted- average useful lives in years | 12 years | |||
Mr & Mrs Smith | Other intangibles | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | $ 16 | |||
Weighted- average useful lives in years | 10 years | |||
Dream Hotel Group | ||||
Business Acquisition [Line Items] | ||||
Receivables | $ 1 | |||
Goodwill | 62 | |||
Indefinite-lived intangibles | 20 | |||
Total assets acquired | 233 | |||
Long-term contract liabilities | 1 | |||
Total liabilities assumed | 1 | |||
Total net assets acquired attributable to Hyatt Hotels Corporation | 232 | |||
Dream Hotel Group | Other intangibles | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | $ 7 | |||
Weighted- average useful lives in years | 20 years | |||
Dream Hotel Group | Management and hotel services agreement intangibles | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangibles | $ 143 | |||
Dream Hotel Group | Management and hotel services agreement intangibles | Minimum | ||||
Business Acquisition [Line Items] | ||||
Weighted- average useful lives in years | 9 years | |||
Dream Hotel Group | Management and hotel services agreement intangibles | Maximum | ||||
Business Acquisition [Line Items] | ||||
Weighted- average useful lives in years | 22 years | |||
Dream Hotel Group | Management and hotel services agreement intangibles | Weighted Average | ||||
Business Acquisition [Line Items] | ||||
Weighted- average useful lives in years | 17 years |
ACQUISITIONS AND DISPOSITIONS_4
ACQUISITIONS AND DISPOSITIONS - Dispositions Narrative (Details) SFr in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 CHF (SFr) | Dec. 31, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Liabilities held for sale | $ 7 | $ 17 | |
Disposal Group, Disposed of by Sale | Hyatt Regency Aruba Resort Spa and Casino | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | 173 | ||
Seller financing | 41 | ||
Gains (losses) on sales of real estate | 172 | ||
Goodwill impairment charges | 15 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Park Hyatt Zurich | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal group, consideration | 300 | SFr 270 | |
Seller financing | 45 | SFr 41 | |
Assets held-for-sale | 42 | ||
Property plant and equipment held for sale | 40 | ||
Disposal of liabilities | 7 | ||
Liabilities held for sale | $ 2 |
INTANGIBLES, NET - Schedule of
INTANGIBLES, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value | $ 1,953 | $ 2,167 |
Accumulated amortization | (388) | (497) |
Net carrying value | 1,565 | 1,670 |
Brand and other indefinite-lived intangibles | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Brand and other indefinite-lived intangibles | $ 608 | 608 |
Management and hotel services agreement and franchise agreement intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- average useful lives in years | 15 years | |
Gross carrying value | $ 903 | 906 |
Accumulated amortization | (266) | (248) |
Net carrying value | $ 637 | 658 |
Customer relationships intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- average useful lives in years | 10 years | |
Gross carrying value | $ 410 | 620 |
Accumulated amortization | (116) | (243) |
Net carrying value | $ 294 | 377 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- average useful lives in years | 11 years | |
Gross carrying value | $ 32 | 33 |
Accumulated amortization | (6) | (6) |
Net carrying value | $ 26 | $ 27 |
INTANGIBLES, NET - Schedule o_2
INTANGIBLES, NET - Schedule of Intangible Assets Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 36 | $ 44 |
OTHER ASSETS - Schedule of Othe
OTHER ASSETS - Schedule of Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Assets, Noncurrent [Abstract] | ||
Management and hotel services agreement and franchise agreement assets constituting payments to customers | $ 884 | $ 896 |
Marketable securities held to fund the loyalty program (Note 4) | 595 | 495 |
Marketable securities held to fund rabbi trusts (Note 4) | 526 | 489 |
Common shares in Playa N.V. (Note 4) | 118 | 105 |
Long-term investments (Note 4) | 96 | 96 |
Marketable securities held for captive insurance company (Note 4) | 77 | 86 |
Deferred costs related to the paid membership program | 0 | 194 |
Other | 130 | 116 |
Total other assets | $ 2,426 | $ 2,477 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt Instrument | |||
Long-term debt and lease obligation | $ 3,055,000,000 | $ 3,056,000,000 | |
Current maturities of long-term debt | 751,000,000 | 751,000,000 | |
Unamortized discount and deferred financing fees | 12,000,000 | 13,000,000 | |
Revolving Credit Facility | |||
Debt Instrument | |||
Repayments of revolving credit facility during period | 0 | $ 0 | |
Proceeds from revolving credit facility during period | 0 | 0 | |
Revolving credit facility, outstanding balance | 0 | $ 0 | |
Line of credit facility, remaining borrowing capacity | 1,496,000,000 | ||
2027 Notes | Senior Notes | |||
Debt Instrument | |||
Long-term debt | $ 600,000,000 | ||
Debt instrument, interest rate, stated percentage | 5.75% | ||
2023 Notes Floating Rate | Senior Notes | |||
Debt Instrument | |||
Repurchases senior notes | $ 13,000,000 | ||
2024 Notes | Senior Notes | |||
Debt Instrument | |||
Long-term debt | $ 750,000,000 | ||
Debt instrument, interest rate, stated percentage | 1.80% | ||
2025 Notes | Senior Notes | |||
Debt Instrument | |||
Long-term debt | $ 450,000,000 | ||
Debt instrument, interest rate, stated percentage | 5.375% | ||
2026 Notes | Senior Notes | |||
Debt Instrument | |||
Long-term debt | $ 400,000,000 | ||
Debt instrument, interest rate, stated percentage | 4.85% | ||
2028 Notes | Senior Notes | |||
Debt Instrument | |||
Long-term debt | $ 400,000,000 | ||
Debt instrument, interest rate, stated percentage | 4.375% | ||
2030 Notes | Senior Notes | |||
Debt Instrument | |||
Long-term debt | $ 450,000,000 | ||
Debt instrument, interest rate, stated percentage | 5.75% |
DEBT - Schedule of Fair Value,
DEBT - Schedule of Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument | ||
Finance lease obligations | $ 5 | $ 6 |
Unamortized discount and deferred financing fees | 12 | 13 |
Quoted prices in active markets for identical assets (Level One) | ||
Debt Instrument | ||
Debt | 0 | 0 |
Significant other observable inputs (Level Two) | ||
Debt Instrument | ||
Debt | 3,025 | 3,032 |
Significant unobservable inputs (Level Three) | ||
Debt Instrument | ||
Debt | 28 | 30 |
Carrying value | ||
Debt Instrument | ||
Debt | 3,062 | 3,063 |
Fair value | ||
Debt Instrument | ||
Debt | $ 3,053 | $ 3,062 |
OTHER LONG-TERM LIABILITIES - S
OTHER LONG-TERM LIABILITIES - Schedule of Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Liabilities [Abstract] | ||
Deferred compensation plans funded by rabbi trusts (Note 4) | $ 526 | $ 489 |
Income taxes payable | 337 | 407 |
Guarantee liabilities (Note 12) | 209 | 142 |
Contingent consideration liability (Note 12) | 111 | 115 |
Self-insurance liabilities (Note 12) | 48 | 66 |
Deferred income taxes (Note 11) | 74 | 73 |
Other | 66 | 59 |
Other long-term liabilities | $ 1,371 | $ 1,351 |
TAXES (Details)
TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Oct. 02, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ 19 | $ 47 | ||
Estimated income tax liability based on taxing authority’s assessment | 19 | |||
Unrecognized tax benefits | 289 | $ 301 | ||
Amount of unrecognized tax benefits that would affect the tax rate if recognized | 92 | $ 120 | ||
Mexican Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Estimated income tax liability based on taxing authority’s assessment | 14 | |||
Unrecognized tax liability | $ 37 | |||
Tax Year 2009 Through 2011 | ||||
Income Tax Contingency [Line Items] | ||||
Taxable income that must be recognized | $ 12 | |||
Estimated tax liability | 2 | |||
Tax Year 2012 Through 2023 | ||||
Income Tax Contingency [Line Items] | ||||
Estimated income tax liability based on taxing authority’s assessment | 236 | |||
Estimated interest, net of federal benefit | 35 | |||
Preceding Tax Year 2009 | ||||
Income Tax Contingency [Line Items] | ||||
Taxable income that doesn't need to be recognized | $ 228 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments and Performance Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Performance Guarantee | ||
Loss Contingencies | ||
Remaining maximum exposure | $ 98 | |
Guarantor obligations, liability, current carrying value | 93 | $ 99 |
Performance Guarantee | Other Long-term liabilities | ||
Loss Contingencies | ||
Guarantor obligations, liability, current carrying value | 85 | 91 |
Performance Guarantee | Accrued Expenses and Other Current Liabilities | ||
Loss Contingencies | ||
Guarantor obligations, liability, current carrying value | 8 | $ 8 |
Various Business Ventures | ||
Loss Contingencies | ||
Commitment to loan or investment | $ 462 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Debt Repayment and Other Guarantees (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Loss Contingencies | ||
Other long-term liabilities recorded | $ 209 | $ 142 |
Debt Repayment and Other Guarantees | ||
Loss Contingencies | ||
Maximum potential future payments | 224 | |
Maximum exposure net of recoverability from third parties | 103 | |
Other long-term liabilities recorded | 42 | 51 |
Debt Repayment and Other Guarantees | Hotel Properties in India | Joint Venture | ||
Loss Contingencies | ||
Maximum exposure net of recoverability from third parties | $ 25 | |
Debt repayment and other guarantees, equity method investment, ownership percentage | 50% | |
Debt Repayment and Other Guarantees | United States | ||
Loss Contingencies | ||
Maximum potential future payments | $ 140 | |
Maximum exposure net of recoverability from third parties | 41 | |
Other long-term liabilities recorded | 27 | 30 |
Debt Repayment and Other Guarantees | All foreign | ||
Loss Contingencies | ||
Maximum potential future payments | 84 | |
Maximum exposure net of recoverability from third parties | 62 | |
Other long-term liabilities recorded | $ 15 | $ 21 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Other Guarantees, Guarantee Liabilities Fair Value , Contingent Consideration Fair Value , Insurance, Collective Bargaining Agreements, Surety Bonds, and Letters of Credit, and Other (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Feb. 02, 2023 | |
Loss Contingencies | |||
Guarantees, fair value disclosure | $ 228 | $ 148 | |
Self insurance reserve, current | 41 | 41 | |
Self-insurance liabilities, noncurrent | 74 | $ 73 | |
Surety bonds | 246 | ||
Estimated income tax liability based on taxing authority’s assessment | 19 | ||
Letter of Credit | |||
Loss Contingencies | |||
Letters of credit outstanding | 157 | ||
Reducing capacity under revolving credit facility | $ 4 | ||
Various US | |||
Loss Contingencies | |||
Multiemployer plans, collective-bargaining arrangement, percentage of participants | 21% | ||
Dream Hotel Group | |||
Loss Contingencies | |||
Outstanding liability balance | $ 174 | $ 175 | |
Guarantee Type, Other | |||
Loss Contingencies | |||
Maximum potential future payments | 170 | ||
Financial Guarantee | |||
Loss Contingencies | |||
Maximum potential future payments | $ 82 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Schedule of Contingent Consideration Fair Value (Details) - Contingent Consideration - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended |
Mar. 31, 2023 | Mar. 31, 2024 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value at the beginning period | $ 107 | $ 115 |
Change in fair value (Note 18) | 0 | (4) |
Fair Value at the ending period | $ 107 | $ 111 |
EQUITY - Schedule of Accumulate
EQUITY - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | $ 3,567 | $ 3,702 |
Balance, end of period | 3,660 | 3,696 |
Interest Rate Contract | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Reclassification out of AOCI within next 12 months | 5 | |
Accumulated other comprehensive loss | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (175) | (242) |
Current period other comprehensive income (loss) before reclassification | (25) | 18 |
Amount reclassified from accumulated other comprehensive loss | 3 | 1 |
Balance, end of period | (197) | (223) |
Foreign currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (156) | (202) |
Current period other comprehensive income (loss) before reclassification | (21) | 15 |
Amount reclassified from accumulated other comprehensive loss | 3 | 0 |
Balance, end of period | (174) | (187) |
AFS debt securities unrealized fair value adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 4 | (11) |
Current period other comprehensive income (loss) before reclassification | (3) | 3 |
Amount reclassified from accumulated other comprehensive loss | 0 | 0 |
Balance, end of period | 1 | (8) |
Pension liabilities adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | 0 | |
Current period other comprehensive income (loss) before reclassification | 0 | |
Amount reclassified from accumulated other comprehensive loss | (1) | |
Balance, end of period | (1) | |
Derivative instruments adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Balance, beginning of period | (23) | (29) |
Current period other comprehensive income (loss) before reclassification | (1) | 0 |
Amount reclassified from accumulated other comprehensive loss | 1 | 1 |
Balance, end of period | $ (23) | $ (28) |
EQUITY - Narrative (Details)
EQUITY - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | May 10, 2023 | Dec. 18, 2019 | |
Equity [Abstract] | |||||
Stock repurchase program, authorized amount (up to) | $ 1,055,000,000 | $ 750,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 773,000,000 | ||||
Stock repurchased and retired during period (in shares) | 2,515,656 | 1,018,931 | |||
Weighted-average price per share (in dollars per share) | $ 154.09 | $ 104.50 | |||
Aggregate purchase price | $ 388,000,000 | $ 106,000,000 | |||
Shares repurchased and not settled yet (in shares) | 73,368 | 106,116 | |||
Stock repurchased and retired during period, value, not settled yet | $ 0 | $ 8,000,000 | $ 9,000,000 |
EQUITY - Schedule of Dividends
EQUITY - Schedule of Dividends Payable (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 12, 2024 | Feb. 14, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends Payable [Line Items] | ||||
Total cash dividends declared | $ 15 | $ 0 | ||
Cash dividend (in dollars per share) | $ 0.15 | |||
Cash dividend declared (in dollars per share) | $ 0.15 | $ 0.15 | ||
Class A common stock | ||||
Dividends Payable [Line Items] | ||||
Total cash dividends declared | $ 6 | 0 | ||
Class B common stock | ||||
Dividends Payable [Line Items] | ||||
Total cash dividends declared | $ 9 | $ 0 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Compensation Expense Related to Long-Term Incentive Plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | $ 31 | $ 32 |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | 12 | 11 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | 16 | 17 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Compensation expense | $ 3 | $ 4 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 219,570 | 284,912 |
Granted (in dollars per share) | $ 68.83 | $ 48.54 |
Future compensation expense | $ 4 | |
Future compensation expense, period for recognition | 2 years | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Grants in period (in shares) | 280,081 | 405,464 |
Granted (in dollars per share) | $ 156.91 | $ 111.70 |
Future compensation expense | $ 48 | |
Future compensation expense, period for recognition | 3 years | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Future compensation expense | $ 17 | |
Future compensation expense, period for recognition | 2 years |
RELATED-PARTY TRANSACTIONS - Le
RELATED-PARTY TRANSACTIONS - Legal Services (Details) - Related Party - Related Party Legal Services - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction | |||
General and administrative | $ 6 | $ 4 | |
Due to related party | $ 6 | $ 2 |
RELATED-PARTY TRANSACTIONS - Eq
RELATED-PARTY TRANSACTIONS - Equity Method Investments (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Feb. 28, 2024 | Feb. 27, 2024 | Dec. 31, 2023 | |
Related Party Transaction | |||||
Net receivables | $ 895 | $ 883 | |||
Total long-term financing receivables, net of allowances | $ 136 | 73 | |||
Unconsolidated Hospitality Ventures | |||||
Related Party Transaction | |||||
Equity method investment, ownership percentage | 38.80% | 50% | |||
Minimum | Unconsolidated Hospitality Ventures | |||||
Related Party Transaction | |||||
Equity method investment, ownership percentage | 20% | ||||
Maximum | Unconsolidated Hospitality Ventures | |||||
Related Party Transaction | |||||
Equity method investment, ownership percentage | 50% | ||||
Related Party | |||||
Related Party Transaction | |||||
Net receivables | $ 74 | 43 | |||
Total long-term financing receivables, net of allowances | 44 | $ 21 | |||
Franchise or License Fees | Related Party | |||||
Related Party Transaction | |||||
Related party amounts | 15 | $ 6 | |||
Related Parties Guarantees | Related Party | |||||
Related Party Transaction | |||||
Related party amounts | $ 1 | $ 2 |
RELATED-PARTY TRANSACTIONS - Sh
RELATED-PARTY TRANSACTIONS - Share Conversion (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Class B common stock | ||
Related Party Transaction | ||
Class share conversions (in shares) | (766,296) | |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Class A common stock | ||
Related Party Transaction | ||
Class share conversions (in shares) | 766,296 | |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
RELATED-PARTY TRANSACTIONS - _2
RELATED-PARTY TRANSACTIONS - Share Repurchase (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction | ||
Stock repurchased and retired during period (in shares) | 2,515,656 | 1,018,931 |
Weighted-average price per share (in dollars per share) | $ 154.09 | $ 104.50 |
Aggregate purchase price | $ 388 | $ 106 |
Class B common stock | ||
Related Party Transaction | ||
Stock repurchased and retired during period (in shares) | 1,987,229 | |
Aggregate purchase price | $ 312 | |
Class B common stock | Weighted Average | ||
Related Party Transaction | ||
Weighted-average price per share (in dollars per share) | $ 156.67 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Summarized Consolidated Financial Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information | ||
Total revenues | $ 1,714 | $ 1,680 |
Adjusted EBITDA | 252 | 268 |
Depreciation and amortization | 92 | 98 |
Net fees | ||
Segment Reporting Information | ||
Total revenues | 249 | 221 |
Gross fees | ||
Segment Reporting Information | ||
Total revenues | 262 | 231 |
Base management fees | ||
Segment Reporting Information | ||
Total revenues | 98 | 91 |
Incentive management fees | ||
Segment Reporting Information | ||
Total revenues | 64 | 57 |
Franchise, license, and other fees | ||
Segment Reporting Information | ||
Total revenues | 100 | 83 |
Contra revenue | ||
Segment Reporting Information | ||
Total revenues | (13) | (10) |
Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 309 | 314 |
Rooms and packages | ||
Segment Reporting Information | ||
Total revenues | 187 | 190 |
Food and beverage | ||
Segment Reporting Information | ||
Total revenues | 83 | 85 |
Other | ||
Segment Reporting Information | ||
Total revenues | 39 | 39 |
Other revenues | ||
Segment Reporting Information | ||
Total revenues | 35 | 88 |
Revenues for reimbursed costs | ||
Segment Reporting Information | ||
Total revenues | 802 | 729 |
Distribution | ||
Segment Reporting Information | ||
Total revenues | 319 | 328 |
Operating Segments | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 1,075 | 1,013 |
Adjusted EBITDA | 203 | 184 |
Depreciation and amortization | 19 | 19 |
Operating Segments | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 316 | 322 |
Adjusted EBITDA | 60 | 71 |
Depreciation and amortization | 44 | 46 |
Operating Segments | Distribution | ||
Segment Reporting Information | ||
Total revenues | 345 | 369 |
Adjusted EBITDA | 39 | 58 |
Depreciation and amortization | 21 | 27 |
Operating Segments | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Adjusted EBITDA | (51) | (46) |
Depreciation and amortization | 8 | 6 |
Operating Segments | Net fees | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 264 | 237 |
Operating Segments | Net fees | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Net fees | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Net fees | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Gross fees | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 277 | 247 |
Operating Segments | Gross fees | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Gross fees | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Gross fees | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Base management fees | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 107 | 100 |
Operating Segments | Base management fees | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Base management fees | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Base management fees | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Incentive management fees | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 68 | 62 |
Operating Segments | Incentive management fees | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Incentive management fees | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Incentive management fees | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Franchise, license, and other fees | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 102 | 85 |
Operating Segments | Franchise, license, and other fees | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Franchise, license, and other fees | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Franchise, license, and other fees | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Contra revenue | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | (13) | (10) |
Operating Segments | Contra revenue | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Contra revenue | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Contra revenue | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Owned and leased | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Owned and leased | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 316 | 322 |
Operating Segments | Owned and leased | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Owned and leased | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Rooms and packages | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Rooms and packages | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 194 | 198 |
Operating Segments | Rooms and packages | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Rooms and packages | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Food and beverage | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Food and beverage | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 83 | 85 |
Operating Segments | Food and beverage | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Food and beverage | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Other | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Other | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 39 | 39 |
Operating Segments | Other | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Other | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Other revenues | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 9 | 47 |
Operating Segments | Other revenues | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Other revenues | Distribution | ||
Segment Reporting Information | ||
Total revenues | 26 | 41 |
Operating Segments | Other revenues | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Revenues for reimbursed costs | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 802 | 729 |
Operating Segments | Revenues for reimbursed costs | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Revenues for reimbursed costs | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Revenues for reimbursed costs | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Distribution | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Distribution | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Operating Segments | Distribution | Distribution | ||
Segment Reporting Information | ||
Total revenues | 319 | 328 |
Operating Segments | Distribution | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | ||
Segment Reporting Information | ||
Total revenues | (22) | (24) |
Adjusted EBITDA | 1 | 1 |
Depreciation and amortization | 0 | 0 |
Eliminations | Management and franchising | ||
Segment Reporting Information | ||
Total revenues | (15) | (16) |
Eliminations | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | (7) | (8) |
Eliminations | Distribution | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | Overhead | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | Net fees | ||
Segment Reporting Information | ||
Total revenues | (15) | (16) |
Eliminations | Gross fees | ||
Segment Reporting Information | ||
Total revenues | (15) | (16) |
Eliminations | Base management fees | ||
Segment Reporting Information | ||
Total revenues | (9) | (9) |
Eliminations | Incentive management fees | ||
Segment Reporting Information | ||
Total revenues | (4) | (5) |
Eliminations | Franchise, license, and other fees | ||
Segment Reporting Information | ||
Total revenues | (2) | (2) |
Eliminations | Contra revenue | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | Owned and leased | ||
Segment Reporting Information | ||
Total revenues | (7) | (8) |
Eliminations | Rooms and packages | ||
Segment Reporting Information | ||
Total revenues | (7) | (8) |
Eliminations | Food and beverage | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | Other | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | Other revenues | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | Revenues for reimbursed costs | ||
Segment Reporting Information | ||
Total revenues | 0 | 0 |
Eliminations | Distribution | ||
Segment Reporting Information | ||
Total revenues | $ 0 | $ 0 |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Reconciliation of Consolidated Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information | ||
Net income attributable to Hyatt Hotels Corporation | $ 522 | $ 58 |
Interest expense | 38 | 33 |
Provision for income taxes | 19 | 47 |
Depreciation and amortization | 92 | 98 |
Total revenues | 1,714 | 1,680 |
Equity (earnings) losses from unconsolidated hospitality ventures | (75) | 2 |
Stock-based compensation expense (Note 14) | 31 | 32 |
Gains on sales of real estate and other (Note 4 and Note 6) | (403) | 0 |
Asset impairments | 17 | 2 |
Other (income) loss, net (Note 18) | (53) | (48) |
Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA | 17 | 14 |
Adjusted EBITDA | 252 | 268 |
Contra revenue | ||
Segment Reporting Information | ||
Total revenues | (13) | (10) |
Revenues for reimbursed costs | ||
Segment Reporting Information | ||
Total revenues | 802 | 729 |
Reimbursed costs | ||
Segment Reporting Information | ||
Reimbursed costs | $ 836 | $ 749 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of the Calculation of Basic and Diluted Earnings (Losses) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | |
Numerator: | |||
Net income | $ 522 | $ 58 | |
Net income attributable to noncontrolling interests | 0 | 0 | |
Net income attributable to Hyatt Hotels Corporation | $ 522 | $ 58 | |
Denominator: | |||
Basic weighted-average shares outstanding (in shares) | 102,777,418 | 106,389,110 | |
Share-based compensation (in shares) | 3,126,173 | 2,541,102 | |
Diluted weighted-average shares outstanding (in shares) | 105,903,591 | 108,930,212 | |
Basic Earnings Per Class A and Class B Share: | |||
Net income (in dollars per share) | $ 5.08 | $ 0.55 | |
Net income attributable to noncontrolling interests (in dollars per share) | 0 | 0 | |
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | 5.08 | 0.55 | |
Diluted Earnings Per Class A and Class B Share: | |||
Net income (in dollars per share) | 4.93 | 0.53 | |
Net income attributable to noncontrolling interests (in dollars per share) | 0 | 0 | |
Net income attributable to Hyatt Hotels Corporation (in dollars per share) | $ 4.93 | $ 0.53 | |
Shares repurchased and not settled yet (in shares) | 73,368 | 106,116 |
EARNINGS PER SHARE - Schedule_2
EARNINGS PER SHARE - Schedule of Antidilutive Securities Excluded from Computation of Losses Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
SARs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,800 | 7,000 |
RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,800 | 1,400 |
OTHER INCOME (LOSS), NET - Sche
OTHER INCOME (LOSS), NET - Schedule of Other Income (Loss), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 22 | $ 17 |
Unrealized gains, net (Note 4) | 13 | 43 |
Depreciation recovery | 6 | 4 |
Guarantee amortization income (Note 12) | 11 | 3 |
Contingent consideration liability fair value adjustment (Note 12) | 4 | 0 |
Transaction costs (Note 6) | (1) | (7) |
Guarantee expense (Note 12) | (3) | (11) |
Other, net | 1 | (1) |
Other income (loss), net | $ 53 | $ 48 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | May 08, 2024 | May 01, 2024 | Apr. 23, 2024 | Mar. 31, 2024 | May 10, 2023 | Dec. 18, 2019 |
Subsequent Event [Line Items] | ||||||
Stock repurchase program, authorized amount (up to) | $ 1,055,000,000 | $ 750,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 773,000,000 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchase program, authorized amount (up to) | $ 1,000,000,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 1,800,000,000 | |||||
Disposal Group, Disposed of by Sale | Hyatt Regency San Antonio Riverwalk | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Disposal group, consideration | $ 230,000,000 | |||||
Disposal Group, Disposed of by Sale | Hyatt Regency Green Bay | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Disposal group, consideration | $ 5,000,000 |