Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PK | |
Entity Registrant Name | Park Hotels & Resorts Inc. | |
Entity Central Index Key | 0001617406 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 201,622,620 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37795 | |
Entity Tax Identification Number | 362058176 | |
Entity Address, Address Line One | 1775 Tysons Blvd | |
Entity Address, Address Line Two | 7th Floor | |
Entity Address, City or Town | Tysons | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102 | |
City Area Code | 571 | |
Local Phone Number | 302-5757 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Property and equipment, net | $ 7,764 | $ 7,975 |
Investments in affiliates | 52 | 50 |
Goodwill | 607 | 607 |
Intangibles, net | 2 | 27 |
Cash and cash equivalents | 310 | 410 |
Restricted cash | 170 | 15 |
Accounts receivable, net of allowance for doubtful accounts of $1 and $1 | 186 | 153 |
Prepaid expenses | 88 | 82 |
Other assets | 45 | 44 |
Operating lease right-of-use assets | 207 | |
TOTAL ASSETS (variable interest entities - $245 and $242) | 9,431 | 9,363 |
Liabilities | ||
Debt | 2,949 | 2,948 |
Accounts payable and accrued expenses | 208 | 183 |
Due to hotel manager | 117 | 137 |
Due to Hilton Grand Vacations | 135 | 135 |
Deferred income tax liabilities | 42 | 42 |
Other liabilities | 204 | 332 |
Operating lease liabilities | 200 | |
Total liabilities (variable interest entities - $217 and $217) | 3,855 | 3,777 |
Commitments and contingencies - refer to Note 13 | ||
Stockholders' Equity | ||
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 201,799,199 shares issued and 201,621,099 shares outstanding as of June 30, 2019 and 201,290,458 shares issued and 201,198,381 shares outstanding as of December 31, 2018 | 2 | 2 |
Additional paid-in capital | 3,591 | 3,589 |
Retained earnings | 2,034 | 2,047 |
Accumulated other comprehensive loss | (5) | (6) |
Total stockholders' equity | 5,622 | 5,632 |
Noncontrolling interests | (46) | (46) |
Total equity | 5,576 | 5,586 |
TOTAL LIABILITIES AND EQUITY | $ 9,431 | $ 9,363 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1 | $ 1 |
Variable interest entities - assets | 245 | 242 |
Variable interest entities - liabilities | $ 217 | $ 217 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 6,000,000,000 | 6,000,000,000 |
Common stock, issued shares | 201,799,199 | 201,290,458 |
Common stock, outstanding shares | 201,621,099 | 201,198,381 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues | |||||
Total revenues | $ 703 | $ 731 | $ 1,362 | $ 1,399 | |
Operating expenses | |||||
Other property-level | 49 | 50 | 98 | 103 | |
Management and franchise fees | 36 | 39 | 69 | 72 | |
Depreciation and amortization | 61 | 69 | 123 | 139 | |
Corporate general and administrative | 22 | 15 | 39 | 31 | |
Other | 18 | 18 | 38 | 35 | |
Total expenses | 580 | 589 | 1,141 | 1,172 | |
(Loss) gain on sales of assets, net | (12) | 7 | 19 | 96 | |
Operating income | 111 | 149 | 240 | 323 | |
Interest income | 2 | 1 | 3 | 2 | |
Interest expense | (33) | (31) | (65) | (62) | |
Equity in earnings from investments in affiliates | 10 | 8 | 15 | 12 | |
Loss on foreign currency transactions | (4) | (3) | |||
Other (loss) gain, net | (1) | 108 | 108 | ||
Income before income taxes | 89 | 231 | 193 | 380 | |
Income tax expense | (5) | (13) | (12) | (13) | |
Net income | 84 | 218 | 181 | 367 | |
Net income attributable to noncontrolling interests | (2) | (2) | (3) | (1) | |
Net income attributable to stockholders | 82 | 216 | 178 | 366 | |
Other comprehensive income, net of tax expense: | |||||
Currency translation adjustment, net of tax expense of $0, $1, $0, $1 | 1 | 1 | 37 | ||
Total other comprehensive income | 1 | 1 | 37 | ||
Comprehensive income | 85 | 218 | 182 | 404 | |
Comprehensive income attributable to noncontrolling interests | (2) | (2) | (3) | (1) | |
Comprehensive income attributable to stockholders | $ 83 | $ 216 | $ 179 | $ 403 | |
Earnings per share: | |||||
Earnings per share - Basic | [1] | $ 0.40 | $ 1.07 | $ 0.88 | $ 1.77 |
Earnings per share - Diluted | [1] | $ 0.40 | $ 1.07 | $ 0.88 | $ 1.77 |
Weighted average shares outstanding - Basic | 201 | 200 | 201 | 205 | |
Weighted average shares outstanding - Diluted | 202 | 201 | 202 | 206 | |
Rooms [Member] | |||||
Revenues | |||||
Total revenues | $ 435 | $ 451 | $ 840 | $ 869 | |
Operating expenses | |||||
Expenses | 113 | 112 | 220 | 224 | |
Food and Beverage [Member] | |||||
Revenues | |||||
Total revenues | 195 | 205 | 378 | 388 | |
Operating expenses | |||||
Expenses | 130 | 131 | 254 | 257 | |
Ancillary Hotel [Member] | |||||
Revenues | |||||
Total revenues | 54 | 58 | 107 | 108 | |
Other [Member] | |||||
Revenues | |||||
Total revenues | 19 | 17 | 37 | 34 | |
Other Departmental and Support [Member] | |||||
Operating expenses | |||||
Expenses | $ 151 | $ 155 | $ 300 | $ 311 | |
[1] | Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 1 | $ 0 | $ 1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Activities: | ||||
Net income | $ 84 | $ 218 | $ 181 | $ 367 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 61 | 69 | 123 | 139 |
Gain on sales of assets, net | 12 | (7) | (19) | (96) |
Equity in earnings from investments in affiliates | (10) | (8) | (15) | (12) |
Loss on foreign currency transactions | 3 | |||
Other gain, net | (108) | |||
Share-based compensation expense | 8 | 8 | ||
Amortization of deferred financing costs | 2 | 2 | ||
Distributions from unconsolidated affiliates | 13 | 6 | ||
Deferred income taxes | (3) | |||
Changes in operating assets and liabilities | (49) | (158) | ||
Net cash provided by operating activities | 244 | 148 | ||
Investing Activities: | ||||
Capital expenditures for property and equipment | (120) | (86) | ||
Proceeds from asset dispositions, net | 229 | 368 | ||
Proceeds from the sale of investments in affiliates, net | 150 | |||
Insurance proceeds for property damage claims | 2 | 35 | ||
Net cash provided by investing activities | 111 | 467 | ||
Financing Activities: | ||||
Dividends paid | (291) | (204) | ||
Distributions to noncontrolling interests | (3) | (1) | ||
Tax withholdings on share-based compensation | (6) | (2) | ||
Repurchase of common stock | (348) | |||
Net cash used in financing activities | (300) | (555) | ||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1) | |||
Net increase in cash and cash equivalents and restricted cash | 55 | 59 | ||
Cash and cash equivalents and restricted cash, beginning of period | 425 | 379 | ||
Cash and cash equivalents and restricted cash, end of period | 480 | 438 | 480 | 438 |
Non-cash financing activities: | ||||
Dividends declared but unpaid | $ 90 | $ 177 | $ 90 | $ 177 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [member] | Additional Paid-in Capital [member] | Retained Earnings [member] | Accumulated Other Comprehensive Loss [member] | Non-Controlling Interests [member] | |
Balance at Dec. 31, 2017 | $ 5,962 | $ 2 | $ 3,825 | $ 2,229 | $ (45) | $ (49) | |
Balance (shares) at Dec. 31, 2017 | 215,000,000 | ||||||
Share-based compensation, net | 3 | 3 | |||||
Net income (loss) | 149 | 150 | (1) | ||||
Other comprehensive income | 37 | 37 | |||||
Dividends and dividend equivalents | [1] | (88) | (88) | ||||
Repurchase of common stock | (348) | (250) | (98) | ||||
Repurchases of common stock (Shares) | (14,000,000) | ||||||
Balance at Mar. 31, 2018 | 5,715 | $ 2 | 3,578 | 2,193 | (8) | (50) | |
Balance (shares) at Mar. 31, 2018 | 201,000,000 | ||||||
Balance at Dec. 31, 2017 | 5,962 | $ 2 | 3,825 | 2,229 | (45) | (49) | |
Balance (shares) at Dec. 31, 2017 | 215,000,000 | ||||||
Net income (loss) | 367 | ||||||
Other comprehensive income | 37 | ||||||
Balance at Jun. 30, 2018 | 5,757 | $ 2 | 3,581 | 2,231 | (8) | (49) | |
Balance (shares) at Jun. 30, 2018 | 201,000,000 | ||||||
Balance at Mar. 31, 2018 | 5,715 | $ 2 | 3,578 | 2,193 | (8) | (50) | |
Balance (shares) at Mar. 31, 2018 | 201,000,000 | ||||||
Share-based compensation, net | 3 | 3 | |||||
Net income (loss) | 218 | 216 | 2 | ||||
Dividends and dividend equivalents | [1] | (178) | (178) | ||||
Distributions to noncontrolling interests | (1) | (1) | |||||
Balance at Jun. 30, 2018 | 5,757 | $ 2 | 3,581 | 2,231 | (8) | (49) | |
Balance (shares) at Jun. 30, 2018 | 201,000,000 | ||||||
Balance at Dec. 31, 2018 | $ 5,586 | $ 2 | 3,589 | 2,047 | (6) | (46) | |
Balance (shares) at Dec. 31, 2018 | 201,198,381 | 201,000,000 | |||||
Share-based compensation, net | $ (1) | (1) | |||||
Net income (loss) | 97 | 96 | 1 | ||||
Dividends and dividend equivalents | [1] | (91) | (91) | ||||
Distributions to noncontrolling interests | (3) | (3) | |||||
Cumulative effect of change in accounting principle | (8) | (8) | |||||
Balance at Mar. 31, 2019 | 5,580 | $ 2 | 3,588 | 2,044 | (6) | (48) | |
Balance (shares) at Mar. 31, 2019 | 201,000,000 | ||||||
Balance at Dec. 31, 2018 | $ 5,586 | $ 2 | 3,589 | 2,047 | (6) | (46) | |
Balance (shares) at Dec. 31, 2018 | 201,198,381 | 201,000,000 | |||||
Net income (loss) | $ 181 | ||||||
Other comprehensive income | 1 | ||||||
Balance at Jun. 30, 2019 | $ 5,576 | $ 2 | 3,591 | 2,034 | (5) | (46) | |
Balance (shares) at Jun. 30, 2019 | 201,621,099 | 202,000,000 | |||||
Balance at Mar. 31, 2019 | $ 5,580 | $ 2 | 3,588 | 2,044 | (6) | (48) | |
Balance (shares) at Mar. 31, 2019 | 201,000,000 | ||||||
Share-based compensation, net | 3 | 3 | |||||
Share-based compensation, net (Shares) | 1,000,000 | ||||||
Net income (loss) | 84 | 82 | 2 | ||||
Other comprehensive income | 1 | 1 | |||||
Dividends and dividend equivalents | [1] | (92) | (92) | ||||
Balance at Jun. 30, 2019 | $ 5,576 | $ 2 | $ 3,591 | $ 2,034 | $ (5) | $ (46) | |
Balance (shares) at Jun. 30, 2019 | 201,621,099 | 202,000,000 | |||||
[1] | Dividends declared per common share were $0.45 for both the three months ended March 31, 2019 and June 30, 2019. Dividends declared per common share were $0.43 for the three months ended March 31, 2018 and $0.88 for the three months ended June 30, 2018. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends declared per common share | $ 0.45 | $ 0.45 | $ 0.88 | $ 0.43 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization | Note 1: Organization Park Hotels & Resorts Inc. (“we,” “us,” “our” or the “Company”) is a Delaware corporation that owns a portfolio of premium-branded hotels and resorts primarily located in prime United States (“U.S.”) markets. On January 3, 2017, Hilton Worldwide Holdings Inc. (“Hilton” or “Parent”) completed the spin-off of a portfolio of hotels and resorts that established Park Hotels & Resorts Inc. as an independent, publicly traded company. The spin-off transaction was effected through a pro rata distribution of Park Hotels & Resorts Inc. stock to existing Hilton stockholders. For U.S. federal income tax purposes, we are taxed as a real estate investment trust (“REIT”). We are currently, and expect to continue to be, organized and operate in a REIT qualified manner. From the spin-off date, Park Intermediate Holdings LLC (our “Operating Company”), directly or indirectly, holds all of our assets and conducts all of our operations. We own 100% of the interests in our Operating Company. On May 5, 2019, the Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“Domestic”), and PK Domestic Sub LLC, a wholly-owned subsidiary of Domestic (“Merger Sub”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Chesapeake Lodging Trust (“Chesapeake”). Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Chesapeake will merge with and into Merger Sub (the “Merger”) and each of Chesapeake’s common shares of beneficial interest, $0.01 par value per share (“Chesapeake common shares”) will be converted into the right to receive $11.00 in cash and 0.628 of a share of our common stock. No fractional shares of our common stock will be issued in the Merger. The value of any fractional interests to which a Chesapeake shareholder would otherwise be entitled will be paid in cash. The completion of the Merger is subject to various customary closing conditions, including, among other things, approval by Chesapeake’s common shareholders at a special meeting of shareholders of Chesapeake, which will be held on September 10, 2019. Contemporaneously with the execution of the Merger Agreement, our Operating Partnership and Domestic entered into a commitment letter with Bank of America, N.A. and BofA Merrill Lynch providing a $1.1 billion financing commitment for an unsecured delayed draw term loan facility (the “Term Facility”) to fund the Merger. Refer to: Note 6: “Debt” for additional information. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2: Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation Principles of Consolidation The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Annual Report on Form 10-K, filed with the SEC on February 28, 2019. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance. Summary of Significant Accounting Policies Our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 28, 2019, contains a discussion of the significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2018, except for the change in lease accounting, referred to under “Recently Issued Accounting Pronouncements.” Recently Issued Accounting Pronouncements Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) Leases (Topic 840) Upon adoption, we recognized an operating lease right-of-use asset of $213 million representing the right to use land, buildings, and equipment over lease terms which include renewal options we have exercised, and renewal options controlled by the lessor, and a corresponding operating lease liability of $213 million representing the present value of our fixed lease payment obligations. We also recognized an $8 million impairment of the operating lease right-of-use asset associated with one of our previously impaired hotels as a cumulative effect of change in accounting principle within retained earnings. intangibles, net other liabilities In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) |
Dispositions
Dispositions | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Dispositions | Note 3: Dispositions Dispositions During the six months ended June 30, 2019, we sold our interests in five consolidated hotels listed in the table below and we received total gross proceeds of $235 million and recognized a gain, net of selling costs, of $19 million on these hotels which is included in (loss) gain on sales of assets, net Hotel Location Month Sold Pointe Hilton Squaw Peak Resort Phoenix, Arizona February 2019 Hilton Nuremberg Nuremberg, Germany March 2019 Hilton Atlanta Airport Atlanta, Georgia June 2019 Hilton New Orleans Airport (1) New Orleans, Louisiana June 2019 Embassy Suites Parsippany (1) Parsippany, New Jersey June 2019 (1) Hotels were sold as a portfolio in the same transaction. During the six months ended June 30, 2018, we sold 12 consolidated hotels for total gross proceeds of $387 million. We recognized a net gain of approximately $96 million, including the reclassification of a currency translation adjustment of $31 million from accumulated other comprehensive loss into earnings concurrent with the dispositions, which was included in (loss) gain on sales of assets, net Additionally, in May 2018, we and the other owners of our unconsolidated affiliates that owned the Hilton Berlin hotel sold our interests for gross proceeds of approximately $375 million, before customary closing adjustments, of which our pro rata share was approximately $150 million. We recognized a net gain of approximately $108 million, including the reclassification of a currency translation adjustment of $8 million from accumulated other comprehensive loss into earnings concurrent with the disposition, which is included in other (loss) gain, net |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 4: Property and Equipment Property and equipment were: June 30, 2019 December 31, 2018 (in millions) Land $ 3,314 $ 3,344 Buildings and leasehold improvements 5,520 5,616 Furniture and equipment 955 949 Construction-in-progress 66 124 9,855 10,033 Accumulated depreciation and amortization (2,091 ) (2,058 ) $ 7,764 $ 7,975 Depreciation of property and equipment was $60 million and $69 million, respectively, during the three months ended June 30, 2019 and 2018, and $122 million and $139 million during the six months ended June 30, 2019 and 2018, respectively. Hurricanes Irma and Maria In September 2017, Hurricanes Irma and Maria caused damage and disruption at certain of our hotels in Florida and the Caribe Hilton in Puerto Rico. The Caribe Hilton remained closed throughout 2018 and reopened on May 15, 2019. Our insurance coverage provides us with reimbursement for the replacement cost for the damage to these hotels, which includes certain clean-up and repair costs, exceeding the applicable deductibles, in addition to loss of business. During the six months ended June 30, 2019 , w e received $7 million of insurance proceeds, of which $2 million related to property damage, $3 million related to business interruption, and $2 million related to expense reimbursements. Business interruption proceeds are included within ancillary hotel revenue in our condensed consolidated statements of comprehensive income. The insurance receivable as of June 30, 2019 was $22 million and $25 million, respectively, and is included within other assets in our condensed consolidated balance sheets. During the six months ended June 30, 2018, we incurred $37 million of expenses, and based upon additional information obtained during the period, we recognized an additional loss of $22 million for property and equipment that was damaged during the hurricanes. These amounts were offset by the recognition of an insurance receivable of $59 million. Additionally, we received $43 million of insurance proceeds, of which $7 million related to business interruption. |
Consolidated Variable Interest
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates | 6 Months Ended |
Jun. 30, 2019 | |
Consolidated Variable Interest Entities And Investments In Affiliates [Abstract] | |
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates | Note 5: Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates Consolidated VIEs We consolidate three VIEs that own hotels in the U.S. We are the primary beneficiary of these VIEs as we have the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our VIEs are only available to settle the obligations of these entities. Our condensed consolidated balance sheets include the following assets and liabilities of these entities: June 30, 2019 December 31, 2018 (in millions) Property and equipment, net $ 221 $ 223 Cash and cash equivalents 14 12 Restricted cash 2 1 Accounts receivable, net 6 4 Prepaid expenses 2 2 Debt 207 207 Accounts payable and accrued expenses 7 7 Due to hotel manager 1 2 Other liabilities 2 1 During the six months ended June 30, 2019 and 2018, we did not provide any financial or other support to these VIEs that we were not previously contractually required to provide, nor do we intend to provide any such support in the future. Unconsolidated Entities Investments in affiliates were: Ownership % June 30, 2019 December 31, 2018 (in millions) Hilton San Diego Bayfront 25% $ 20 $ 19 All others (7 hotels) (1) 20% - 50% 32 31 $ 52 $ 50 (1) In July 2019, we and the other owners of the entity that own the Conrad Dublin, entered into an agreement to sell the ownership interest in the entity. Our interest in the Conrad Dublin was $7 million as of June 30, 2019 and December 31, 2018. Refer to: Note 14: "Subsequent Events" for additional information. The affiliates in which we own investments accounted for under the equity method had total debt of approximately $962 million and $955 million as of June 30, 2019 and December 31, 2018, respectively. Substantially all of the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 6: Debt Debt balances and associated interest rates as of June 30, 2019 were: Principal balance as of Interest Rate at June 30, 2019 Maturity Date June 30, 2019 December 31, 2018 (in millions) SF CMBS Loan 4.11% November 2023 $ 725 $ 725 HHV CMBS Loan 4.20% November 2026 1,275 1,275 Mortgage loans Average rate of 4.21% 2020 to 2026 (1) 207 207 Term loan L + 1.55% December 2021 750 750 Revolving credit facility (2) L + 1.60% December 2021 (1) — — Financing lease obligations 3.07% 2021 to 2022 1 1 2,958 2,958 Less: unamortized deferred financing costs and discount (9 ) (10 ) $ 2,949 $ 2,948 (1) (2) We are required to deposit with lenders certain cash reserves for restricted uses. As of both June 30, 2019 and December 31, 2018, our condensed consolidated balance sheets included $15 million of restricted cash related to our CMBS loans and mortgage loans. In May 2019, we secured a commitment for the Term Facility for up to $1.1 billion to be used, if needed, to finance the proposed Merger with Chesapeake. The Term Facility includes a $250 million two-year delayed draw term loan tranche and a $850 million five-year delayed draw term loan tranche. Borrowings from the Term Facility, if any, will bear interest at a base rate plus 1.35% to 2.65%, depending on our leverage ratio. The base rate will be based on the highest of the Federal Funds Rate, Bank of America’s daily prime rate or LIBOR. Beginning in August 2019, we will be required to pay an annual fee equal to 0.25% of the undrawn portion of the Term Facility. Additionally, we incurred upfront financing fees of $7 million as of June 30, 2019 and upon borrowing against the Term Facility, we anticipate paying an additional $3 million financing fee. As of June 30, 2019, no borrowings have been made from the Term Facility. Debt Maturities The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of June 30, 2019 were: Year (in millions) 2019 $ — 2020 13 2021 751 2022 32 2023 728 Thereafter (1) 1,434 $ 2,958 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7: Fair Value Measurements We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair values of financial instruments not included in the table below are estimated to be equal to their carrying amounts. The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: June 30, 2019 December 31, 2018 Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Liabilities: SF CMBS Loan 3 $ 725 $ 742 $ 725 $ 706 HHV CMBS Loan 3 1,275 1,311 1,275 1,214 Term Loan 3 750 751 750 732 Mortgage loans 3 207 209 207 201 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 8: Leases We lease hotel properties, land and equipment under operating and financing leases. We are subject to ground leases for 13 of our consolidated properties. Our leases expire, including options under lessor control, at various dates through 2076, with varying renewal options, and the majority expire before 2027. Our operating leases may require minimum rent payments, variable rent payments based on a percentage of revenue or income or rent payments equal to the greater of a minimum rent or variable rent. In addition, we may be required to pay some, or all, of the capital costs for property and equipment in the hotel during the term of the lease. The maturities of our non-cancelable operating lease liabilities, due in each of the next five years and thereafter as of June 30, 2019, were: Operating Leases Year (in millions) 2019 $ 13 2020 27 2021 28 2022 27 2023 21 Thereafter 204 Total minimum rent payments $ 320 Less: imputed interest 120 Total operating lease liabilities $ 200 As of June 30, 2019 the weighted average remaining operating lease term was 15.8 years and the weighted average discount rate used to determine the operating lease liabilities was 5.7%. The components of rent expense, which are primarily included in other property-level expenses Three Months Ended June 30, Six Months Ended June 30, 2019 2019 (in millions) (in millions) Operating lease expense $ 7 $ 14 Variable lease expense 4 7 Operating cash flows for operating leases 6 13 Right-of-use assets obtained in exchange for lease obligations (1) — 213 (1) For the six months ended June 30, 2019, balance represents right-of-use assets recorded upon adoption of ASC 842, Leases, |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes We are a REIT for U.S. federal income tax purposes, and we expect to continue to be organized and operate in a manner to remain qualified as a REIT. To qualify as a REIT, we must satisfy requirements related to, among other things, the real estate qualification of sources of our income, the real estate composition and values of our assets, the amounts we distribute to our stockholders annually and the diversity of ownership of our stock. To the extent we continue to remain qualified as a REIT, we generally will not be subject to U.S. federal income tax on taxable income generated by our REIT activities that we distribute annually to our stockholders. Accordingly, no provision for U.S. federal income taxes has been included in our accompanying condensed consolidated financial statements for the three and six months ended June 30, 2019 and 2018 related to our REIT activities, other than taxes associated with built-in gains related to our assets owned at the date of our spin-off including the remeasurement of associated deferred tax assets and liabilities. We will be subject to U.S. federal income tax on taxable sales of built-in gain property (representing property with an excess of fair value over tax basis held by us on January 4, 2017) during the five-year period following the date of our spin-off. In addition, we are subject to non-U.S. income tax on foreign held REIT activities. Further, our taxable REIT subsidiaries (“TRSs”) are generally subject to U.S. federal, state and local, and foreign income taxes (as applicable). Income tax expense during the three and six months ended June 30, 2019 is primarily related to taxable income from our TRSs. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 10: Share-Based Compensation We issue equity-based awards to our employees pursuant to the 2017 Omnibus Incentive Plan (“2017 Employee Plan”) and our non-employee directors pursuant to the 2017 Stock Plan for Non-Employee Directors (“2017 Director Plan”). The 2017 Employee Plan provides that a maximum of 8,000,000 shares of our common stock may be issued, and as of June 30, 2019, 5,499,328 shares of common stock remain available for future issuance. The 2017 Director Plan provides that a maximum of 450,000 shares of our common stock may be issued, and as of June 30, 2019, 307,922 shares of common stock remain available for future issuance. For both the three months ended June 30, 2019 and 2018, we recognized $4 million of share-based compensation expense, and Restricted Stock Awards Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the six months ended June 30, 2019: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2019 585,106 $ 26.89 Granted 284,994 31.54 Vested (245,356 ) 26.71 Forfeited (11,593 ) 30.10 Unvested at June 30, 2019 613,151 $ 29.07 Performance Stock Units Performance Stock Units (“PSUs”) generally vest at the end of a three-year performance period and are subject to the achievement of a market condition based on a measure of our total shareholder return relative to the total shareholder return of the companies that comprise the FTSE Nareit Lodging Resorts Index (that have a market capitalization in excess of $1 billion as of the first day of the applicable performance period). The number of PSUs that may become vested ranges from zero to 200% of the number of PSUs granted to an employee, based on the level of achievement of the foregoing performance measure. The following table provides a summary of PSUs for the six months ended June 30, 2019: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2019 537,936 $ 31.16 Granted 314,303 34.30 Vested (277,325 ) 31.25 Forfeited (672 ) 42.05 Unvested at June 30, 2019 574,242 $ 32.82 The grant date fair values of these awards were determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility (1) 20.5 % Dividend yield (2) — Risk-free rate 2.4 % Expected term 3 years (1) Due to limited trading history of our common stock, we used the historical and implied volatilities of our peer group in addition to our historical and implied volatilities over the performance period to estimate appropriate expected volatilities. (2) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11: Earnings Per Share The following table presents the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions, except per share amounts) (in millions, except per share amounts) Numerator: Net income attributable to stockholders $ 82 $ 216 $ 178 $ 366 Earnings allocated to participating securities (1 ) (1 ) (1 ) (1 ) Net income attributable to stockholders net of earnings allocated to participating securities $ 81 $ 215 $ 177 $ 365 Denominator: Weighted average shares outstanding – basic 201 200 201 205 Unvested restricted shares 1 1 1 1 Weighted average shares outstanding – diluted 202 201 202 206 Basic EPS (1) $ 0.40 $ 1.07 $ 0.88 $ 1.77 Diluted EPS (1) $ 0.40 $ 1.07 $ 0.88 $ 1.77 (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. Certain of our outstanding equity awards were excluded from the above calculation of EPS for the three and six months ended June 30, 2019 and 2018 because their effect would have been anti-dilutive. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 12: Business Segment Information As of June 30, 2019, we have two operating segments, our consolidated hotels and unconsolidated hotels. Our unconsolidated hotels operating segment does not meet the definition of a reportable segment, thus our consolidated hotels is our only reportable segment. We evaluate our consolidated hotels primarily based on hotel adjusted earnings before interest expense, taxes and depreciation and amortization (“EBITDA”). Hotel Adjusted EBITDA is calculated as EBITDA from hotel operations, adjusted to exclude: • Gains or losses on sales of assets for both consolidated and unconsolidated investments; • Gains or losses on foreign currency transactions; • Share-based compensation expense; • Non-cash impairment losses; and • Other items that we believe are not representative of our current or future operating performance. The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and Hotel Adjusted EBITDA to net income: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) Revenues: Total consolidated hotel revenue $ 684 $ 714 $ 1,325 $ 1,365 Other revenues 19 17 37 34 Total revenues $ 703 $ 731 $ 1,362 $ 1,399 Hotel Adjusted EBITDA $ 209 $ 228 $ 390 $ 402 Other revenues 19 17 37 34 Depreciation and amortization expense (61 ) (69 ) (123 ) (139 ) Corporate general and administrative expense (22 ) (15 ) (39 ) (31 ) Other expenses (18 ) (18 ) (38 ) (35 ) (Loss) gain on sales of assets, net (12 ) 7 19 96 Interest income 2 1 3 2 Interest expense (33 ) (31 ) (65 ) (62 ) Equity in earnings from investments in affiliates 10 8 15 12 Loss on foreign currency transactions — (4 ) — (3 ) Income tax expense (5 ) (13 ) (12 ) (13 ) Other (loss) gain, net (1 ) 108 — 108 Other items (4 ) (1 ) (6 ) (4 ) Net income $ 84 $ 218 $ 181 $ 367 The following table presents total assets for our consolidated hotels, reconciled to consolidated amounts: June 30, 2019 December 31, 2018 (in millions) Consolidated hotels $ 9,362 $ 9,305 All other 69 58 Total $ 9,431 $ 9,363 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13: Commitments and Contingencies We expect that insurance proceeds, excluding any applicable insurance deductibles, will be sufficient to cover a significant portion of the property damage to our two hotels in Key West, Florida and the Caribe Hilton from Hurricanes Irma and Maria in September 2017 and the resulting loss of business. We have estimated the total amount of damages and insurance proceeds based on all information available to date. As a result, we have recognized a total loss of $16 million representing losses up to the amount of our deductibles . The amount of expected insurance proceeds could change as more information becomes available about the nature and extent of damage. As of June 30, 2019, we had outstanding commitments under third-party contracts of approximately $75 million for capital expenditures at certain hotels. Our contracts contain clauses that allow us to cancel all or some portion of the work. If cancellation of a contract occurred, our commitment would be any costs incurred up to the cancellation date, in addition to any costs associated with the discharge of the contract. We may make certain indemnifications or guarantees to select buyers of our hotels as part of the sale process. In addition, losses related to certain contingent liabilities could be apportioned to us under the distribution and tax matters agreements related to the spin-off transaction. We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums. We are also involved in litigation that is not in the ordinary course of business, and we are indemnified from certain of these claims under the distribution agreement with Hilton. While the ultimate results of claims and litigation relating to assets retained by Hilton in connection with the spin-off cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of June 30, 2019 will not have a material effect on our condensed consolidated results of operations, financial position or cash flows. Following the May 6, 2019 announcement that we and Chesapeake had entered into the Merger Agreement, two purported shareholder class actions were filed in the United States District Court for the District of Delaware captioned: Kent v. Chesapeake Lodging Trust, et al., No. 1:19-cv-01201 (D.Del.) (filed June 25, 2019) and Terlinden v. Chesapeake Lodging Trust, et al., No. 1;19-cv-01263 (D.Del.) (filed July 8, 2019). The complaint in each case alleges purported violations of the federal securities laws and names as defendants Chesapeake, the individual members of the Chesapeake board of trustees, the Company, Domestic, and PK Domestic Sub LLC. The plaintiffs allege that Chesapeake and the individual defendants violated Section 14(a) of the Exchange Act, and Rule 14a-9 promulgated thereunder, by providing inadequate disclosure regarding the proposed merger in the Form S-4 Registration Statement filed with the SEC on June 14, 2019 (the “Registration Statement”). The plaintiffs also allege that the individual defendants, the Company, Domestic and PK Domestic Sub LLC violated Section 20(a) of the Exchange Act. Plaintiffs seek, among other things, to enjoin or rescind the merger, an award of damages in the event the merger is consummated, and an award of costs and attorneys’ fees. We believe that these claims are without merit and intend to vigorously defend against them . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14: Subsequent Events In July 2019, we executed an agreement to sell the Conrad Dublin, an unconsolidated joint venture, for a sales price of approximately $130 million, which is payable in cash at closing and is subject to customary pro rations and adjustments. Our pro-rata share of the sales price is approximately $62 million. The sale is subject to customary closing conditions and required regulatory approvals and is currently anticipated to close in the fourth quarter of 2019. In July 2019, we received $7 million of insurance proceeds related to the Caribe Hilton. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Annual Report on Form 10-K, filed with the SEC on February 28, 2019. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842) Leases (Topic 840) Upon adoption, we recognized an operating lease right-of-use asset of $213 million representing the right to use land, buildings, and equipment over lease terms which include renewal options we have exercised, and renewal options controlled by the lessor, and a corresponding operating lease liability of $213 million representing the present value of our fixed lease payment obligations. We also recognized an $8 million impairment of the operating lease right-of-use asset associated with one of our previously impaired hotels as a cumulative effect of change in accounting principle within retained earnings. intangibles, net other liabilities In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) |
Dispositions (Tables)
Dispositions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Hotel Portfolio Properties Sold | Hotel Location Month Sold Pointe Hilton Squaw Peak Resort Phoenix, Arizona February 2019 Hilton Nuremberg Nuremberg, Germany March 2019 Hilton Atlanta Airport Atlanta, Georgia June 2019 Hilton New Orleans Airport (1) New Orleans, Louisiana June 2019 Embassy Suites Parsippany (1) Parsippany, New Jersey June 2019 (1) Hotels were sold as a portfolio in the same transaction. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment were: June 30, 2019 December 31, 2018 (in millions) Land $ 3,314 $ 3,344 Buildings and leasehold improvements 5,520 5,616 Furniture and equipment 955 949 Construction-in-progress 66 124 9,855 10,033 Accumulated depreciation and amortization (2,091 ) (2,058 ) $ 7,764 $ 7,975 |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Consolidated Variable Interest Entities And Investments In Affiliates [Abstract] | |
Schedule of Assets and Liabilities Included in Consolidated Balance Sheets | Our condensed consolidated balance sheets include the following assets and liabilities of these entities: June 30, 2019 December 31, 2018 (in millions) Property and equipment, net $ 221 $ 223 Cash and cash equivalents 14 12 Restricted cash 2 1 Accounts receivable, net 6 4 Prepaid expenses 2 2 Debt 207 207 Accounts payable and accrued expenses 7 7 Due to hotel manager 1 2 Other liabilities 2 1 |
Schedule of Investment in Affiliates | Investments in affiliates were: Ownership % June 30, 2019 December 31, 2018 (in millions) Hilton San Diego Bayfront 25% $ 20 $ 19 All others (7 hotels) (1) 20% - 50% 32 31 $ 52 $ 50 (1) In July 2019, we and the other owners of the entity that own the Conrad Dublin, entered into an agreement to sell the ownership interest in the entity. Our interest in the Conrad Dublin was $7 million as of June 30, 2019 and December 31, 2018. Refer to: Note 14: "Subsequent Events" for additional information. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt balances and associated interest rates as of June 30, 2019 were: Principal balance as of Interest Rate at June 30, 2019 Maturity Date June 30, 2019 December 31, 2018 (in millions) SF CMBS Loan 4.11% November 2023 $ 725 $ 725 HHV CMBS Loan 4.20% November 2026 1,275 1,275 Mortgage loans Average rate of 4.21% 2020 to 2026 (1) 207 207 Term loan L + 1.55% December 2021 750 750 Revolving credit facility (2) L + 1.60% December 2021 (1) — — Financing lease obligations 3.07% 2021 to 2022 1 1 2,958 2,958 Less: unamortized deferred financing costs and discount (9 ) (10 ) $ 2,949 $ 2,948 (1) (2) |
Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option | The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of June 30, 2019 were: Year (in millions) 2019 $ — 2020 13 2021 751 2022 32 2023 728 Thereafter (1) 1,434 $ 2,958 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Certain Financial Instrument and Hierarchy Level Used to Estimate Fair Values | The fair value of certain financial instruments and the hierarchy level we used to estimate fair values are shown below: June 30, 2019 December 31, 2018 Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Liabilities: SF CMBS Loan 3 $ 725 $ 742 $ 725 $ 706 HHV CMBS Loan 3 1,275 1,311 1,275 1,214 Term Loan 3 750 751 750 732 Mortgage loans 3 207 209 207 201 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Maturities of Non-Cancelable Operating Lease Liabilities | The maturities of our non-cancelable operating lease liabilities, due in each of the next five years and thereafter as of June 30, 2019, were: Operating Leases Year (in millions) 2019 $ 13 2020 27 2021 28 2022 27 2023 21 Thereafter 204 Total minimum rent payments $ 320 Less: imputed interest 120 Total operating lease liabilities $ 200 |
Schedule of Rent Expense and Supplemental Cash Flow and Non Cash Information | The components of rent expense, which are primarily included in other property-level expenses Three Months Ended June 30, Six Months Ended June 30, 2019 2019 (in millions) (in millions) Operating lease expense $ 7 $ 14 Variable lease expense 4 7 Operating cash flows for operating leases 6 13 Right-of-use assets obtained in exchange for lease obligations (1) — 213 (1) For the six months ended June 30, 2019, balance represents right-of-use assets recorded upon adoption of ASC 842, Leases, |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Awards ("RSAs") | Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the six months ended June 30, 2019: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2019 585,106 $ 26.89 Granted 284,994 31.54 Vested (245,356 ) 26.71 Forfeited (11,593 ) 30.10 Unvested at June 30, 2019 613,151 $ 29.07 |
Schedule of Performance Stock Units ("PSUs") | The following table provides a summary of PSUs for the six months ended June 30, 2019: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2019 537,936 $ 31.16 Granted 314,303 34.30 Vested (277,325 ) 31.25 Forfeited (672 ) 42.05 Unvested at June 30, 2019 574,242 $ 32.82 |
Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model | The grant date fair values of these awards were determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility (1) 20.5 % Dividend yield (2) — Risk-free rate 2.4 % Expected term 3 years (1) Due to limited trading history of our common stock, we used the historical and implied volatilities of our peer group in addition to our historical and implied volatilities over the performance period to estimate appropriate expected volatilities. (2) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions, except per share amounts) (in millions, except per share amounts) Numerator: Net income attributable to stockholders $ 82 $ 216 $ 178 $ 366 Earnings allocated to participating securities (1 ) (1 ) (1 ) (1 ) Net income attributable to stockholders net of earnings allocated to participating securities $ 81 $ 215 $ 177 $ 365 Denominator: Weighted average shares outstanding – basic 201 200 201 205 Unvested restricted shares 1 1 1 1 Weighted average shares outstanding – diluted 202 201 202 206 Basic EPS (1) $ 0.40 $ 1.07 $ 0.88 $ 1.77 Diluted EPS (1) $ 0.40 $ 1.07 $ 0.88 $ 1.77 (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Consolidated Hotel Revenue to Condensed Consolidated Revenue and Hotel Adjusted EBITDA to Net Income | The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and Hotel Adjusted EBITDA to net income: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) Revenues: Total consolidated hotel revenue $ 684 $ 714 $ 1,325 $ 1,365 Other revenues 19 17 37 34 Total revenues $ 703 $ 731 $ 1,362 $ 1,399 Hotel Adjusted EBITDA $ 209 $ 228 $ 390 $ 402 Other revenues 19 17 37 34 Depreciation and amortization expense (61 ) (69 ) (123 ) (139 ) Corporate general and administrative expense (22 ) (15 ) (39 ) (31 ) Other expenses (18 ) (18 ) (38 ) (35 ) (Loss) gain on sales of assets, net (12 ) 7 19 96 Interest income 2 1 3 2 Interest expense (33 ) (31 ) (65 ) (62 ) Equity in earnings from investments in affiliates 10 8 15 12 Loss on foreign currency transactions — (4 ) — (3 ) Income tax expense (5 ) (13 ) (12 ) (13 ) Other (loss) gain, net (1 ) 108 — 108 Other items (4 ) (1 ) (6 ) (4 ) Net income $ 84 $ 218 $ 181 $ 367 |
Schedule of Total Assets by Consolidated Hotels, Reconciled To Condensed Combined Consolidated Amounts | The following table presents total assets for our consolidated hotels, reconciled to consolidated amounts: June 30, 2019 December 31, 2018 (in millions) Consolidated hotels $ 9,362 $ 9,305 All other 69 58 Total $ 9,431 $ 9,363 |
Organization - Additional Infor
Organization - Additional Information (Details) - USD ($) $ / shares in Units, $ in Billions | May 31, 2019 | May 05, 2019 | Jan. 03, 2017 |
Term Loan [Member] | |||
Organization [Line Items] | |||
Term loan facility, maximum borrowing capacity | $ 1.1 | ||
Park Intermediate Holdings LLC [Member] | |||
Organization [Line Items] | |||
Percentage of ownership interest | 100.00% | ||
Chesapeake Lodging Trust [Member] | |||
Organization [Line Items] | |||
Business acquisition,par value per common share | $ 0.01 | ||
Business acquisition, cash consideration transferred, per share | $ 11 | ||
Business acquisition, consideration transferred number of shares per share | 0.628 | ||
Fractional shares of common stock to be issued in merger agreement | 0 | ||
Chesapeake Lodging Trust [Member] | Term Loan [Member] | Bank of America, N.A. and BofA Merrill Lynch [Member] | |||
Organization [Line Items] | |||
Term loan facility, maximum borrowing capacity | $ 1.1 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Jun. 30, 2019 |
Summary of Significant Accounting Policies [Line Items] | ||
Operating lease right-of-use asset | $ 207 | |
Operating lease liability | $ 200 | |
Accounting Standards Update 2016-02 [Member] | New Accounting Pronouncement Effect [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Operating lease right-of-use asset | $ 213 | |
Operating lease liability | 213 | |
Operating lease, impairment loss on right of use asset | 8 | |
Below market lease intangibles | (25) | |
Deferred rent liabilities | $ (8) | |
Maximum [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Operating lease initial term | 12 months |
Dispositions - Additional Infor
Dispositions - Additional Information (Detail) $ in Millions | 1 Months Ended | 6 Months Ended | |
May 31, 2018USD ($) | Jun. 30, 2019USD ($)Hotel | Jun. 30, 2018USD ($)Hotel | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Number of hotel portfolio properties sold | Hotel | 5 | 12 | |
Gross proceeds on sale of hotel portfolio properties | $ 235 | $ 387 | |
Net gain on selling cost of hotel portfolio properties | $ 19 | 96 | |
Reclassification of currency translation adjustment from accumulated other comprehensive loss to earnings on disposition of hotel portfolio properties | $ 31 | ||
Hilton Berlin [Member] | |||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||
Reclassification of currency translation adjustment from accumulated other comprehensive loss to earnings on disposition of hotel portfolio properties | $ 8 | ||
Gross proceeds on sale of hotel portfolio properties | 375 | ||
Pro-rata share amount before customary closing adjustments | 150 | ||
Net gain on sale of hotel portfolio properties | $ 108 |
Dispositions - Summary of Hotel
Dispositions - Summary of Hotel Portfolio Properties Sold (Detail) | 6 Months Ended | |
Jun. 30, 2019 | ||
Pointe Hilton Squaw Peak Resort [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Location | Phoenix, Arizona | |
Month Sold | 2019-02 | |
Hilton Nuremberg [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Location | Nuremberg, Germany | |
Month Sold | 2019-03 | |
Hilton Atlanta Airport [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Location | Atlanta, Georgia | |
Month Sold | 2019-06 | |
Hilton New Orleans Airport [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Location | New Orleans, Louisiana | [1] |
Month Sold | 2019-06 | [1] |
Embassy Suites Parsippany [Member] | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Location | Parsippany, New Jersey | [1] |
Month Sold | 2019-06 | [1] |
[1] | Hotels were sold as a portfolio in the same transaction. |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Land | $ 3,314 | $ 3,344 |
Buildings and leasehold improvements | 5,520 | 5,616 |
Furniture and equipment | 955 | 949 |
Construction-in-progress | 66 | 124 |
Property and equipment, gross | 9,855 | 10,033 |
Accumulated depreciation and amortization | (2,091) | (2,058) |
Property and equipment, net | $ 7,764 | $ 7,975 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 60 | $ 69 | $ 122 | $ 139 | |
Hurricanes Irma and Maria [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Insurance receivable for property damage | 2 | ||||
Reimbursements expense | 2 | ||||
Insurance proceeds received on hurricanes damage | 7 | 43 | |||
Expenses on property and equipment from hurricane damage | 37 | ||||
Loss on property and equipment from hurricane damage | 22 | ||||
Additional insurance receivable recognized for property and equipment damaged from hurricanes | 59 | ||||
Hurricanes Irma and Maria [Member] | Other Assets [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Insurance settlements receivable on hurricanes damage | $ 22 | 22 | $ 25 | ||
Hurricanes Irma and Maria [Member] | Ancillary Hotel [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Business interruption insurance recovery | $ 3 | $ 7 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Additional Information (Detail) $ in Millions | Jun. 30, 2019USD ($)Entity | Dec. 31, 2018USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of consolidated VIEs | Entity | 3 | |
Debt of unconsolidated joint ventures | $ | $ 962 | $ 955 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Assets and Liabilities Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Property and equipment, net | $ 7,764 | $ 7,975 |
Cash and cash equivalents | 310 | 410 |
Restricted cash | 170 | 15 |
Accounts receivable, net | 186 | 153 |
Prepaid expenses | 88 | 82 |
Debt | 2,949 | 2,948 |
Accounts payable and accrued expenses | 208 | 183 |
Due to hotel manager | 117 | 137 |
Other liabilities | 204 | 332 |
Consolidated VIEs [Member] | ||
Variable Interest Entity [Line Items] | ||
Property and equipment, net | 221 | 223 |
Cash and cash equivalents | 14 | 12 |
Restricted cash | 2 | 1 |
Accounts receivable, net | 6 | 4 |
Prepaid expenses | 2 | 2 |
Debt | 207 | 207 |
Accounts payable and accrued expenses | 7 | 7 |
Due to hotel manager | 1 | 2 |
Other liabilities | $ 2 | $ 1 |
Consolidated Variable Interes_5
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Investments in Affiliates (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investments in affiliates | $ 52 | $ 50 | |
Hilton San Diego Bayfront [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership Percentage | 25.00% | ||
Investments in affiliates | $ 20 | 19 | |
All others (7 hotels) [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Investments in affiliates | [1] | $ 32 | $ 31 |
All others (7 hotels) [Member] | Minimum [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership Percentage | 20.00% | ||
All others (7 hotels) [Member] | Maximum [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership Percentage | [1] | 50.00% | |
[1] | In July 2019, we and the other owners of the entity that own the Conrad Dublin, entered into an agreement to sell the ownership interest in the entity. Our interest in the Conrad Dublin was $7 million as of June 30, 2019 and December 31, 2018. Refer to: Note 14: "Subsequent Events" for additional information. |
Consolidated Variable Interes_6
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Investments in Affiliates (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule Of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 52 | $ 50 |
Conrad Dublin [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 7 | $ 7 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Debt and financing lease obligations, gross | $ 2,958 | $ 2,958 | |
Less: unamortized deferred financing costs and discount | (9) | (10) | |
Debt | 2,949 | 2,948 | |
SF CMBS Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt, gross | $ 725 | 725 | |
Debt instrument, interest rate, stated percentage | 4.11% | ||
Maturity Date | 2023-11 | ||
HHV CMBS Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt, gross | $ 1,275 | 1,275 | |
Debt instrument, interest rate, stated percentage | 4.20% | ||
Maturity Date | 2026-11 | ||
Mortgage Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt, gross | $ 207 | 207 | |
Debt instrument, weighted average interest rate | 4.21% | ||
Maturity Date, start year | 2020 | ||
Maturity Date, end year | [1] | 2026 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Debt, gross | $ 750 | 750 | |
Debt instrument, interest rate | 1.55% | ||
Maturity Date | 2021-12 | ||
Financing Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Financing lease obligations | $ 1 | $ 1 | |
Debt instrument, interest rate, stated percentage | 3.07% | ||
Maturity Date, start year | [1] | 2021 | |
Maturity Date, end year | 2022 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | [2] | 1.60% | |
Maturity Date | 2021-12 | ||
[1] | Assumes the exercise of all extensions that are exercisable solely at our option. | ||
[2] |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) $ in Billions | Jun. 30, 2019USD ($) |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Amount available for borrowing | $ 1 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |
May 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Restricted cash | $ 170,000,000 | $ 15,000,000 | |
Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility, maximum borrowing capacity | $ 1,100,000,000 | ||
Annual fee equal undrawn portion | 0.25% | ||
Upfront financing fees | $ 7,000,000 | ||
Additional financing fee | 3,000,000 | ||
Term loan facility | 0 | ||
Term Loan [Member] | Two-Year Delayed Draw Term Loan Tranche [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility, maximum borrowing capacity | 250,000,000 | ||
Term Loan [Member] | Five-Year Delayed Draw Term Loan Tranche [Member] | |||
Debt Instrument [Line Items] | |||
Term loan facility, maximum borrowing capacity | $ 850,000,000 | ||
Term Loan [Member] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Variable interest rate basis | the highest of the Federal Funds Rate, Bank of America’s daily prime rate or LIBOR | ||
Term Loan [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 1.35% | ||
Term Loan [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 2.65% | ||
CMBS and mortgage loans [Member] | |||
Debt Instrument [Line Items] | |||
Restricted cash | $ 15,000,000 | $ 15,000,000 |
Debt - Debt Maturities, Assumin
Debt - Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option (Detail) $ in Millions | Jun. 30, 2019USD ($) | |
Debt Disclosure [Abstract] | ||
2020 | $ 13 | |
2021 | 751 | |
2022 | 32 | |
2023 | 728 | |
Thereafter(1) | 1,434 | [1] |
Debt and capital lease obligations, gross | $ 2,958 | |
[1] | Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Certain Financial Instrument and Hierarchy Level Used to Estimate Fair Values (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Carrying amount [Member] | SF CMBS Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 725 | $ 725 |
Carrying amount [Member] | HHV CMBS Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 1,275 | 1,275 |
Carrying amount [Member] | Term Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 750 | 750 |
Carrying amount [Member] | Mortgage Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 207 | 207 |
Fair Value [Member] | SF CMBS Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 742 | 706 |
Fair Value [Member] | HHV CMBS Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 1,311 | 1,214 |
Fair Value [Member] | Term Loan [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 751 | 732 |
Fair Value [Member] | Mortgage Loans [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 209 | $ 201 |
Leases - Additional Information
Leases - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019Property | |
Leases [Abstract] | |
Number of consolidated properties under ground leases | 13 |
Leases ending expiration date | 2076 |
Date majority of leases expire | 2027 |
Weighted average remaining operating lease term | 15 years 9 months 18 days |
Weighted average discount rate used to determine operating lease liabilities | 5.70% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Non-Cancelable Operating Lease Liabilities (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 13 |
2020 | 27 |
2021 | 28 |
2022 | 27 |
2023 | 21 |
Thereafter | 204 |
Total minimum rent payments | 320 |
Less: imputed interest | 120 |
Total operating lease liabilities | $ 200 |
Leases - Schedule of Rent Expen
Leases - Schedule of Rent Expense and Supplemental Cash Flow And Non Cash Information (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2019 |
Leases [Abstract] | |||
Operating lease expense | $ 7 | $ 14 | |
Variable lease expense | 4 | 7 | |
Operating cash flows for operating leases | $ 6 | 13 | |
Right-of-use assets obtained in exchange for lease obligations(1) | $ 0 | $ 213 |
Leases - Schedule of Rent Exp_2
Leases - Schedule of Rent Expense and Supplemental Cash Flow And Non Cash Information for All Operating Leases (Parenthetical) (Detail) - USD ($) $ in Millions | Jan. 01, 2019 | Jun. 30, 2019 |
Schedule Of Rent Expense [Abstract] | ||
Additional right-of-use assets were obtained | $ 0 | $ 213 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 5,000,000 | $ 13,000,000 | $ 12,000,000 | $ 13,000,000 |
U.S. Federal Tax [Member] | REIT [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, authorized shares | 6,000,000,000 | 6,000,000,000 | 6,000,000,000 | ||
2017 Employee Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares of common stock reserved for future issuance | 5,499,328 | 5,499,328 | |||
Compensation expense | $ 4,000,000 | $ 4,000,000 | $ 8,000,000 | $ 8,000,000 | |
Unrecognized compensation costs related to unvested awards | $ 23,000,000 | $ 23,000,000 | |||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 8 months 12 days | ||||
2017 Employee Plan [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, authorized shares | 8,000,000 | 8,000,000 | |||
2017 Director Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares of common stock reserved for future issuance | 307,922 | 307,922 | |||
2017 Director Plan [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, authorized shares | 450,000 | 450,000 | |||
Performance Stock Units ("PSUs") [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award performance period | 3 years | ||||
Market capitalization | $ 1,000,000,000 | $ 1,000,000,000 | |||
Vesting rights | zero to 200% | ||||
Performance Stock Units ("PSUs") [Member] | Maximum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights | 200% | ||||
Performance Stock Units ("PSUs") [Member] | Minimum [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting rights | 0% |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Restricted Stock Awards ("RSAs") (Detail) - Restricted stock awards (RSAs) [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 585,106 |
Number of Shares, Granted | shares | 284,994 |
Number of Shares, Vested | shares | (245,356) |
Number of Shares, Forfeited | shares | (11,593) |
Number of Shares, Ending balance | shares | 613,151 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 26.89 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 31.54 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 26.71 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 30.10 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 29.07 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Performance Stock Units ("PSUs") (Detail) - Performance Stock Units ("PSUs") [Member] | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 537,936 |
Number of Shares, Granted | shares | 314,303 |
Number of Shares, Vested | shares | (277,325) |
Number of Shares, Forfeited | shares | (672) |
Number of Shares, Ending balance | shares | 574,242 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 31.16 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 34.30 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 31.25 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 42.05 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 32.82 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model (Detail) | 6 Months Ended | |
Jun. 30, 2019 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected volatility | 20.50% | [1] |
Risk-free rate | 2.40% | |
Expected term | 3 years | |
[1] | Due to limited trading history of our common stock, we used the historical and implied volatilities of our peer group in addition to our historical and implied volatilities over the performance period to estimate appropriate expected volatilities. |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Numerator: | |||||
Net income attributable to stockholders | $ 82 | $ 216 | $ 178 | $ 366 | |
Earnings allocated to participating securities | (1) | (1) | (1) | (1) | |
Net income attributable to stockholders net of earnings allocated to participating securities | $ 81 | $ 215 | $ 177 | $ 365 | |
Denominator: | |||||
Weighted average shares outstanding – basic | 201 | 200 | 201 | 205 | |
Unvested restricted shares | 1 | 1 | 1 | 1 | |
Weighted average shares outstanding – diluted | 202 | 201 | 202 | 206 | |
Basic EPS | [1] | $ 0.40 | $ 1.07 | $ 0.88 | $ 1.77 |
Diluted EPS | [1] | $ 0.40 | $ 1.07 | $ 0.88 | $ 1.77 |
[1] | Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Business Segment Information -
Business Segment Information - Hotel Properties by Segment (Detail) | 6 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating business segments | 2 |
Number of reportable segment | 1 |
Business Segment Information _2
Business Segment Information - Reconciliation of Consolidated Hotel Revenue to Condensed Consolidated Revenue and Hotel Adjusted EBITDA to Net Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||
Total revenues | $ 703 | $ 731 | $ 1,362 | $ 1,399 | ||
Hotel Adjusted EBITDA | 209 | 228 | 390 | 402 | ||
Depreciation and amortization expense | (61) | (69) | (123) | (139) | ||
Corporate general and administrative expense | (22) | (15) | (39) | (31) | ||
Other expenses | (18) | (18) | (38) | (35) | ||
(Loss) gain on sales of assets, net | (12) | 7 | 19 | 96 | ||
Interest income | 2 | 1 | 3 | 2 | ||
Interest expense | (33) | (31) | (65) | (62) | ||
Equity in earnings from investments in affiliates | 10 | 8 | 15 | 12 | ||
Loss on foreign currency transactions | (4) | (3) | ||||
Income tax expense | (5) | (13) | (12) | (13) | ||
Other (loss) gain, net | (1) | 108 | 108 | |||
Other items | (4) | (1) | (6) | (4) | ||
Net income | 84 | $ 97 | 218 | $ 149 | 181 | 367 |
Total consolidated hotel revenue [Member] | ||||||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||
Total revenues | 684 | 714 | 1,325 | 1,365 | ||
Other [Member] | ||||||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||
Total revenues | $ 19 | $ 17 | $ 37 | $ 34 |
Business Segment Information _3
Business Segment Information - Schedule of Total Assets by Consolidated Hotels, Reconciled To Condensed Combined Consolidated Amounts (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 9,431 | $ 9,363 |
Consolidated Hotels [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 9,362 | 9,305 |
All other [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 69 | $ 58 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | May 06, 2019Plaintiff | Jun. 30, 2019USD ($)Hotel | Sep. 30, 2017Hotel |
Other Commitments [Line Items] | |||
Purchase commitment, remaining minimum amount committed | $ | $ 75 | ||
Loss contingency, number of plaintiffs | Plaintiff | 2 | ||
Hurricanes Irma and Maria [Member] | |||
Other Commitments [Line Items] | |||
Total loss recognized, representing losses up to the amount of deductibles | $ | $ 16 | ||
Key West [Member] | Hurricanes Irma and Maria [Member] | |||
Other Commitments [Line Items] | |||
Number of hotels sustained damage | Hotel | 2 | ||
Caribe Hilton [Member] | Hurricanes Irma and Maria [Member] | |||
Other Commitments [Line Items] | |||
Number of hotels sustained damage | Hotel | 1 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2019USD ($) | |
Caribe Hilton [Member] | |
Subsequent Event [Line Items] | |
Insurance proceeds received | $ 7 |
Conrad Dublin [Member] | |
Subsequent Event [Line Items] | |
Aggregate sales price | 130 |
Pro-rata share, sales price | $ 62 |