Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PK | |
Entity Registrant Name | Park Hotels & Resorts Inc. | |
Entity Central Index Key | 0001617406 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 235,612,787 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-37795 | |
Entity Tax Identification Number | 36-2058176 | |
Entity Address, Address Line One | 1775 Tysons Boulevard | |
Entity Address, Address Line Two | 7th Floor | |
Entity Address, City or Town | Tysons | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22102 | |
City Area Code | 571 | |
Local Phone Number | 302-5757 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Property and equipment, net | $ 9,255 | $ 9,594 | [1] |
Assets held for sale, net | 71 | ||
Investments in affiliates | 17 | 35 | |
Goodwill | 607 | ||
Intangibles, net | 45 | 46 | |
Cash and cash equivalents | 1,134 | 346 | |
Restricted cash | 35 | 40 | |
Accounts receivable, net of allowance for doubtful accounts of $4 and $2 | 36 | 180 | |
Prepaid expenses | 43 | 83 | |
Other assets | 53 | 40 | |
Operating lease right-of-use assets | 235 | 248 | |
TOTAL ASSETS (variable interest entities - $234 and $242) | 10,853 | 11,290 | |
Liabilities | |||
Debt | 5,121 | 3,871 | |
Accounts payable and accrued expenses | 168 | 217 | |
Due to hotel managers | 102 | 159 | |
Deferred income tax liabilities | 34 | 50 | |
Other liabilities | 124 | 282 | |
Operating lease liabilities | 249 | 260 | |
Total liabilities (variable interest entities - $217 and $219) | 5,798 | 4,839 | |
Commitments and contingencies - refer to Note 13 | |||
Stockholders' Equity | |||
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 235,914,952 shares issued and 235,613,445 shares outstanding as of September 30, 2020 and 239,589,639 shares issued and 239,386,877 shares outstanding as of December 31, 2019 | 2 | 2 | |
Additional paid-in capital | 4,512 | 4,575 | |
Retained earnings | 595 | 1,922 | |
Accumulated other comprehensive loss | (5) | (3) | |
Total stockholders' equity | 5,104 | 6,496 | |
Noncontrolling interests | (49) | (45) | |
Total equity | 5,055 | 6,451 | |
TOTAL LIABILITIES AND EQUITY | $ 10,853 | $ 11,290 | |
[1] | Excludes $62 million of property and equipment, net, classified as held for sale as of December 31, 2019. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts receivable | $ 4 | $ 2 |
Variable interest entities - assets | 10,853 | 11,290 |
Variable interest entities - liabilities | $ 5,798 | $ 4,839 |
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 | 235,914,952 | 239,589,639 |
Common stock, outstanding shares | 235,613,445 | 239,386,877 |
Consolidated VIEs [Member] | ||
Variable interest entities - assets | $ 234 | $ 242 |
Variable interest entities - liabilities | $ 217 | $ 219 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenues | |||||
Total revenues | $ 98 | $ 672 | $ 739 | $ 2,034 | |
Operating expenses | |||||
Other property-level | 84 | 54 | 200 | 152 | |
Management fees | 2 | 32 | 27 | 101 | |
Impairment and casualty loss, net | 2 | 8 | 696 | 8 | |
Depreciation and amortization | 75 | 61 | 225 | 184 | |
Corporate general and administrative | 13 | 14 | 42 | 47 | |
Acquisition costs | 9 | 59 | 10 | 65 | |
Other | 6 | 23 | 31 | 61 | |
Total expenses | 303 | 635 | 1,844 | 1,776 | |
(Loss) gain on sales of assets, net | (1) | 1 | 62 | 20 | |
Operating (loss) income | (206) | 38 | (1,043) | 278 | |
Interest income | 2 | 2 | 5 | ||
Interest expense | (59) | (33) | (149) | (98) | |
Equity in (losses) earnings from investments in affiliates | (7) | 3 | (16) | 18 | |
Other loss, net | (3) | (1) | (6) | (1) | |
(Loss) income before income taxes | (275) | 9 | (1,212) | 202 | |
Income tax expense | (1) | (14) | (12) | ||
Net (loss) income | (276) | 9 | (1,226) | 190 | |
Net loss (income) attributable to noncontrolling interests | (4) | 3 | (7) | ||
Net (loss) income attributable to stockholders | (276) | 5 | (1,223) | 183 | |
Other comprehensive income (loss), net of tax expense: | |||||
Currency translation adjustment, net of tax expense of $0 | 1 | (3) | 4 | (2) | |
Change in fair value of interest rate swap, net of tax expense of $0 | (6) | ||||
Total other comprehensive income (loss) | 1 | (3) | (2) | (2) | |
Comprehensive (loss) income | (275) | 6 | (1,228) | 188 | |
Comprehensive (income) loss attributable to noncontrolling interests | (4) | 3 | (7) | ||
Comprehensive (loss) income attributable to stockholders | $ (275) | $ 2 | $ (1,225) | $ 181 | |
(Loss) Earnings per share: | |||||
(Loss) Earnings per share - Basic | [1] | $ (1.17) | $ 0.02 | $ (5.19) | $ 0.90 |
(Loss) Earnings per share - Diluted | [1] | $ (1.17) | $ 0.02 | $ (5.19) | $ 0.90 |
Weighted average shares outstanding - Basic | 235 | 206 | 236 | 203 | |
Weighted average shares outstanding - Diluted | 235 | 207 | 236 | 204 | |
Rooms [Member] | |||||
Revenues | |||||
Total revenues | $ 70 | $ 430 | $ 453 | $ 1,267 | |
Operating expenses | |||||
Expenses | 30 | 114 | 162 | 334 | |
Food and Beverage [Member] | |||||
Revenues | |||||
Total revenues | 10 | 156 | 174 | 534 | |
Operating expenses | |||||
Expenses | 18 | 117 | 155 | 371 | |
Ancillary Hotel [Member] | |||||
Revenues | |||||
Total revenues | 15 | 64 | 87 | 174 | |
Other [Member] | |||||
Revenues | |||||
Total revenues | 3 | 22 | 25 | 59 | |
Other Departmental and Support [Member] | |||||
Operating expenses | |||||
Expenses | $ 64 | $ 153 | $ 296 | $ 453 | |
[1] | Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Change in fair value of interest rate swap, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities: | |||
Net (loss) income | $ 9 | $ (1,226) | $ 190 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 61 | 225 | 184 |
Gain on sales of assets, net | (1) | (62) | (20) |
Impairment and casualty loss, net | 8 | 696 | 8 |
Equity in losses (earnings) from investments in affiliates | (3) | 16 | (18) |
Other loss, net | 6 | 1 | |
Share-based compensation expense | 10 | 12 | |
Amortization of deferred financing costs | 6 | 3 | |
Distributions from unconsolidated affiliates | 5 | 16 | |
Deferred income taxes | 2 | ||
Changes in operating assets and liabilities | 48 | (27) | |
Net cash (used in) provided by operating activities | (274) | 349 | |
Investing Activities: | |||
Acquisitions, net of cash and restricted cash acquired | (913) | ||
Capital expenditures for property and equipment | (70) | (182) | |
Proceeds from asset dispositions, net | 207 | 230 | |
Contributions to unconsolidated affiliates | (2) | ||
Insurance proceeds for property damage claims | 1 | 10 | |
Net cash provided by (used in) investing activities | 136 | (855) | |
Financing Activities: | |||
Proceeds from issuance of Senior Secured Notes | 1,376 | ||
Borrowings from credit facilities | 1,000 | 850 | |
Repayments of credit facilities | (1,099) | ||
Debt issuance costs | (39) | (11) | |
Dividends paid | (241) | (382) | |
Distributions to noncontrolling interests, net | (1) | (5) | |
Tax withholdings on share-based compensation | (5) | (7) | |
Repurchase of common stock | (66) | ||
Net cash provided by financing activities | 921 | 445 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | 783 | (61) | |
Cash and cash equivalents and restricted cash, beginning of period | 386 | 425 | |
Cash and cash equivalents and restricted cash, end of period | 364 | 1,169 | 364 |
Non-cash financing activities: | |||
Issuance of common shares in connection with the acquisition of Chesapeake Lodging Trust | 978 | ||
Assumption of mortgage loans in connection with acquisitions | 311 | ||
Dividends declared but unpaid | $ 107 | $ 107 | |
Mortgage Debt [Member] | |||
Financing Activities: | |||
Repayment of mortgage debt | $ (4) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Cumulative Effect of Change in Accounting Principle [member] | Common Stock [member] | Additional Paid-in Capital [member] | Retained Earnings [member] | Retained Earnings [member]Cumulative Effect of Change in Accounting Principle [member] | Accumulated Other Comprehensive (Loss) Income [member] | Non-Controlling Interests [member] | |
Balance at Dec. 31, 2018 | $ 5,586 | $ 2 | $ 3,589 | $ 2,047 | $ (6) | $ (46) | |||
Balance (shares) at Dec. 31, 2018 | 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) | |||||||
Balance at Mar. 31, 2019 | 5,580 | $ (8) | $ 2 | 3,588 | 2,044 | $ (8) | (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 | 201,000,000 | ||||||||
Net income (loss) | 190 | ||||||||
Other comprehensive income (loss) | (2) | ||||||||
Balance at Sep. 30, 2019 | 6,453 | $ 2 | 4,572 | 1,931 | (8) | (44) | |||
Balance (shares) at Sep. 30, 2019 | 240,000,000 | ||||||||
Balance at Mar. 31, 2019 | 5,580 | $ (8) | $ 2 | 3,588 | 2,044 | $ (8) | (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 (loss) | 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 | 202,000,000 | ||||||||
Issuance of common stock | 978 | 978 | |||||||
Issuance of common stock (Shares) | 38,000,000 | ||||||||
Share-based compensation, net | 3 | 3 | |||||||
Net income (loss) | 9 | 5 | 4 | ||||||
Other comprehensive income (loss) | (3) | (3) | |||||||
Dividends and dividend equivalents | [1] | (108) | (108) | ||||||
Distributions to noncontrolling interests | (2) | (2) | |||||||
Balance at Sep. 30, 2019 | 6,453 | $ 2 | 4,572 | 1,931 | (8) | (44) | |||
Balance (shares) at Sep. 30, 2019 | 240,000,000 | ||||||||
Balance at Dec. 31, 2019 | $ 6,451 | $ 2 | 4,575 | 1,922 | (3) | (45) | |||
Balance (shares) at Dec. 31, 2019 | 239,386,877 | 239,000,000 | |||||||
Share-based compensation, net | $ (4) | (5) | 1 | ||||||
Net income (loss) | (689) | (688) | (1) | ||||||
Other comprehensive income (loss) | (2) | (2) | |||||||
Dividends and dividend equivalents | [1] | (106) | (106) | ||||||
Distributions to noncontrolling interests | (1) | (1) | |||||||
Repurchase of common stock | (66) | (66) | |||||||
Repurchases of common stock (Shares) | (4,000,000) | ||||||||
Balance at Mar. 31, 2020 | 5,583 | $ 2 | 4,504 | 1,129 | (5) | (47) | |||
Balance (shares) at Mar. 31, 2020 | 235,000,000 | ||||||||
Balance at Dec. 31, 2019 | $ 6,451 | $ 2 | 4,575 | 1,922 | (3) | (45) | |||
Balance (shares) at Dec. 31, 2019 | 239,386,877 | 239,000,000 | |||||||
Net income (loss) | $ (1,226) | ||||||||
Other comprehensive income (loss) | (2) | ||||||||
Balance at Sep. 30, 2020 | $ 5,055 | $ 2 | 4,512 | 595 | (5) | (49) | |||
Balance (shares) at Sep. 30, 2020 | 235,613,445 | 236,000,000 | |||||||
Balance at Mar. 31, 2020 | $ 5,583 | $ 2 | 4,504 | 1,129 | (5) | (47) | |||
Balance (shares) at Mar. 31, 2020 | 235,000,000 | ||||||||
Share-based compensation, net | 5 | 4 | 1 | ||||||
Share-based compensation, net (Shares) | 1,000,000 | ||||||||
Net income (loss) | (261) | (259) | (2) | ||||||
Other comprehensive income (loss) | (1) | (1) | |||||||
Balance at Jun. 30, 2020 | 5,326 | $ 2 | 4,508 | 871 | (6) | (49) | |||
Balance (shares) at Jun. 30, 2020 | 236,000,000 | ||||||||
Share-based compensation, net | 4 | 4 | |||||||
Net income (loss) | (276) | (276) | |||||||
Other comprehensive income (loss) | 1 | 1 | |||||||
Balance at Sep. 30, 2020 | $ 5,055 | $ 2 | $ 4,512 | $ 595 | $ (5) | $ (49) | |||
Balance (shares) at Sep. 30, 2020 | 235,613,445 | 236,000,000 | |||||||
[1] | Dividends declared per common share were $0.45 for the three months ended March 31, 2020, March 31, 2019, June 30, 2019 and September 30, 2019, respectively. |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends declared per common share | $ 0.45 | $ 0.45 | $ 0.45 | $ 0.45 |
Organization and Recent Events
Organization and Recent Events | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Organization and Recent Events | Note 1: Organization and Recent Events 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 city center and resort locations. On January 3, 2017, Hilton Worldwide Holdings Inc. (“Hilton”) completed the spin-off of a portfolio of hotels and resorts that established Park Hotels & Resorts Inc. as an independent, publicly traded company. On May 5, 2019, the Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”), and PK Domestic Sub LLC, a wholly-owned subsidiary of PK Domestic (“Merger Sub”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Chesapeake Lodging Trust (“Chesapeake”). On September 18, 2019, pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Chesapeake merged with and into Merger Sub (the “Merger”) and each of Chesapeake’s common shares of beneficial interest, $0.01 par value per share was converted into $11.00 in cash and 0.628 of a share of our common stock. No fractional shares of our common stock were issued in the Merger. The value of any fractional interests to which a Chesapeake shareholder would otherwise have been entitled was paid in cash. We are treated as a real estate investment trust (“REIT”) for United States (“U.S.”) federal income tax purposes, and we believe we have been organized and operated, and expect to continue to be organized and operate in a manner to qualify as a REIT. From the date of our spin-off from Hilton, Park Intermediate Holdings LLC (our “Operating Company”), directly or indirectly, has held all our assets and has conducted all of our operations. We own 100% of the interests in our Operating Company. Recent Events The novel strain of coronavirus and the disease it causes (“COVID-19”) have had a significant effect on the hospitality industry and our business. The effects of COVID-19, including government restrictions such as mandated closings of non-essential businesses and travel restrictions, have severely reduced overall lodging demand. Since the beginning of March 2020, we have experienced a significant decline in occupancy and Revenue per Available Room (“RevPAR”) associated with COVID-19 throughout our portfolio, which resulted in a decline in our operating cash flow. We expect that COVID-19 will continue to negatively affect our operating results for the remainder of 2020 and the early part of 2021. During the first-half of 2020, we and our hotel managers took various actions to mitigate the effects of COVID-19, including temporarily suspending operations at 38 of our 60 hotels, limiting capacity at our hotels that remained open, deferring approximately $150 million of capital expenditures planned for 2020, suspending our dividend after the first quarter of 2020, and as a precautionary measure to increase liquidity and preserve financial flexibility, drawing on our $1 billion revolving credit facility (“Revolver”). We have since commenced a phased reopening of 26 of our hotels as restrictions are removed and demand returns. The timing of fully reopening these and the remainder of our hotels will depend primarily on government restrictions imposed or re-imposed, recommendations of health officials and market demand. In May 2020, our Operating Company, PK Domestic and PK Finance Co-Issuer Inc. (“PK Finance”), an indirect, wholly-owned subsidiary of the Company, issued an aggregate of $650 million of senior secured notes due 2025 (“2025 Senior Secured Notes”). We set aside $350 million of the net proceeds for general corporate purposes, further increasing our liquidity, and used the remainder of the net proceeds to repay portions of our Revolver and the term loan we entered into in December 2016 (“2016 Term Loan”). In September 2020, our Operating Company, PK Domestic and We are committed to using our liquidity to support our hotels’ operations during the COVID-19 pandemic and subsequent recovery, while being focused on continuing to maintain and enhance our stockholders’ value. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance. Reclassifications Certain line items on the condensed consolidated statements of comprehensive (loss) income for the three and nine months ended September 30, 2019 have been reclassified to conform to the current period presentation. Summary of Significant Accounting Policies Our Annual Report on Form 10-K for the year ended December 31, 2019, filed with the SEC on February 27, 2020, contains a discussion of the significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2019. Recently Issued Accounting Pronouncements Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13 , “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”, In January 2017, the FASB issued ASU No. 2017-04 (“ASU 2017-04”), Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Note 3: Acquisitions and Dispositions Acquisitions Merger with Chesapeake As a result of the Merger, we acquired a 100% ownership interest in the following 18 hotels: Hotel Location Rooms Hilton Denver City Center Denver, CO 613 W Chicago – Lakeshore Chicago, IL 520 Hyatt Regency Boston Boston, MA 502 Hyatt Regency Mission Bay Spa and Marina San Diego, CA 438 Boston Marriott Newton Newton, MA 430 Le Meridien New Orleans (1) New Orleans, LA 410 W Chicago – City Center Chicago, IL 403 Royal Palm South Beach Miami, a Tribute Portfolio Resort Miami Beach, FL 393 Le Meridien San Francisco San Francisco, CA 360 JW Marriott San Francisco Union Square San Francisco, CA 344 Hyatt Centric Fisherman’s Wharf San Francisco, CA 316 Hotel Indigo San Diego Gaslamp Quarter San Diego, CA 210 Courtyard Washington Capitol Hill/Navy Yard Washington, DC 204 Homewood Suites by Hilton Seattle Convention Center Pike Street Seattle, WA 195 Hilton Checkers Los Angeles Los Angeles, CA 193 Ace Hotel Downtown Los Angeles (1) Los Angeles, CA 182 Hotel Adagio, Autograph Collection San Francisco, CA 171 W New Orleans – French Quarter New Orleans, LA 97 5,981 (1) Hotels were subsequently sold in December 2019. The total consideration for the Merger was approximately $2 billion, which included the issuance of approximately 37.8 million shares of common stock valued at $25.88 per share to Chesapeake common shareholders based on the closing price of our common stock on September 17, 2019. We accounted for the Merger using the acquisition method of accounting. We allocated the purchase price, consisting of $978 million of common stock issued and cash of $1,013 million, as follows: (in millions) Investment in hotel properties, net $ 2,220 Intangibles, net 45 Cash and cash equivalents 62 Restricted cash 38 Accounts receivable, net 26 Prepaid expenses 9 Other assets 2 Operating lease right-of-use asset 65 Debt (311 ) Accounts payable and accrued expenses (47 ) Due to hotel managers (15 ) Other liabilities (15 ) Operating lease liability (88 ) Total consideration $ 1,991 We used the following valuation methodologies, inputs and assumptions to estimate the fair value of the assets acquired and liabilities assumed: • Investment in hotel properties – The fair values of the land and improvements, buildings and improvements, and furniture, fixtures and equipment at the hotel properties were determined using a combination of the market, cost and income approaches. These valuation methodologies are based on significant Level 3 inputs in the fair value hierarchy, such as estimates of future income growth, capitalization rates, discount rates, capital expenditures and cash flow projections at the respective hotel properties. • Intangible assets – The fair value of the air rights contract acquired as part of the Hyatt Regency Boston were determined using the present value of the difference between the contractual rental amounts according to the contract and the market rental rates for similar contracts, measured over a period equal to the remaining non-cancellable term of the contract. This valuation methodology is based on Level 3 inputs in the fair value hierarchy. The intangible asset is amortized using the straight-line method over the remaining term of the contract. • Above and below market lease liabilities – The fair value of our above and below market lease liabilities were determined using the present value of the difference between the contractual rental amounts paid according to the in-place lease agreements and the market rental rates for similar leased space, measured over a period equal to the remaining non-cancellable terms of the leases. This valuation methodology is based on Level 3 inputs in the fair value hierarchy. The above and below market lease liabilities are included as adjustments to the right-of-use asset in the accompanying condensed consolidated balance sheet. The above and below market lease liabilities are amortized as adjustments to ground rent expense over the remaining terms of the respective leases. • Operating lease right-of-use-asset and Operating lease liability – The fair value of the operating lease right-of-use asset and operating lease liability were determined using the present value of the fixed contractual rental amounts due over a period equal to the remaining non-cancellable terms of the leases. This valuation methodology is based on Level 3 inputs in the fair value hierarchy. • Debt – The fair value of the mortgage loans were determined using the present value of the remaining loan payments due over the term of the loans. This valuation methodology is based on Level 3 inputs in the fair value hierarchy. • Restricted cash, accounts receivable, prepaid expenses and other assets, accounts payable and accrued expenses, due to hotel managers and other liabilities – The amounts constitute the carrying amounts of the assets acquired and the liabilities assumed, which we believe approximate fair value because of their short-term nature. For the three months ended September 30, 2020, we incurred an additional $9 million in acquisition costs in connection with the Merger, primarily related to transfer taxes based on new information received during the period. For the three and nine months ended September 30, 2019, we incurred $59 million and $65 million, respectively, in acquisition costs in connection with the Merger primarily related to severance, transfer tax and fees for financial advisors, legal, accounting, tax and other professional services. The Merger-related costs noted above are included in acquisition costs The following unaudited condensed pro-forma financial information presents the results of operations as if the Merger had taken place on January 1, 2019. The unaudited condensed pro-forma financial information is not necessarily indicative of what our actual results of operations would have been assuming the Merger had taken place on January 1, 2019, nor is it indicative of the results of operations for future periods. The unaudited condensed pro-forma financial information is as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (unaudited) (in millions) Total revenues $ 797 $ 2,440 Operating income 63 350 Net income 23 227 From the date of the Merger through September 30, 2019, we recognized $23 million of total revenues, $5 million of operating income and $4 million of net income related to the hotels acquired in connection with the Merger. Dispositions During the nine months ended September 30, 2020, we sold the Embassy Suites Washington DC Georgetown and our interests in the entity that owns the Hilton São Paulo Morumbi for total gross proceeds of $208 million and recognized a gain, net of selling costs, of $64 million on these hotels, which is included in gain on sales of assets, net During the nine months ended September 30, 2019, we sold our ownership interests in five consolidated hotels listed in the table below for total gross proceeds of $236 million and recognized a gain, net of selling costs, of $20 million on these hotels which is included in 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. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 4: Property and Equipment Property and equipment were: September 30, 2020 December 31, 2019 (1) (in millions) Land $ 3,429 $ 3,512 Buildings and leasehold improvements 6,949 6,978 Furniture and equipment 1,041 1,059 Construction-in-progress 46 134 11,465 11,683 Accumulated depreciation and amortization (2,210 ) (2,089 ) $ 9,255 $ 9,594 (1) Excludes $62 million of property and equipment, net, classified as held for sale as of December 31, 2019. Depreciation of property and equipment was $75 million and $60 million during the three months ended September 30, 2020 and 2019, respectively, and $224 million and $182 million during the nine months ended September 30, 2020 and 2019, respectively. For the nine months ended September 30, 2020, we recognized $90 million of impairment losses, primarily related to one of our hotels, and our inability to recover the carrying value of the asset because of COVID-19. Refer to Note 8: “Fair Value Measurements” for additional information. 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 nine months ended September 30, 2019 , w e recognized $ million of insurance recoveries, of which $ million related to property damage, $8 million related to business interruption, and $ million related to expense reimbursements. Business interruption proceeds are included within ancillary hotel revenue in our condensed consolidated statements of comprehensive (loss) income. Additionally, we recognized a net loss of $7 million within impairment and casualty loss, net in our condensed consolidated statements of comprehensive (loss) income for amounts not expected to be recovered from insurance . |
Consolidated Variable Interest
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates | 9 Months Ended |
Sep. 30, 2020 | |
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: September 30, 2020 December 31, 2019 (in millions) Property and equipment, net $ 218 $ 221 Cash and cash equivalents 11 13 Restricted cash 2 1 Accounts receivable, net 2 5 Prepaid expenses 1 2 Debt 207 207 Accounts payable and accrued expenses 8 8 Due to hotel manager — 2 Other liabilities 2 2 Unconsolidated Entities Investments in affiliates were: Ownership % September 30, 2020 December 31, 2019 (in millions) Hilton San Diego Bayfront 25% $ 11 $ 18 All others (6 hotels) 20% - 50% 6 17 $ 17 $ 35 The affiliates in which we own investments accounted for under the equity method had total debt of approximately $943 million as of September 30, 2020 and December 31, 2019. Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | Note 6: Goodwill Hilton allocated goodwill to us recorded as part of the acquisition of Hilton by Blackstone in 2007. We typically evaluate the carrying value of our goodwill annually. However, due to the effects of COVID-19, including (i) the significant decline in our common stock price, (ii) negative operating cash flows in the first quarter of 2020, (iii) the suspension of operations at certain of our hotels, and (iv) significant declines in occupancy and demand, Goodwill Accumulated Impairment Losses Balance (in millions) Balance as of December 31, 2019 $ 2,709 $ (2,102 ) $ 607 Impairment loss — (607 ) (607 ) Balance as of September 30, 2020 $ 2,709 $ (2,709 ) $ — |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Note 7: Debt Debt balances and associated interest rates as of September 30, 2020 were: Principal balance as of Interest Rate at September 30, 2020 Maturity Date September 30, 2020 December 31, 2019 (in millions) SF CMBS Loan (1) 4.11% November 2023 $ 725 $ 725 HHV CMBS Loan (1) 4.20% November 2026 1,275 1,275 Mortgage loans Average rate of 4.17% 2020 to 2026 (2)(3) 510 515 2016 Term Loan (4) N/A December 2021 — 700 2019 Term Facility (5) L + 2.65% September 2024 670 670 Revolver (5) L + 3.00% 2021 to 2023 (6) 601 — 2025 Senior Secured Notes 7.50% June 2025 650 — 2028 Senior Secured Notes 5.88% October 2028 725 — Finance lease obligations 3.07% 2021 to 2022 1 1 5,157 3,886 Add: unamortized premium 4 3 Less: unamortized deferred financing costs and discount (40 ) (18 ) $ 5,121 $ 3,871 (1) In October 2016, we entered into a $725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF CMBS Loan”) and a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV CMBS Loan”). (2) Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender beginning August 2022 (3) We are actively negotiating a one-year October 2021 (4) (5) (6) December 2023 December 2021 Credit Facilities 2019 Term Facility In advance of the Merger, in August 2019, the Company, our Operating Company and PK Domestic entered into a delayed draw term loan agreement (the “2019 Term Facility”). In September 2019, the 2019 Term Facility was fully drawn to fund the Merger and was partially repaid in December 2019. To hedge the interest rate risk on a portion of the 2019 Term Facility, we assumed an interest rate swap from Chesapeake in connection with the Merger, which is designated as a cash flow hedge. The interest rate swap requires us to pay fixed interest of 1.86% per annum maturing on April 21, 2022 on a notional amount of $225 million, in exchange for floating rate interest equal to one-month LIBOR. 2016 Term Loan and Revolver In March 2020, we fully drew down our $1 billion Revolver as a precautionary measure to increase liquidity and preserve financial flexibility in connection with the economic effect of COVID-19. We subsequently repaid $399 million of the Revolver using $299 million of the proceeds from the issuance of the 2025 Senior Secured Notes and 2028 Senior Secured Notes and $100 million of existing cash. We also used $631 million of the proceeds from the issuance of the 2028 Senior Secured Notes to repay all of the amounts outstanding under our 2016 Term Loan. In May 2020, in order to maintain compliance under our credit and term loan facilities in future quarters, we amended our credit and term loan facilities to suspend compliance with all existing financial covenants tested through and including March 31, 2021 and to adjust the levels of particular financial covenants after such period. December 2023 December 2022 $287 million), (vi) obtained the ability to pay a $0.01 per share per fiscal quarter dividend during the extended waiver period and (vii) modified certain restrictions and covenants for the duration of the extended waiver period, including certain mandatory prepayments. We incurred $6 million of fees related to these amendments during the nine months ended September 30, 2020 that were recognized as deferred financing costs. Senior Secured Notes 2025 Senior Secured Notes In May 2020, our Operating Company, PK Domestic and PK Finance issued an aggregate of $650 million of 2025 Senior Secured Notes. We set aside $219 million of the net proceeds to partially repay the Revolver, $69 million to partially repay the 2016 Term Loan and the remainder was used for general corporate purposes. The 2025 Senior Secured Notes bear interest at a rate of 7.500% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2020. The 2025 Senior Secured Notes will mature on June 1, 2025. We capitalized $13 million of issuance costs during the three months ended June 30, 2020. We may redeem the 2025 Senior Secured Notes at any time prior to June 1, 2022, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date plus a make-whole premium. On or after June 1, 2022, we may redeem the 2025 Senior Secured Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after June 1, 2024, we may redeem the 2025 Senior Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, before June 1, 2022, we may redeem up to 40% of the 2025 Senior Secured Notes with the net cash proceeds from certain equity offerings at a redemption price of 107.500% of the principal amount redeemed. 2028 Senior Secured Notes In September 2020, our Operating Company, PK Domestic LLC and the PK Finance issued an aggregate of $725 million of 2028 Senior Secured Notes. The 2028 Senior Secured Notes bear interest at a rate of 5.875% per annum, payable semi-annually in arrears on April 1 and October 1 of each year beginning April 1, 2021. Net proceeds were used to repay the 2016 Term Loan in full and to repay $80 million of our outstanding balance under the Revolver, which may be redrawn. We capitalized $13 million of issuance costs during the three months ended September 30, 2020. We may redeem the 2028 Senior Secured Notes at any time prior to October 1, 2023, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date plus a make-whole premium. On or after October 1, 2023, we may redeem the 2028 Senior Secured Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after October 1, 2025, we may redeem the 2028 Senior Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, before October 1, 2023, we may redeem up to 40% of the 2028 Senior Secured Notes with the net cash proceeds from certain equity offerings at a redemption price of 105.875% of the principal amount redeemed. Indentures Both the 2025 Senior Secured Notes and the 2028 Senior Secured Notes (collectively, the “Senior Secured Notes”) are guaranteed by us and by the subsidiaries of our Operating Company that also guarantee indebtedness under our credit facilities and the guarantees are full and unconditional and joint and several. The Senior Secured Notes are secured, subject to permitted liens, by a first priority security interest in all of the capital stock of certain wholly-owned subsidiaries of certain of the guarantors and PK Domestic, which collateral also secures the obligations under our credit and term loan facilities on a first priority basis. The indentures governing the Senior Secured Notes contain customary covenants that limit the issuers’ ability and, in certain instances, the ability of the issuers’ subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, sell stock in certain subsidiaries, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of indebtedness, and sell assets or merge with other companies. These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to us to the extent necessary for us to fund a dividend or distribution by us that we believe is necessary to maintain our status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed $100.0 million, plus 95% of our cumulative Funds From Operations (as defined in the indenture), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) certain convertible indebtedness of the Operating Company. In addition, the indenture requires our Operating Company to maintain total unencumbered assets as of each fiscal quarter of at least 150% of total unsecured indebtedness, in each case calculated on a consolidated basis. CMBS and Mortgage Loans We are required to deposit with lenders certain cash reserves for restricted uses. As of September 30, 2020 and December 31, 2019, our condensed consolidated balance sheets included $7 million and $13 million of restricted cash, respectively, related to our CMBS loans and mortgage loans. During the second and third quarters of 2020, we amended certain mortgage loan agreements to defer interest or interest and principal payments for three to six months and temporarily suspend required cash reserves. Debt Maturities The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of September 30, 2020 were: Year (in millions) 2020 $ 14 2021 105 2022 98 2023 1,331 2024 676 Thereafter (1) 2,933 $ 5,157 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8: Fair Value Measurements We did not elect the fair value measurement option for our financial assets or liabilities. The fair values of our other financial instruments not included in the table below are estimated to be equal to their carrying amounts. The fair value of our debt and the hierarchy level we used to estimate fair values are shown below: September 30, 2020 December 31, 2019 Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Liabilities: SF CMBS Loan 3 $ 725 $ 707 $ 725 $ 740 HHV CMBS Loan 3 1,275 1,192 1,275 1,316 2016 Term Loan 3 — — 700 698 2019 Term Facility 3 670 648 670 667 Revolver 3 601 591 — — 2025 Senior Secured Notes 1 651 694 — — 2028 Senior Secured Notes 1 725 725 — — Mortgage loans 3 511 480 516 516 During the nine months ended September 30, 2020, we recognized impairment losses for goodwill and for certain assets resulting from a significant decline in market value of those assets. The estimated fair values of these assets that were measured on a nonrecurring basis were: September 30, 2020 Fair Value Impairment Loss (in millions) Property and equipment (1) $ 24 $ 90 Goodwill (2) — 607 Total $ 24 $ 697 (1) Fair value of our property and equipment as of September 30, 2020 was measured using significant unobservable inputs (Level 3). We estimated fair value of the assets using discounted cash flow analyses, with an estimated stabilized growth rate of 3%, a discounted cash flow term between 1.7 to 10 years, terminal capitalization rate ranging from 7.25% to 7.75%, and discount rates ranging from 9.5% to 12.5%. The discount and terminal capitalization rates used for the fair value of the assets reflected the risk profile of the markets where these properties are located. (2) Fair value of our consolidated and unconsolidated hotel reporting units was measured using significant unobservable inputs (Level 3), which included discounted cash flows, terminal capitalization rates, and discount rates. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9: Income Taxes We are a REIT for U.S. federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate in a manner to qualify as a REIT. To qualify as a REIT, we must satisfy requirements related to, among other things, the real estate qualification of sources of our income, the real estate composition and values of our assets, the amounts we distribute to our stockholders annually and the diversity of ownership of our stock. 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 nine months ended September 30, 2020 and 2019 related to our REIT activities, other than taxes related to our built-in gain property (representing property held by us with an excess of fair value over tax basis on January 4, 2017). We will be subject to U.S. federal income tax on taxable sales of built-in gain property 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 and certain sales of foreign investments. Further, our taxable REIT subsidiaries (“TRSs”) are generally subject to U.S. federal, state and local, and foreign income taxes (as applicable). The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) included several tax provisions that may impact us and our subsidiaries, including: • the ability for our TRSs to carry back net operating losses (“NOLs”) arising in 2020 to all post spin-off taxable years preceding the taxable year of the loss; • an increase of the business interest limitation under Internal Revenue Code (“Code”) section 163(j) from 30 percent to 50 percent of adjusted taxable income for taxable years beginning in 2019 and 2020 and the addition of an election by taxpayers to use their 2019 adjusted taxable income as their adjusted taxable income in 2020 for purposes of applying the limitation; • a “technical correction” amending Code section 168(e)(3)(E) to add “qualified improvement property” to “15-year property” and assigning a class life of 20-years under section 168(g)(3)(B) to qualified improvement property under section 168(e)(3)(E)(vii), and • the elimination of the taxable income limit for NOLs for all taxable years beginning before January 1, 2021, thereby permitting corporate taxpayers to use NOLs to fully offset taxable income (although as a REIT we will continue to only be able to use NOLs against taxable income remaining after taking into account any dividends paid deduction). During the nine months ended September 30, 2020, we recognized $14 million of income tax expense, which is comprised of $14 million of built-in gains tax expense from assets sold during the nine months ended September 30, 2020 and $16 million of non-U.S. income tax expense on the gain from the entity that owns the Hilton São Paulo Morumbi that was sold during the nine months ended September 30, 2020, partially offset by a TRS income tax benefit of $20 million from utilizing the NOL carryback provisions of the CARES Act. We expect $24 million of refunds related to the carryback of 2020 NOLs of our TRSs to prior years, as provided by the CARES Act. During the nine months ended September 30, 2019, we recognized $12 million of income tax expense primarily related to taxable income from our TRSs. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020, 4,512,900 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 September 30, 2020, 80,530 shares of common stock remain available for future issuance. For both the three months ended September 30, 2020 and 2019, we recognized $4 million of share-based compensation expense, and $10 million and $12 million, respectively, for the nine months ended September 30, 2020 and 2019. As of September 30, 2020, unrecognized compensation expense was $22 million, which is expected to be recognized over a weighted-average period of 1.6 years. The total fair values of shares vested (calculated as the number of shares multiplied by the vesting date share price) during the nine months ended September 30, 2020 and 2019 were $17 million and $21 million, respectively. Restricted Stock Awards Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the nine months ended September 30, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2020 557,245 $ 29.10 Granted 665,141 18.19 Vested (325,885 ) 25.87 Forfeited (60,286 ) 29.05 Unvested at September 30, 2020 836,215 $ 21.69 Performance Stock Units Performance Stock Units (“PSUs”) generally vest at the end of a three-year zero Additionally, in February 2020, we granted special awards with a one-year zero The following table provides a summary of PSUs for the nine months ended September 30, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2020 574,797 $ 32.82 Granted 605,535 24.93 Vested (456,121 ) 32.39 Forfeited (52,114 ) 33.14 Unvested at September 30, 2020 672,097 $ 25.98 The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility (1) 22.0% - 23.0% Dividend yield (2) — Risk-free rate 1.2% - 1.5% Expected term 1 - 3 years (1) The weighted average expected volatility was 22.5%. (2) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest. As of September 30, 2020, the achievement of the performance condition associated with the Merger cost synergies element of the special one-year |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions, except per share amounts) (in millions, except per share amounts) Numerator: Net (loss) income attributable to stockholders $ (276 ) $ 5 $ (1,223 ) $ 183 Loss allocated to participating securities — — — (1 ) Net (loss) income attributable to stockholders, net of earnings allocated to participating securities $ (276 ) $ 5 $ (1,223 ) $ 182 Denominator: Weighted average shares outstanding – basic 235 206 236 203 Unvested restricted shares — 1 — 1 Weighted average shares outstanding – diluted 235 207 236 204 (Loss) Earnings per share - Basic (1) $ (1.17 ) $ 0.02 $ (5.19 ) $ 0.90 (Loss) Earnings per share - Diluted (1) $ (1.17 ) $ 0.02 $ (5.19 ) $ 0.90 (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. Certain of our outstanding equity awards were excluded from the above calculation of EPS for the three and nine months ended September 30, 2020 and 2019 because their effect would have been anti-dilutive. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 12: Business Segment Information As of September 30, 2020, 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 • Gains or losses on sales of assets for both consolidated and unconsolidated investments; • Costs associated with hotel acquisitions or dispositions expensed during the period; • Severance expense; • Share-based compensation expense; • Casualty gains or losses; • 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 (loss) income: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Revenues: Total consolidated hotel revenue $ 95 $ 650 $ 714 $ 1,975 Other revenues 3 22 25 59 Total revenues $ 98 $ 672 $ 739 $ 2,034 Hotel Adjusted EBITDA $ (76 ) $ 183 $ (93 ) $ 573 Other revenues 3 22 25 59 Depreciation and amortization expense (75 ) (61 ) (225 ) (184 ) Corporate general and administrative expense (13 ) (14 ) (40 ) (46 ) Impairment and casualty loss, net (2 ) (8 ) (696 ) (8 ) Acquisition costs (9 ) (59 ) (10 ) (65 ) Other operating expenses (6 ) (23 ) (31 ) (61 ) (Loss) gain on sales of assets, net (1 ) 1 62 20 Interest income — 2 2 5 Interest expense (59 ) (33 ) (149 ) (98 ) Equity in (losses) earnings from investments in affiliates (7 ) 3 (16 ) 18 Income tax expense (1 ) — (14 ) (12 ) Other loss, net (3 ) (1 ) (6 ) (1 ) Severance expense (24 ) — (26 ) (2 ) Other items (3 ) (3 ) (9 ) (8 ) Net (loss) income $ (276 ) $ 9 $ (1,226 ) $ 190 The following table presents total assets for our consolidated hotels, reconciled to total assets: September 30, 2020 December 31, 2019 (in millions) Consolidated hotels $ 10,828 $ 11,236 All other 25 54 Total assets $ 10,853 $ 11,290 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13: Commitments and Contingencies As of September 30, 2020, we had outstanding commitments under third-party contracts of approximately $23 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 are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums, and may make certain indemnifications or guarantees to select buyers of our hotels as part of the sale process. We are also involved in claims and litigation that is not in the ordinary course of business in connection with the spin-off from Hilton. The spin-off agreements indemnify us from certain of these claims as well as require us to indemnify Hilton for other claims. In addition, losses related to certain contingent liabilities could be apportioned to us under the spin-off agreements. In connection with our obligation to indemnify Hilton under the spin-off agreements, we have reserved approximately $7 million related to ongoing claims as of September 30, 2020 with respect to an audit by the Australian Tax Office (“ATO”) related to the sale of the Hilton Sydney in June 2015. This amount could change as more information becomes available about the progress of Hilton’s defense against the ATO’s claim. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 27, 2020. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance. |
Reclassifications | Reclassifications Certain line items on the condensed consolidated statements of comprehensive (loss) income for the three and nine months ended September 30, 2019 have been reclassified to conform to the current period presentation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Adopted Accounting Standards In June 2016, the FASB issued ASU No. 2016-13 , “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”, In January 2017, the FASB issued ASU No. 2017-04 (“ASU 2017-04”), Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of Hotel Portfolio Properties Acquired | As a result of the Merger, we acquired a 100% ownership interest in the following 18 hotels: Hotel Location Rooms Hilton Denver City Center Denver, CO 613 W Chicago – Lakeshore Chicago, IL 520 Hyatt Regency Boston Boston, MA 502 Hyatt Regency Mission Bay Spa and Marina San Diego, CA 438 Boston Marriott Newton Newton, MA 430 Le Meridien New Orleans (1) New Orleans, LA 410 W Chicago – City Center Chicago, IL 403 Royal Palm South Beach Miami, a Tribute Portfolio Resort Miami Beach, FL 393 Le Meridien San Francisco San Francisco, CA 360 JW Marriott San Francisco Union Square San Francisco, CA 344 Hyatt Centric Fisherman’s Wharf San Francisco, CA 316 Hotel Indigo San Diego Gaslamp Quarter San Diego, CA 210 Courtyard Washington Capitol Hill/Navy Yard Washington, DC 204 Homewood Suites by Hilton Seattle Convention Center Pike Street Seattle, WA 195 Hilton Checkers Los Angeles Los Angeles, CA 193 Ace Hotel Downtown Los Angeles (1) Los Angeles, CA 182 Hotel Adagio, Autograph Collection San Francisco, CA 171 W New Orleans – French Quarter New Orleans, LA 97 5,981 (1) Hotels were subsequently sold in December 2019. |
Schedule of Preliminary Allocation of Assets Acquired and Liabilities Assumed | We allocated the purchase price, consisting of $978 million of common stock issued and cash of $1,013 million, as follows: (in millions) Investment in hotel properties, net $ 2,220 Intangibles, net 45 Cash and cash equivalents 62 Restricted cash 38 Accounts receivable, net 26 Prepaid expenses 9 Other assets 2 Operating lease right-of-use asset 65 Debt (311 ) Accounts payable and accrued expenses (47 ) Due to hotel managers (15 ) Other liabilities (15 ) Operating lease liability (88 ) Total consideration $ 1,991 |
Schedule of Unaudited Condensed Pro-forma Financial Information | The unaudited condensed pro-forma financial information is as follows: Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 (unaudited) (in millions) Total revenues $ 797 $ 2,440 Operating income 63 350 Net income 23 227 From the date of the Merger through September 30, 2019, we recognized $23 million of total revenues, $5 million of operating income and $4 million of net income related to the hotels acquired in connection with the Merger. |
Summary of Assets and Liabilities Held for Sale and Dispositions | 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) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment were: September 30, 2020 December 31, 2019 (1) (in millions) Land $ 3,429 $ 3,512 Buildings and leasehold improvements 6,949 6,978 Furniture and equipment 1,041 1,059 Construction-in-progress 46 134 11,465 11,683 Accumulated depreciation and amortization (2,210 ) (2,089 ) $ 9,255 $ 9,594 (1) Excludes $62 million of property and equipment, net, classified as held for sale as of December 31, 2019. |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Consolidated Variable Interest Entities And Investments In Affiliates [Abstract] | |
Schedule of Assets and Liabilities Included in Consolidated Balance Sheets | Our condensed consolidated balance sheets include the following assets and liabilities of these entities: September 30, 2020 December 31, 2019 (in millions) Property and equipment, net $ 218 $ 221 Cash and cash equivalents 11 13 Restricted cash 2 1 Accounts receivable, net 2 5 Prepaid expenses 1 2 Debt 207 207 Accounts payable and accrued expenses 8 8 Due to hotel manager — 2 Other liabilities 2 2 |
Schedule of Investment in Affiliates | Investments in affiliates were: Ownership % September 30, 2020 December 31, 2019 (in millions) Hilton San Diego Bayfront 25% $ 11 $ 18 All others (6 hotels) 20% - 50% 6 17 $ 17 $ 35 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill Accumulated Impairment Losses Balance (in millions) Balance as of December 31, 2019 $ 2,709 $ (2,102 ) $ 607 Impairment loss — (607 ) (607 ) Balance as of September 30, 2020 $ 2,709 $ (2,709 ) $ — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt balances and associated interest rates as of September 30, 2020 were: Principal balance as of Interest Rate at September 30, 2020 Maturity Date September 30, 2020 December 31, 2019 (in millions) SF CMBS Loan (1) 4.11% November 2023 $ 725 $ 725 HHV CMBS Loan (1) 4.20% November 2026 1,275 1,275 Mortgage loans Average rate of 4.17% 2020 to 2026 (2)(3) 510 515 2016 Term Loan (4) N/A December 2021 — 700 2019 Term Facility (5) L + 2.65% September 2024 670 670 Revolver (5) L + 3.00% 2021 to 2023 (6) 601 — 2025 Senior Secured Notes 7.50% June 2025 650 — 2028 Senior Secured Notes 5.88% October 2028 725 — Finance lease obligations 3.07% 2021 to 2022 1 1 5,157 3,886 Add: unamortized premium 4 3 Less: unamortized deferred financing costs and discount (40 ) (18 ) $ 5,121 $ 3,871 (1) In October 2016, we entered into a $725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF CMBS Loan”) and a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV CMBS Loan”). (2) Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender beginning August 2022 (3) We are actively negotiating a one-year October 2021 (4) (5) (6) December 2023 December 2021 |
Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option | The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of September 30, 2020 were: Year (in millions) 2020 $ 14 2021 105 2022 98 2023 1,331 2024 676 Thereafter (1) 2,933 $ 5,157 (1) Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Debt and Hierarchy Level Used to Estimate Fair Values | The fair value of our debt and the hierarchy level we used to estimate fair values are shown below: September 30, 2020 December 31, 2019 Hierarchy Level Carrying Amount Fair Value Carrying Amount Fair Value (in millions) Liabilities: SF CMBS Loan 3 $ 725 $ 707 $ 725 $ 740 HHV CMBS Loan 3 1,275 1,192 1,275 1,316 2016 Term Loan 3 — — 700 698 2019 Term Facility 3 670 648 670 667 Revolver 3 601 591 — — 2025 Senior Secured Notes 1 651 694 — — 2028 Senior Secured Notes 1 725 725 — — Mortgage loans 3 511 480 516 516 |
Schedule of Estimated Fair Values of Assets Measured on Nonrecurring Basis | The estimated fair values of these assets that were measured on a nonrecurring basis were: September 30, 2020 Fair Value Impairment Loss (in millions) Property and equipment (1) $ 24 $ 90 Goodwill (2) — 607 Total $ 24 $ 697 (1) Fair value of our property and equipment as of September 30, 2020 was measured using significant unobservable inputs (Level 3). We estimated fair value of the assets using discounted cash flow analyses, with an estimated stabilized growth rate of 3%, a discounted cash flow term between 1.7 to 10 years, terminal capitalization rate ranging from 7.25% to 7.75%, and discount rates ranging from 9.5% to 12.5%. The discount and terminal capitalization rates used for the fair value of the assets reflected the risk profile of the markets where these properties are located. (2) Fair value of our consolidated and unconsolidated hotel reporting units was measured using significant unobservable inputs (Level 3), which included discounted cash flows, terminal capitalization rates, and discount rates. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 nine months ended September 30, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2020 557,245 $ 29.10 Granted 665,141 18.19 Vested (325,885 ) 25.87 Forfeited (60,286 ) 29.05 Unvested at September 30, 2020 836,215 $ 21.69 |
Schedule of Performance Stock Units ("PSUs") | The following table provides a summary of PSUs for the nine months ended September 30, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested at January 1, 2020 574,797 $ 32.82 Granted 605,535 24.93 Vested (456,121 ) 32.39 Forfeited (52,114 ) 33.14 Unvested at September 30, 2020 672,097 $ 25.98 |
Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model | The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions: Expected volatility (1) 22.0% - 23.0% Dividend yield (2) — Risk-free rate 1.2% - 1.5% Expected term 1 - 3 years (1) The weighted average expected volatility was 22.5%. (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) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions, except per share amounts) (in millions, except per share amounts) Numerator: Net (loss) income attributable to stockholders $ (276 ) $ 5 $ (1,223 ) $ 183 Loss allocated to participating securities — — — (1 ) Net (loss) income attributable to stockholders, net of earnings allocated to participating securities $ (276 ) $ 5 $ (1,223 ) $ 182 Denominator: Weighted average shares outstanding – basic 235 206 236 203 Unvested restricted shares — 1 — 1 Weighted average shares outstanding – diluted 235 207 236 204 (Loss) Earnings per share - Basic (1) $ (1.17 ) $ 0.02 $ (5.19 ) $ 0.90 (Loss) Earnings per share - Diluted (1) $ (1.17 ) $ 0.02 $ (5.19 ) $ 0.90 (1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenues from Consolidated Hotels to Condensed Combined Consolidated Amounts and Hotel Adjusted EBITDA to Net (Loss) Income | The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and Hotel Adjusted EBITDA to net (loss) income: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Revenues: Total consolidated hotel revenue $ 95 $ 650 $ 714 $ 1,975 Other revenues 3 22 25 59 Total revenues $ 98 $ 672 $ 739 $ 2,034 Hotel Adjusted EBITDA $ (76 ) $ 183 $ (93 ) $ 573 Other revenues 3 22 25 59 Depreciation and amortization expense (75 ) (61 ) (225 ) (184 ) Corporate general and administrative expense (13 ) (14 ) (40 ) (46 ) Impairment and casualty loss, net (2 ) (8 ) (696 ) (8 ) Acquisition costs (9 ) (59 ) (10 ) (65 ) Other operating expenses (6 ) (23 ) (31 ) (61 ) (Loss) gain on sales of assets, net (1 ) 1 62 20 Interest income — 2 2 5 Interest expense (59 ) (33 ) (149 ) (98 ) Equity in (losses) earnings from investments in affiliates (7 ) 3 (16 ) 18 Income tax expense (1 ) — (14 ) (12 ) Other loss, net (3 ) (1 ) (6 ) (1 ) Severance expense (24 ) — (26 ) (2 ) Other items (3 ) (3 ) (9 ) (8 ) Net (loss) income $ (276 ) $ 9 $ (1,226 ) $ 190 |
Schedule of Total Assets by Consolidated Hotels, Reconciled To Total Assets | The following table presents total assets for our consolidated hotels, reconciled to total assets: September 30, 2020 December 31, 2019 (in millions) Consolidated hotels $ 10,828 $ 11,236 All other 25 54 Total assets $ 10,853 $ 11,290 |
Organization and Recent Events
Organization and Recent Events - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | 9 Months Ended | |||||
May 31, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)Hotel | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | May 05, 2019$ / sharesshares | Jan. 03, 2017 | ||
Organization [Line Items] | ||||||||
Borrowings on Revolver | $ 1,000 | $ 850 | ||||||
Repayments under Revolver | 1,099 | |||||||
2025 Senior Secured Notes [Member] | PK Domestic and PK Finance Co-Issuer Inc [Member] | ||||||||
Organization [Line Items] | ||||||||
Gross debt balance | $ 650 | |||||||
Net proceeds from secured notes | $ 350 | |||||||
2028 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | ||||||||
Organization [Line Items] | ||||||||
Gross debt balance | 725 | |||||||
Repayments of term loan | $ 631 | |||||||
COVID-19 [Member] | ||||||||
Organization [Line Items] | ||||||||
Number of hotels temporarily suspend operations | Hotel | 38 | |||||||
Number of hotels, total | Hotel | 60 | |||||||
Deferring maintenance and ROI Capital expenditures | $ 150 | |||||||
Number of hotels reopened due to restrictions removed | Hotel | 26 | |||||||
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 | $ / shares | $ 25.88 | $ 0.01 | ||||||
Business acquisition, cash consideration transferred, per share | $ / shares | $ 11 | |||||||
Business acquisition, consideration transferred number of shares per share | shares | 0.628 | |||||||
Fractional shares of common stock to be issued in merger agreement | shares | 0 | |||||||
Revolver [Member] | ||||||||
Organization [Line Items] | ||||||||
Gross debt balance | [1] | $ 601 | ||||||
Revolver [Member] | Unused lines of Credit [Member] | ||||||||
Organization [Line Items] | ||||||||
Aggregate commitments | 901 | |||||||
Revolver [Member] | 2025 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | ||||||||
Organization [Line Items] | ||||||||
Repayments under Revolver | 219 | |||||||
Revolver [Member] | 2028 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | ||||||||
Organization [Line Items] | ||||||||
Repayments under Revolver | 80 | |||||||
Revolver [Member] | COVID-19 [Member] | ||||||||
Organization [Line Items] | ||||||||
Borrowings on Revolver | $ 1,000 | $ 1,000 | ||||||
Repayments under Revolver | $ 399 | |||||||
[1] | In May 2020, we amended our credit and term loan facilities which added a LIBOR floor of 25 basis points. |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | 21 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2019 | May 05, 2019 | |
Business Acquisition [Line Items] | ||||||
Acquisition costs | $ 9 | $ 59 | $ 10 | $ 65 | ||
Operating income | (206) | 38 | (1,043) | 278 | ||
Net (loss) income attributable to stockholders | $ (276) | 5 | (1,223) | 183 | ||
Gross proceeds on sale of hotel portfolio properties | 208 | 236 | ||||
Net gain on selling cost of hotel portfolio properties | 64 | 20 | ||||
Hilton Sao Paulo Morumbi [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Reclassification of currency translation adjustment from accumulated other comprehensive loss to earnings on disposition of hotel portfolio properties | $ 7 | |||||
Chesapeake Lodging Trust [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of ownership interest in properties | 100.00% | |||||
Total consideration | $ 2,000 | |||||
Business acquisition, consideration transferred number of shares issued | 37.8 | |||||
Business acquisition,par value per common share | $ 25.88 | $ 25.88 | $ 0.01 | |||
Cash issued for acquisition | $ 1,013 | |||||
Acquisition costs | $ 9 | $ 59 | $ 65 | |||
Revenue recognized | $ 23 | |||||
Operating income | 5 | |||||
Net (loss) income attributable to stockholders | $ 4 | |||||
Chesapeake Lodging Trust [Member] | Common Stock [member] | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued for acquisition | $ 978 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Summary of Hotel Portfolio Properties Acquired (Detail) - Chesapeake Lodging Trust [Member] | 9 Months Ended | |
Sep. 30, 2020Room | ||
Business Acquisition [Line Items] | ||
Rooms | 5,981 | |
Hilton Denver City Center [Member] | ||
Business Acquisition [Line Items] | ||
Location | Denver, CO | |
Rooms | 613 | |
W Chicago Lakeshore [Member] | ||
Business Acquisition [Line Items] | ||
Location | Chicago, IL | |
Rooms | 520 | |
Hyatt Regency Boston [Member] | ||
Business Acquisition [Line Items] | ||
Location | Boston, MA | |
Rooms | 502 | |
Hyatt Regency Mission Bay Spa and Marina [Member] | ||
Business Acquisition [Line Items] | ||
Location | San Diego, CA | |
Rooms | 438 | |
Boston Marriott Newton [Member] | ||
Business Acquisition [Line Items] | ||
Location | Newton, MA | |
Rooms | 430 | |
Le Meridien New Orleans [Member] | ||
Business Acquisition [Line Items] | ||
Location | New Orleans, LA | [1] |
Rooms | 410 | [1] |
W Chicago ? City Center [Member] | ||
Business Acquisition [Line Items] | ||
Location | Chicago, IL | |
Rooms | 403 | |
Royal Palm South Beach Miami, A Tribute Portfolio Resort [Member] | ||
Business Acquisition [Line Items] | ||
Location | Miami Beach, FL | |
Rooms | 393 | |
Le Meridien San Francisco [Member] | ||
Business Acquisition [Line Items] | ||
Location | San Francisco, CA | |
Rooms | 360 | |
JW Marriott San Francisco Union Square [Member] | ||
Business Acquisition [Line Items] | ||
Location | San Francisco, CA | |
Rooms | 344 | |
Hyatt Centric Fisherman’s Wharf [Member] | ||
Business Acquisition [Line Items] | ||
Location | San Francisco, CA | |
Rooms | 316 | |
Hotel Indigo San Diego Gaslamp Quarter [Member] | ||
Business Acquisition [Line Items] | ||
Location | San Diego, CA | |
Rooms | 210 | |
Courtyard Washington Capitol Hill/Navy Yard [Member] | ||
Business Acquisition [Line Items] | ||
Location | Washington, DC | |
Rooms | 204 | |
Homewood Suites by Hilton Seattle Convention Center Pike Street [Member] | ||
Business Acquisition [Line Items] | ||
Location | Seattle, WA | |
Rooms | 195 | |
Hilton Checkers Los Angeles [Member] | ||
Business Acquisition [Line Items] | ||
Location | Los Angeles, CA | |
Rooms | 193 | |
Ace Hotel Downtown Los Angeles [Member] | ||
Business Acquisition [Line Items] | ||
Location | Los Angeles, CA | [1] |
Rooms | 182 | [1] |
Hotel Adagio Autograph Collection [Member] | ||
Business Acquisition [Line Items] | ||
Location | San Francisco, CA | |
Rooms | 171 | |
W New Orleans French Quarter [Member] | ||
Business Acquisition [Line Items] | ||
Location | New Orleans, LA | |
Rooms | 97 | |
[1] | Hotels were subsequently sold in December 2019. |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Schedule of Preliminary Allocation of Assets Acquired and Liabilities Assumed (Detail) - Chesapeake Lodging Trust [Member] $ in Millions | Sep. 30, 2020USD ($) |
Business Acquisition [Line Items] | |
Investment in hotel properties, net | $ 2,220 |
Intangibles, net | 45 |
Cash and cash equivalents | 62 |
Restricted cash | 38 |
Accounts receivable, net | 26 |
Prepaid expenses | 9 |
Other assets | 2 |
Operating lease right-of-use asset | 65 |
Debt | (311) |
Accounts payable and accrued expenses | (47) |
Due to hotel managers | (15) |
Other liabilities | (15) |
Operating lease liability | (88) |
Total consideration | $ 1,991 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions - Schedule of Unaudited Condensed Pro-forma Financial Information (Detail) - Chesapeake Lodging Trust [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 797 | $ 2,440 |
Operating income | 63 | 350 |
Net income | $ 23 | $ 227 |
Acquisitions, Dispositions and
Acquisitions, Dispositions and Assets Held for Sale - Summary of Hotel Portfolio Properties Sold (Detail) | 9 Months Ended | |
Sep. 30, 2020 | ||
Pointe Hilton Squaw Peak Resort [Member] | ||
Business Acquisition [Line Items] | ||
Location | Phoenix, Arizona | |
Month Sold | 2019-02 | |
Hilton Nuremberg [Member] | ||
Business Acquisition [Line Items] | ||
Location | Nuremberg, Germany | |
Month Sold | 2019-03 | |
Hilton Atlanta Airport [Member] | ||
Business Acquisition [Line Items] | ||
Location | Atlanta, Georgia | |
Month Sold | 2019-06 | |
Hilton New Orleans Airport [Member] | ||
Business Acquisition [Line Items] | ||
Location | New Orleans, Louisiana | [1] |
Month Sold | 2019-06 | [1] |
Embassy Suites Parsippany [Member] | ||
Business Acquisition [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 | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Property Plant And Equipment [Abstract] | |||
Land | $ 3,429 | $ 3,512 | |
Buildings and leasehold improvements | 6,949 | 6,978 | |
Furniture and equipment | 1,041 | 1,059 | |
Construction-in-progress | 46 | 134 | |
Property and equipment, gross | 11,465 | 11,683 | |
Accumulated depreciation and amortization | (2,210) | (2,089) | |
Property and equipment, net | $ 9,255 | $ 9,594 | |
[1] | Excludes $62 million of property and equipment, net, classified as held for sale as of December 31, 2019. |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Property and Equipment (Parenthetical) (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Property Plant And Equipment [Abstract] | |
Property and equipment, net | $ 62 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 75 | $ 60 | $ 224 | $ 182 |
Impairment Loss, Property and equipment | 90 | |||
Impairment and casualty loss, net | $ 2 | $ 8 | $ 696 | 8 |
Hurricanes Irma and Maria [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Insurance receivable | 23 | |||
Reimbursements expense | 3 | |||
Impairment and casualty loss, net | 7 | |||
Hurricanes Irma and Maria [Member] | Ancillary Hotel [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Business interruption insurance recovery | 8 | |||
Hurricanes Irma and Maria [Member] | Property Damage [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Insurance receivable | $ 12 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Additional Information (Detail) $ in Millions | Sep. 30, 2020USD ($)Entity | Dec. 31, 2019USD ($) |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Number of consolidated VIEs | Entity | 3 | |
Debt of unconsolidated joint ventures | $ | $ 943 | $ 943 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Assets and Liabilities Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Property and equipment, net | $ 9,255 | $ 9,594 | [1] |
Cash and cash equivalents | 1,134 | 346 | |
Restricted cash | 35 | 40 | |
Accounts receivable, net | 36 | 180 | |
Prepaid expenses | 43 | 83 | |
Debt | 5,121 | 3,871 | |
Accounts payable and accrued expenses | 168 | 217 | |
Due to hotel manager | 102 | 159 | |
Other liabilities | 124 | 282 | |
Consolidated VIEs [Member] | |||
Variable Interest Entity [Line Items] | |||
Property and equipment, net | 218 | 221 | |
Cash and cash equivalents | 11 | 13 | |
Restricted cash | 2 | 1 | |
Accounts receivable, net | 2 | 5 | |
Prepaid expenses | 1 | 2 | |
Debt | 207 | 207 | |
Accounts payable and accrued expenses | 8 | 8 | |
Due to hotel manager | 2 | ||
Other liabilities | $ 2 | $ 2 | |
[1] | Excludes $62 million of property and equipment, net, classified as held for sale as of December 31, 2019. |
Consolidated Variable Interes_5
Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Investments in Affiliates (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 17 | $ 35 |
Hilton San Diego Bayfront [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership Percentage | 25.00% | |
Investments in affiliates | $ 11 | 18 |
All others (6 hotels) [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Investments in affiliates | $ 6 | $ 17 |
All others (6 hotels) [Member] | Minimum [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership Percentage | 20.00% | |
All others (6 hotels) [Member] | Maximum [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Ownership Percentage | 50.00% |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment loss | $ 607 | $ 607 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill beginning balance, gross | $ 2,709 | $ 2,709 |
Goodwill ending balance, gross | 2,709 | |
Accumulated impairment losses, beginning balance | (2,102) | (2,102) |
Accumulated impairment losses, impairment loss | (607) | |
Accumulated impairment losses, ending balance | (2,709) | |
Goodwill, beginning balance | 607 | 607 |
Impairment loss | $ (607) | $ (607) |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Detail) - USD ($) $ in Millions | 9 Months Ended | |||||
Sep. 30, 2020 | Dec. 31, 2019 | Oct. 31, 2016 | ||||
Debt Instrument [Line Items] | ||||||
Finance lease obligations | $ 1 | $ 1 | ||||
Debt and financing lease obligations, gross | 5,157 | 3,886 | ||||
Add: unamortized premium | 4 | 3 | ||||
Less: unamortized deferred financing costs and discount | (40) | (18) | ||||
Debt | 5,121 | 3,871 | ||||
SF CMBS Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 725 | [1] | 725 | [1] | $ 725 | |
Debt instrument, interest rate, stated percentage | [1] | 4.11% | ||||
Maturity Date | [1] | 2023-11 | ||||
HHV CMBS Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 1,275 | [1] | 1,275 | [1] | $ 1,275 | |
Debt instrument, interest rate, stated percentage | [1] | 4.20% | ||||
Maturity Date | [1] | 2026-11 | ||||
Mortgage Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | $ 510 | 515 | ||||
Debt instrument, weighted average interest rate | 4.17% | |||||
Maturity Date, start year | [2],[3] | 2020 | ||||
Maturity Date, end year | [2],[3] | 2026 | ||||
2016 Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | [4] | 700 | ||||
Maturity Date | [4] | 2021-12 | ||||
2025 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Secured Notes | $ 650 | |||||
Debt instrument, interest rate, stated percentage | 7.50% | |||||
Maturity Date | 2025-06 | |||||
2028 Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Senior Secured Notes | $ 725 | |||||
Debt instrument, interest rate, stated percentage | 5.88% | |||||
Maturity Date | 2028-10 | |||||
Finance Lease Obligations [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 3.07% | |||||
Maturity Date, start year | 2021 | |||||
Maturity Date, end year | 2022 | |||||
2019 Term Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | [5] | $ 670 | $ 670 | |||
Maturity Date | [5] | 2024-09 | ||||
2019 Term Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | [5] | 2.65% | ||||
Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt, gross | [5] | $ 601 | ||||
Maturity Date | 2021-12 | |||||
Maturity Date, start year | [5],[6] | 2021 | ||||
Maturity Date, end year | [5],[6] | 2023 | ||||
Revolver [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate | [5] | 3.00% | ||||
[1] | In October 2016, we entered into a $725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF CMBS Loan”) and a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV CMBS Loan”). | |||||
[2] | Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender beginning August 2022 | |||||
[3] | We are actively negotiating a one-year October 2021 | |||||
[4] | In September 2020, the 2016 Term Loan was fully repaid | |||||
[5] | In May 2020, we amended our credit and term loan facilities which added a LIBOR floor of 25 basis points. | |||||
[6] | In September 2020, we increased our aggregate commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023 December 2021 |
Debt - Schedule of Debt (Parent
Debt - Schedule of Debt (Parenthetical) (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | |||||
May 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | [3] | Oct. 31, 2016 | |||
Debt Instrument [Line Items] | |||||||
Debt instrument description of interest rate | LIBOR floor of 25 basis points | ||||||
Debt instrument, interest rate | 25.00% | ||||||
Revolver [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, gross | [1] | $ 601,000,000 | |||||
Maturity Date, end year | [1],[2] | 2023 | |||||
Line of credit facility, current borrowing capacity | $ 75,000,000 | ||||||
Line of credit facility, maximum borrowing capacity | 1,075,000,000 | ||||||
Aggregate commitments | $ 901,000,000 | ||||||
Line of credit facility, expiration period | 2 years | ||||||
Debt instrument, maturity date end year | Dec. 31, 2023 | ||||||
Line of credit facility, remaining borrowing capacity | $ 174,000,000 | ||||||
Debt instrument, maturity date start year | Dec. 31, 2021 | ||||||
SF CMBS Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, gross | $ 725,000,000 | [3] | $ 725,000,000 | $ 725,000,000 | |||
HHV CMBS Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, gross | $ 1,275,000,000 | [3] | $ 1,275,000,000 | $ 1,275,000,000 | |||
Hilton Denver City Center Mortgage Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maturity Date, end year | 2042 | ||||||
Debt instrument, call date earliest | Aug. 31, 2022 | ||||||
Doubletree Spokane JV Mortgage Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt, gross | $ 12,000,000 | ||||||
Debt instrument, maturity date, extension | 1 year | ||||||
Debt instrument, call date latest | Oct. 31, 2021 | ||||||
[1] | In May 2020, we amended our credit and term loan facilities which added a LIBOR floor of 25 basis points. | ||||||
[2] | In September 2020, we increased our aggregate commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023 December 2021 | ||||||
[3] | In October 2016, we entered into a $725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF CMBS Loan”) and a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV CMBS Loan”). |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Derivative fixed interest rate | 1.86% | ||||
Derivative maturity date | Apr. 21, 2022 | ||||
Derivative notional amount | $ 225,000,000 | ||||
Borrowings from credit facilities | 1,000,000,000 | $ 850,000,000 | |||
Repayments of credit facilities | 1,099,000,000 | ||||
Proceeds from issuance of Senior Secured Notes | $ 1,376,000,000 | ||||
Debt instrument, covenant compliance description | In May 2020, in order to maintain compliance under our credit and term loan facilities in future quarters, we amended our credit and term loan facilities to suspend compliance with all existing financial covenants tested through and including March 31, 2021 and to adjust the levels of particular financial covenants after such period. | ||||
Debt instrument, covenant description | In September 2020, we further amended our Revolver and 2019 Term Facility to extend the waiver period for the testing of the financial covenants to the date the financial statements are delivered for the quarter ended March 31, 2022. As part of the amendment process, we (i) increased commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023, including all $75 million of the increased Revolver commitments, (ii) extended the temporary periods for which certain financial covenants are adjusted once quarterly testing of financial covenants resumes, (iii) increased the mandatory repayment carve out for equity issuances from $500 million to $1 billion, so long as proceeds from the issuances are used for capital expenditures and hotel acquisitions that become part of the unencumbered pool, (iv) maintained the existing guarantees by certain Park-affiliated entities until repayment of the Revolver and 2019 Term Facility and existing pledges of equity interests in Park-affiliated entities owning certain unencumbered assets during the extended waiver period and until the ratio of net debt to EBITDA falls below 6.50x for two consecutive quarters, (v) extended the minimum liquidity covenant through December 2022 and increased the minimum liquidity required to be maintained through December 24, 2021 from $200 million to $200 million plus 50% of the Revolver commitments that mature in December 2021 (which minimum liquidity covenant amount as of September 30, 2020 was $287 million), (vi) obtained the ability to pay a $0.01 per share per fiscal quarter dividend during the extended waiver period and (vii) modified certain restrictions and covenants for the duration of the extended waiver period, including certain mandatory prepayments. We incurred $6 million of fees related to these amendments during the nine months ended September 30, 2020 that were recognized as deferred financing costs. | ||||
Debt to EBITDA ratio | 6.50x | ||||
Latest date of minimum liquidity covenant | Dec. 31, 2022 | ||||
Earliest date of minimum liquidity covenant | Dec. 24, 2021 | ||||
Fixed liquidity covenant amount | $ 200,000,000 | ||||
Variable liquidity covenant amount percentage | 50.00% | ||||
Dividend per share | $ 0.01 | ||||
Restricted cash | $ 35,000,000 | $ 40,000,000 | |||
2028 Senior Secured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from issuance of Senior Secured Notes | $ 631,000,000 | ||||
Maturity Date | 2028-10 | ||||
Debt instrument, interest rate, stated percentage | 5.88% | ||||
2028 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured notes issued | $ 725,000,000 | ||||
Repayments of term loan | $ 631,000,000 | ||||
Debt instrument, interest rate, stated percentage | 5.875% | ||||
Payment, description | The 2028 Senior Secured Notes bear interest at a rate of 5.875% per annum, payable semi-annually in arrears on April 1 and October 1 of each year beginning April 1, 2021. | ||||
Debt issuance cost | $ 13,000,000 | ||||
Debt instrument, redemption, description | We may redeem the 2028 Senior Secured Notes at any time prior to October 1, 2023, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date plus a make-whole premium. On or after October 1, 2023, we may redeem the 2028 Senior Secured Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after October 1, 2025, we may redeem the 2028 Senior Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, before October 1, 2023, we may redeem up to 40% of the 2028 Senior Secured Notes with the net cash proceeds from certain equity offerings at a redemption price of 105.875% of the principal amount redeemed. | ||||
Redemption price percentage of principal amount | 100.00% | ||||
2028 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption percentage of senior secured notes | 40.00% | ||||
2028 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Debt Instrument, Redemption Period Before October 1,2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 105.875% | ||||
Redemption period, start date | Oct. 1, 2023 | ||||
2028 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Debt Instrument, Redemption Period After October 1,2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 100.00% | ||||
Redemption period, start date | Oct. 1, 2025 | ||||
2025 Senior Secured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity Date | 2025-06 | ||||
Debt instrument, interest rate, stated percentage | 7.50% | ||||
2025 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured notes issued | $ 650,000,000 | ||||
Debt instrument, interest rate, stated percentage | 7.50% | ||||
Payment, description | The 2025 Senior Secured Notes bear interest at a rate of 7.500% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2020. | ||||
Maturity date | Jun. 1, 2025 | ||||
Debt issuance cost | $ 13,000,000 | ||||
Debt instrument, redemption, description | We may redeem the 2025 Senior Secured Notes at any time prior to June 1, 2022, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date plus a make-whole premium. On or after June 1, 2022, we may redeem the 2025 Senior Secured Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after June 1, 2024, we may redeem the 2025 Senior Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, before June 1, 2022, we may redeem up to 40% of the 2025 Senior Secured Notes with the net cash proceeds from certain equity offerings at a redemption price of 107.500% of the principal amount redeemed. | ||||
Redemption price percentage of principal amount | 100.00% | ||||
2025 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption percentage of senior secured notes | 40.00% | ||||
2025 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Debt Instrument, Redemption Period Before June 1,2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 107.50% | ||||
Redemption period, start date | Jun. 1, 2022 | ||||
2025 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Debt Instrument, Redemption Period After June 1,2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Redemption price percentage | 100.00% | ||||
Redemption period, start date | Jun. 1, 2024 | ||||
Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, covenant description | These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to us to the extent necessary for us to fund a dividend or distribution by us that we believe is necessary to maintain our status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed $100.0 million, plus 95% of our cumulative Funds From Operations (as defined in the indenture), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) certain convertible indebtedness of the Operating Company. | ||||
Maximum aggregate payment permitted for restricted transactions | $ 100,000,000 | ||||
Maximum FFO permitted for restricted transactions | 95.00% | ||||
Minimum unencumbered assets to total indebtedness | 150.00% | ||||
CMBS and mortgage loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Restricted cash | $ 7,000,000 | $ 13,000,000 | |||
Revolver [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, increase to borrowing capacity | 75,000,000 | ||||
Line of credit facility, maximum borrowing capacity | 1,075,000,000 | ||||
Aggregate commitments | $ 901,000,000 | ||||
Line of credit facility, extension period | 2 years | ||||
Debt instrument, maturity date end year | Dec. 31, 2023 | ||||
Original equity issuance carveout | $ 500,000,000 | ||||
Amended equity issuance carveout | 1,000,000,000 | ||||
Minimum liquidity covenant amount | 287,000,000 | ||||
Amendment fee | $ 6,000,000 | ||||
Maturity Date | 2021-12 | ||||
Revolver [Member] | 2028 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of credit facilities | $ 80,000,000 | ||||
Revolver [Member] | 2025 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of credit facilities | 219,000,000 | ||||
Revolver [Member] | COVID-19 [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings from credit facilities | $ 1,000,000,000 | $ 1,000,000,000 | |||
Repayments of credit facilities | 399,000,000 | ||||
Revolver [Member] | COVID-19 [Member] | Cash [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of credit facilities | 100,000,000 | ||||
Revolver [Member] | COVID-19 [Member] | 2025 Senior Secured Notes and 2028 Senior Secured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of credit facilities | 299,000,000 | ||||
2016 Term Loan [Member] | 2025 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of term loan | $ 69,000,000 |
Debt - Debt Maturities, Assumin
Debt - Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option (Detail) $ in Millions | Sep. 30, 2020USD ($) | |
Debt Disclosure [Abstract] | ||
2020 | $ 14 | |
2021 | 105 | |
2022 | 98 | |
2023 | 1,331 | |
2024 | 676 | |
Thereafter(1) | 2,933 | [1] |
Debt and capital lease obligations, gross | $ 5,157 | |
[1] | Assumes the exercise of all extensions that are exercisable solely at our option. |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Debt and Hierarchy Level Used to Estimate Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Carrying amount [Member] | Level 3 [Member] | SF CMBS Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 725 | $ 725 |
Carrying amount [Member] | Level 3 [Member] | HHV CMBS Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 1,275 | 1,275 |
Carrying amount [Member] | Level 3 [Member] | 2016 Term Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 700 | |
Carrying amount [Member] | Level 3 [Member] | 2019 Term Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 670 | 670 |
Carrying amount [Member] | Level 3 [Member] | Revolver [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 601 | |
Carrying amount [Member] | Level 3 [Member] | Mortgage Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 511 | 516 |
Carrying amount [Member] | Level 1 [Member] | 2025 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 651 | |
Carrying amount [Member] | Level 1 [Member] | 2028 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 725 | |
Fair Value [Member] | Level 3 [Member] | SF CMBS Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 707 | 740 |
Fair Value [Member] | Level 3 [Member] | HHV CMBS Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 1,192 | 1,316 |
Fair Value [Member] | Level 3 [Member] | 2016 Term Loan [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 698 | |
Fair Value [Member] | Level 3 [Member] | 2019 Term Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 648 | 667 |
Fair Value [Member] | Level 3 [Member] | Revolver [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 591 | |
Fair Value [Member] | Level 3 [Member] | Mortgage Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 480 | $ 516 |
Fair Value [Member] | Level 1 [Member] | 2025 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | 694 | |
Fair Value [Member] | Level 1 [Member] | 2028 Senior Secured Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loan | $ 725 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Assets Measured on Nonrecurring Basis (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment Loss, Property and equipment | $ 90 | ||
Goodwill impairment loss | $ 607 | 607 | |
Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair Value, Property and equipment | [1] | 24 | |
Fair Value, Total | 24 | ||
Impairment Loss, Property and equipment | [1] | 90 | |
Goodwill impairment loss | [2] | 607 | |
Impairment Loss, Total | $ 697 | ||
[1] | Fair value of our property and equipment as of September 30, 2020 was measured using significant unobservable inputs (Level 3). We estimated fair value of the assets using discounted cash flow analyses, with an estimated stabilized growth rate of 3%, a discounted cash flow term between 1.7 to 10 years, terminal capitalization rate ranging from 7.25% to 7.75%, and discount rates ranging from 9.5% to 12.5%. The discount and terminal capitalization rates used for the fair value of the assets reflected the risk profile of the markets where these properties are located. | ||
[2] | Fair value of our consolidated and unconsolidated hotel reporting units was measured using significant unobservable inputs (Level 3), which included discounted cash flows, terminal capitalization rates, and discount rates. |
Fair Value Measurements - Est_2
Fair Value Measurements - Estimated Fair Values of Assets Measured on Nonrecurring Basis (Parenthetical) (Detail) - Fair Value, Nonrecurring [Member] - Fair Value, Inputs, Level 3 [Member] | 9 Months Ended |
Sep. 30, 2020 | |
Measurement Input, Long-term Revenue Growth Rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 3 |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discounted cash flow term | 1 year 8 months 12 days |
Terminal capitalization rate | 7.25% |
Minimum [Member] | Discount Rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 9.5 |
Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discounted cash flow term | 10 years |
Terminal capitalization rate | 7.75% |
Maximum [Member] | Discount Rate [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Measurement input | 12.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes [Line Items] | ||||
Income tax expense | $ 1,000,000 | $ 14,000,000 | $ 12,000,000 | |
Percentage of adjusted taxable income | 50.00% | 30.00% | ||
Built-in gains tax expense from assets sold | $ 14,000,000 | |||
Income tax benefit partially offset by TRS | 20,000,000 | |||
Refunds related to carryback of NOLs, CARES Act | 24,000,000 | |||
Hilton Sao Paulo Morumbi [Member] | ||||
Income Taxes [Line Items] | ||||
Non-U.S. income tax expense | 16,000,000 | |||
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 ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Feb. 29, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
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 | |||
Share-based compensation arrangement by share-based payment award performance period | 1 year | |||||
2017 Employee Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Shares of common stock reserved for future issuance | 4,512,900 | 4,512,900 | ||||
Compensation expense | $ 4,000,000 | $ 4,000,000 | $ 10,000,000 | $ 12,000,000 | ||
Unrecognized compensation costs related to unvested awards | $ 22,000,000 | $ 22,000,000 | ||||
Unrecognized compensation costs related to unvested awards, weighted-average period | 1 year 7 months 6 days | |||||
Total fair value of shares vested | $ 17,000,000 | $ 21,000,000 | ||||
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 | 80,530 | 80,530 | ||||
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] | ||||||
Compensation expense | $ 0 | $ 0 | ||||
Share-based compensation arrangement by share-based payment award performance period | 1 year | 3 years | ||||
Market capitalization | $ 1,000,000,000 | $ 1,000,000,000 | ||||
Vesting rights | zero to 200 | |||||
Performance Stock Units ("PSUs") [Member] | Tranche Two [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting rights | 100% | |||||
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] | Maximum [Member] | Tranche Three [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% | |||||
Performance Stock Units ("PSUs") [Member] | Minimum [Member] | Tranche One [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] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 557,245 |
Number of Shares, Granted | shares | 665,141 |
Number of Shares, Vested | shares | (325,885) |
Number of Shares, Forfeited | shares | (60,286) |
Number of Shares, Ending balance | shares | 836,215 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 29.10 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 18.19 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 25.87 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 29.05 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 21.69 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Performance Stock Units ("PSUs") (Detail) - Performance Stock Units ("PSUs") [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 574,797 |
Number of Shares, Granted | shares | 605,535 |
Number of Shares, Vested | shares | (456,121) |
Number of Shares, Forfeited | shares | (52,114) |
Number of Shares, Ending balance | shares | 672,097 |
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares | $ 32.82 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 24.93 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 32.39 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 33.14 |
Weighted Average Grant Date Fair Value, Ending balance | $ / shares | $ 25.98 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model (Detail) | 9 Months Ended | |
Sep. 30, 2020 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected volatility, minimum | 22.00% | [1] |
Expected volatility, maximum | 23.00% | [1] |
Risk-free rate, minimum | 1.20% | |
Risk-free rate, maximum | 1.50% | |
Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 1 year | |
Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected term | 3 years | |
[1] | The weighted average expected volatility was 22.5%. |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted average expected volatility | 22.50% |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Numerator: | |||||
Net (loss) income attributable to stockholders | $ (276) | $ 5 | $ (1,223) | $ 183 | |
Loss allocated to participating securities | (1) | ||||
Net (loss) income attributable to stockholders, net of earnings allocated to participating securities | $ (276) | $ 5 | $ (1,223) | $ 182 | |
Denominator: | |||||
Weighted average shares outstanding – basic | 235 | 206 | 236 | 203 | |
Unvested restricted shares | 1 | 1 | |||
Weighted average shares outstanding – diluted | 235 | 207 | 236 | 204 | |
(Loss) Earnings per share - Basic | [1] | $ (1.17) | $ 0.02 | $ (5.19) | $ 0.90 |
(Loss) Earnings per share - Diluted | [1] | $ (1.17) | $ 0.02 | $ (5.19) | $ 0.90 |
[1] | Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented. |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating business segments | 2 |
Number of reportable segment | 1 |
Business Segment Information _2
Business Segment Information - Reconciliation of Revenues from Consolidated Hotels to Condensed Combined Consolidated Amounts and Hotel Adjusted EBITDA to Net (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||||
Total revenues | $ 98 | $ 672 | $ 739 | $ 2,034 | ||||
Hotel Adjusted EBITDA | (76) | 183 | (93) | 573 | ||||
Depreciation and amortization expense | (75) | (61) | (225) | (184) | ||||
Corporate general and administrative expense | (13) | (14) | (42) | (47) | ||||
Corporate general and administrative expense excluding serverance | (40) | (46) | ||||||
Impairment and casualty loss, net | (2) | (8) | (696) | (8) | ||||
Acquisition costs | (9) | (59) | (10) | (65) | ||||
Other operating expenses | (6) | (23) | (31) | (61) | ||||
(Loss) gain on sales of assets, net | (1) | 1 | 62 | 20 | ||||
Interest income | 2 | 2 | 5 | |||||
Interest expense | (59) | (33) | (149) | (98) | ||||
Equity in (losses) earnings from investments in affiliates | (7) | 3 | (16) | 18 | ||||
Income tax expense | (1) | (14) | (12) | |||||
Other loss, net | (3) | (1) | (6) | (1) | ||||
Severance expense | (24) | (26) | (2) | |||||
Other items | (3) | (3) | (9) | (8) | ||||
Net (loss) income | (276) | $ (261) | $ (689) | 9 | $ 84 | $ 97 | (1,226) | 190 |
Total consolidated hotel revenue [Member] | ||||||||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||||
Total revenues | 95 | 650 | 714 | 1,975 | ||||
Other [Member] | ||||||||
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items] | ||||||||
Total revenues | $ 3 | $ 22 | $ 25 | $ 59 |
Business Segment Information _3
Business Segment Information - Schedule of Total Assets by Consolidated Hotels, Reconciled To Total Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 10,853 | $ 11,290 |
Consolidated Hotels [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | 10,828 | 11,236 |
All Other [Member] | ||
Segment Reporting Asset Reconciling Item [Line Items] | ||
Total assets | $ 25 | $ 54 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Sep. 30, 2020USD ($) |
Other Commitments [Line Items] | |
Purchase commitment, remaining minimum amount committed | $ 23 |
Spin-off Agreements [Member] | Hilton Sydney [Member] | |
Other Commitments [Line Items] | |
Reserve for ongoing claims | $ 7 |