HYATT HOTELS CORP, 10-Q filed on 10/31/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2018
Oct. 26, 2018
Document Information    
Entity Registrant Name Hyatt Hotels Corp  
Entity Central Index Key 0001468174  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Document Type 10-Q  
Document Period End Date Sep. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Trading Symbol h  
Emerging Growth Company false  
Entity Small Business false  
Common Class A    
Document Information    
Entity Common Stock, Shares Outstanding   42,768,452
Common Class B    
Document Information    
Entity Common Stock, Shares Outstanding   67,119,482
v3.10.0.1
Condensed Consolidated Statements of Income - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jul. 31, 2018
May 16, 2018
Feb. 14, 2018
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
REVENUES:              
Total revenues       $ 1,074 $ 1,070 $ 3,316 $ 3,345
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:              
Depreciation and amortization       81 88 243 261
Other direct costs       8 3 23 20
Selling, general, and administrative       82 89 260 278
Direct and selling, general, and administrative expenses       1,012 1,011 3,068 3,130
Net gains and interest income from marketable securities held to fund rabbi trusts       10 11 19 35
Equity earnings (losses) from unconsolidated hospitality ventures       (6) 1 (17) (1)
Interest expense       (19) (20) (57) (61)
Gains on sales of real estate       239 0 769 60
Asset impairments       (21) 0 (21) 0
Other income (loss), net       (9) (16) (22) 32
INCOME BEFORE INCOME TAXES       256 35 919 280
PROVISION FOR INCOME TAXES       (19) (16) (194) (103)
NET INCOME       237 19 725 177
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS       0 (1) 0 (1)
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION       $ 237 $ 18 $ 725 $ 176
EARNINGS PER SHARE—Basic              
Net income (in dollars per share)       $ 2.12 $ 0.15 $ 6.31 $ 1.40
Net income attributable to Hyatt Hotels Corporation (in dollars per share)       2.12 0.14 6.31 1.39
EARNINGS PER SHARE—Diluted              
Net income (in dollars per share)       2.09 0.15 6.21 1.39
Net income attributable to Hyatt Hotels Corporation (in dollars per share)       2.09 0.14 6.21 1.38
CASH DIVIDENDS DECLARED PER SHARE (in dollars per share) $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0 $ 0.45 $ 0
Owned and leased hotels              
REVENUES:              
Total revenues       $ 450 $ 516 $ 1,450 $ 1,661
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:              
Owned and leased hotels       354 406 1,095 1,258
Costs incurred on behalf of managed and franchised properties       354 406 1,095 1,258
Management, franchise, and other fees              
REVENUES:              
Total revenues       133 123 407 367
Amortization of management and franchise agreement assets constituting payments to customers              
REVENUES:              
Total revenues       (5) (4) (15) (13)
Net management, franchise, and other fees              
REVENUES:              
Total revenues       128 119 392 354
Other revenues              
REVENUES:              
Total revenues       7 6 27 28
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties              
REVENUES:              
Total revenues       489 429 1,447 1,302
Costs incurred on behalf of managed and franchised properties              
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:              
Owned and leased hotels       487 425 1,447 1,313
Costs incurred on behalf of managed and franchised properties       $ 487 $ 425 $ 1,447 $ 1,313
v3.10.0.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Statement of Comprehensive Income [Abstract]        
Net income $ 237 $ 19 $ 725 $ 177
Other comprehensive income (loss), net of taxes:        
Foreign currency translation adjustments, net of tax (benefit) of $- and $(1) for the three and nine months ended September 30, 2018 and $- for the three and nine months ended September 30, 2017 71 11 48 71
Unrealized gains on available-for-sale debt securities, net of tax expense of $- for the three and nine months ended September 30, 2018 and September 30, 2017, and unrealized (losses) gains on available-for-sale equity securities, net of tax (benefit) expense of $(7) and $21 for the three and nine months ended September 30, 2017 0 (12) 0 33
Unrealized gains on derivative activity, net of tax expense of $1 for the three and nine months ended September 30, 2018 and $- for the three and nine months ended September 30, 2017 3 1 3 1
Other comprehensive income 74 0 51 105
COMPREHENSIVE INCOME 311 19 776 282
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS 0 (1) 0 (1)
COMPREHENSIVE INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 311 $ 18 $ 776 $ 281
v3.10.0.1
Condensed Consolidated Statements of Comprehensive Income - Parentheticals - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Statement of Comprehensive Income [Abstract]        
Foreign currency translation adjustments, net of tax (benefit) $ 0 $ 0 $ (1) $ 0
Unrealized gains on available-for-sale debt securities tax 0 0 0 0
Unrealized gains on available-for-sale equity securities tax   (7)   21
Unrealized gains on derivative activity, net of tax expense $ 1 $ 0 $ 1 $ 0
v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
CURRENT ASSETS:    
Cash and cash equivalents $ 1,014 $ 503
Restricted cash 23 [1] 234
Short-term investments 217 49
Receivables, net of allowances of $25 and $21 at September 30, 2018 and December 31, 2017, respectively 436 350
Inventories 13 14
Prepaids and other assets 140 153
Prepaid income taxes 56 24
Assets held for sale 44 0
Total current assets 1,943 1,327
Investments 225 212
Property and equipment, net 3,570 4,034
Financing receivables, net of allowances 14 19
Goodwill 132 150
Intangibles, net 296 305
Deferred tax assets 149 141
Other assets 1,395 1,384
TOTAL ASSETS 7,724 7,572
CURRENT LIABILITIES:    
Current maturities of long-term debt 11 11
Accounts payable 127 136
Accrued expenses and other current liabilities 296 352
Current contract liabilities 332 348
Accrued compensation and benefits 130 145
Liabilities held for sale 1 0
Total current liabilities 897 992
Long-term debt 1,622 1,440
Long-term contract liabilities 433 424
Other long-term liabilities 837 863
Total liabilities 3,789 3,719
Commitments and contingencies
Redeemable noncontrolling interest in preferred shares of a subsidiary 0 10
EQUITY:    
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding at September 30, 2018 and December 31, 2017 0 0
Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 43,625,629 issued and outstanding at September 30, 2018, and Class B common stock, $0.01 par value per share, 400,064,055 shares authorized, 67,119,482 shares issued and outstanding at September 30, 2018. Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 48,231,149 issued and outstanding at December 31, 2017, and Class B common stock, $0.01 par value per share, 402,748,249 shares authorized, 7 1 1
Additional paid-in capital 339 967
Retained earnings 3,791 3,054
Accumulated other comprehensive loss (202) (185)
Total stockholders’ equity 3,929 3,837
Noncontrolling interests in consolidated subsidiaries 6 6
Total equity 3,935 3,843
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY $ 7,724 $ 7,572
[1] Restricted cash generally represents sales proceeds pursuant to like-kind exchanges, captive insurance subsidiary requirements, debt service on bonds, escrow deposits, and other arrangements.
v3.10.0.1
Condensed Consolidated Balance Sheet - Parentheticals - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Allowance for doubtful accounts receivable, current $ 25 $ 21
Preferred stock, par value per share (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares outstanding (in shares) 0 0
Common stock, shares, issued (in shares) 0  
Common Class A    
Common stock, par value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares, outstanding (in shares) 43,625,629 48,231,149
Common stock, shares, issued (in shares) 43,625,629 48,231,149
Common Class B    
Common stock, par value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 400,064,055 402,748,249
Common stock, shares, outstanding (in shares) 67,119,482 70,753,837
Common stock, shares, issued (in shares) 67,119,482 70,753,837
v3.10.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 725 $ 177
Adjustments to reconcile net income to net cash provided by operating activities:    
Gains on sales of real estate (769) (60)
Depreciation and amortization 243 261
Deferred income taxes (7) (9)
Impairment of assets 43 0
Equity losses from unconsolidated hospitality ventures 17 1
Amortization of management and franchise agreement assets constituting payments to customers 15 13
Realized losses 2 41
Distributions from unconsolidated hospitality ventures 10 26
Working capital changes and other (147) (22)
Net cash provided by operating activities 132 428
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of marketable securities and short-term investments (572) (365)
Proceeds from marketable securities and short-term investments 426 364
Contributions to equity method and other investments (52) (67)
Return of equity method and other investments 24 200
Acquisitions, net of cash acquired (263) (259)
Capital expenditures (195) (212)
Proceeds from sales of real estate, net of cash disposed 1,334 296
Other investing activities 10 (11)
Net cash provided by (used in) investing activities 712 (54)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from debt, net of issuance costs of $4 and $-, respectively 416 620
Repayments of debt (230) (391)
Repurchases of common stock (654) (555)
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary 0 9
Repayments of redeemable noncontrolling interest in preferred shares in a subsidiary (10) 0
Dividends paid (52) 0
Other financing activities (13) (7)
Net cash used in financing activities (543) (324)
EFFECT OF EXCHANGE RATE CHANGES ON CASH 3 0
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 304 50
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR 752 573
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD $ 1,056 $ 623
v3.10.0.1
Condensed Consolidated Statements of Cash Flows - Supplemental Disclosure Information - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Statement of Cash Flows [Abstract]    
Issuance costs $ 4 $ 0
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash and cash equivalents 1,014 383
Restricted cash [1] 23 224
Restricted cash included in other assets [1] 19 16
Total cash, cash equivalents, and restricted cash 1,056 623
Cash paid during the period for interest 72 77
Cash paid during the period for income taxes 267 125
Non-cash investing and financing activities are as follows:    
Non-cash contributions to equity method investments 53 4
Non-cash issuance of financing receivables 45 0
Change in accrued capital expenditures 7 19
Non-cash management and franchise agreement assets constituting payments to customers $ 0 $ 3
[1] Restricted cash generally represents sales proceeds pursuant to like-kind exchanges, captive insurance subsidiary requirements, debt service on bonds, escrow deposits, and other arrangements.
v3.10.0.1
Organization
9 Months Ended
Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization
ORGANIZATION
Hyatt Hotels Corporation, a Delaware corporation, and its consolidated subsidiaries (collectively "Hyatt Hotels Corporation") provide hospitality and other services on a worldwide basis through the development, ownership, operation, management, franchising, and licensing of hospitality and wellness-related businesses. We develop, own, operate, manage, franchise, license, or provide services to a portfolio of properties consisting of full service hotels, select service hotels, resorts, and other properties, including branded spas and fitness studios, and timeshare, fractional, and other forms of residential or vacation properties. At September 30, 2018, (i) we operated or franchised 347 full service hotels, comprising 133,402 rooms throughout the world, (ii) we operated or franchised 407 select service hotels, comprising 57,576 rooms, of which 358 hotels are located in the United States, and (iii) our portfolio included 6 franchised all-inclusive Hyatt-branded resorts, comprising 2,401 rooms, and 3 destination wellness resorts, comprising 399 rooms. At September 30, 2018, our portfolio of properties operated in 59 countries around the world. Additionally, through strategic relationships, we provide certain reservation and/or loyalty program services to hotels that are unaffiliated with our hotel portfolio and which operate under other tradenames or marks owned by such hotel or licensed by third parties.
As used in these Notes and throughout this Quarterly Report on Form 10-Q, (i) the terms "Hyatt," "Company," "we," "us," or "our" mean Hyatt Hotels Corporation and its consolidated subsidiaries and (ii) the term "portfolio of properties" refers to hotels and other properties, including branded spas and fitness studios and residential vacation ownership units, that we develop, own, operate, manage, franchise, license, or provide services to, including under our Park Hyatt, Miraval, Grand Hyatt, Hyatt Regency, Hyatt, Andaz, Hyatt Centric, The Unbound Collection by Hyatt, Hyatt Place, Hyatt House, Hyatt Ziva, Hyatt Zilara, exhale, and Hyatt Residence Club brands.
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete annual financial statements. As a result, this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (the "2017 Form 10-K").
We have eliminated all intercompany accounts and transactions in our condensed consolidated financial statements. We consolidate entities under our control, including entities where we are deemed to be the primary beneficiary.
Management believes the accompanying condensed consolidated financial statements reflect all adjustments, which are all of a normal recurring nature, considered necessary for a fair presentation of the interim periods.
v3.10.0.1
Recently Issued Accounting Pronouncements
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Recently Issued Accounting Pronouncements
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Summary of Significant Accounting Policies
Our significant accounting policies are detailed in Part IV, Item 15, "Exhibits and Financial Statement Schedule—Note 2 to our Consolidated Financial Statements" within the 2017 Form 10-K. Upon adoption of Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606) and Accounting Standards Update No. 2016-01 ("ASU 2016-01"), Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, our accounting policies have been revised as follows:
Revenue Recognition—Our revenues are primarily derived from the following products and services and are generally recognized when control of the product or service has transferred to the customer:
Owned and leased hotels revenues:
Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased properties and are recognized over time as rooms are occupied and when services are rendered. We present revenues net of sales, occupancy, and other taxes. Taxes collected on behalf of and remitted to governmental taxing authorities are excluded from the transaction price of the underlying products and services. In relation to the loyalty program, a portion of our owned and leased hotels revenues is deferred upon initial stay as points are earned by program members at an owned or leased hotel, and revenues are recognized upon redemption at an owned or leased hotel.
Management, franchise, and other fees:
Management fees primarily consist of a base fee, which is generally calculated as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Management fees are recognized over time as services are performed. Additionally, included within our management fees are royalty fees that we recognize as owners derive value from access to Hyatt's intellectual property ("IP"), including our brand names. Incentive fees may be subject to minimum profitability thresholds, and we recognize incentive fee revenues over time as services are rendered only to the extent that a significant reversal is not probable.
Franchise fees consist of an initial fee and ongoing royalty fees computed as a percentage of gross room revenues and, as applicable, food and beverage revenues. Royalty fees are recognized over time as franchisees derive value from the license to Hyatt's IP. Initial fees are deferred and recognized over the expected customer life, which is typically the initial term of the franchise agreement.
Management, franchise, and other fees include license fee revenues associated with the licensing of the Hyatt brand names through our co-branded credit card program. License fee revenues are recognized over time as the licensee derives value from access to Hyatt's brand names.
Net management, franchise, and other fees are reduced by the amortization of management and franchise agreement assets constituting payments to customers ("Contra revenue"). Consideration provided to customers is recognized in other assets and amortized over the expected customer life, which is typically the initial term of the management or franchise agreement.
Other revenues:
Other revenues include revenues from the sale of promotional awards through our co-branded credit card and spa and fitness revenues from exhale. We recognize the revenue from our co-branded credit card upon the fulfillment or expiration of a card member's promotional awards. Revenue is recognized net of expenses incurred to fulfill the promotional award as we are deemed the agent in the transaction. Spa and fitness revenues are recognized at the point in time the products or services are provided to the customer.
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties:
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties represent the reimbursement of costs incurred on behalf of the owners of properties. These costs relate primarily to payroll costs at managed properties where we are the employer, as well as costs associated with reservations, sales, marketing, technology (collectively, "system-wide services"), and the loyalty program operated on behalf of owners. Hyatt is reimbursed for costs incurred based on the terms of the contracts, and revenue is recognized as the underlying performance obligations are satisfied.
Revenue is adjusted for the effects of a significant financing component when the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year.
Gains on Sales of Real Estate—Gains on sales of real estate are generally recognized when control of the property transfers to the buyer.
Equity Method Investments—We have investments in unconsolidated hospitality ventures accounted for under the equity method. These investments are an integral part of our business and are strategically and operationally important to our overall results. When we receive a distribution from an investment, we determine whether it is a return on our investment or a return of our investment based on the underlying nature of the distribution. We assess investments in unconsolidated hospitality ventures for impairment quarterly.
Debt and Equity Securities—Excluding equity securities classified as equity method investments, debt and equity securities consist of various investments:
Equity securities consist of interest-bearing money market funds, mutual funds, common shares, and preferred shares. Equity securities with a readily determinable fair value are recorded at fair value on our condensed consolidated balance sheets based on listed market prices or dealer quotations where available. Equity securities without a readily determinable fair value are recognized at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer.
Debt securities consist of various types including preferred shares, time deposits, and fixed income securities, including U.S. government obligations, obligations of other government agencies, corporate debt, mortgage-backed and asset-backed securities, and municipal and provincial notes and bonds. Debt securities are classified as either trading, available-for-sale ("AFS"), or held-to-maturity ("HTM").
Trading securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Net gains and losses, both realized and unrealized, on trading securities are reflected in net gains and interest income from marketable securities held to fund rabbi trusts or other income (loss), net, depending on the nature of the investment, on our condensed consolidated statements of income.
AFS securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Unrealized gains and losses on AFS debt securities are recognized in accumulated other comprehensive loss on our condensed consolidated balance sheets. Realized gains and losses on debt securities are recognized in other income (loss), net on our condensed consolidated statements of income.
HTM securities—debt security investments which we have the ability to hold until maturity and are recorded at amortized cost.
AFS and HTM debt securities are assessed for impairment quarterly.
Loyalty Program—We administer the loyalty program for the benefit of Hyatt's portfolio of properties during the period of their participation in the loyalty program. The loyalty program is primarily funded through contributions based on eligible revenues from loyalty program members, and the funds are used for the redemption of member awards and payment of operating expenses.
The costs of operating the loyalty program, including the estimated cost of award redemption, are charged to the participating properties based on members' qualified expenditures. The revenues received from the properties are deferred, and revenues are recognized as loyalty points are redeemed, net of redemption expense, through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. Operating costs are expensed as incurred through costs incurred on behalf of managed and franchised properties.
We actuarially determine the amount to recognize as revenue based on statistical formulas that estimate the timing of future point redemptions based on historical experience, including an estimate of breakage for points that will not be redeemed, and an estimate of the points that will eventually be redeemed. Any revenues in excess of the anticipated future redemptions are used to fund the operational expenses of the program.
The loyalty program is funded by payments from the properties and returns on marketable securities. The program invests amounts received from the properties in marketable securities which are included in other current and noncurrent assets (see Note 4). The current and noncurrent deferred revenue liabilities of the loyalty program are classified as contract liabilities (see Note 3).
Adopted Accounting Standards
Revenue from Contracts with Customers—In May 2014, the Financial Accounting Standards Board ("FASB") released ASU 2014-09. ASU 2014-09 supersedes the requirements in Topic 605, Revenue Recognition, and provides a single, comprehensive revenue recognition model for contracts with customers. Subsequently, the FASB issued several related ASUs which further clarified the application of the standard including ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date by one year making it effective for interim and fiscal years beginning after December 14, 2017.
We adopted ASU 2014-09, and all related ASUs, utilizing the full retrospective transition method on January 1, 2018, which required us to adjust each prior reporting period presented. The adoption of ASU 2014-09 impacts the timing of the recognition of gains on sales of real estate subject to a long-term management agreement, and the associated impact to deferred tax assets (see Note 11), the classification of Contra revenue, and the timing of revenue recognition related to incentive fees. However, we do not expect the new standard to have a significant impact on incentive fee revenue on a full-year basis. The adoption of ASU 2014-09 also impacts the timing of revenue recognition related to the loyalty program and as a result of the change, we recognized a $116 million increase to the contract liability related to the loyalty program at January 1, 2018. Upon adoption of ASU 2014-09, we recognized a cumulative effect of a change in accounting principle through retained earnings, including a $523 million reclassification related to deferred gains at January 1, 2018. We also reclassified certain management and franchise agreement assets from intangibles, net to other assets and certain current and long-term liabilities to current and long-term contract liabilities.
Financial Instruments - Recognition, Measurement, Presentation, and Disclosure—In January 2016, the FASB released ASU 2016-01. ASU 2016-01 revised the accounting for equity investments, excluding those accounted for under the equity method, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 superseded the guidance to classify equity securities with readily determinable fair values into different categories (i.e., trading versus AFS) and requires all equity securities to be measured at fair value on a recurring basis unless an equity security does not have a readily determinable fair value. Equity securities without a readily determinable fair value are remeasured at fair value only in periods in which an observable price change is available or upon identification of an impairment. All changes in fair value are recognized in net income on our condensed consolidated statements of income.
On January 1, 2018, we adopted the provisions of ASU 2016-01 on a modified retrospective basis through a cumulative-effect adjustment to our opening condensed consolidated balance sheet. Upon adoption, $68 million of unrealized gains, net of tax, were reclassified from accumulated other comprehensive loss to opening retained earnings.
Accounting for Income Taxes - Intra-Entity Asset Transfers—In October 2016, the FASB released Accounting Standards Update No. 2016-16 ("ASU 2016-16"), Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We adopted ASU 2016-16 on January 1, 2018 on a modified retrospective basis resulting in a $4 million decrease to retained earnings.
Statement of Cash Flows - Restricted Cash—In November 2016, the FASB released Accounting Standards Update No. 2016-18 ("ASU 2016-18"), Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 requires amounts generally described as restricted cash to be included within cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the condensed consolidated statements of cash flows. We adopted the provisions of ASU 2016-18 on January 1, 2018 on a retrospective basis. Upon adoption of ASU 2016-18, restricted cash of $249 million, including $15 million which is recognized within other assets on our condensed consolidated balance sheet at December 31, 2017, is included within the beginning balance of cash, cash equivalents, and restricted cash on our condensed consolidated statements of cash flows for the nine months ended September 30, 2018. The table below summarizes the changes on our condensed consolidated statements of cash flows for the nine months ended September 30, 2017:
 
Nine Months Ended September 30,
 
2017
Operating activities
$
(11
)
Investing activities
163

Financing activities
(3
)
Cash, cash equivalents, and restricted cash - beginning of year
91

Cash, cash equivalents, and restricted cash - end of period
$
240


Business Combinations - Definition of a Business—In January 2017, the FASB released Accounting Standards Update No. 2017-01 ("ASU 2017-01"), Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. Generally, our acquisitions and dispositions of individual hotels were previously accounted for as business combinations, however, upon adoption of ASU 2017-01, there is an increased likelihood that certain acquisitions and dispositions of individual hotels will be accounted for as asset transactions. We adopted ASU 2017-01 on January 1, 2018 on a prospective basis and evaluate the impact of the standard on acquisitions and dispositions based on the relevant facts and circumstances.
Derivatives and Hedging - Accounting for Hedging Activities—In August 2017, the FASB released Accounting Standards Update No. 2017-12 ("ASU 2017-12"), Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 improves the financial reporting of hedging relationships to better portray the economic results by making improvements to simplify the application of the hedge accounting guidance in current GAAP. ASU 2017-12 is effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted. We early adopted ASU 2017-12 on April 1, 2018 on a modified retrospective basis, which did not impact our condensed consolidated financial statements upon adoption.

The impact of the changes made to our condensed consolidated financial statements as a result of the adoption of ASU 2014-09, ASU 2016-01, and ASU 2016-16 were as follows:
 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2017
 
As Reported
 
Effect of the adoption of
ASU 2014-09
 
As Adjusted
 
As Reported
 
Effect of the adoption of
ASU 2014-09
 
As Adjusted
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
$
518

 
$
(2
)
 
$
516

 
$
1,667

 
$
(6
)
 
$
1,661

Management, franchise, and other fees
122

 
1

 
123

 
374

 
(7
)
 
367

Amortization of management and franchise agreement assets constituting payments to customers

 
(4
)
 
(4
)
 

 
(13
)
 
(13
)
Net management, franchise, and other fees
122

 
(3
)
 
119

 
374

 
(20
)
 
354

Other revenues
16

 
(10
)
 
6

 
53

 
(25
)
 
28

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
463

 
(34
)
 
429

 
1,407

 
(105
)
 
1,302

Total revenues
1,119

 
(49
)
 
1,070

 
3,501

 
(156
)
 
3,345

DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
409

 
(3
)
 
406

 
1,266

 
(8
)
 
1,258

Depreciation and amortization
92

 
(4
)
 
88

 
274

 
(13
)
 
261

Other direct costs
9

 
(6
)
 
3

 
34

 
(14
)
 
20

Selling, general, and administrative
89

 

 
89

 
278

 

 
278

Costs incurred on behalf of managed and franchised properties
463

 
(38
)
 
425

 
1,407

 
(94
)
 
1,313

Direct and selling, general, and administrative expenses
1,062

 
(51
)
 
1,011

 
3,259

 
(129
)
 
3,130

Net gains and interest income from marketable securities held to fund rabbi trusts
12

 
(1
)
 
11

 
37

 
(2
)
 
35

Equity earnings (losses) from unconsolidated hospitality ventures
1

 

 
1

 
(1
)
 

 
(1
)
Interest expense
(20
)
 

 
(20
)
 
(61
)
 

 
(61
)
Gains on sales of real estate

 

 

 
34

 
26

 
60

Other income (loss), net
(19
)
 
3

 
(16
)
 
23

 
9

 
32

INCOME BEFORE INCOME TAXES
31

 
4

 
35

 
274

 
6

 
280

PROVISION FOR INCOME TAXES
(14
)
 
(2
)
 
(16
)
 
(100
)
 
(3
)
 
(103
)
NET INCOME
17

 
2

 
19

 
174

 
3

 
177

NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(1
)
 

 
(1
)
 
(1
)
 

 
(1
)
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
$
16

 
$
2

 
$
18

 
$
173

 
$
3

 
$
176

EARNINGS PER SHARE—Basic
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.14

 
$
0.01

 
$
0.15

 
$
1.38

 
$
0.02

 
$
1.40

Net income attributable to Hyatt Hotels Corporation
$
0.13

 
$
0.01

 
$
0.14

 
$
1.37

 
$
0.02

 
$
1.39

EARNINGS PER SHARE—Diluted
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.14

 
$
0.01

 
$
0.15

 
$
1.37

 
$
0.02

 
$
1.39

Net income attributable to Hyatt Hotels Corporation
$
0.13

 
$
0.01

 
$
0.14

 
$
1.36

 
$
0.02

 
$
1.38


 
December 31, 2017
 
January 1, 2018
 

As Reported
 
Effect of the adoption of
ASU 2014-09
 

As Adjusted
 
Effect of the adoption of ASU 2016-01 and ASU 2016-16
 
As Adjusted
ASSETS
 
 
 
 
 
 
 
 
 
Investments
$
211

 
$
1

 
$
212

 
$
(27
)
 
$
185

Intangibles, net
683

 
(378
)
 
305

 

 
305

Deferred tax assets
242

 
(101
)
 
141

 
1

 
142

Other assets
1,006

 
378

 
1,384

 
22

 
1,406

TOTAL ASSETS
7,672

 
(100
)
 
7,572

 
(4
)
 
7,568

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
 
 
 
 
 
 
 
 

Accounts payable
$
175

 
$
(39
)
 
$
136

 
$

 
$
136

Accrued expenses and other current liabilities
635

 
(283
)
 
352

 

 
352

Current contract liabilities

 
348

 
348

 

 
348

Long-term contract liabilities

 
424

 
424

 

 
424

Other long-term liabilities
1,725

 
(862
)
 
863

 

 
863

Total liabilities
4,131

 
(412
)
 
3,719

 

 
3,719

Retained earnings
2,742

 
312

 
3,054

 
64

 
3,118

Accumulated other comprehensive loss
(185
)
 

 
(185
)
 
(68
)
 
(253
)
Total equity
3,531

 
312

 
3,843

 
(4
)
 
3,839

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
7,672

 
(100
)
 
7,572

 
(4
)
 
7,568


The adoption of ASU 2014-09 resulted in an $11 million reclassification from investing into operating activities during the nine months ended September 30, 2017 related to cash outflows representing payments to customers. There were no impacts to cash provided by or used in financing activities on our condensed consolidated statements of cash flows.
Future Adoption of Accounting Standards
Leases—In February 2016, the FASB released Accounting Standards Update No. 2016-02 ("ASU 2016-02"), Leases (Topic 842). ASU 2016-02 requires lessees to record lease contracts on the balance sheet by recognizing a right-of-use asset and lease liability with certain practical expedients available. The accounting for lessors remains largely unchanged. In July 2018, the FASB released Accounting Standards Update No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, providing entities with an additional optional transition method. The provisions of ASU 2016-02, and all related ASUs, are effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted. The real estate leases for a majority of our owned and leased hotels include contingent lease payments, which will be excluded from the impact of ASU 2016-02. We expect to adopt ASU 2016-02 utilizing the optional transition approach allowed under ASU 2018-11 and applying the package of practical expedients beginning January 1, 2019. We continue to evaluate the impact of adopting ASU 2016-02 and expect this ASU may have a material effect to our condensed consolidated financial statements.
Financial Instruments - Credit Losses—In June 2016, the FASB released Accounting Standards Update No. 2016-13 ("ASU 2016-13"), Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the existing impairment model for most financial assets from an incurred loss impairment model to a current expected credit loss model, which requires an entity to recognize an impairment allowance equal to its current estimate of all contractual cash flows the entity does not expect to collect. ASU 2016-13 also requires credit losses relating to AFS debt securities to be recognized through an allowance for credit losses. The provisions of ASU 2016-13 are to be applied using a modified retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2016-13.


Fair Value Measurement—In August 2018, the FASB released Accounting Standards Update No. 2018-13 ("ASU 2018-13"), Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements. The provisions of ASU 2018-13 are to be applied using a prospective or retrospective approach, depending on the amendment, and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2018-13.
    
Intangibles - Goodwill and Other - Internal-Use Software—In August 2018, the FASB released Accounting Standards Update No. 2018-15 ("ASU 2018-15"), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The provisions of ASU 2018-15 are to be applied using a prospective or retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2018-15.
v3.10.0.1
Revenue from Contracts with Customers
9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
REVENUE FROM CONTRACTS WITH CUSTOMERS
Performance Obligations
We provide products and services to our customers including third-party hotel owners, guests at owned and leased hotels and spa and fitness centers, and a third-party partner through our co-branded credit card program. The products and services offered are comprised of the following performance obligations:
Management and Franchise Agreements:
License to Hyatt's IP, including the Hyatt brand names—We receive variable consideration from third-party hotel owners in exchange for providing access to our IP, including the Hyatt brand names. The license represents a license of symbolic IP and in exchange for providing the license, Hyatt receives sales-based royalty fees. Royalty fees are generally determined based on a percentage of gross revenues for managed hotels and are generally included in the hotel management fee. Royalty fees for franchised hotels are based on a percentage of gross room revenues and, as applicable, food and beverage revenues. Fees generally are payable on a monthly basis as the third-party hotel owners derive value from access to our IP. Royalty fees are recognized over time through management, franchise, and other fees as services are rendered. Under our franchise agreements, we also receive initial fees from third-party hotel owners. The initial fees do not represent a distinct performance obligation and, therefore, are combined with the royalty fees and recognized through management, franchise, and other fees over the expected customer life.
System-wide services—We provide sales, reservations, technology, and marketing services on behalf of owners of managed and franchised properties. The promise to provide system-wide services is not a distinct performance obligation because it is attendant to the license of our IP. Therefore, the promise to provide system-wide services is combined with the license of our IP to form a single performance obligation. We have two accounting models depending on the terms of the agreements:
Cost reimbursement model—Third-party hotel owners are required to reimburse us for all costs incurred to operate the system-wide programs with no added margin. The reimbursements are recognized over time within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal with respect to the promise to provide system-wide services. Expenses incurred related to the system-wide programs are recognized within costs incurred on behalf of managed and franchised properties. The reimbursement of system-wide services is billed on a monthly basis based upon an annual estimate of costs to be incurred and is recognized as revenue commensurate with incurring the cost. To the extent that actual costs vary from estimated costs, a true-up billing or refund is issued to the hotels. Any amounts collected and not yet recognized as revenues are deferred and classified as contract liabilities. Any costs incurred in excess of revenues collected are classified as receivables.
Fund model—Third-party hotel owners are invoiced a system-wide assessment fee primarily based on a percentage of hotel revenues on a monthly basis. We recognize the revenues over time as services are provided through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal with respect to system-wide services. Expenses related to the system-wide programs are recognized as incurred through costs incurred on behalf of managed and franchised properties. Over time, we manage the system-wide programs to break-even, but the timing of the revenue received from the owners may not align with the timing of the expenses to operate the programs. Therefore, the difference between the revenues and expenses may impact our net income.
Hotel management agreement services—We provide hotel management agreement services, which form a single performance obligation that qualifies as a series, under the terms of our management agreements. In exchange for providing these services, we receive variable consideration in the form of management fees, which are comprised of base and incentive fees. Incentive fees are typically subject to the achievement of certain profitability targets, and therefore, we apply judgment in determining the amount of incentive fees recognized each period. Incentive fees revenue is recognized to the extent it is probable that we will not reverse a significant portion of the fees in a subsequent period. We rely on internal financial forecasts and historical trends to estimate the amount of incentive fees revenue recognized and the probability that incentive fees will reverse in the future. Generally, base management fees are due and payable on a monthly basis as services are provided, and incentive fees are due and payable based on the terms of the agreement, but at a minimum, incentive fees are billed and collected annually. Revenue is recognized over time through management, franchise, and other fees.
Under the terms of certain management agreements, primarily within the United States, we are the employer of hotel employees. When we are the employer, we are reimbursed for costs incurred related to the employee management services with no added margin, and the reimbursements are recognized over time as services are rendered within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. In jurisdictions in which we are the employer, we have discretion over how employee management services are provided and, therefore, we are the principal and revenues are recognized on a gross basis.
Loyalty program administration—We administer the loyalty program for the benefit of the Hyatt portfolio of properties. Under the program, members earn loyalty points that can be redeemed for future products and services. Points earned by loyalty program members represent a material right to free or discounted goods or services in the future.
The loyalty program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. The costs of operating the loyalty program are charged to the properties through an assessment fee based on members’ qualified expenditures. The assessment fee is billed and collected monthly, and the revenue received by the program is deferred until a member redeems points. Upon redemption of points at managed and franchised properties, we recognize the previously deferred revenue through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties, net of redemption expense paid to managed and franchised hotels. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent with respect to this performance obligation for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. When loyalty points are redeemed at owned and leased hotels, we recognize revenue through owned and leased hotels revenues.
The revenue recognized each period includes an estimate of breakage for the loyalty points that will not be redeemed. Determining breakage involves significant judgment, and we engage third-party actuaries to estimate the ultimate redemption ratios used in the breakage calculations and the amount of revenue recognized upon redemption. Changes to the expected ultimate redemption assumptions are reflected in the current period.
Room rentals and other services provided at owned and leased hotels—We provide room rentals and other services to our guests, including but not limited to spa, laundry, and parking. These products and services each represent individual performance obligations and, in exchange for these services, we receive fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time the services are rendered or the goods are provided. If a guest enters into a package including multiple goods or services, the fixed price is allocated to each distinct good or service based on the stand-alone selling price for each item. Revenue is recognized over time within owned and leased hotels revenues when we transfer control of the good or service to the customer. Room rental revenue is recognized on a daily basis as the guest occupies the room, and revenue related to other products and services is recognized when the product or service is provided to the guest.
Hotels commonly enter into arrangements with online travel agencies, trade associations, and other entities. As part of these arrangements, Hyatt may pay the other party a commission or rebate based on the revenue generated through that channel. The determination of whether to recognize revenues gross or net of rebates and commission is made based on the terms of each contract.
Spa and fitness services—Exhale spa and fitness studios provide guests with spa and fitness services as well as retail products in exchange for fixed consideration. Each spa and fitness service represents an individual performance obligation. Payment is due in full and revenue is recognized at the point in time the services are rendered or the products are delivered. If a guest purchases a spa or fitness package, the fixed price is allocated to each distinct product or service based on the published stand-alone selling price for each item, and revenues are recognized as the services are rendered.
Co-branded credit card—We have a co-branded credit card agreement with a third party and under the terms of the agreement, we have various performance obligations: granting a license to the Hyatt name, arranging for the fulfillment of points issued to cardholders through the loyalty program, and awarding cardholders with free room nights upon achievement of certain program milestones. The loyalty points and free room nights represent material rights that can be redeemed for free or discounted services in the future.
In exchange for the products and services provided, we receive fixed and variable consideration which is allocated between the performance obligations based upon the relative stand-alone selling prices. Significant judgment is involved in determining the relative stand-alone selling prices, and therefore, we engaged a third-party valuation specialist to assist us. We utilize a relief from royalty method to determine the revenue allocated to the license, which is recognized over time. We utilize observable transaction prices and adjusted market assumptions to determine the stand-alone selling price of a loyalty point, and we utilize a cost plus margin approach to determine the stand-alone selling price of the free room nights. The revenues allocated to loyalty program points and free night awards are deferred and recognized upon redemption, net of redemption expense, as we are deemed to be the agent in the transaction. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. When loyalty points and free nights are redeemed at owned and leased hotels, we recognize revenue through owned and leased hotels revenues.
We satisfy the following performance obligations over time: the license of Hyatt's symbolic IP, hotel management agreement services, administration of the loyalty program, and the license to our brand name through our co-branded credit card agreement. Each of these performance obligations is considered a sales-based royalty or a series of distinct services, and although the activities to fulfill each of these promises may vary from day to day, the nature of each promise is the same and the customer benefits from the services every day.
For each performance obligation satisfied over time, we recognize revenue using an output method based on the value transferred to the customer. Revenue is recognized based on the transaction price and the observable outputs related to each performance obligation. We deem the following to be a faithful depiction of our progress in satisfying these performance obligations:
revenues and operating profits earned by the hotels during the reporting period for access to Hyatt's IP, as it is indicative of the value third-party owners derive;
underlying revenues and operating profits of the hotels for the promise to provide management agreement services to the hotels;
award night redemptions for the administration of the loyalty program performance obligation; and  
cardholder spend for the license to the Hyatt name through our co-branded credit card, as it is indicative of the value our partner derives from the use of our name.
Within our management agreements, we have two performance obligations: providing a license to Hyatt's IP and providing management agreement services. Although these constitute two separate performance obligations, both obligations represent services that are satisfied over time, and Hyatt recognizes revenue using an output method based on the performance of the hotel. Therefore, we have not allocated the transaction price between these two performance obligations as the allocation would result in the same pattern of revenue recognition.

Disaggregated Revenues
The following tables present our revenues disaggregated by the nature of the product or service:
 
Three months ended September 30, 2018
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
276

$

$

$

$
5

$
(7
)
$
274

Food and beverage
133




2


135

Other
34




7


41

Owned and leased hotels
443




14

(7
)
450

 
 
 
 
 
 
 
 
Base management fees

48

11

9


(13
)
55

Incentive management fees

14

16

10


(7
)
33

Franchise fees

32

1




33

Other fees

1

2

2

2


7

License fees




5


5

Management, franchise, and other fees

95

30

21

7

(20
)
133

Contra revenue

(4
)

(1
)


(5
)
Net management, franchise, and other fees

91

30

20

7

(20
)
128

 
 
 
 
 
 
 
 
Other revenues




5

2

7

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

447

24

16

2


489

 
 
 
 
 
 
 
 
Total
$
443

$
538

$
54

$
36

$
28

$
(25
)
$
1,074

 
Nine months ended September 30, 2018
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
848

$

$

$

$
18

$
(26
)
$
840

Food and beverage
474




7


481

Other
106




23


129

Owned and leased hotels
1,428




48

(26
)
1,450

 
 
 
 
 
 
 
 
Base management fees

150

32

25


(40
)
167

Incentive management fees

47

50

29


(21
)
105

Franchise fees

94

2




96

Other fees

10

6

4

4


24

License fees




15


15

Management, franchise, and other fees

301

90

58

19

(61
)
407

Contra revenue

(10
)
(1
)
(4
)


(15
)
Net management, franchise, and other fees

291

89

54

19

(61
)
392

 
 
 
 
 
 
 
 
Other revenues




22

5

27

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

1,328

67

49

3


1,447

 
 
 
 
 
 
 
 
Total
$
1,428

$
1,619

$
156

$
103

$
92

$
(82
)
$
3,316

 
Three months ended September 30, 2017
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
312

$

$

$

$
6

$
(10
)
$
308

Food and beverage
152




3


155

Other
46




7


53

Owned and leased hotels
510




16

(10
)
516

 
 
 
 
 
 
 
 
Base management fees

47

10

8


(14
)
51

Incentive management fees

15

15

8


(7
)
31

Franchise fees

30





30

Other fees

2

2

1

1


6

License fees




5


5

Management, franchise, and other fees

94

27

17

6

(21
)
123

Contra revenue

(3
)

(1
)


(4
)
Net management, franchise, and other fees

91

27

16

6

(21
)
119

 
 
 
 
 
 
 
 
Other revenues




3

3

6

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

395

19

15



429

 
 
 
 
 
 
 
 
Total
$
510

$
486

$
46

$
31

$
25

$
(28
)
$
1,070

 
Nine months ended September 30, 2017
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
969

$

$

$

$
18

$
(29
)
$
958

Food and beverage
544




9


553

Other
128




22


150

Owned and leased hotels
1,641




49

(29
)
1,661

 
 
 
 
 
 
 
 
Base management fees

147

28

22


(47
)
150

Incentive management fees

46

44

24


(19
)
95

Franchise fees

84

2




86

Other fees

12

5

3

2


22

License fees




14


14

Management, franchise, and other fees

289

79

49

16

(66
)
367

Contra revenue

(9
)
(1
)
(3
)


(13
)
Net management, franchise, and other fees

280

78

46

16

(66
)
354

 
 
 
 
 
 
 
 
Other revenues
13




8

7

28

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

1,205

56

41



1,302

 
 
 
 
 
 
 
 
Total
$
1,654

$
1,485

$
134

$
87

$
73

$
(88
)
$
3,345


Contract Balances
Our payments from customers are based on the billing terms established in our contracts. Customer billings are classified as accounts receivable when our right to consideration is unconditional. If our right to consideration is conditional on future performance under the contract, the balance is classified as a contract asset. Under the terms of our management agreements, we earn incentive management fees based on a percentage of hotel profitability. The incentive fee may be contingent on the hotel achieving certain profitability targets. We recognize an incentive fee receivable each month to the extent it is probable that we will not reverse a significant portion of the fees in a subsequent period. However, due to the profitability hurdles in the contract, incentive fees are considered contract assets until the risk related to the achievement of the profitability metric no longer exists. Once the profitability hurdle has been met, the incentive fee receivable balance will be reflected within accounts receivable.
Our contract assets were $1 million and insignificant at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018, the contract assets were included in receivables, net. As our profitability hurdles are generally calculated on a full-year basis, we expect our contract asset balance to be insignificant at year end.
Payments received in advance of performance under the contract are classified as contract liabilities and recognized as revenue as we perform under the contract.

September 30, 2018

December 31, 2017

$ Change

% Change
Current contract liabilities
$
332


$
348


$
(16
)

(4.6
)%
Long-term contract liabilities
433


424


9


2.4
 %
Total contract liabilities
$
765

 
$
772

 
$
(7
)
 
(0.8
)%
The contract liabilities balances above are comprised of the following:
 
September 30, 2018
 
December 31, 2017
Advanced deposits
$
55

 
$
59

Deferred revenue related to the loyalty program
584

 
561

Deferred revenue related to system-wide services
14

 
9

Initial fees received from franchise owners
33

 
27

Other deferred revenue
79

 
116

Total contract liabilities
$
765

 
$
772


Revenue recognized during the three months ended September 30, 2018 and September 30, 2017 included in the contract liability balance at the beginning of each year was $222 million and $216 million, respectively. Revenue recognized during the nine months ended September 30, 2018 and September 30, 2017 included in the contract liability balance at the beginning of each year was $663 million and $639 million, respectively. This revenue was primarily related to advanced deposits and the loyalty program, which is recognized net of redemption reimbursements paid to third parties.
Revenue Allocated to Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted revenue expected to be recognized in future periods was approximately $110 million at September 30, 2018, of which we expect to recognize approximately 20% as revenue over the next 12 months and the remainder thereafter.
We did not estimate revenues expected to be recognized related to our unsatisfied performance obligations for the following:
Deferred revenue related to the loyalty program and revenue from base and incentive management fees as the revenue is allocated to a wholly unperformed performance obligation in a series;
Revenues related to royalty fees as they are considered sales-based royalty fees;
Revenues received for free nights granted through our co-branded credit card as the awards are required to be redeemed within 12 months; and
Revenues related to advanced bookings at owned and leased hotels as each stay has a duration of 12 months or less.
We elected to apply the practical expedient that permits the omission of prior-period information about revenue allocated to future performance obligations under ASU 2014-09.
v3.10.0.1
Debt and Equity Securities
9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Debt and Equity Securities
DEBT AND EQUITY SECURITIES
We make investments in debt and equity securities that we believe are strategically and operationally important to our business. These investments take the form of (i) equity method investments where we have the ability to significantly influence the operations of the entity, (ii) marketable securities held to fund operating programs and for investment purposes, and (iii) other types of investments.
Equity Method Investments
 
September 30, 2018
 
December 31, 2017
Equity method investments
$
225

 
$
185


During the three and nine months ended September 30, 2018, we recognized $1 million and $11 million, respectively, of net gains in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income resulting from sales activity related to certain equity method investments within our owned and leased hotels segment. During the three and nine months ended September 30, 2018, we received $7 million and $17 million, respectively, of related sales proceeds.
During the nine months ended September 30, 2018, we completed an asset acquisition of our partner's interest in certain unconsolidated hospitality ventures in Brazil for a net purchase price of approximately $4 million. During the nine months ended September 30, 2018, we recognized $16 million of impairment charges related to these investments in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income as the carrying value was in excess of fair value. The fair value was determined to be a Level Three fair value measure, and the impairment was deemed other-than-temporary.
During the nine months ended September 30, 2017, an unconsolidated hospitality venture within our owned and leased hotels segment sold a hotel. We received $4 million of proceeds and recognized a $2 million gain in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income.
During the three and nine months ended September 30, 2017, we recognized $3 million of impairment charges in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income.
The following table presents summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Total revenues
$
135

 
$
196

 
$
399

 
$
649

Gross operating profit
53

 
80

 
141

 
225

Income (loss) from continuing operations
(12
)
 
38

 
(15
)
 
36

Net income (loss)
(12
)
 
38

 
(15
)
 
36

Marketable Securities
We hold marketable securities with readily determinable fair values to fund certain operating programs and for investment purposes. Additionally, we periodically transfer available cash and cash equivalents to purchase marketable securities for investment purposes.
Marketable Securities Held to Fund Operating Programs—Marketable securities held to fund operating programs, which are recorded at fair value and included on our condensed consolidated balance sheets, were as follows:
 
September 30, 2018
 
December 31, 2017
Deferred compensation plans held in rabbi trusts (Note 8 and 10)
$
413

 
$
402

Loyalty program
391

 
403

Captive insurance companies
114

 
111

Total marketable securities held to fund operating programs
$
918

 
$
916

Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets
(157
)
 
(156
)
Marketable securities held to fund operating programs included in other assets
$
761

 
$
760


Net realized and unrealized gains (losses) and interest income from marketable securities held to fund the loyalty program are recognized in other income (loss), net on our condensed consolidated statements of income:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
2018
 
2017
 
2018
 
2017
Loyalty program (Note 18)
$
1

 
$
2

 
$
(2
)
 
$
9

Net realized and unrealized gains and interest income from marketable securities held to fund rabbi trusts are recognized in net gains and interest income from marketable securities held to fund rabbi trusts on our condensed consolidated statements of income:


Three Months Ended September 30,
 
Nine Months Ended September 30,
2018
 
2017
 
2018
 
2017
Unrealized gains
$
5

 
$
8

 
$
7

 
$
24

Realized gains
5

 
3

 
12

 
11

Net gains and interest income from marketable securities held to fund rabbi trusts
$
10

 
$
11

 
$
19

 
$
35


Our captive insurance companies hold marketable securities which are classified as AFS debt securities and are invested in U.S. government agencies, time deposits, and corporate debt securities. We classify these investments as current or long-term, based on their contractual maturity dates, which range from 2018 through 2023.
Marketable Securities Held for Investment Purposes—Marketable securities held for investment purposes, which are recorded at fair value and included on our condensed consolidated balance sheets, were as follows:
 
September 30, 2018
 
December 31, 2017
Interest-bearing money market funds
$
38

 
$
26

Time deposits
200

 
37

Common shares
117

 
131

Total marketable securities held for investment purposes
$
355

 
$
194

Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments
(238
)
 
(63
)
Marketable securities held for investment purposes included in other assets
$
117

 
$
131


During 2013, we invested in the common shares of Playa Hotels & Resorts B.V. ("Playa"), and we accounted for our common share investment as an equity method investment. In March 2017, Playa completed a business combination, and Playa Hotels & Resorts N.V. ("Playa N.V.") is now publicly traded on the NASDAQ. Our investment is accounted for as an equity security with a readily determinable fair value as we do not have the ability to significantly influence the operations of the entity. The fair value of the common shares is classified as Level One in the fair value hierarchy as we are able to obtain market available pricing information. The remeasurement of our investment at fair value resulted in $14 million of unrealized losses recognized in other income (loss), net on our condensed consolidated statements of income for the three and nine months ended September 30, 2018, respectively (see Note 18). We did not sell any shares of common stock during the nine months ended September 30, 2018.
Other Investments
Preferred shares—During 2013, we also invested $271 million in Playa for convertible redeemable preferred shares which were classified as an AFS debt security. The fair value of the preferred shares was: 
 
 
2017
Fair value at January 1
 
$
290

Gross unrealized losses
 
(54
)
Realized losses (1) (Note 18)
 
(40
)
Interest income (Note 18)
 
94

Cash redemption
 
(290
)
Fair value at September 30
 
$

(1) The realized losses were the result of a difference between the fair value of the initial investment and the contractual redemption price of $8.40 per share.

HTM Debt Securities—At September 30, 2018 and December 31, 2017, we held $48 million and $47 million, respectively, of investments in HTM debt securities, which are investments in third-party entities that own certain of our hotels and are recorded within other assets in our condensed consolidated balance sheets. The securities are mandatorily redeemable between 2020 and 2025. The amortized cost of our investments approximate fair value. We estimated the fair value of our investments using internally developed discounted cash flow models based on current market inputs for similar types of arrangements. Based upon the lack of available market data, our investments are classified as Level Three within the fair value hierarchy. The primary sensitivity in these calculations is based on the selection of appropriate discount rates. Fluctuations in these assumptions could result in different estimates of fair value.
Equity Securities Without a Readily Determinable Fair Value—At September 30, 2018 and December 31, 2017, we had $9 million and $27 million, respectively, of investments in equity securities without a readily determinable fair value, which represent investments in entities where we do not have the ability to significantly influence the operations of the entity. At December 31, 2017, the securities were included in investments on our condensed consolidated balance sheets. As a result of the adoption of ASU 2016-01 on January 1, 2018, we have reclassified these investments to other assets on our condensed consolidated balance sheet at September 30, 2018.
Due to ongoing operating cash flow shortfalls in the business underlying an equity security during the nine months ended September 30, 2018, we recognized a $22 million impairment charge of our full investment balance in other income (loss), net on our condensed consolidated statements of income (see Note 18) as we deemed that the carrying value was in excess of the fair value. The fair value was determined to be a Level Three fair value measure. During the three months ended September 30, 2018, the entity in which we hold our investment disposed of its assets and is in the process of winding down.
Fair Value—We measured the following financial assets at fair value on a recurring basis:
 
September 30, 2018
 
Cash and cash equivalents
 
Short-term investments
 
Prepaids and other assets
 
Other assets
Level One - Quoted Prices in Active Markets for Identical Assets
 
 
 
 
 
 
 
 
 
Interest-bearing money market funds
$
88

 
$
88

 
$

 
$

 
$

Mutual funds
413

 

 

 

 
413

Common shares
117

 

 

 

 
117

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
212

 

 
204

 

 
8

U.S. government obligations
158

 

 

 
37

 
121

U.S. government agencies
46

 

 
1

 
6

 
39

Corporate debt securities
168

 

 
12

 
30

 
126

Mortgage-backed securities
22

 

 

 
5

 
17

Asset-backed securities
46

 

 

 
11

 
35

Municipal and provincial notes and bonds
3

 

 

 
1

 
2

Total
$
1,273

 
$
88

 
$
217

 
$
90

 
$
878

 
December 31, 2017
 
Cash and cash equivalents
 
Short-term investments
 
Prepaids and other assets
 
Other assets
Level One - Quoted Prices in Active Markets for Identical Assets
 
 
 
 
 
 
 
 
 
Interest-bearing money market funds
$
75

 
$
75

 
$

 
$

 
$

Mutual funds
402

 

 

 

 
402

Common shares
131

 

 

 

 
131

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
50

 

 
39

 

 
11

U.S. government obligations
158

 

 

 
38

 
120

U.S. government agencies
47

 

 
2

 
7

 
38

Corporate debt securities
179

 

 
8

 
33

 
138

Mortgage-backed securities
25

 

 

 
6

 
19

Asset-backed securities
40

 

 

 
10

 
30

Municipal and provincial notes and bonds
3

 

 

 
1

 
2

Total
$
1,110

 
$
75

 
$
49

 
$
95

 
$
891


During the three and nine months ended September 30, 2018 and September 30, 2017, there were no transfers between levels of the fair value hierarchy. We do not have non-financial assets or non-financial liabilities required to be measured at fair value on a recurring basis.
v3.10.0.1
Financing Receivables
9 Months Ended
Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Financing Receivables
FINANCING RECEIVABLES
 
September 30, 2018
 
December 31, 2017
Unsecured financing to hotel owners
$
158

 
$
127

Less: current portion of financing receivables, included in receivables, net
(45
)
 

Less: allowance for losses
(99
)
 
(108
)
Total long-term financing receivables, net of allowances
$
14

 
$
19


Allowance for Losses and Impairments—The following table summarizes the activity in our unsecured financing receivables allowance:
 
2018
 
2017
Allowance at January 1
$
108

 
$
100

  Provisions
3

 
4

  Other adjustments
(2
)
 
1

Allowance at June 30
$
109

 
$
105

  Provisions
2

 
1

  Write-offs
(12
)
 

  Other adjustments

 
1

Allowance at September 30
$
99

 
$
107


Credit Monitoring—Our unsecured financing receivables were as follows:
 
September 30, 2018
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
58

 
$

 
$
58

 
$

Impaired loans (1)
50

 
(50
)
 

 
50

Total loans
108

 
(50
)
 
58

 
50

Other financing arrangements
50

 
(49
)
 
1

 
49

Total unsecured financing receivables
$
158

 
$
(99
)
 
$
59

 
$
99

(1) The unpaid principal balance was $36 million and the average recorded loan balance was $54 million at September 30, 2018.
 
December 31, 2017
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
13

 
$

 
$
13

 
$

Impaired loans (2)
59

 
(59
)
 

 
59

Total loans
72

 
(59
)
 
13

 
59

  Other financing arrangements
55

 
(49
)
 
6

 
49

Total unsecured financing receivables
$
127

 
$
(108
)
 
$
19

 
$
108

(2) The unpaid principal balance was $44 million and the average recorded loan balance was $58 million at December 31, 2017.
Fair Value—We estimated the fair value of financing receivables, which are classified as Level Three in the fair value hierarchy, to be $60 million at September 30, 2018 and $20 million at December 31, 2017.
v3.10.0.1
Acquisitions and Dispositions
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Acquisitions and Dispositions
ACQUISITIONS AND DISPOSITIONS
Acquisitions
Hyatt Regency Phoenix—During the three months ended September 30, 2018, we completed an asset acquisition of Hyatt Regency Phoenix from an unrelated third party for a purchase price of approximately $139 million, net of $1 million of proration adjustments. Assets acquired and recorded in our owned and leased hotels segment consist primarily of $136 million of property and equipment. The purchase of Hyatt Regency Phoenix was designated as replacement property in a like-kind exchange (see "Like-Kind Exchange Agreements" below).
Hyatt Regency Indian Wells Resort & Spa—During the three months ended September 30, 2018, we completed an asset acquisition of Hyatt Regency Indian Wells Resort & Spa from an unrelated third party for a net purchase price of approximately $120 million. Assets acquired and recorded in our owned and leased hotels segment consist primarily of $119 million of property and equipment. The purchase of Hyatt Regency Indian Wells Resort & Spa was designated as replacement property in a like-kind exchange (see "Like-Kind Exchange Agreements" below).
Exhale—During the nine months ended September 30, 2017, we acquired the equity of Exhale Enterprises, Inc. ("exhale") from an unrelated third party for a purchase price of $16 million, net of $1 million cash acquired. Assets acquired and recorded within corporate and other primarily include a $9 million brand indefinite-lived intangible and $4 million of goodwill, of which $3 million is deductible for tax purposes.
Miraval—During the nine months ended September 30, 2017, we acquired Miraval Group ("Miraval") from an unrelated third party. The transaction included the Miraval Life in Balance Spa brand, Miraval Arizona Resort & Spa in Tucson, Arizona, Travaasa Resort in Austin, Texas, and the option to acquire Cranwell Spa & Golf Resort ("Cranwell") in Lenox, Massachusetts. We subsequently exercised our option and acquired the majority of Cranwell during the nine months ended September 30, 2017. Total cash consideration for Miraval was $237 million.
The following table summarizes the fair value of the identifiable net assets acquired in the acquisition of Miraval, which is recorded within corporate and other:
 
 
Current assets, net of cash acquired
$
1

Property and equipment
172

Indefinite-lived intangibles (1)
37

Management agreement intangibles (2)
14

Goodwill (3)
21

Other definite-lived intangibles (4)
7

Total assets
$
252

 
 
Current liabilities
$
13

Deferred tax liabilities
3

Total liabilities
16

Total net assets acquired attributable to Hyatt Hotels Corporation
236

Total net assets acquired attributable to noncontrolling interests
1

Total net assets acquired
$
237

 
 
(1) Includes an intangible attributable to the Miraval brand.
(2) Amortized over a 20 year useful life.
(3) The goodwill, of which $10 million is deductible for tax purposes, is attributable to Miraval's reputation as a renowned provider of wellness and mindfulness experiences, the extension of the Hyatt brand beyond traditional hotel stays, and the establishment of deferred tax liabilities.
(4) Amortized over useful lives ranging from two to seven years.
In conjunction with the acquisition of Miraval, a consolidated hospitality venture for which we are the managing partner (the "Miraval Venture") issued $9 million of redeemable preferred shares to unrelated third-party investors. The preferred shares were non-voting, except as required by applicable law and certain contractual approval rights, and had liquidation preference over all other classes of securities within the Miraval Venture. The redeemable preferred shares earned a return of 12%. The shares were classified as a redeemable noncontrolling interest in preferred shares of a subsidiary, which were presented between liabilities and equity on our condensed consolidated balance sheets and carried at the redemption value. During the nine months ended September 30, 2018, the preferred shares were redeemed for $10 million.
Dispositions
Hyatt Regency Mexico City—During the three months ended September 30, 2018, we sold the shares of the entity which owns Hyatt Regency Mexico City, an investment in an unconsolidated hospitality venture, and adjacent land, a portion of which will be developed as Park Hyatt Mexico City, ("HRMC transaction") to an unrelated third party for approximately $405 million and accounted for the transaction as an asset disposition. We entered into long-term management agreements for the properties upon sale. We received $360 million of proceeds and issued a $45 million unsecured financing receivable with a maturity date of less than one year (see Note 5). The sale resulted in a pre-tax gain of approximately $240 million which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the three and nine months ended September 30, 2018. In connection with the disposition, we recognized a $21 million goodwill impairment charge in asset impairments on our condensed consolidated statements of income during the three and nine months ended September 30, 2018. As we disposed of the assets within the reporting unit, there were no future cash flows to support the related goodwill which was therefore impaired. The operating results and financial position prior to the sale remain within our owned and leased hotels segment. At June 30, 2018, we classified the assets and liabilities as held for sale on our condensed consolidated balance sheets.
Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort and Spa—During the nine months ended September 30, 2018, we sold Grand Hyatt San Francisco, Andaz Maui at Wailea Resort together with adjacent land, and Hyatt Regency Coconut Point Resort and Spa to an unrelated third party as a portfolio for approximately $992 million, net of closing costs and proration adjustments, and entered into long-term management agreements for the properties upon sale. The sale resulted in a $531 million pre-tax gain which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the nine months ended September 30, 2018. The operating results and financial position of these hotels prior to the sale remain within our owned and leased hotels segment. Although we concluded the disposal of these properties does not qualify as discontinued operations, the disposal is considered to be material. Pre-tax net income attributable to the three properties was $15 million during the nine months ended September 30, 2018 and $5 million and $20 million during the three and nine months ended September 30, 2017, respectively.
Land Held for Development—A wholly owned subsidiary held undeveloped land in Los Cabos, Mexico. During the nine months ended September 30, 2018, an unrelated third party invested in the subsidiary in exchange for a 50% ownership interest resulting in derecognition of the subsidiary. Our remaining interest was recorded at a fair value of $45 million as an equity method investment.
Hyatt Regency Grand Cypress—During the nine months ended September 30, 2017, we sold Hyatt Regency Grand Cypress to an unrelated third party for $202 million, net of closing costs and proration adjustments, and entered into a long-term management agreement with the owner of the property. The sale resulted in a $26 million pre-tax gain which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the nine months ended September 30, 2017. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment.
Hyatt Regency Louisville—During the nine months ended September 30, 2017, we sold Hyatt Regency Louisville to an unrelated third party for $65 million, net of closing costs and proration adjustments, and entered into a long-term franchise agreement with the owner of the property. The sale resulted in a $35 million pre-tax gain which was recognized in gains on sales of real estate on our condensed consolidated statements of income during the nine months ended September 30, 2017. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment.
Land Held for Development—During the nine months ended September 30, 2017, we sold land and construction in progress for $29 million to an unconsolidated hospitality venture in which we have a 50% ownership interest, with the intent to complete the development of a hotel in Glendale, California.
Like-Kind Exchange Agreements
Periodically, we enter into like-kind exchange agreements upon the disposition or acquisition of certain properties. Pursuant to the terms of these agreements, the proceeds from the sales are placed into an escrow account administered by a qualified intermediary. The proceeds are recognized as restricted cash on our condensed consolidated balance sheets and released (i) if they are utilized as part of a like-kind exchange agreement, (ii) if we do not identify a suitable replacement property within 45 days after the agreement date, or (iii) when a like-kind exchange agreement is not completed within the remaining allowable time period.
In conjunction with the sale of Hyatt Regency Coconut Point Resort and Spa during the nine months ended September 30, 2018, proceeds of $221 million were held as restricted for use in a potential like-kind exchange. During the three months ended September 30, 2018, $198 million of these proceeds were utilized to acquire Hyatt Regency Phoenix and Hyatt Regency Indian Wells Resort & Spa and the remaining $23 million were released.
In conjunction with the sale of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch during the year ended December 31, 2017, proceeds of $207 million were initially held as restricted for use in a potential like-kind exchange. However, we did not acquire an identified replacement property within the specified 180 day period and the proceeds were released during the nine months ended September 30, 2018.
Assets Held For Sale
During the nine months ended September 30, 2018, we signed a purchase and sale agreement to sell a Hyatt House hotel. The assets and liabilities are classified as held for sale and related operating results remain within our owned and leased hotels segment at September 30, 2018. Assets held for sale primarily consist of $44 million of property and equipment, net, and liabilities held for sale are insignificant. In October 2018, we sold the hotel (see Note 19).
v3.10.0.1
Intangibles, Net
9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangibles, Net
INTANGIBLES, NET
 
September 30, 2018
 
Weighted-
average useful
lives in years
 
December 31, 2017
Management and franchise agreement intangibles
$
178

 
23

 
$
178

Lease related intangibles
123

 
110

 
127

Brand and other indefinite-lived intangibles
53

 

 
53

Advanced bookings intangibles
15

 
5

 
9

Other definite-lived intangibles
8

 
6

 
9

 
377

 
 
 
376

Accumulated amortization
(81
)
 
 
 
(71
)
Intangibles, net
$
296

 
 
 
$
305


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Amortization expense
$
3

 
$
3

 
$
10

 
$
10

v3.10.0.1
Other Assets
9 Months Ended
Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets
OTHER ASSETS
 
September 30, 2018
 
December 31, 2017
Marketable securities held to fund rabbi trusts (Note 4)
$
413

 
$
402

Management and franchise agreement assets constituting payments to customers (1)
385

 
378

Loyalty program marketable securities (Note 4)
293

 
298

Common shares of Playa N.V. (Note 4)
117

 
131

Long-term investments
112

 
109

Other
75

 
66

Total other assets
$
1,395

 
$
1,384

(1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees.
v3.10.0.1
Debt
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Debt
DEBT
Long-term debt, net of current maturities was $1,622 million and $1,440 million at September 30, 2018 and December 31, 2017, respectively.
Senior Notes—During the three months ended September 30, 2018, we issued $400 million of 4.375% senior notes due 2028, at an issue price of 99.866% (the "2028 Notes"). We received $396 million of net proceeds from the sale of the 2028 Notes, after deducting $4 million of underwriting discounts and other offering expenses. We used a portion of the proceeds from the issuance of the 2028 Notes to redeem our 6.875% senior notes due 2019 (the "2019 Notes") and intend to use the remainder for general corporate purposes. Interest on the 2028 Notes is payable semi-annually on March 15 and September 15 of each year, beginning on March 15, 2019.
The 2019 Notes and 2028 Notes, together with our $250 million of 5.375% senior notes due 2021 (the "2021 Notes"), $350 million of 3.375% senior notes due 2023 (the "2023 Notes"), and $400 million of 4.850% senior notes due 2026 (the "2026 Notes"), are collectively referred to as the "Senior Notes."
Debt Redemption—During the three months ended September 30, 2018, we redeemed all of our outstanding 2019 Notes, of which there was $196 million of aggregate principal outstanding, at a redemption price of approximately $203 million, which was calculated in accordance with the terms of the 2019 Notes and included principal and accrued interest plus a make-whole premium. The $7 million loss on extinguishment of debt was recognized in other income (loss), net on our condensed consolidated statements of income (see Note 18).
Revolving Credit Facility—During the nine months ended September 30, 2018, we refinanced our $1.5 billion senior unsecured revolving credit facility with a syndicate of lenders, extending the maturity of the facility to January 2023. During the nine months ended September 30, 2018, we had $20 million of borrowings and repayments on our revolving credit facility, resulting in no outstanding balance and an available line of credit of $1.5 billion at September 30, 2018. The weighted-average interest rate on these borrowings was 4.85% at September 30, 2018. At December 31, 2017, we had no outstanding balance.
Fair Value—We estimated the fair value of debt, excluding capital leases, which consists of our Senior Notes, bonds, and other long-term debt. Our Senior Notes and bonds are classified as Level Two due to the use and weighting of multiple market inputs in the final price of the security. We estimated the fair value of other debt instruments using a discounted cash flow analysis based on current market inputs for similar types of arrangements. Based upon the lack of available market data, we have classified our revolving credit facility and other debt instruments as Level Three. The primary sensitivity in these calculations is based on the selection of appropriate discount rates. Fluctuations in these assumptions will result in different estimates of fair value.


 
September 30, 2018
 
Carrying value
 
Fair value
 
Quoted prices in active markets for identical assets (level one)
 
Significant other observable inputs (level two)
 
Significant unobservable inputs (level three)
Debt (1)
$
1,636

 
$
1,656

 
$

 
$
1,591

 
$
65

(1) Excludes $13 million of capital lease obligations and $16 million of unamortized discounts and deferred financing fees.
 
December 31, 2017
 
Carrying value
 
Fair value
 
Quoted prices in active markets for identical assets (level one)
 
Significant other observable inputs (level two)
 
Significant unobservable inputs (level three)
Debt (2)
$
1,452

 
$
1,546

 
$

 
$
1,459

 
$
87

(2) Excludes $13 million of capital lease obligations and $14 million of unamortized discounts and deferred financing fees.
Interest Rate Locks—During the nine months ended September 30, 2018, we entered into two interest rate locks with a $425 million total notional value and mandatory settlement dates in 2019 and 2021. The interest rate locks hedge a portion of the risk of changes in the benchmark interest rate associated with long-term debt we anticipate issuing in the future. These derivative instruments were designated as cash flow hedges and deemed highly effective at inception.
During the three months ended September 30, 2018, we settled one of the aforementioned interest rate locks with a $225 million notional value upon issuance of the 2028 Notes. The outstanding interest rate lock with a $200 million notional value remains highly effective at September 30, 2018.
v3.10.0.1
Other Long-Term Liabilities
9 Months Ended
Sep. 30, 2018
Other Liabilities [Abstract]  
Other Long-Term Liabilities
OTHER LONG-TERM LIABILITIES
 
September 30, 2018
 
December 31, 2017
Deferred compensation plans held to fund rabbi trusts (Note 4)
$
413

 
$
402

Guarantee liabilities (Note 12)
79

 
104

Self-insurance liabilities (Note 12)
76

 
69

Deferred income taxes
42

 
62

Other
227

 
226

Total other long-term liabilities
$
837

 
$
863

v3.10.0.1
Income Taxes
9 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The effective income tax rates for the three months ended September 30, 2018 and September 30, 2017 were 7.7% and 45.2%, respectively. The effective income tax rates for the nine months ended September 30, 2018 and September 30, 2017 were 21.2% and 36.7%, respectively. Our effective tax rate decreased for the three and nine months ended September 30, 2018, compared to the three and nine months ended September 30, 2017, primarily due to the Tax Cuts and Jobs Act ("Tax Act") enacted on December 22, 2017, which reduced the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, as well as a low effective tax rate on the HRMC transaction during the three months ended September 30, 2018.
During the three months ended September 30, 2018, we substantially completed our 2017 U.S. Federal Consolidated Income Tax Return. As such, we have refined our initial provisional amounts in relation to Staff Accounting Bulletin No. 118 ("SAB 118"), Income Tax Accounting Implications of the Tax Cuts and Jobs Act, and recognized measurement period adjustments during the three months ended September 30, 2018 related to our net deferred tax revaluation, deemed repatriation tax, and valuation allowance on certain foreign tax credits. We have not changed our indefinite reinvestment assertion, nor have we made a policy election with respect to our global intangible low-tax income. We continue to evaluate new guidance and legislation as it is issued, as well as the impact of state taxes on our provisional amounts upon completion of the 2017 state tax returns during the remainder of 2018. Our accounting for the Tax Act is incomplete, however, we expect to complete our accounting within the measurement period prescribed by SAB 118. During the three months ended September 30, 2018, we revised our provisional amounts and recognized adjustments as follows:
We recognized a $1 million decrease to our provisional expense related to our net deferred tax revaluation. During the year ended December 31, 2017, we recognized a provisional expense of $97 million;

We recognized an additional $2 million of provisional deemed repatriation tax expense, including state tax impacts. During the year ended December 31, 2017, we recorded a provisional expense of $13 million; and
We recognized a $2 million decrease to our provisional valuation allowance related to foreign tax credits that are not expected to be utilized in the future. During the year ended December 31, 2017, we recorded a provisional valuation allowance of $15 million.
As a result of the adoption of ASU 2014-09, our deferred tax asset related to deferred gains on sales of real estate was no longer required. The reversal of this deferred tax asset was recognized through opening equity resulting in a $52 million reduction in deferred tax expense on our full-year 2017 adjusted financial statements originally recognized as a result of the Tax Act.
Unrecognized tax benefits were $93 million at September 30, 2018 and $94 million at December 31, 2017, of which $33 million would impact the effective tax rate, if recognized in either period.
During the first quarter of 2017, the Internal Revenue Service ("IRS") issued a "Notice of Deficiency" for our 2009 through 2011 tax years. We disagree with the IRS' assessment related to the inclusion of loyalty program contributions as taxable income to the Company. In the second quarter of 2017, we filed a petition with the U.S. Tax Court for redetermination of the tax liability asserted by the IRS related to the loyalty program. During the three months ended September 30, 2018, the IRS issued a Revenue Agent’s Report for the subsequent audit period covering tax years 2012 through 2014, which reflected the carryover effect of the issue described above currently in U.S. Tax Court. We filed a formal protest with the IRS in October of 2018. If the IRS' position is upheld, it would result in an income tax payment of $177 million (including $33 million of estimated interest, net of federal tax benefit) for all assessed years that would be partially offset by a deferred tax asset. Future tax benefits will be recognized at the reduced U.S. corporate income tax rate, therefore, $59 million of the payment and related interest would have an impact on the effective tax rate, if recognized. We believe we have an adequate uncertain tax position recorded in connection with this matter.
v3.10.0.1
Commitments and Contingencies
9 Months Ended
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
In the ordinary course of business, we enter into various commitments, guarantees, surety bonds, and letter of credit agreements, which are discussed below:
Commitments—At September 30, 2018, we are committed, under certain conditions, to lend or invest up to $370 million, net of any related letters of credit, in various business ventures.
Performance Guarantees—Certain of our contractual agreements with third-party hotel owners require us to guarantee payments to the owners if specified levels of operating profit are not achieved by their hotels.
Our most significant performance guarantee relates to four managed hotels in France that we began managing in the second quarter of 2013 ("the four managed hotels in France"), which has a term of seven years and approximately one and three-quarter years remaining. This guarantee has a maximum cap, but does not have an annual cap. The remaining maximum exposure related to our performance guarantees at September 30, 2018 was $319 million, of which €231 million ($268 million using exchange rates at September 30, 2018) related to the four managed hotels in France.
We had $37 million and $71 million of total net performance guarantee liabilities at September 30, 2018 and December 31, 2017, respectively, which included $30 million and $45 million recorded in other long-term liabilities, $7 million and $26 million in accrued expenses and other current liabilities, and insignificant receivables on our condensed consolidated balance sheets, respectively.
 
 
The four managed hotels in France
 
Other performance guarantees
 
All performance guarantees
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Beginning balance, January 1
 
$
58

 
$
66

 
$
13

 
$
13

 
$
71

 
$
79

Initial guarantee obligation liability
 

 

 

 
3

 

 
3

Amortization of initial guarantee obligation liability into income
 
(8
)
 
(7
)
 
(2
)
 
(2
)
 
(10
)
 
(9
)
Performance guarantee expense (income), net
 
36

 
41

 
(1
)
 
(1
)
 
35

 
40

Net payments during the period
 
(50
)
 
(49
)
 
(5
)
 
(1
)
 
(55
)
 
(50
)
Foreign currency exchange, net
 

 
6

 

 

 

 
6

Ending balance, June 30
 
$
36

 
$
57

 
$
5

 
$
12

 
$
41

 
$
69

Amortization of initial guarantee obligation liability into income
 
(3
)
 
(4
)
 
(1
)
 
(1
)
 
(4
)
 
(5
)
Performance guarantee expense
 
3

 
13

 
3

 
1

 
6

 
14

Net (payments) receipts during the period
 
(9
)
 
(16
)
 
2

 
1

 
(7
)
 
(15
)
Foreign currency exchange, net
 
1

 
3

 

 

 
1

 
3

Ending balance, September 30
 
$
28

 
$
53

 
$
9

 
$
13

 
$
37

 
$
66


Additionally, we enter into certain management contracts where we have the right, but not an obligation, to make payments to certain hotel owners if their hotels do not achieve specified levels of operating profit. If we choose not to fund the shortfall, the hotel owner has the option to terminate the management contract. At September 30, 2018 and December 31, 2017, there were no amounts recognized on our condensed consolidated balance sheets related to these performance test clauses.
Debt Repayment and Other Guarantees—We enter into various debt repayment and other guarantees in order to assist property owners in obtaining third-party financing or to obtain more favorable borrowing terms. Included within debt repayment and other guarantees are the following:
Property description
 
Maximum potential future payments
 
Maximum exposure net of recoverability from third parties
 
Other long-term liabilities recorded at September 30, 2018
 
Other long-term liabilities recorded at December 31, 2017
 
Year of guarantee expiration
Hotel property in Washington State (1), (3), (4), (5)
 
$
215

 
$

 
$
19

 
$
26

 
2020
Hotel properties in India (2), (3)
 
166

 
166

 
11

 
17

 
2020
Hotel property in Massachusetts (6)
 
102

 
102

 
1

 
1

 
2020
Hotel and residential properties in Brazil (1), (4)
 
95

 
40

 
3

 
4

 
various, through 2021
Hotel property in Oregon (1), (5)
 
61

 
10

 
4

 

 
various, through 2022
Hotel properties in California (1)
 
31

 
13

 
4

 
6

 
various, through 2021
Hotel property in Minnesota
 
25

 
25

 
1

 
2

 
2021
Hotel property in Arizona (1), (4)
 
25

 

 
1

 
1

 
2019
Other (1)
 
30

 
19

 
5

 
2

 
various, through 2022
Total
 
$
750

 
$
375

 
$
49

 
$
59

 
 

(1) We have agreements with our unconsolidated hospitality venture partners, the respective hotel owners, or other third parties to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash, financing receivable, or HTM debt security.
(2) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at September 30, 2018. We have the contractual right to recover amounts funded from the unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $83 million, taking into account our partner's 50% ownership interest in the unconsolidated hospitality venture.
(3) Under certain events or conditions, we have the right to force the sale of the property(ies) in order to recover amounts funded.
(4) If certain funding thresholds are met or if certain events occur, we have the ability to assume control of the property. With respect to properties in Brazil, this right only exists for the residential property.
(5) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction using the funds available from the outstanding loan. Any additional funds paid by us are subject to partial recovery in the form of cash or HTM debt security. At September 30, 2018, the maximum potential future payments and maximum exposure net of recoverability from third parties under the completion guarantees are $45 million and $4 million, respectively.
(6) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction and any additional funds paid by us are not recoverable.
At September 30, 2018, we are not aware of, nor have we received notification that hotel owners are not current on their debt service obligations where we have provided a debt repayment guarantee.
Guarantee Liabilities Fair Value—We estimated the fair value of our guarantees to be $151 million and $177 million at September 30, 2018 and December 31, 2017, respectively. Based upon the lack of available market data, we have classified our guarantees as Level Three in the fair value hierarchy.
Insurance—We obtain commercial insurance for potential losses for general liability, workers' compensation, automobile liability, employment practices, crime, property, cyber risk, and other miscellaneous coverages. A portion of the risk is retained on a self-insurance basis primarily through U.S.-based and licensed captive insurance companies that are wholly owned subsidiaries of Hyatt and generally insure our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. Losses estimated to be paid within 12 months are $37 million and $32 million at September 30, 2018 and December 31, 2017, respectively, and are classified within accrued expenses and other current liabilities on our condensed consolidated balance sheets, while losses expected to be payable in future periods are $76 million and $69 million at September 30, 2018 and December 31, 2017, respectively, and are included in other long-term liabilities on our condensed consolidated balance sheets. At September 30, 2018, $9 million of standby letters of credit were issued to provide collateral for the estimated claims, which are guaranteed by us.
Collective Bargaining Agreements—At September 30, 2018, approximately 24% of our U.S.-based employees were covered by various collective bargaining agreements, generally providing for basic pay rates, working hours, other conditions of employment, and orderly settlement of labor disputes. Certain employees are covered by union-sponsored, multi-employer pension and health plans pursuant to agreements between us and various unions. Generally, labor relations have been maintained in a normal and satisfactory manner, and we believe our employee relations are good.
Surety Bonds—Surety bonds issued on our behalf were $26 million at September 30, 2018 and primarily relate to workers’ compensation, taxes, licenses, and utilities related to our lodging operations.
Letters of Credit—Letters of credit outstanding on our behalf at September 30, 2018 were $297 million, which relate to our ongoing operations, hotel properties under development in the U.S., including one unconsolidated hospitality venture, collateral for estimated insurance claims, and securitization of our performance under our debt repayment guarantees associated with the hotel properties in India and the residential property in Brazil, which are only called upon if we default on our guarantees. The letters of credit outstanding do not reduce the available capacity under our revolving credit facility (see Note 9).
Capital Expenditures—As part of our ongoing business operations, significant expenditures are required to complete renovation projects that have been approved.
Other—We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender's recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof.
In conjunction with financing obtained for our unconsolidated hospitality ventures, certain managed hotels, and other properties, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions or actions of the other unconsolidated hospitality venture partners, respective hotel owners, or other third parties.
As a result of certain dispositions, we have agreed to provide customary indemnifications to third-party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire.
We are subject, from time to time, to various claims and contingencies related to lawsuits, taxes, and environmental matters, as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. Although the ultimate liability for these matters cannot be determined at this point, based on information currently available, we do not expect the ultimate resolution of such claims and litigation to have a material effect on our condensed consolidated financial statements.
During the nine months ended September 30, 2018, we received a notice from the Indian tax authorities assessing additional service tax on our operations in India. We appealed this decision and do not believe a loss is probable, and therefore, we have not recognized a liability in connection with this matter. Our maximum exposure is not expected to exceed $17 million.
v3.10.0.1
Equity
9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Equity
EQUITY
 
Stockholders'
equity
 
Noncontrolling interests
in consolidated
subsidiaries
 
Total equity
Balance at January 1, 2018
$
3,833

 
$
6

 
$
3,839

Net income attributable to Hyatt Hotels Corporation
725

 

 
725

Other comprehensive income
51

 

 
51

Repurchase of common stock
(654
)
 

 
(654
)
Dividends
(52
)
 

 
(52
)
Directors compensation
2

 

 
2

Employee stock plan issuance
3

 

 
3

Share-based payment activity
21

 

 
21

Balance at September 30, 2018
$
3,929

 
$
6

 
$
3,935

 
 
 
 
 
 
 
 
Stockholders'
equity
 
Noncontrolling interests
in consolidated
subsidiaries
 
Total equity
Balance at January 1, 2017 (a)
$
4,075

 
$
5

 
$
4,080

Net income attributable to Hyatt Hotels Corporation
176

 

 
176

Other comprehensive income
105

 

 
105

Contributions from noncontrolling interests

 
1

 
1

Repurchase of common stock
(555
)
 

 
(555
)
Directors compensation
2

 

 
2

Employee stock plan issuance
3

 

 
3

Share-based payment activity
20

 

 
20

Balance at September 30, 2017
$
3,826

 
$
6

 
$
3,832

(a) Balances have been adjusted for the adoption of ASU 2014-09 with an opening adjustment to retained earnings of $172 million.

Accumulated Other Comprehensive Loss
 
Balance at
July 1, 2018
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss (a)
 
Balance at September 30, 2018
Foreign currency translation adjustments
$
(266
)
 
$
9

 
$
62

 
$
(195
)
Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(3
)
 
3

 

 

Accumulated other comprehensive loss
$
(276
)
 
$
12

 
$
62

 
$
(202
)
(a) The amounts reclassified from accumulated other comprehensive loss include the gain recognized in gains on sales of real estate related to the HRMC transaction (see Note 6).
 
 
 
 
 
 
 
 
 
Balance at
January 1, 2018
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss (b)
 
Balance at September 30, 2018
Foreign currency translation adjustments
$
(243
)
 
$
(29
)
 
$
77

 
$
(195
)
Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(3
)
 
3

 

 

Accumulated other comprehensive loss
$
(253
)
 
$
(26
)
 
$
77

 
$
(202
)
(b) The amounts reclassified from accumulated other comprehensive loss include the net gain recognized in gains on sales of real estate related to the derecognition of a wholly owned subsidiary and the HRMC transaction (see Note 6).
 
 
 
 
 
 
 
 
 
Balance at
July 1, 2017
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
September 30, 2017
Foreign currency translation adjustments
$
(239
)
 
$
11

 
$

 
$
(228
)
Unrealized gains on AFS securities
78

 
(12
)
 

 
66

Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(4
)
 
1

 

 
(3
)
Accumulated other comprehensive loss
$
(172
)
 
$

 
$

 
$
(172
)
 
 
 
 
 
 
 
 
 
Balance at
January 1, 2017
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
September 30, 2017
Foreign currency translation adjustments
$
(299
)
 
$
71

 
$

 
$
(228
)
Unrealized gains on AFS securities (c)
33

 
8

 
25

 
66

Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(4
)
 
1

 

 
(3
)
Accumulated other comprehensive loss
$
(277
)
 
$
80

 
$
25

 
$
(172
)
(c) The presentation above was revised to reflect the gross impact of the redemption of certain Playa securities (see Note 4), which was previously presented on a net basis within current period other comprehensive income (loss) before reclassification. The revised presentation above reflects the $40 million realized loss ($25 million net of tax) recognized in other income (loss), net (see Note 18) in the period of redemption as an amount reclassified from accumulated other comprehensive loss.

Share RepurchaseDuring 2017 and 2016, our board of directors authorized the repurchase of up to $1,250 million and $500 million, respectively, of our common stock. In October 2018, our board of directors authorized the additional repurchase of up to $750 million of our common stock (see Note 19). These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan or an accelerated share repurchase transaction, at prices we deem appropriate and subject to market conditions, applicable law, and other factors deemed relevant in our sole discretion. The common stock repurchase program applies to our Class A common stock and our Class B common stock. The common stock repurchase program does not obligate us to repurchase any dollar amount or number of shares of common stock and the program may be suspended or discontinued at any time.
We entered into the following accelerated share repurchase ("ASR") programs with third-party financial institutions to repurchase Class A shares:
 
Total number of shares repurchased (1)
 
Weighted-average price per share
 
Total cash paid
May 2018 ASR
2,481,341

 
$
80.60

 
$
200

August 2017 ASR (2) (3)
1,401,787

 
$
57.07

 
$
100

March 2017 ASR (2)
5,393,669

 
$
55.62

 
$
300

(1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share.
(2) The August 2017 ASR and the March 2017 ASR are collectively referred to as the "2017 ASR Agreements."
(3) At September 30, 2017, the remaining yet to be delivered shares totaled $20 million and were accounted for as an equity-classified forward contract. The August 2017 ASR was settled subsequent to the nine months ended September 30, 2017 for 264,697 shares. Overall, we repurchased 1,666,484 shares at a weighted-average price per share of $60.01.
During the nine months ended September 30, 2018, we repurchased 8,560,012 shares of common stock, including settlement of the May 2018 ASR and 244,260 shares representing the settlement of an ASR program entered into during the fourth quarter of 2017 ("November 2017 ASR"). The shares of common stock were repurchased at a weighted-average price of $78.42 per share and an aggregate purchase price of $674 million, excluding related insignificant expenses. The aggregate purchase price includes $20 million of shares delivered in the settlement of the November 2017 ASR in 2018, for which payment was made during 2017. Total shares repurchased during the nine months ended September 30, 2018 represented approximately 7% of our total shares of common stock outstanding at December 31, 2017.
During the nine months ended September 30, 2017, we repurchased 9,492,729 shares of common stock, including shares repurchased pursuant to the 2017 ASR Agreements. The shares of common stock were repurchased at a weighted-average price of $56.37 per share for an aggregate purchase price of $535 million, excluding related insignificant expenses. The shares repurchased during the nine months ended September 30, 2017 represented approximately 7% of our total shares of common stock outstanding at December 31, 2016.
The shares of Class A common stock repurchased on the open market were retired and returned to the status of authorized and unissued shares, while the shares of Class B common stock repurchased were retired and the total number of authorized Class B shares was reduced by the number of shares retired during the three months ended September 30, 2018 (see Note 15). At September 30, 2018, we had $210 million remaining under the share repurchase authorization.
DividendDuring the nine months ended September 30, 2018, we paid cash dividends to Class A and Class B shareholders of record as follows:
Date Declared
 
Dividend per share amount
 
Date of record
 
Date paid
February 14, 2018
 
$
0.15

 
March 22, 2018
 
March 29, 2018
May 16, 2018
 
$
0.15

 
June 19, 2018
 
June 28, 2018
July 31, 2018
 
$
0.15

 
September 6, 2018
 
September 20, 2018
v3.10.0.1
Stock-Based Compensation
9 Months Ended
Sep. 30, 2018
Share-based Compensation [Abstract]  
Stock-Based Compensation
STOCK-BASED COMPENSATION
As part of our Long-Term Incentive Plan, we award Stock Appreciation Rights ("SARs"), Restricted Stock Units ("RSUs"), and Performance Share Units ("PSUs") to certain employees. Compensation expense and unearned compensation presented below exclude amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as this expense has been and will continue to be reimbursed by our third-party hotel owners and is recognized within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties and costs incurred on behalf of managed and franchised properties on our condensed consolidated statements of income. Stock-based compensation expense included in selling, general, and administrative expense on our condensed consolidated statements of income related to these awards was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
SARs
$
1

 
$
1

 
$
10

 
$
10

RSUs
2

 
3

 
14

 
14

PSUs
2

 
1

 
4

 
2

Total
$
5

 
$
5

 
$
28

 
$
26


SARs—During the nine months ended September 30, 2018, we granted 504,760 SARs to employees with a weighted-average grant date fair value of $21.18. During the nine months ended September 30, 2017, we granted 625,740 SARs to employees with a weighted-average grant date fair value of $16.42.
RSUs— During the nine months ended September 30, 2018, we granted 272,549 RSUs to employees with a weighted-average grant date fair value of $79.90. During the nine months ended September 30, 2017, we granted 483,302 RSUs to employees with a weighted-average grant date fair value of $53.77.
PSUs—During the nine months ended September 30, 2018, we granted 89,441 PSUs to our executive officers, with a weighted-average grant date fair value of $82.10. The performance period applicable to such PSUs is a three year period beginning January 1, 2018 and ending December 31, 2020. During the nine months ended September 30, 2017, we granted 102,115 PSUs to our executive officers, with a weighted-average grant date fair value of $52.65.
Our total unearned compensation for our stock-based compensation programs at September 30, 2018 was $5 million for SARs, $17 million for RSUs, and $7 million for PSUs, which will primarily be recognized in stock-based compensation expense over a weighted-average period of three years with respect to SARs and RSUs, and two years with respect to PSUs.
v3.10.0.1
Related-Party Transactions
9 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related-Party Transactions
RELATED-PARTY TRANSACTIONS
In addition to those included elsewhere in the Notes to our condensed consolidated financial statements, related-party transactions entered into by us are summarized as follows:
Legal Services—A partner in a law firm that provided services to us throughout the nine months ended September 30, 2018 and September 30, 2017 is the brother-in-law of our Executive Chairman. We incurred $2 million of legal fees with this firm during each of the three months ended September 30, 2018 and September 30, 2017. We incurred $5 million and $3 million of legal fees with this firm during the nine months ended September 30, 2018 and September 30, 2017, respectively. At September 30, 2018 and December 31, 2017, we had $2 million and insignificant amounts due to the law firm, respectively.
Equity Method Investments—We have equity method investments in entities that own properties for which we receive management or franchise fees. We recognized $5 million and $6 million of fees for the three months ended September 30, 2018 and September 30, 2017, respectively. We recognized $15 million and $18 million of fees for the nine months ended September 30, 2018 and September 30, 2017, respectively. In addition, in some cases we provide loans (see Note 5) or guarantees (see Note 12) to these entities. During the three months ended September 30, 2018 and September 30, 2017, we recognized $2 million and $1 million, respectively, of income related to these guarantees. During the nine months ended September 30, 2018 and September 30, 2017, we recognized $5 million and $4 million, respectively, of income related to these guarantees. At September 30, 2018 and December 31, 2017, we had $14 million and $11 million, respectively, of receivables due from these properties. At September 30, 2018, our ownership interest in these unconsolidated hospitality ventures varies from 24% to 50%. See Note 4 for further details regarding these investments.
Class B Share Conversion—During the three and nine months ended September 30, 2018, 950,161 shares and 1,207,355 shares of Class B common stock, respectively, were converted on a share-for-share basis into shares of our Class A common stock, $0.01 par value per share. During the three and nine months ended September 30, 2017, 10,154,050 shares and 14,926,420 shares of Class B common stock, respectively, were converted on a share-for-share basis into shares of our Class A common stock, $0.01 par value per share. Of the shares of Class B common stock that were converted into shares of Class A common stock, 257,194 shares have been retired. The retirements thereby reduce the shares of Class B common stock authorized and outstanding. The remaining 950,161 shares of Class B common stock were retired subsequent to September 30, 2018.
Class B Share Repurchase—During the nine months ended September 30, 2018, we repurchased 2,427,000 shares of Class B common stock for a weighted average price of $78.11 per share, for an aggregate purchase price of approximately $190 million. The shares repurchased represented approximately 2% of our total shares of common stock outstanding prior to the repurchase. During the three and nine months ended September 30, 2017, we repurchased 1,813,459 shares of Class B common stock for a weighted average price of $59.29 per share, for an aggregate purchase price of approximately $107 million. The shares repurchased represented approximately 2% of our total shares of common stock outstanding prior to the repurchase. The shares of Class B common stock were repurchased in privately negotiated transactions from trusts for the benefit of certain Pritzker family members and limited partnerships owned indirectly by trusts for the benefit of certain Pritzker family members and were retired, thereby reducing the shares of Class B common stock authorized and outstanding by the repurchased share amount.
v3.10.0.1
Segment Information
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Information
SEGMENT INFORMATION
Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM is our President and Chief Executive Officer. We define our reportable segments as follows:
Owned and leased hotels—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card and revenues earned under the loyalty program for stays at our owned and leased hotels and are eliminated in consolidation.
Americas management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in the United States, Latin America, Canada, and the Caribbean. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to payroll costs at managed properties where the Company is the employer, as well as costs associated with reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
ASPAC management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Southeast Asia, Greater China, Australia, South Korea, Japan, and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned hotel and are eliminated in consolidation.
EAME/SW Asia management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Europe, Africa, the Middle East, India, Central Asia, and Nepal. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
Our CODM evaluates performance based on owned and leased hotels revenues, management, franchise, and other fees revenues, and Adjusted EBITDA. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define Adjusted EBITDA as net income attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated hospitality ventures Adjusted EBITDA based on our ownership percentage of each venture, adjusted to exclude interest expense; provision for income taxes; depreciation and amortization; Contra revenue; revenues for the reimbursement of costs incurred on behalf of managed and franchised properties; costs incurred on behalf of managed and franchised properties; equity earnings (losses) from unconsolidated hospitality ventures; stock-based compensation expense; gains (losses) on sales of real estate; asset impairments; and other income (loss), net.
Effective January 1, 2018, we made two modifications to our definition of Adjusted EBITDA with the implementation of ASU 2014-09. Our definition has been updated to exclude Contra revenue which was previously recognized as amortization expense. As this is strictly a matter of financial presentation, we have excluded Contra revenue in order to be consistent with our prior treatment and to reflect the way in which we manage our business. We have also excluded revenues for the reimbursement of costs incurred on behalf of managed and franchised properties and costs incurred on behalf of managed and franchised properties. These revenues and costs previously netted to zero within Adjusted EBITDA. Under ASU 2014-09, the recognition of certain revenue differs from the recognition of related costs, creating timing differences that would otherwise impact Adjusted EBITDA. We have not changed our management of these revenues or expenses, nor do we consider these timing differences to be reflective of our core operations. These changes reflect how our CODM evaluates each segment's performance and also facilitate comparison with our competitors. We have applied this change to 2017 historical results to allow for comparability between the periods presented.

 


The table below shows summarized consolidated financial information by segment. Included within corporate and other are the results of Miraval, exhale, Hyatt Residence Club license fees, results related to our co-branded credit card, and unallocated corporate expenses.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Owned and leased hotels
 
 
 
 
 
 
 
Owned and leased hotels revenues
$
443

 
$
510

 
$
1,428

 
$
1,641

Other revenues

 

 

 
13

Intersegment revenues (a)
7

 
10

 
26

 
29

Adjusted EBITDA
91


104


324


382

Depreciation and amortization
65

 
75

 
197

 
222

Americas management and franchising
 
 
 
 
 
 
 
Management, franchise, and other fees revenues
95

 
94

 
301

 
289

Contra revenue
(4
)
 
(3
)
 
(10
)
 
(9
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
447

 
395

 
1,328

 
1,205

Intersegment revenues (a)
16

 
18

 
52

 
58

Adjusted EBITDA
83

 
81

 
266

 
250

Depreciation and amortization
2

 
2

 
6

 
6

ASPAC management and franchising
 
 
 
 
 
 
 
Management, franchise, and other fees revenues
30

 
27

 
90

 
79

Contra revenue

 

 
(1
)
 
(1
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
24

 
19

 
67

 
56

Intersegment revenues (a)
1

 

 
1

 
1

Adjusted EBITDA
19

 
17

 
55

 
48

Depreciation and amortization
1

 

 
1

 

EAME/SW Asia management and franchising
 
 
 
 
 
 
 
Management, franchise, and other fees revenues
21

 
17

 
58

 
49

Contra revenue
(1
)
 
(1
)
 
(4
)
 
(3
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
16

 
15

 
49

 
41

Intersegment revenues (a)
3

 
3

 
8

 
7

Adjusted EBITDA
12

 
10

 
33

 
26

Depreciation and amortization

 

 

 

Corporate and other
 
 
 
 
 
 
 
Revenues
26

 
25

 
89

 
73

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
2

 

 
3

 

Intersegment revenues (a)
(2
)
 
(3
)
 
(5
)
 
(7
)
Adjusted EBITDA
(29
)
 
(33
)
 
(85
)
 
(90
)
Depreciation and amortization
13

 
11

 
39

 
33

Eliminations
 
 
 
 
 
 
 
Revenues (a)
(25
)
 
(28
)
 
(82
)
 
(88
)
Adjusted EBITDA
(1
)
 
(2
)
 
2

 
3

TOTAL
 
 
 
 
 
 
 
Revenues
$
1,074

 
$
1,070

 
$
3,316

 
$
3,345

Adjusted EBITDA
175

 
177

 
595

 
619

Depreciation and amortization
81

 
88

 
243

 
261

(a)
Intersegment revenues are included in management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations.
The table below provides a reconciliation of our net income attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net income attributable to Hyatt Hotels Corporation
$
237

 
$
18

 
$
725

 
$
176

Interest expense
19

 
20

 
57

 
61

Provision for income taxes
19

 
16

 
194

 
103

Depreciation and amortization
81

 
88

 
243

 
261

EBITDA
356

 
142

 
1,219

 
601

Contra revenue
5

 
4

 
15

 
13

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
(489
)
 
(429
)
 
(1,447
)
 
(1,302
)
Costs incurred on behalf of managed and franchised properties
487

 
425

 
1,447

 
1,313

Equity (earnings) losses from unconsolidated hospitality ventures
6

 
(1
)
 
17

 
1

Stock-based compensation expense (Note 14)
5

 
5

 
28

 
26

Gains on sales of real estate (Note 6)
(239
)
 

 
(769
)
 
(60
)
Asset impairments
21

 

 
21

 

Other (income) loss, net (Note 18)
9

 
16

 
22

 
(32
)
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
14

 
15

 
42

 
59

Adjusted EBITDA
$
175

 
$
177

 
$
595

 
$
619

v3.10.0.1
Earnings Per Share
9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share
EARNINGS PER SHARE
The calculation of basic and diluted earnings per share, including a reconciliation of the numerator and denominator, are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Numerator:
 
 
 
 
 
 
 
Net income
$
237

 
$
19

 
$
725

 
$
177

Net income and accretion attributable to noncontrolling interests

 
(1
)
 

 
(1
)
Net income attributable to Hyatt Hotels Corporation
$
237

 
$
18

 
$
725

 
$
176

Denominator:
 
 
 
 
 
 
 
Basic weighted average shares outstanding
111,356,759

 
124,010,961

 
114,829,210

 
126,399,472

Share-based compensation and equity-classified forward contract
1,867,226

 
1,396,922

 
1,954,863

 
1,315,462

Diluted weighted average shares outstanding
113,223,985

 
125,407,883

 
116,784,073

 
127,714,934

Basic Earnings Per Share:
 
 
 
 
 
 
 
Net income
$
2.12

 
$
0.15

 
$
6.31

 
$
1.40

Net income and accretion attributable to noncontrolling interests

 
(0.01
)
 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
2.12

 
$
0.14

 
$
6.31

 
$
1.39

Diluted Earnings Per Share:
 
 
 
 
 
 
 
Net income
$
2.09

 
$
0.15

 
$
6.21

 
$
1.39

Net income and accretion attributable to noncontrolling interests

 
(0.01
)
 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
2.09

 
$
0.14

 
$
6.21

 
$
1.38


The computations of diluted net income per share for the three and nine months ended September 30, 2018 and September 30, 2017 do not include the following shares of Class A common stock assumed to be issued as stock-settled SARs and RSUs because they are anti-dilutive.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
SARs

 
29,100

 

 
32,300

RSUs

 
400

 

 
200

v3.10.0.1
Other Income (Loss), Net
9 Months Ended
Sep. 30, 2018
Other Income and Expenses [Abstract]  
Other Income (Loss), Net
OTHER INCOME (LOSS), NET
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Interest income (Note 4)
$
7

 
$
5

 
$
19

 
$
106

Depreciation recovery
5

 
7

 
16

 
19

Performance guarantee liability amortization (Note 12)
4

 
5

 
14

 
14

Debt repayment guarantee liability amortization (Note 12)
2

 
3

 
8

 
8

Cease use liability

 
(21
)
 

 
(21
)
Realized losses (Note 4)

 

 
(2
)
 
(41
)
Impairment of an equity security without a readily determinable fair value (Note 4)

 

 
(22
)
 

Performance guarantee expense, net (Note 12)
(6
)
 
(14
)
 
(41
)
 
(54
)
Loss on extinguishment of debt (Note 9)
(7
)
 

 
(7
)
 

Unrealized (losses) gains (Note 4)
(15
)
 

 
(21
)
 
3

Other, net
1

 
(1
)
 
14

 
(2
)
Other income (loss), net
$
(9
)
 
$
(16
)
 
$
(22
)
 
$
32



During the year ended December 31, 2017, we relocated our corporate headquarters and recognized a $21 million cease use liability.
v3.10.0.1
Subsequent Events
9 Months Ended
Sep. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events
SUBSEQUENT EVENTS
On October 6, 2018, we entered into a Membership Interest Purchase Agreement ("Purchase Agreement") to acquire the outstanding equity interests of Two Roads Hospitality LLC for a purchase price of approximately $480 million, subject to adjustments, and variable consideration of up to an additional $120 million. Our Executive Chairman is the brother of the Co-Chairman of Two Roads Hospitality LLC and Founding Partner and Director of Geolo Capital LP, which is an affiliate of one of the sellers. The transaction is subject to closing conditions as detailed in the Purchase Agreement and is expected to close in the fourth quarter of 2018.
On October 9, 2018, we sold a Hyatt House hotel to an unrelated third party for approximately $48 million and entered into a long-term management agreement with the owner upon sale.

On October 30, 2018, our board of directors authorized the repurchase of up to an additional $750 million of our common stock. These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan or an accelerated share repurchase transaction, at prices we deem appropriate and subject to market conditions, applicable law and other factors deemed relevant in our sole discretion. The common stock repurchase program applies to our Class A common stock and/or our Class B common stock. The common stock repurchase program does not obligate us to repurchase any dollar amount or number of shares of common stock and the program may be suspended or discontinued at any time.
v3.10.0.1
Recently Issued Accounting Pronouncements (Policies)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Basis of Accounting
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete annual financial statements.
Principles of Consolidation
We have eliminated all intercompany accounts and transactions in our condensed consolidated financial statements. We consolidate entities under our control, including entities where we are deemed to be the primary beneficiary.
Recently Issued Accounting Pronouncements
Summary of Significant Accounting Policies
Our significant accounting policies are detailed in Part IV, Item 15, "Exhibits and Financial Statement Schedule—Note 2 to our Consolidated Financial Statements" within the 2017 Form 10-K. Upon adoption of Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers (Topic 606) and Accounting Standards Update No. 2016-01 ("ASU 2016-01"), Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, our accounting policies have been revised as follows:
Revenue Recognition—Our revenues are primarily derived from the following products and services and are generally recognized when control of the product or service has transferred to the customer:
Owned and leased hotels revenues:
Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased properties and are recognized over time as rooms are occupied and when services are rendered. We present revenues net of sales, occupancy, and other taxes. Taxes collected on behalf of and remitted to governmental taxing authorities are excluded from the transaction price of the underlying products and services. In relation to the loyalty program, a portion of our owned and leased hotels revenues is deferred upon initial stay as points are earned by program members at an owned or leased hotel, and revenues are recognized upon redemption at an owned or leased hotel.
Management, franchise, and other fees:
Management fees primarily consist of a base fee, which is generally calculated as a percentage of gross revenues, and an incentive fee, which is generally computed based on a hotel profitability measure. Management fees are recognized over time as services are performed. Additionally, included within our management fees are royalty fees that we recognize as owners derive value from access to Hyatt's intellectual property ("IP"), including our brand names. Incentive fees may be subject to minimum profitability thresholds, and we recognize incentive fee revenues over time as services are rendered only to the extent that a significant reversal is not probable.
Franchise fees consist of an initial fee and ongoing royalty fees computed as a percentage of gross room revenues and, as applicable, food and beverage revenues. Royalty fees are recognized over time as franchisees derive value from the license to Hyatt's IP. Initial fees are deferred and recognized over the expected customer life, which is typically the initial term of the franchise agreement.
Management, franchise, and other fees include license fee revenues associated with the licensing of the Hyatt brand names through our co-branded credit card program. License fee revenues are recognized over time as the licensee derives value from access to Hyatt's brand names.
Net management, franchise, and other fees are reduced by the amortization of management and franchise agreement assets constituting payments to customers ("Contra revenue"). Consideration provided to customers is recognized in other assets and amortized over the expected customer life, which is typically the initial term of the management or franchise agreement.
Other revenues:
Other revenues include revenues from the sale of promotional awards through our co-branded credit card and spa and fitness revenues from exhale. We recognize the revenue from our co-branded credit card upon the fulfillment or expiration of a card member's promotional awards. Revenue is recognized net of expenses incurred to fulfill the promotional award as we are deemed the agent in the transaction. Spa and fitness revenues are recognized at the point in time the products or services are provided to the customer.
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties:
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties represent the reimbursement of costs incurred on behalf of the owners of properties. These costs relate primarily to payroll costs at managed properties where we are the employer, as well as costs associated with reservations, sales, marketing, technology (collectively, "system-wide services"), and the loyalty program operated on behalf of owners. Hyatt is reimbursed for costs incurred based on the terms of the contracts, and revenue is recognized as the underlying performance obligations are satisfied.
Revenue is adjusted for the effects of a significant financing component when the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year.
Gains on Sales of Real Estate—Gains on sales of real estate are generally recognized when control of the property transfers to the buyer.
Equity Method Investments—We have investments in unconsolidated hospitality ventures accounted for under the equity method. These investments are an integral part of our business and are strategically and operationally important to our overall results. When we receive a distribution from an investment, we determine whether it is a return on our investment or a return of our investment based on the underlying nature of the distribution. We assess investments in unconsolidated hospitality ventures for impairment quarterly.
Debt and Equity Securities—Excluding equity securities classified as equity method investments, debt and equity securities consist of various investments:
Equity securities consist of interest-bearing money market funds, mutual funds, common shares, and preferred shares. Equity securities with a readily determinable fair value are recorded at fair value on our condensed consolidated balance sheets based on listed market prices or dealer quotations where available. Equity securities without a readily determinable fair value are recognized at cost less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer.
Debt securities consist of various types including preferred shares, time deposits, and fixed income securities, including U.S. government obligations, obligations of other government agencies, corporate debt, mortgage-backed and asset-backed securities, and municipal and provincial notes and bonds. Debt securities are classified as either trading, available-for-sale ("AFS"), or held-to-maturity ("HTM").
Trading securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Net gains and losses, both realized and unrealized, on trading securities are reflected in net gains and interest income from marketable securities held to fund rabbi trusts or other income (loss), net, depending on the nature of the investment, on our condensed consolidated statements of income.
AFS securities—recognized at fair value based on listed market prices or dealer price quotations, where available. Unrealized gains and losses on AFS debt securities are recognized in accumulated other comprehensive loss on our condensed consolidated balance sheets. Realized gains and losses on debt securities are recognized in other income (loss), net on our condensed consolidated statements of income.
HTM securities—debt security investments which we have the ability to hold until maturity and are recorded at amortized cost.
AFS and HTM debt securities are assessed for impairment quarterly.
Loyalty Program—We administer the loyalty program for the benefit of Hyatt's portfolio of properties during the period of their participation in the loyalty program. The loyalty program is primarily funded through contributions based on eligible revenues from loyalty program members, and the funds are used for the redemption of member awards and payment of operating expenses.
The costs of operating the loyalty program, including the estimated cost of award redemption, are charged to the participating properties based on members' qualified expenditures. The revenues received from the properties are deferred, and revenues are recognized as loyalty points are redeemed, net of redemption expense, through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. Operating costs are expensed as incurred through costs incurred on behalf of managed and franchised properties.
We actuarially determine the amount to recognize as revenue based on statistical formulas that estimate the timing of future point redemptions based on historical experience, including an estimate of breakage for points that will not be redeemed, and an estimate of the points that will eventually be redeemed. Any revenues in excess of the anticipated future redemptions are used to fund the operational expenses of the program.
The loyalty program is funded by payments from the properties and returns on marketable securities. The program invests amounts received from the properties in marketable securities which are included in other current and noncurrent assets (see Note 4). The current and noncurrent deferred revenue liabilities of the loyalty program are classified as contract liabilities (see Note 3).
Adopted Accounting Standards
Revenue from Contracts with Customers—In May 2014, the Financial Accounting Standards Board ("FASB") released ASU 2014-09. ASU 2014-09 supersedes the requirements in Topic 605, Revenue Recognition, and provides a single, comprehensive revenue recognition model for contracts with customers. Subsequently, the FASB issued several related ASUs which further clarified the application of the standard including ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date by one year making it effective for interim and fiscal years beginning after December 14, 2017.
We adopted ASU 2014-09, and all related ASUs, utilizing the full retrospective transition method on January 1, 2018, which required us to adjust each prior reporting period presented. The adoption of ASU 2014-09 impacts the timing of the recognition of gains on sales of real estate subject to a long-term management agreement, and the associated impact to deferred tax assets (see Note 11), the classification of Contra revenue, and the timing of revenue recognition related to incentive fees. However, we do not expect the new standard to have a significant impact on incentive fee revenue on a full-year basis. The adoption of ASU 2014-09 also impacts the timing of revenue recognition related to the loyalty program and as a result of the change, we recognized a $116 million increase to the contract liability related to the loyalty program at January 1, 2018. Upon adoption of ASU 2014-09, we recognized a cumulative effect of a change in accounting principle through retained earnings, including a $523 million reclassification related to deferred gains at January 1, 2018. We also reclassified certain management and franchise agreement assets from intangibles, net to other assets and certain current and long-term liabilities to current and long-term contract liabilities.
Financial Instruments - Recognition, Measurement, Presentation, and Disclosure—In January 2016, the FASB released ASU 2016-01. ASU 2016-01 revised the accounting for equity investments, excluding those accounted for under the equity method, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 superseded the guidance to classify equity securities with readily determinable fair values into different categories (i.e., trading versus AFS) and requires all equity securities to be measured at fair value on a recurring basis unless an equity security does not have a readily determinable fair value. Equity securities without a readily determinable fair value are remeasured at fair value only in periods in which an observable price change is available or upon identification of an impairment. All changes in fair value are recognized in net income on our condensed consolidated statements of income.
On January 1, 2018, we adopted the provisions of ASU 2016-01 on a modified retrospective basis through a cumulative-effect adjustment to our opening condensed consolidated balance sheet. Upon adoption, $68 million of unrealized gains, net of tax, were reclassified from accumulated other comprehensive loss to opening retained earnings.
Accounting for Income Taxes - Intra-Entity Asset Transfers—In October 2016, the FASB released Accounting Standards Update No. 2016-16 ("ASU 2016-16"), Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. We adopted ASU 2016-16 on January 1, 2018 on a modified retrospective basis resulting in a $4 million decrease to retained earnings.
Statement of Cash Flows - Restricted Cash—In November 2016, the FASB released Accounting Standards Update No. 2016-18 ("ASU 2016-18"), Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force). ASU 2016-18 requires amounts generally described as restricted cash to be included within cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the condensed consolidated statements of cash flows. We adopted the provisions of ASU 2016-18 on January 1, 2018 on a retrospective basis. Upon adoption of ASU 2016-18, restricted cash of $249 million, including $15 million which is recognized within other assets on our condensed consolidated balance sheet at December 31, 2017, is included within the beginning balance of cash, cash equivalents, and restricted cash on our condensed consolidated statements of cash flows for the nine months ended September 30, 2018. The table below summarizes the changes on our condensed consolidated statements of cash flows for the nine months ended September 30, 2017:
 
Nine Months Ended September 30,
 
2017
Operating activities
$
(11
)
Investing activities
163

Financing activities
(3
)
Cash, cash equivalents, and restricted cash - beginning of year
91

Cash, cash equivalents, and restricted cash - end of period
$
240


Business Combinations - Definition of a Business—In January 2017, the FASB released Accounting Standards Update No. 2017-01 ("ASU 2017-01"), Business Combinations (Topic 805): Clarifying the Definition of a Business. ASU 2017-01 clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or dispositions of assets or businesses. Generally, our acquisitions and dispositions of individual hotels were previously accounted for as business combinations, however, upon adoption of ASU 2017-01, there is an increased likelihood that certain acquisitions and dispositions of individual hotels will be accounted for as asset transactions. We adopted ASU 2017-01 on January 1, 2018 on a prospective basis and evaluate the impact of the standard on acquisitions and dispositions based on the relevant facts and circumstances.
Derivatives and Hedging - Accounting for Hedging Activities—In August 2017, the FASB released Accounting Standards Update No. 2017-12 ("ASU 2017-12"), Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2017-12 improves the financial reporting of hedging relationships to better portray the economic results by making improvements to simplify the application of the hedge accounting guidance in current GAAP. ASU 2017-12 is effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted. We early adopted ASU 2017-12 on April 1, 2018 on a modified retrospective basis, which did not impact our condensed consolidated financial statements upon adoption.

The impact of the changes made to our condensed consolidated financial statements as a result of the adoption of ASU 2014-09, ASU 2016-01, and ASU 2016-16 were as follows:
 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2017
 
As Reported
 
Effect of the adoption of
ASU 2014-09
 
As Adjusted
 
As Reported
 
Effect of the adoption of
ASU 2014-09
 
As Adjusted
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
$
518

 
$
(2
)
 
$
516

 
$
1,667

 
$
(6
)
 
$
1,661

Management, franchise, and other fees
122

 
1

 
123

 
374

 
(7
)
 
367

Amortization of management and franchise agreement assets constituting payments to customers

 
(4
)
 
(4
)
 

 
(13
)
 
(13
)
Net management, franchise, and other fees
122

 
(3
)
 
119

 
374

 
(20
)
 
354

Other revenues
16

 
(10
)
 
6

 
53

 
(25
)
 
28

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
463

 
(34
)
 
429

 
1,407

 
(105
)
 
1,302

Total revenues
1,119

 
(49
)
 
1,070

 
3,501

 
(156
)
 
3,345

DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
409

 
(3
)
 
406

 
1,266

 
(8
)
 
1,258

Depreciation and amortization
92

 
(4
)
 
88

 
274

 
(13
)
 
261

Other direct costs
9

 
(6
)
 
3

 
34

 
(14
)
 
20

Selling, general, and administrative
89

 

 
89

 
278

 

 
278

Costs incurred on behalf of managed and franchised properties
463

 
(38
)
 
425

 
1,407

 
(94
)
 
1,313

Direct and selling, general, and administrative expenses
1,062

 
(51
)
 
1,011

 
3,259

 
(129
)
 
3,130

Net gains and interest income from marketable securities held to fund rabbi trusts
12

 
(1
)
 
11

 
37

 
(2
)
 
35

Equity earnings (losses) from unconsolidated hospitality ventures
1

 

 
1

 
(1
)
 

 
(1
)
Interest expense
(20
)
 

 
(20
)
 
(61
)
 

 
(61
)
Gains on sales of real estate

 

 

 
34

 
26

 
60

Other income (loss), net
(19
)
 
3

 
(16
)
 
23

 
9

 
32

INCOME BEFORE INCOME TAXES
31

 
4

 
35

 
274

 
6

 
280

PROVISION FOR INCOME TAXES
(14
)
 
(2
)
 
(16
)
 
(100
)
 
(3
)
 
(103
)
NET INCOME
17

 
2

 
19

 
174

 
3

 
177

NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(1
)
 

 
(1
)
 
(1
)
 

 
(1
)
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
$
16

 
$
2

 
$
18

 
$
173

 
$
3

 
$
176

EARNINGS PER SHARE—Basic
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.14

 
$
0.01

 
$
0.15

 
$
1.38

 
$
0.02

 
$
1.40

Net income attributable to Hyatt Hotels Corporation
$
0.13

 
$
0.01

 
$
0.14

 
$
1.37

 
$
0.02

 
$
1.39

EARNINGS PER SHARE—Diluted
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.14

 
$
0.01

 
$
0.15

 
$
1.37

 
$
0.02

 
$
1.39

Net income attributable to Hyatt Hotels Corporation
$
0.13

 
$
0.01

 
$
0.14

 
$
1.36

 
$
0.02

 
$
1.38


 
December 31, 2017
 
January 1, 2018
 

As Reported
 
Effect of the adoption of
ASU 2014-09
 

As Adjusted
 
Effect of the adoption of ASU 2016-01 and ASU 2016-16
 
As Adjusted
ASSETS
 
 
 
 
 
 
 
 
 
Investments
$
211

 
$
1

 
$
212

 
$
(27
)
 
$
185

Intangibles, net
683

 
(378
)
 
305

 

 
305

Deferred tax assets
242

 
(101
)
 
141

 
1

 
142

Other assets
1,006

 
378

 
1,384

 
22

 
1,406

TOTAL ASSETS
7,672

 
(100
)
 
7,572

 
(4
)
 
7,568

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
 
 
 
 
 
 
 
 

Accounts payable
$
175

 
$
(39
)
 
$
136

 
$

 
$
136

Accrued expenses and other current liabilities
635

 
(283
)
 
352

 

 
352

Current contract liabilities

 
348

 
348

 

 
348

Long-term contract liabilities

 
424

 
424

 

 
424

Other long-term liabilities
1,725

 
(862
)
 
863

 

 
863

Total liabilities
4,131

 
(412
)
 
3,719

 

 
3,719

Retained earnings
2,742

 
312

 
3,054

 
64

 
3,118

Accumulated other comprehensive loss
(185
)
 

 
(185
)
 
(68
)
 
(253
)
Total equity
3,531

 
312

 
3,843

 
(4
)
 
3,839

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
7,672

 
(100
)
 
7,572

 
(4
)
 
7,568


The adoption of ASU 2014-09 resulted in an $11 million reclassification from investing into operating activities during the nine months ended September 30, 2017 related to cash outflows representing payments to customers. There were no impacts to cash provided by or used in financing activities on our condensed consolidated statements of cash flows.
Future Adoption of Accounting Standards
Leases—In February 2016, the FASB released Accounting Standards Update No. 2016-02 ("ASU 2016-02"), Leases (Topic 842). ASU 2016-02 requires lessees to record lease contracts on the balance sheet by recognizing a right-of-use asset and lease liability with certain practical expedients available. The accounting for lessors remains largely unchanged. In July 2018, the FASB released Accounting Standards Update No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, providing entities with an additional optional transition method. The provisions of ASU 2016-02, and all related ASUs, are effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted. The real estate leases for a majority of our owned and leased hotels include contingent lease payments, which will be excluded from the impact of ASU 2016-02. We expect to adopt ASU 2016-02 utilizing the optional transition approach allowed under ASU 2018-11 and applying the package of practical expedients beginning January 1, 2019. We continue to evaluate the impact of adopting ASU 2016-02 and expect this ASU may have a material effect to our condensed consolidated financial statements.
Financial Instruments - Credit Losses—In June 2016, the FASB released Accounting Standards Update No. 2016-13 ("ASU 2016-13"), Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 replaces the existing impairment model for most financial assets from an incurred loss impairment model to a current expected credit loss model, which requires an entity to recognize an impairment allowance equal to its current estimate of all contractual cash flows the entity does not expect to collect. ASU 2016-13 also requires credit losses relating to AFS debt securities to be recognized through an allowance for credit losses. The provisions of ASU 2016-13 are to be applied using a modified retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2016-13.


Fair Value Measurement—In August 2018, the FASB released Accounting Standards Update No. 2018-13 ("ASU 2018-13"), Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements. The provisions of ASU 2018-13 are to be applied using a prospective or retrospective approach, depending on the amendment, and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2018-13.
    
Intangibles - Goodwill and Other - Internal-Use Software—In August 2018, the FASB released Accounting Standards Update No. 2018-15 ("ASU 2018-15"), Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The provisions of ASU 2018-15 are to be applied using a prospective or retrospective approach and are effective for interim periods and fiscal years beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2018-15.
Revenue Recognition
Performance Obligations
We provide products and services to our customers including third-party hotel owners, guests at owned and leased hotels and spa and fitness centers, and a third-party partner through our co-branded credit card program. The products and services offered are comprised of the following performance obligations:
Management and Franchise Agreements:
License to Hyatt's IP, including the Hyatt brand names—We receive variable consideration from third-party hotel owners in exchange for providing access to our IP, including the Hyatt brand names. The license represents a license of symbolic IP and in exchange for providing the license, Hyatt receives sales-based royalty fees. Royalty fees are generally determined based on a percentage of gross revenues for managed hotels and are generally included in the hotel management fee. Royalty fees for franchised hotels are based on a percentage of gross room revenues and, as applicable, food and beverage revenues. Fees generally are payable on a monthly basis as the third-party hotel owners derive value from access to our IP. Royalty fees are recognized over time through management, franchise, and other fees as services are rendered. Under our franchise agreements, we also receive initial fees from third-party hotel owners. The initial fees do not represent a distinct performance obligation and, therefore, are combined with the royalty fees and recognized through management, franchise, and other fees over the expected customer life.
System-wide services—We provide sales, reservations, technology, and marketing services on behalf of owners of managed and franchised properties. The promise to provide system-wide services is not a distinct performance obligation because it is attendant to the license of our IP. Therefore, the promise to provide system-wide services is combined with the license of our IP to form a single performance obligation. We have two accounting models depending on the terms of the agreements:
Cost reimbursement model—Third-party hotel owners are required to reimburse us for all costs incurred to operate the system-wide programs with no added margin. The reimbursements are recognized over time within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal with respect to the promise to provide system-wide services. Expenses incurred related to the system-wide programs are recognized within costs incurred on behalf of managed and franchised properties. The reimbursement of system-wide services is billed on a monthly basis based upon an annual estimate of costs to be incurred and is recognized as revenue commensurate with incurring the cost. To the extent that actual costs vary from estimated costs, a true-up billing or refund is issued to the hotels. Any amounts collected and not yet recognized as revenues are deferred and classified as contract liabilities. Any costs incurred in excess of revenues collected are classified as receivables.
Fund model—Third-party hotel owners are invoiced a system-wide assessment fee primarily based on a percentage of hotel revenues on a monthly basis. We recognize the revenues over time as services are provided through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. We have discretion over how we spend program revenues and, therefore, we are the principal with respect to system-wide services. Expenses related to the system-wide programs are recognized as incurred through costs incurred on behalf of managed and franchised properties. Over time, we manage the system-wide programs to break-even, but the timing of the revenue received from the owners may not align with the timing of the expenses to operate the programs. Therefore, the difference between the revenues and expenses may impact our net income.
Hotel management agreement services—We provide hotel management agreement services, which form a single performance obligation that qualifies as a series, under the terms of our management agreements. In exchange for providing these services, we receive variable consideration in the form of management fees, which are comprised of base and incentive fees. Incentive fees are typically subject to the achievement of certain profitability targets, and therefore, we apply judgment in determining the amount of incentive fees recognized each period. Incentive fees revenue is recognized to the extent it is probable that we will not reverse a significant portion of the fees in a subsequent period. We rely on internal financial forecasts and historical trends to estimate the amount of incentive fees revenue recognized and the probability that incentive fees will reverse in the future. Generally, base management fees are due and payable on a monthly basis as services are provided, and incentive fees are due and payable based on the terms of the agreement, but at a minimum, incentive fees are billed and collected annually. Revenue is recognized over time through management, franchise, and other fees.
Under the terms of certain management agreements, primarily within the United States, we are the employer of hotel employees. When we are the employer, we are reimbursed for costs incurred related to the employee management services with no added margin, and the reimbursements are recognized over time as services are rendered within revenues for the reimbursement of costs incurred on behalf of managed and franchised properties. In jurisdictions in which we are the employer, we have discretion over how employee management services are provided and, therefore, we are the principal and revenues are recognized on a gross basis.
Loyalty program administration—We administer the loyalty program for the benefit of the Hyatt portfolio of properties. Under the program, members earn loyalty points that can be redeemed for future products and services. Points earned by loyalty program members represent a material right to free or discounted goods or services in the future.
The loyalty program has one performance obligation that consists of marketing and managing the program and arranging for award redemptions by members. The costs of operating the loyalty program are charged to the properties through an assessment fee based on members’ qualified expenditures. The assessment fee is billed and collected monthly, and the revenue received by the program is deferred until a member redeems points. Upon redemption of points at managed and franchised properties, we recognize the previously deferred revenue through revenues for the reimbursement of costs incurred on behalf of managed and franchised properties, net of redemption expense paid to managed and franchised hotels. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent with respect to this performance obligation for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. When loyalty points are redeemed at owned and leased hotels, we recognize revenue through owned and leased hotels revenues.
The revenue recognized each period includes an estimate of breakage for the loyalty points that will not be redeemed. Determining breakage involves significant judgment, and we engage third-party actuaries to estimate the ultimate redemption ratios used in the breakage calculations and the amount of revenue recognized upon redemption. Changes to the expected ultimate redemption assumptions are reflected in the current period.
Room rentals and other services provided at owned and leased hotels—We provide room rentals and other services to our guests, including but not limited to spa, laundry, and parking. These products and services each represent individual performance obligations and, in exchange for these services, we receive fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time the services are rendered or the goods are provided. If a guest enters into a package including multiple goods or services, the fixed price is allocated to each distinct good or service based on the stand-alone selling price for each item. Revenue is recognized over time within owned and leased hotels revenues when we transfer control of the good or service to the customer. Room rental revenue is recognized on a daily basis as the guest occupies the room, and revenue related to other products and services is recognized when the product or service is provided to the guest.
Hotels commonly enter into arrangements with online travel agencies, trade associations, and other entities. As part of these arrangements, Hyatt may pay the other party a commission or rebate based on the revenue generated through that channel. The determination of whether to recognize revenues gross or net of rebates and commission is made based on the terms of each contract.
Spa and fitness services—Exhale spa and fitness studios provide guests with spa and fitness services as well as retail products in exchange for fixed consideration. Each spa and fitness service represents an individual performance obligation. Payment is due in full and revenue is recognized at the point in time the services are rendered or the products are delivered. If a guest purchases a spa or fitness package, the fixed price is allocated to each distinct product or service based on the published stand-alone selling price for each item, and revenues are recognized as the services are rendered.
Co-branded credit card—We have a co-branded credit card agreement with a third party and under the terms of the agreement, we have various performance obligations: granting a license to the Hyatt name, arranging for the fulfillment of points issued to cardholders through the loyalty program, and awarding cardholders with free room nights upon achievement of certain program milestones. The loyalty points and free room nights represent material rights that can be redeemed for free or discounted services in the future.
In exchange for the products and services provided, we receive fixed and variable consideration which is allocated between the performance obligations based upon the relative stand-alone selling prices. Significant judgment is involved in determining the relative stand-alone selling prices, and therefore, we engaged a third-party valuation specialist to assist us. We utilize a relief from royalty method to determine the revenue allocated to the license, which is recognized over time. We utilize observable transaction prices and adjusted market assumptions to determine the stand-alone selling price of a loyalty point, and we utilize a cost plus margin approach to determine the stand-alone selling price of the free room nights. The revenues allocated to loyalty program points and free night awards are deferred and recognized upon redemption, net of redemption expense, as we are deemed to be the agent in the transaction. We are responsible for arranging for the redemption of promotional awards, but we do not directly fulfill the award night obligation except at owned and leased hotels. Therefore, we are the agent for managed and franchised hotels, and we are the principal with respect to owned and leased hotels. When loyalty points and free nights are redeemed at owned and leased hotels, we recognize revenue through owned and leased hotels revenues.
We satisfy the following performance obligations over time: the license of Hyatt's symbolic IP, hotel management agreement services, administration of the loyalty program, and the license to our brand name through our co-branded credit card agreement. Each of these performance obligations is considered a sales-based royalty or a series of distinct services, and although the activities to fulfill each of these promises may vary from day to day, the nature of each promise is the same and the customer benefits from the services every day.
For each performance obligation satisfied over time, we recognize revenue using an output method based on the value transferred to the customer. Revenue is recognized based on the transaction price and the observable outputs related to each performance obligation. We deem the following to be a faithful depiction of our progress in satisfying these performance obligations:
revenues and operating profits earned by the hotels during the reporting period for access to Hyatt's IP, as it is indicative of the value third-party owners derive;
underlying revenues and operating profits of the hotels for the promise to provide management agreement services to the hotels;
award night redemptions for the administration of the loyalty program performance obligation; and  
cardholder spend for the license to the Hyatt name through our co-branded credit card, as it is indicative of the value our partner derives from the use of our name.
Within our management agreements, we have two performance obligations: providing a license to Hyatt's IP and providing management agreement services. Although these constitute two separate performance obligations, both obligations represent services that are satisfied over time, and Hyatt recognizes revenue using an output method based on the performance of the hotel. Therefore, we have not allocated the transaction price between these two performance obligations as the allocation would result in the same pattern of revenue recognition.
Revenue Allocated to Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods.
We did not estimate revenues expected to be recognized related to our unsatisfied performance obligations for the following:
Deferred revenue related to the loyalty program and revenue from base and incentive management fees as the revenue is allocated to a wholly unperformed performance obligation in a series;
Revenues related to royalty fees as they are considered sales-based royalty fees;
Revenues received for free nights granted through our co-branded credit card as the awards are required to be redeemed within 12 months; and
Revenues related to advanced bookings at owned and leased hotels as each stay has a duration of 12 months or less.
We elected to apply the practical expedient that permits the omission of prior-period information about revenue allocated to future performance obligations under ASU 2014-09.
Contract Balances
Our payments from customers are based on the billing terms established in our contracts. Customer billings are classified as accounts receivable when our right to consideration is unconditional. If our right to consideration is conditional on future performance under the contract, the balance is classified as a contract asset. Under the terms of our management agreements, we earn incentive management fees based on a percentage of hotel profitability. The incentive fee may be contingent on the hotel achieving certain profitability targets. We recognize an incentive fee receivable each month to the extent it is probable that we will not reverse a significant portion of the fees in a subsequent period. However, due to the profitability hurdles in the contract, incentive fees are considered contract assets until the risk related to the achievement of the profitability metric no longer exists. Once the profitability hurdle has been met, the incentive fee receivable balance will be reflected within accounts receivable.
Our contract assets were $1 million and insignificant at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018, the contract assets were included in receivables, net. As our profitability hurdles are generally calculated on a full-year basis, we expect our contract asset balance to be insignificant at year end.
Payments received in advance of performance under the contract are classified as contract liabilities and recognized as revenue as we perform under the contract.
Self Insurance
We obtain commercial insurance for potential losses for general liability, workers' compensation, automobile liability, employment practices, crime, property, cyber risk, and other miscellaneous coverages. A portion of the risk is retained on a self-insurance basis primarily through U.S.-based and licensed captive insurance companies that are wholly owned subsidiaries of Hyatt and generally insure our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses.
Commitments and Contingencies Other
We act as general partner of various partnerships owning hotel properties that are subject to mortgage indebtedness. These mortgage agreements generally limit the lender's recourse to security interests in assets financed and/or other assets of the partnership(s) and/or the general partner(s) thereof.
In conjunction with financing obtained for our unconsolidated hospitality ventures, certain managed hotels, and other properties, we may provide standard indemnifications to the lender for loss, liability, or damage occurring as a result of our actions or actions of the other unconsolidated hospitality venture partners, respective hotel owners, or other third parties.
As a result of certain dispositions, we have agreed to provide customary indemnifications to third-party purchasers for certain liabilities incurred prior to sale and for breach of certain representations and warranties made during the sales process, such as representations of valid title, authority, and environmental issues that may not be limited by a contractual monetary amount. These indemnification agreements survive until the applicable statutes of limitation expire or until the agreed upon contract terms expire.
We are subject, from time to time, to various claims and contingencies related to lawsuits, taxes, and environmental matters, as well as commitments under contractual obligations. Many of these claims are covered under our current insurance programs, subject to deductibles. Although the ultimate liability for these matters cannot be determined at this point, based on information currently available, we do not expect the ultimate resolution of such claims and litigation to have a material effect on our condensed consolidated financial statements.
Segment Reporting
Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker ("CODM") to assess performance and make decisions regarding the allocation of resources. Our CODM is our President and Chief Executive Officer. We define our reportable segments as follows:
Owned and leased hotels—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations and for purposes of segment Adjusted EBITDA, includes our pro rata share of the Adjusted EBITDA of our unconsolidated hospitality ventures, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany expenses related to management fees paid to the Company's management and franchising segments, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card and revenues earned under the loyalty program for stays at our owned and leased hotels and are eliminated in consolidation.
Americas management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in the United States, Latin America, Canada, and the Caribbean. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to payroll costs at managed properties where the Company is the employer, as well as costs associated with reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
ASPAC management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Southeast Asia, Greater China, Australia, South Korea, Japan, and Micronesia. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned hotel and are eliminated in consolidation.
EAME/SW Asia management and franchising—This segment derives its earnings primarily from a combination of hotel management and licensing of our portfolio of brands to franchisees located in Europe, Africa, the Middle East, India, Central Asia, and Nepal. This segment's revenues also include the reimbursement of costs incurred on behalf of managed and franchised properties. These costs relate primarily to reservations, sales, marketing, technology, and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
Our CODM evaluates performance based on owned and leased hotels revenues, management, franchise, and other fees revenues, and Adjusted EBITDA. Adjusted EBITDA, as we define it, is a non-GAAP measure. We define Adjusted EBITDA as net income attributable to Hyatt Hotels Corporation plus our pro rata share of unconsolidated hospitality ventures Adjusted EBITDA based on our ownership percentage of each venture, adjusted to exclude interest expense; provision for income taxes; depreciation and amortization; Contra revenue; revenues for the reimbursement of costs incurred on behalf of managed and franchised properties; costs incurred on behalf of managed and franchised properties; equity earnings (losses) from unconsolidated hospitality ventures; stock-based compensation expense; gains (losses) on sales of real estate; asset impairments; and other income (loss), net.
v3.10.0.1
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements (Tables)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The table below summarizes the changes on our condensed consolidated statements of cash flows for the nine months ended September 30, 2017:
 
Nine Months Ended September 30,
 
2017
Operating activities
$
(11
)
Investing activities
163

Financing activities
(3
)
Cash, cash equivalents, and restricted cash - beginning of year
91

Cash, cash equivalents, and restricted cash - end of period
$
240

The impact of the changes made to our condensed consolidated financial statements as a result of the adoption of ASU 2014-09, ASU 2016-01, and ASU 2016-16 were as follows:
 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2017
 
As Reported
 
Effect of the adoption of
ASU 2014-09
 
As Adjusted
 
As Reported
 
Effect of the adoption of
ASU 2014-09
 
As Adjusted
REVENUES:
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
$
518

 
$
(2
)
 
$
516

 
$
1,667

 
$
(6
)
 
$
1,661

Management, franchise, and other fees
122

 
1

 
123

 
374

 
(7
)
 
367

Amortization of management and franchise agreement assets constituting payments to customers

 
(4
)
 
(4
)
 

 
(13
)
 
(13
)
Net management, franchise, and other fees
122

 
(3
)
 
119

 
374

 
(20
)
 
354

Other revenues
16

 
(10
)
 
6

 
53

 
(25
)
 
28

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
463

 
(34
)
 
429

 
1,407

 
(105
)
 
1,302

Total revenues
1,119

 
(49
)
 
1,070

 
3,501

 
(156
)
 
3,345

DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
Owned and leased hotels
409

 
(3
)
 
406

 
1,266

 
(8
)
 
1,258

Depreciation and amortization
92

 
(4
)
 
88

 
274

 
(13
)
 
261

Other direct costs
9

 
(6
)
 
3

 
34

 
(14
)
 
20

Selling, general, and administrative
89

 

 
89

 
278

 

 
278

Costs incurred on behalf of managed and franchised properties
463

 
(38
)
 
425

 
1,407

 
(94
)
 
1,313

Direct and selling, general, and administrative expenses
1,062

 
(51
)
 
1,011

 
3,259

 
(129
)
 
3,130

Net gains and interest income from marketable securities held to fund rabbi trusts
12

 
(1
)
 
11

 
37

 
(2
)
 
35

Equity earnings (losses) from unconsolidated hospitality ventures
1

 

 
1

 
(1
)
 

 
(1
)
Interest expense
(20
)
 

 
(20
)
 
(61
)
 

 
(61
)
Gains on sales of real estate

 

 

 
34

 
26

 
60

Other income (loss), net
(19
)
 
3

 
(16
)
 
23

 
9

 
32

INCOME BEFORE INCOME TAXES
31

 
4

 
35

 
274

 
6

 
280

PROVISION FOR INCOME TAXES
(14
)
 
(2
)
 
(16
)
 
(100
)
 
(3
)
 
(103
)
NET INCOME
17

 
2

 
19

 
174

 
3

 
177

NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS
(1
)
 

 
(1
)
 
(1
)
 

 
(1
)
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION
$
16

 
$
2

 
$
18

 
$
173

 
$
3

 
$
176

EARNINGS PER SHARE—Basic
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.14

 
$
0.01

 
$
0.15

 
$
1.38

 
$
0.02

 
$
1.40

Net income attributable to Hyatt Hotels Corporation
$
0.13

 
$
0.01

 
$
0.14

 
$
1.37

 
$
0.02

 
$
1.39

EARNINGS PER SHARE—Diluted
 
 
 
 
 
 
 
 
 
 
 
Net income
$
0.14

 
$
0.01

 
$
0.15

 
$
1.37

 
$
0.02

 
$
1.39

Net income attributable to Hyatt Hotels Corporation
$
0.13

 
$
0.01

 
$
0.14

 
$
1.36

 
$
0.02

 
$
1.38


 
December 31, 2017
 
January 1, 2018
 

As Reported
 
Effect of the adoption of
ASU 2014-09
 

As Adjusted
 
Effect of the adoption of ASU 2016-01 and ASU 2016-16
 
As Adjusted
ASSETS
 
 
 
 
 
 
 
 
 
Investments
$
211

 
$
1

 
$
212

 
$
(27
)
 
$
185

Intangibles, net
683

 
(378
)
 
305

 

 
305

Deferred tax assets
242

 
(101
)
 
141

 
1

 
142

Other assets
1,006

 
378

 
1,384

 
22

 
1,406

TOTAL ASSETS
7,672

 
(100
)
 
7,572

 
(4
)
 
7,568

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
 
 
 
 
 
 
 
 

Accounts payable
$
175

 
$
(39
)
 
$
136

 
$

 
$
136

Accrued expenses and other current liabilities
635

 
(283
)
 
352

 

 
352

Current contract liabilities

 
348

 
348

 

 
348

Long-term contract liabilities

 
424

 
424

 

 
424

Other long-term liabilities
1,725

 
(862
)
 
863

 

 
863

Total liabilities
4,131

 
(412
)
 
3,719

 

 
3,719

Retained earnings
2,742

 
312

 
3,054

 
64

 
3,118

Accumulated other comprehensive loss
(185
)
 

 
(185
)
 
(68
)
 
(253
)
Total equity
3,531

 
312

 
3,843

 
(4
)
 
3,839

TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY
7,672

 
(100
)
 
7,572

 
(4
)
 
7,568

v3.10.0.1
Revenue from Contracts with Customers (Tables)
9 Months Ended
Sep. 30, 2018
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables present our revenues disaggregated by the nature of the product or service:
 
Three months ended September 30, 2018
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
276

$

$

$

$
5

$
(7
)
$
274

Food and beverage
133




2


135

Other
34




7


41

Owned and leased hotels
443




14

(7
)
450

 
 
 
 
 
 
 
 
Base management fees

48

11

9


(13
)
55

Incentive management fees

14

16

10


(7
)
33

Franchise fees

32

1




33

Other fees

1

2

2

2


7

License fees




5


5

Management, franchise, and other fees

95

30

21

7

(20
)
133

Contra revenue

(4
)

(1
)


(5
)
Net management, franchise, and other fees

91

30

20

7

(20
)
128

 
 
 
 
 
 
 
 
Other revenues




5

2

7

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

447

24

16

2


489

 
 
 
 
 
 
 
 
Total
$
443

$
538

$
54

$
36

$
28

$
(25
)
$
1,074

 
Nine months ended September 30, 2018
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
848

$

$

$

$
18

$
(26
)
$
840

Food and beverage
474




7


481

Other
106




23


129

Owned and leased hotels
1,428




48

(26
)
1,450

 
 
 
 
 
 
 
 
Base management fees

150

32

25


(40
)
167

Incentive management fees

47

50

29


(21
)
105

Franchise fees

94

2




96

Other fees

10

6

4

4


24

License fees




15


15

Management, franchise, and other fees

301

90

58

19

(61
)
407

Contra revenue

(10
)
(1
)
(4
)


(15
)
Net management, franchise, and other fees

291

89

54

19

(61
)
392

 
 
 
 
 
 
 
 
Other revenues




22

5

27

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

1,328

67

49

3


1,447

 
 
 
 
 
 
 
 
Total
$
1,428

$
1,619

$
156

$
103

$
92

$
(82
)
$
3,316

 
Three months ended September 30, 2017
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
312

$

$

$

$
6

$
(10
)
$
308

Food and beverage
152




3


155

Other
46




7


53

Owned and leased hotels
510




16

(10
)
516

 
 
 
 
 
 
 
 
Base management fees

47

10

8


(14
)
51

Incentive management fees

15

15

8


(7
)
31

Franchise fees

30





30

Other fees

2

2

1

1


6

License fees




5


5

Management, franchise, and other fees

94

27

17

6

(21
)
123

Contra revenue

(3
)

(1
)


(4
)
Net management, franchise, and other fees

91

27

16

6

(21
)
119

 
 
 
 
 
 
 
 
Other revenues




3

3

6

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

395

19

15



429

 
 
 
 
 
 
 
 
Total
$
510

$
486

$
46

$
31

$
25

$
(28
)
$
1,070

 
Nine months ended September 30, 2017
Disaggregated revenue stream
Owned and leased hotels
Americas management and franchising
ASPAC management and franchising
EAME/SW Asia management and franchising
Corporate and other
Eliminations
Total
Rooms revenues
$
969

$

$

$

$
18

$
(29
)
$
958

Food and beverage
544




9


553

Other
128




22


150

Owned and leased hotels
1,641




49

(29
)
1,661

 
 
 
 
 
 
 
 
Base management fees

147

28

22


(47
)
150

Incentive management fees

46

44

24


(19
)
95

Franchise fees

84

2




86

Other fees

12

5

3

2


22

License fees




14


14

Management, franchise, and other fees

289

79

49

16

(66
)
367

Contra revenue

(9
)
(1
)
(3
)


(13
)
Net management, franchise, and other fees

280

78

46

16

(66
)
354

 
 
 
 
 
 
 
 
Other revenues
13




8

7

28

 
 
 
 
 
 
 
 
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties

1,205

56

41



1,302

 
 
 
 
 
 
 
 
Total
$
1,654

$
1,485

$
134

$
87

$
73

$
(88
)
$
3,345

Summary of Contract Liability

September 30, 2018

December 31, 2017

$ Change

% Change
Current contract liabilities
$
332


$
348


$
(16
)

(4.6
)%
Long-term contract liabilities
433


424


9


2.4
 %
Total contract liabilities
$
765

 
$
772

 
$
(7
)
 
(0.8
)%
The contract liabilities balances above are comprised of the following:
 
September 30, 2018
 
December 31, 2017
Advanced deposits
$
55

 
$
59

Deferred revenue related to the loyalty program
584

 
561

Deferred revenue related to system-wide services
14

 
9

Initial fees received from franchise owners
33

 
27

Other deferred revenue
79

 
116

Total contract liabilities
$
765

 
$
772

v3.10.0.1
Debt and Equity Securities (Tables)
9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Equity Method Investments
Equity Method Investments
 
September 30, 2018
 
December 31, 2017
Equity method investments
$
225

 
$
185

Summarized Financial Information
The following table presents summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Total revenues
$
135

 
$
196

 
$
399

 
$
649

Gross operating profit
53

 
80

 
141

 
225

Income (loss) from continuing operations
(12
)
 
38

 
(15
)
 
36

Net income (loss)
(12
)
 
38

 
(15
)
 
36

Marketable Securities Held to Fund Operating Programs
Marketable Securities Held to Fund Operating Programs—Marketable securities held to fund operating programs, which are recorded at fair value and included on our condensed consolidated balance sheets, were as follows:
 
September 30, 2018
 
December 31, 2017
Deferred compensation plans held in rabbi trusts (Note 8 and 10)
$
413

 
$
402

Loyalty program
391

 
403

Captive insurance companies
114

 
111

Total marketable securities held to fund operating programs
$
918

 
$
916

Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets
(157
)
 
(156
)
Marketable securities held to fund operating programs included in other assets
$
761

 
$
760

Net Gains and Interest Income from Marketable Securities Held to Fund Operating Programs
Net realized and unrealized gains (losses) and interest income from marketable securities held to fund the loyalty program are recognized in other income (loss), net on our condensed consolidated statements of income:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
2018
 
2017
 
2018
 
2017
Loyalty program (Note 18)
$
1

 
$
2

 
$
(2
)
 
$
9

Net realized and unrealized gains and interest income from marketable securities held to fund rabbi trusts are recognized in net gains and interest income from marketable securities held to fund rabbi trusts on our condensed consolidated statements of income:


Three Months Ended September 30,
 
Nine Months Ended September 30,
2018
 
2017
 
2018
 
2017
Unrealized gains
$
5

 
$
8

 
$
7

 
$
24

Realized gains
5

 
3

 
12

 
11

Net gains and interest income from marketable securities held to fund rabbi trusts
$
10

 
$
11

 
$
19

 
$
35

Marketable Securities Held for Investment Purposes
Marketable Securities Held for Investment Purposes—Marketable securities held for investment purposes, which are recorded at fair value and included on our condensed consolidated balance sheets, were as follows:
 
September 30, 2018
 
December 31, 2017
Interest-bearing money market funds
$
38

 
$
26

Time deposits
200

 
37

Common shares
117

 
131

Total marketable securities held for investment purposes
$
355

 
$
194

Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments
(238
)
 
(63
)
Marketable securities held for investment purposes included in other assets
$
117

 
$
131

Investments Classified as Available For Sale
Preferred shares—During 2013, we also invested $271 million in Playa for convertible redeemable preferred shares which were classified as an AFS debt security. The fair value of the preferred shares was: 
 
 
2017
Fair value at January 1
 
$
290

Gross unrealized losses
 
(54
)
Realized losses (1) (Note 18)
 
(40
)
Interest income (Note 18)
 
94

Cash redemption
 
(290
)
Fair value at September 30
 
$

(1) The realized losses were the result of a difference between the fair value of the initial investment and the contractual redemption price of $8.40 per share.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
We measured the following financial assets at fair value on a recurring basis:
 
September 30, 2018
 
Cash and cash equivalents
 
Short-term investments
 
Prepaids and other assets
 
Other assets
Level One - Quoted Prices in Active Markets for Identical Assets
 
 
 
 
 
 
 
 
 
Interest-bearing money market funds
$
88

 
$
88

 
$

 
$

 
$

Mutual funds
413

 

 

 

 
413

Common shares
117

 

 

 

 
117

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
212

 

 
204

 

 
8

U.S. government obligations
158

 

 

 
37

 
121

U.S. government agencies
46

 

 
1

 
6

 
39

Corporate debt securities
168

 

 
12

 
30

 
126

Mortgage-backed securities
22

 

 

 
5

 
17

Asset-backed securities
46

 

 

 
11

 
35

Municipal and provincial notes and bonds
3

 

 

 
1

 
2

Total
$
1,273

 
$
88

 
$
217

 
$
90

 
$
878

 
December 31, 2017
 
Cash and cash equivalents
 
Short-term investments
 
Prepaids and other assets
 
Other assets
Level One - Quoted Prices in Active Markets for Identical Assets
 
 
 
 
 
 
 
 
 
Interest-bearing money market funds
$
75

 
$
75

 
$

 
$

 
$

Mutual funds
402

 

 

 

 
402

Common shares
131

 

 

 

 
131

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
50

 

 
39

 

 
11

U.S. government obligations
158

 

 

 
38

 
120

U.S. government agencies
47

 

 
2

 
7

 
38

Corporate debt securities
179

 

 
8

 
33

 
138

Mortgage-backed securities
25

 

 

 
6

 
19

Asset-backed securities
40

 

 

 
10

 
30

Municipal and provincial notes and bonds
3

 

 

 
1

 
2

Total
$
1,110

 
$
75

 
$
49

 
$
95

 
$
891

v3.10.0.1
Financing Receivables (Tables)
9 Months Ended
Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Financing Receivables
 
September 30, 2018
 
December 31, 2017
Unsecured financing to hotel owners
$
158

 
$
127

Less: current portion of financing receivables, included in receivables, net
(45
)
 

Less: allowance for losses
(99
)
 
(108
)
Total long-term financing receivables, net of allowances
$
14

 
$
19

Allowance for Losses and Impairments
The following table summarizes the activity in our unsecured financing receivables allowance:
 
2018
 
2017
Allowance at January 1
$
108

 
$
100

  Provisions
3

 
4

  Other adjustments
(2
)
 
1

Allowance at June 30
$
109

 
$
105

  Provisions
2

 
1

  Write-offs
(12
)
 

  Other adjustments

 
1

Allowance at September 30
$
99

 
$
107


Credit Monitoring
Our unsecured financing receivables were as follows:
 
September 30, 2018
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
58

 
$

 
$
58

 
$

Impaired loans (1)
50

 
(50
)
 

 
50

Total loans
108

 
(50
)
 
58

 
50

Other financing arrangements
50

 
(49
)
 
1

 
49

Total unsecured financing receivables
$
158

 
$
(99
)
 
$
59

 
$
99

(1) The unpaid principal balance was $36 million and the average recorded loan balance was $54 million at September 30, 2018.
 
December 31, 2017
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
13

 
$

 
$
13

 
$

Impaired loans (2)
59

 
(59
)
 

 
59

Total loans
72

 
(59
)
 
13

 
59

  Other financing arrangements
55

 
(49
)
 
6

 
49

Total unsecured financing receivables
$
127

 
$
(108
)
 
$
19

 
$
108

(2) The unpaid principal balance was $44 million and the average recorded loan balance was $58 million at December 31, 2017.
v3.10.0.1
Acquisitions and Dispositions (Tables)
9 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the fair value of the identifiable net assets acquired in the acquisition of Miraval, which is recorded within corporate and other:
 
 
Current assets, net of cash acquired
$
1

Property and equipment
172

Indefinite-lived intangibles (1)
37

Management agreement intangibles (2)
14

Goodwill (3)
21

Other definite-lived intangibles (4)
7

Total assets
$
252

 
 
Current liabilities
$
13

Deferred tax liabilities
3

Total liabilities
16

Total net assets acquired attributable to Hyatt Hotels Corporation
236

Total net assets acquired attributable to noncontrolling interests
1

Total net assets acquired
$
237

 
 
(1) Includes an intangible attributable to the Miraval brand.
(2) Amortized over a 20 year useful life.
(3) The goodwill, of which $10 million is deductible for tax purposes, is attributable to Miraval's reputation as a renowned provider of wellness and mindfulness experiences, the extension of the Hyatt brand beyond traditional hotel stays, and the establishment of deferred tax liabilities.
(4) Amortized over useful lives ranging from two to seven years.
v3.10.0.1
Intangibles, Net (Tables)
9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
 
September 30, 2018
 
Weighted-
average useful
lives in years
 
December 31, 2017
Management and franchise agreement intangibles
$
178

 
23

 
$
178

Lease related intangibles
123

 
110

 
127

Brand and other indefinite-lived intangibles
53

 

 
53

Advanced bookings intangibles
15

 
5

 
9

Other definite-lived intangibles
8

 
6

 
9

 
377

 
 
 
376

Accumulated amortization
(81
)
 
 
 
(71
)
Intangibles, net
$
296

 
 
 
$
305


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Amortization expense
$
3

 
$
3

 
$
10

 
$
10


Schedule of Indefinite-Lived Intangible Assets
 
September 30, 2018
 
Weighted-
average useful
lives in years
 
December 31, 2017
Management and franchise agreement intangibles
$
178

 
23

 
$
178

Lease related intangibles
123

 
110

 
127

Brand and other indefinite-lived intangibles
53

 

 
53

Advanced bookings intangibles
15

 
5

 
9

Other definite-lived intangibles
8

 
6

 
9

 
377

 
 
 
376

Accumulated amortization
(81
)
 
 
 
(71
)
Intangibles, net
$
296

 
 
 
$
305


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Amortization expense
$
3

 
$
3

 
$
10

 
$
10


Schedule of Intangible Assets Amortization Expense
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Amortization expense
$
3

 
$
3

 
$
10

 
$
10

v3.10.0.1
Other Assets (Tables)
9 Months Ended
Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
 
September 30, 2018
 
December 31, 2017
Marketable securities held to fund rabbi trusts (Note 4)
$
413

 
$
402

Management and franchise agreement assets constituting payments to customers (1)
385

 
378

Loyalty program marketable securities (Note 4)
293

 
298

Common shares of Playa N.V. (Note 4)
117

 
131

Long-term investments
112

 
109

Other
75

 
66

Total other assets
$
1,395

 
$
1,384

(1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees.
v3.10.0.1
Debt (Tables)
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Fair Value, by Balance Sheet Grouping
 
September 30, 2018
 
Carrying value
 
Fair value
 
Quoted prices in active markets for identical assets (level one)
 
Significant other observable inputs (level two)
 
Significant unobservable inputs (level three)
Debt (1)
$
1,636

 
$
1,656

 
$

 
$
1,591

 
$
65

(1) Excludes $13 million of capital lease obligations and $16 million of unamortized discounts and deferred financing fees.
 
December 31, 2017
 
Carrying value
 
Fair value
 
Quoted prices in active markets for identical assets (level one)
 
Significant other observable inputs (level two)
 
Significant unobservable inputs (level three)
Debt (2)
$
1,452

 
$
1,546

 
$

 
$
1,459

 
$
87

(2) Excludes $13 million of capital lease obligations and $14 million of unamortized discounts and deferred financing fees.
v3.10.0.1
Other Long-Term Liabilities (Tables)
9 Months Ended
Sep. 30, 2018
Other Liabilities [Abstract]  
Other Long-term Liabilities
 
September 30, 2018
 
December 31, 2017
Deferred compensation plans held to fund rabbi trusts (Note 4)
$
413

 
$
402

Guarantee liabilities (Note 12)
79

 
104

Self-insurance liabilities (Note 12)
76

 
69

Deferred income taxes
42

 
62

Other
227

 
226

Total other long-term liabilities
$
837

 
$
863

v3.10.0.1
Commitments and Contingencies (Tables)
9 Months Ended
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Guarantor Obligations
 
 
The four managed hotels in France
 
Other performance guarantees
 
All performance guarantees
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Beginning balance, January 1
 
$
58

 
$
66

 
$
13

 
$
13

 
$
71

 
$
79

Initial guarantee obligation liability
 

 

 

 
3

 

 
3

Amortization of initial guarantee obligation liability into income
 
(8
)
 
(7
)
 
(2
)
 
(2
)
 
(10
)
 
(9
)
Performance guarantee expense (income), net
 
36

 
41

 
(1
)
 
(1
)
 
35

 
40

Net payments during the period
 
(50
)
 
(49
)
 
(5
)
 
(1
)
 
(55
)
 
(50
)
Foreign currency exchange, net
 

 
6

 

 

 

 
6

Ending balance, June 30
 
$
36

 
$
57

 
$
5

 
$
12

 
$
41

 
$
69

Amortization of initial guarantee obligation liability into income
 
(3
)
 
(4
)
 
(1
)
 
(1
)
 
(4
)
 
(5
)
Performance guarantee expense
 
3

 
13

 
3

 
1

 
6

 
14

Net (payments) receipts during the period
 
(9
)
 
(16
)
 
2

 
1

 
(7
)
 
(15
)
Foreign currency exchange, net
 
1

 
3

 

 

 
1

 
3

Ending balance, September 30
 
$
28

 
$
53

 
$
9

 
$
13

 
$
37

 
$
66

Debt Repayment and Other Guarantees
Included within debt repayment and other guarantees are the following:
Property description
 
Maximum potential future payments
 
Maximum exposure net of recoverability from third parties
 
Other long-term liabilities recorded at September 30, 2018
 
Other long-term liabilities recorded at December 31, 2017
 
Year of guarantee expiration
Hotel property in Washington State (1), (3), (4), (5)
 
$
215

 
$

 
$
19

 
$
26

 
2020
Hotel properties in India (2), (3)
 
166

 
166

 
11

 
17

 
2020
Hotel property in Massachusetts (6)
 
102

 
102

 
1

 
1

 
2020
Hotel and residential properties in Brazil (1), (4)
 
95

 
40

 
3

 
4

 
various, through 2021
Hotel property in Oregon (1), (5)
 
61

 
10

 
4

 

 
various, through 2022
Hotel properties in California (1)
 
31

 
13

 
4

 
6

 
various, through 2021
Hotel property in Minnesota
 
25

 
25

 
1

 
2

 
2021
Hotel property in Arizona (1), (4)
 
25

 

 
1

 
1

 
2019
Other (1)
 
30

 
19

 
5

 
2

 
various, through 2022
Total
 
$
750

 
$
375

 
$
49

 
$
59

 
 

(1) We have agreements with our unconsolidated hospitality venture partners, the respective hotel owners, or other third parties to recover certain amounts funded under the debt repayment guarantee; the recoverability mechanism may be in the form of cash, financing receivable, or HTM debt security.
(2) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at September 30, 2018. We have the contractual right to recover amounts funded from the unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $83 million, taking into account our partner's 50% ownership interest in the unconsolidated hospitality venture.
(3) Under certain events or conditions, we have the right to force the sale of the property(ies) in order to recover amounts funded.
(4) If certain funding thresholds are met or if certain events occur, we have the ability to assume control of the property. With respect to properties in Brazil, this right only exists for the residential property.
(5) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction using the funds available from the outstanding loan. Any additional funds paid by us are subject to partial recovery in the form of cash or HTM debt security. At September 30, 2018, the maximum potential future payments and maximum exposure net of recoverability from third parties under the completion guarantees are $45 million and $4 million, respectively.
(6) We are subject to a completion guarantee whereby the parties agree to substantially complete the construction of the project by a specified date. In the event of default, we are obligated to complete construction and any additional funds paid by us are not recoverable.
v3.10.0.1
Equity (Tables)
9 Months Ended
Sep. 30, 2018
Equity [Abstract]  
Stockholders' Equity and Noncontrolling Interests
We entered into the following accelerated share repurchase ("ASR") programs with third-party financial institutions to repurchase Class A shares:
 
Total number of shares repurchased (1)
 
Weighted-average price per share
 
Total cash paid
May 2018 ASR
2,481,341

 
$
80.60

 
$
200

August 2017 ASR (2) (3)
1,401,787

 
$
57.07

 
$
100

March 2017 ASR (2)
5,393,669

 
$
55.62

 
$
300

(1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share.
(2) The August 2017 ASR and the March 2017 ASR are collectively referred to as the "2017 ASR Agreements."
(3) At September 30, 2017, the remaining yet to be delivered shares totaled $20 million and were accounted for as an equity-classified forward contract. The August 2017 ASR was settled subsequent to the nine months ended September 30, 2017 for 264,697 shares. Overall, we repurchased 1,666,484 shares at a weighted-average price per share of $60.01.
 
Stockholders'
equity
 
Noncontrolling interests
in consolidated
subsidiaries
 
Total equity
Balance at January 1, 2018
$
3,833

 
$
6

 
$
3,839

Net income attributable to Hyatt Hotels Corporation
725

 

 
725

Other comprehensive income
51

 

 
51

Repurchase of common stock
(654
)
 

 
(654
)
Dividends
(52
)
 

 
(52
)
Directors compensation
2

 

 
2

Employee stock plan issuance
3

 

 
3

Share-based payment activity
21

 

 
21

Balance at September 30, 2018
$
3,929

 
$
6

 
$
3,935

 
 
 
 
 
 
 
 
Stockholders'
equity
 
Noncontrolling interests
in consolidated
subsidiaries
 
Total equity
Balance at January 1, 2017 (a)
$
4,075

 
$
5

 
$
4,080

Net income attributable to Hyatt Hotels Corporation
176

 

 
176

Other comprehensive income
105

 

 
105

Contributions from noncontrolling interests

 
1

 
1

Repurchase of common stock
(555
)
 

 
(555
)
Directors compensation
2

 

 
2

Employee stock plan issuance
3

 

 
3

Share-based payment activity
20

 

 
20

Balance at September 30, 2017
$
3,826

 
$
6

 
$
3,832

(a) Balances have been adjusted for the adoption of ASU 2014-09 with an opening adjustment to retained earnings of $172 million.
Accumulated Other Comprehensive Loss
 
Balance at
July 1, 2018
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss (a)
 
Balance at September 30, 2018
Foreign currency translation adjustments
$
(266
)
 
$
9

 
$
62

 
$
(195
)
Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(3
)
 
3

 

 

Accumulated other comprehensive loss
$
(276
)
 
$
12

 
$
62

 
$
(202
)
(a) The amounts reclassified from accumulated other comprehensive loss include the gain recognized in gains on sales of real estate related to the HRMC transaction (see Note 6).
 
 
 
 
 
 
 
 
 
Balance at
January 1, 2018
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss (b)
 
Balance at September 30, 2018
Foreign currency translation adjustments
$
(243
)
 
$
(29
)
 
$
77

 
$
(195
)
Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(3
)
 
3

 

 

Accumulated other comprehensive loss
$
(253
)
 
$
(26
)
 
$
77

 
$
(202
)
(b) The amounts reclassified from accumulated other comprehensive loss include the net gain recognized in gains on sales of real estate related to the derecognition of a wholly owned subsidiary and the HRMC transaction (see Note 6).
 
 
 
 
 
 
 
 
 
Balance at
July 1, 2017
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
September 30, 2017
Foreign currency translation adjustments
$
(239
)
 
$
11

 
$

 
$
(228
)
Unrealized gains on AFS securities
78

 
(12
)
 

 
66

Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(4
)
 
1

 

 
(3
)
Accumulated other comprehensive loss
$
(172
)
 
$

 
$

 
$
(172
)
 
 
 
 
 
 
 
 
 
Balance at
January 1, 2017
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
September 30, 2017
Foreign currency translation adjustments
$
(299
)
 
$
71

 
$

 
$
(228
)
Unrealized gains on AFS securities (c)
33

 
8

 
25

 
66

Unrecognized pension cost
(7
)
 

 

 
(7
)
Unrealized losses on derivative instruments
(4
)
 
1

 

 
(3
)
Accumulated other comprehensive loss
$
(277
)
 
$
80

 
$
25

 
$
(172
)
(c) The presentation above was revised to reflect the gross impact of the redemption of certain Playa securities (see Note 4), which was previously presented on a net basis within current period other comprehensive income (loss) before reclassification. The revised presentation above reflects the $40 million realized loss ($25 million net of tax) recognized in other income (loss), net (see Note 18) in the period of redemption as an amount reclassified from accumulated other comprehensive loss.
Dividends Declared and Paid
During the nine months ended September 30, 2018, we paid cash dividends to Class A and Class B shareholders of record as follows:
Date Declared
 
Dividend per share amount
 
Date of record
 
Date paid
February 14, 2018
 
$
0.15

 
March 22, 2018
 
March 29, 2018
May 16, 2018
 
$
0.15

 
June 19, 2018
 
June 28, 2018
July 31, 2018
 
$
0.15

 
September 6, 2018
 
September 20, 2018
v3.10.0.1
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2018
Share-based Compensation [Abstract]  
Compensation Expense Related to Long-Term Incentive Plan
Stock-based compensation expense included in selling, general, and administrative expense on our condensed consolidated statements of income related to these awards was as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
SARs
$
1

 
$
1

 
$
10

 
$
10

RSUs
2

 
3

 
14

 
14

PSUs
2

 
1

 
4

 
2

Total
$
5

 
$
5

 
$
28

 
$
26

v3.10.0.1
Segment Information (Tables)
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Summarized Consolidated Financial Information by Segment
The table below shows summarized consolidated financial information by segment. Included within corporate and other are the results of Miraval, exhale, Hyatt Residence Club license fees, results related to our co-branded credit card, and unallocated corporate expenses.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Owned and leased hotels
 
 
 
 
 
 
 
Owned and leased hotels revenues
$
443

 
$
510

 
$
1,428

 
$
1,641

Other revenues

 

 

 
13

Intersegment revenues (a)
7

 
10

 
26

 
29

Adjusted EBITDA
91


104


324


382

Depreciation and amortization
65

 
75

 
197

 
222

Americas management and franchising
 
 
 
 
 
 
 
Management, franchise, and other fees revenues
95

 
94

 
301

 
289

Contra revenue
(4
)
 
(3
)
 
(10
)
 
(9
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
447

 
395

 
1,328

 
1,205

Intersegment revenues (a)
16

 
18

 
52

 
58

Adjusted EBITDA
83

 
81

 
266

 
250

Depreciation and amortization
2

 
2

 
6

 
6

ASPAC management and franchising
 
 
 
 
 
 
 
Management, franchise, and other fees revenues
30

 
27

 
90

 
79

Contra revenue

 

 
(1
)
 
(1
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
24

 
19

 
67

 
56

Intersegment revenues (a)
1

 

 
1

 
1

Adjusted EBITDA
19

 
17

 
55

 
48

Depreciation and amortization
1

 

 
1

 

EAME/SW Asia management and franchising
 
 
 
 
 
 
 
Management, franchise, and other fees revenues
21

 
17

 
58

 
49

Contra revenue
(1
)
 
(1
)
 
(4
)
 
(3
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
16

 
15

 
49

 
41

Intersegment revenues (a)
3

 
3

 
8

 
7

Adjusted EBITDA
12

 
10

 
33

 
26

Depreciation and amortization

 

 

 

Corporate and other
 
 
 
 
 
 
 
Revenues
26

 
25

 
89

 
73

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
2

 

 
3

 

Intersegment revenues (a)
(2
)
 
(3
)
 
(5
)
 
(7
)
Adjusted EBITDA
(29
)
 
(33
)
 
(85
)
 
(90
)
Depreciation and amortization
13

 
11

 
39

 
33

Eliminations
 
 
 
 
 
 
 
Revenues (a)
(25
)
 
(28
)
 
(82
)
 
(88
)
Adjusted EBITDA
(1
)
 
(2
)
 
2

 
3

TOTAL
 
 
 
 
 
 
 
Revenues
$
1,074

 
$
1,070

 
$
3,316

 
$
3,345

Adjusted EBITDA
175

 
177

 
595

 
619

Depreciation and amortization
81

 
88

 
243

 
261

(a)
Intersegment revenues are included in management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations.
Reconciliation of Consolidated Adjusted EBITDA to EBITDA and a Reconciliation of EBITDA to Net Income Attributable to Hyatt Hotels Corporation
The table below provides a reconciliation of our net income attributable to Hyatt Hotels Corporation to EBITDA and a reconciliation of EBITDA to our consolidated Adjusted EBITDA:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Net income attributable to Hyatt Hotels Corporation
$
237

 
$
18

 
$
725

 
$
176

Interest expense
19

 
20

 
57

 
61

Provision for income taxes
19

 
16

 
194

 
103

Depreciation and amortization
81

 
88

 
243

 
261

EBITDA
356

 
142

 
1,219

 
601

Contra revenue
5

 
4

 
15

 
13

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
(489
)
 
(429
)
 
(1,447
)
 
(1,302
)
Costs incurred on behalf of managed and franchised properties
487

 
425

 
1,447

 
1,313

Equity (earnings) losses from unconsolidated hospitality ventures
6

 
(1
)
 
17

 
1

Stock-based compensation expense (Note 14)
5

 
5

 
28

 
26

Gains on sales of real estate (Note 6)
(239
)
 

 
(769
)
 
(60
)
Asset impairments
21

 

 
21

 

Other (income) loss, net (Note 18)
9

 
16

 
22

 
(32
)
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA
14

 
15

 
42

 
59

Adjusted EBITDA
$
175

 
$
177

 
$
595

 
$
619

v3.10.0.1
Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Schedule of the Calculation of Basic and Diluted Earnings Per Share
The calculation of basic and diluted earnings per share, including a reconciliation of the numerator and denominator, are as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Numerator:
 
 
 
 
 
 
 
Net income
$
237

 
$
19

 
$
725

 
$
177

Net income and accretion attributable to noncontrolling interests

 
(1
)
 

 
(1
)
Net income attributable to Hyatt Hotels Corporation
$
237

 
$
18

 
$
725

 
$
176

Denominator:
 
 
 
 
 
 
 
Basic weighted average shares outstanding
111,356,759

 
124,010,961

 
114,829,210

 
126,399,472

Share-based compensation and equity-classified forward contract
1,867,226

 
1,396,922

 
1,954,863

 
1,315,462

Diluted weighted average shares outstanding
113,223,985

 
125,407,883

 
116,784,073

 
127,714,934

Basic Earnings Per Share:
 
 
 
 
 
 
 
Net income
$
2.12

 
$
0.15

 
$
6.31

 
$
1.40

Net income and accretion attributable to noncontrolling interests

 
(0.01
)
 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
2.12

 
$
0.14

 
$
6.31

 
$
1.39

Diluted Earnings Per Share:
 
 
 
 
 
 
 
Net income
$
2.09

 
$
0.15

 
$
6.21

 
$
1.39

Net income and accretion attributable to noncontrolling interests

 
(0.01
)
 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
2.09

 
$
0.14

 
$
6.21

 
$
1.38

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The computations of diluted net income per share for the three and nine months ended September 30, 2018 and September 30, 2017 do not include the following shares of Class A common stock assumed to be issued as stock-settled SARs and RSUs because they are anti-dilutive.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
SARs

 
29,100

 

 
32,300

RSUs

 
400

 

 
200

v3.10.0.1
Other Income (Loss), Net (Tables)
9 Months Ended
Sep. 30, 2018
Other Income and Expenses [Abstract]  
Other Income (Loss), Net
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Interest income (Note 4)
$
7

 
$
5

 
$
19

 
$
106

Depreciation recovery
5

 
7

 
16

 
19

Performance guarantee liability amortization (Note 12)
4

 
5

 
14

 
14

Debt repayment guarantee liability amortization (Note 12)
2

 
3

 
8

 
8

Cease use liability

 
(21
)
 

 
(21
)
Realized losses (Note 4)

 

 
(2
)
 
(41
)
Impairment of an equity security without a readily determinable fair value (Note 4)

 

 
(22
)
 

Performance guarantee expense, net (Note 12)
(6
)
 
(14
)
 
(41
)
 
(54
)
Loss on extinguishment of debt (Note 9)
(7
)
 

 
(7
)
 

Unrealized (losses) gains (Note 4)
(15
)
 

 
(21
)
 
3

Other, net
1

 
(1
)
 
14

 
(2
)
Other income (loss), net
$
(9
)
 
$
(16
)
 
$
(22
)
 
$
32

v3.10.0.1
Organization (Details)
Sep. 30, 2018
hotel
country
room
Organization  
Number of countries in which entity operates (number of countries) | country 59
Full service  
Organization  
Number of hotels operated or franchised 347
Number of rooms operated or franchised (number of rooms) | room 133,402
Select service  
Organization  
Number of hotels operated or franchised 407
Number of rooms operated or franchised (number of rooms) | room 57,576
Select service | United States  
Organization  
Number of hotels operated or franchised 358
All inclusive  
Organization  
Number of hotels operated or franchised 6
Number of rooms operated or franchised (number of rooms) | room 2,401
Wellness resorts  
Organization  
Number of hotels operated or franchised 3
Number of rooms operated or franchised (number of rooms) | room 399
v3.10.0.1
Recently Issued Accounting Pronouncements - Narrative (Details) - USD ($)
9 Months Ended
Jan. 01, 2018
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle        
Reduction in retained earnings $ (3,118,000,000) $ (3,791,000,000)   $ (3,054,000,000)
Restricted cash, current   23,000,000 [1] $ 224,000,000 [1] 234,000,000
Restricted cash, noncurrent [1]   19,000,000 16,000,000  
Change in investing activities   712,000,000 (54,000,000)  
Change in operating activities   132,000,000 428,000,000  
Change in financing activities   $ (543,000,000) (324,000,000)  
Accounting Standards Update 2014-09        
New Accounting Pronouncements or Change in Accounting Principle        
Deferred gain on sale of property 523,000,000      
Change in investing activities     (11,000,000)  
Change in operating activities     11,000,000  
Change in financing activities     0  
Accounting Standards Update 2016-01 | Retained Earnings        
New Accounting Pronouncements or Change in Accounting Principle        
Cumulative effect of adoption 68,000,000      
Accounting Standards Update 2016-01 | AOCI        
New Accounting Pronouncements or Change in Accounting Principle        
Cumulative effect of adoption (68,000,000)      
Accounting Standards Update 2016-16        
New Accounting Pronouncements or Change in Accounting Principle        
Reduction in retained earnings 4,000,000      
Accounting Standards Update 2016-18        
New Accounting Pronouncements or Change in Accounting Principle        
Restricted cash, current       249,000,000
Restricted cash, noncurrent       $ 15,000,000
Change in investing activities     163,000,000  
Change in operating activities     (11,000,000)  
Change in financing activities     $ (3,000,000)  
Loyalty Program | Accounting Standards Update 2014-09        
New Accounting Pronouncements or Change in Accounting Principle        
Contract liabilities $ 116,000,000      
[1] Restricted cash generally represents sales proceeds pursuant to like-kind exchanges, captive insurance subsidiary requirements, debt service on bonds, escrow deposits, and other arrangements.
v3.10.0.1
Recently Issued Accounting Pronouncements - Schedule of Effect of ASU 2016-18 (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle    
Operating activities $ 132 $ 428
Investing activities 712 (54)
Financing activities (543) (324)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR 752 573
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD $ 1,056 623
Accounting Standards Update 2016-18    
New Accounting Pronouncements or Change in Accounting Principle    
Operating activities   (11)
Investing activities   163
Financing activities   (3)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR   91
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD   $ 240
v3.10.0.1
Recently Issued Accounting Pronouncements - Schedule of Effects of ASU 2014-09 and 2016-16 (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Jan. 01, 2018
Dec. 31, 2017
Dec. 31, 2016
Income Statement [Abstract]              
Total revenues $ 1,074 $ 1,070 $ 3,316 $ 3,345      
Depreciation and amortization 81 88 243 261      
Other direct costs 8 3 23 20      
Selling, general, and administrative 82 89 260 278      
Direct and selling, general, and administrative expenses 1,012 1,011 3,068 3,130      
Net gains and interest income from marketable securities held to fund rabbi trusts 10 11 19 35      
Equity earnings (losses) from unconsolidated hospitality ventures (6) 1 (17) (1)      
Interest expense (19) (20) (57) (61)      
Gains on sales of real estate 239 0 769 60      
Other income (loss), net (9) (16) (22) 32      
INCOME BEFORE INCOME TAXES 256 35 919 280      
PROVISION FOR INCOME TAXES (19) (16) (194) (103)      
NET INCOME 237 19 725 177      
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS 0 (1) 0 (1)      
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 237 $ 18 $ 725 $ 176      
Net income—Basic (in dollars per share) $ 2.12 $ 0.15 $ 6.31 $ 1.40      
Net income attributable to Hyatt Hotels Corporation—Basic (in dollars per share) 2.12 0.14 6.31 1.39      
Net income—Diluted (in dollars per share) 2.09 0.15 6.21 1.39      
Net income attributable to Hyatt Hotels Corporation—Diluted (in dollars per share) $ 2.09 $ 0.14 $ 6.21 $ 1.38      
Statement of Financial Position [Abstract]              
Investments $ 225   $ 225   $ 185 $ 212  
Intangibles, net 296   296   305 305  
Deferred tax assets 149   149   142 141  
Other assets 1,395   1,395   1,406 1,384  
TOTAL ASSETS 7,724   7,724   7,568 7,572  
Accounts payable 127   127   136 136  
Accrued expenses and other current liabilities 296   296   352 352  
Current contract liabilities 332   332   348 348  
Long-term contract liabilities 433   433   424 424  
Other long-term liabilities 837   837   863 863  
Total liabilities 3,789   3,789   3,719 3,719  
Retained earnings 3,791   3,791   3,118 3,054  
Accumulated other comprehensive loss (202)   (202)   (253) (185)  
Total equity 3,935 $ 3,832 3,935 $ 3,832 3,839 3,843 $ 4,080
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY 7,724   7,724   7,568 7,572  
Owned and leased hotels              
Income Statement [Abstract]              
Total revenues 450 516 1,450 1,661      
Owned and leased hotels 354 406 1,095 1,258      
Costs incurred on behalf of managed and franchised properties 354 406 1,095 1,258      
Management, franchise, and other fees              
Income Statement [Abstract]              
Total revenues 133 123 407 367      
Amortization of management and franchise agreement assets constituting payments to customers              
Income Statement [Abstract]              
Total revenues (5) (4) (15) (13)      
Net management, franchise, and other fees              
Income Statement [Abstract]              
Total revenues 128 119 392 354      
Other revenues              
Income Statement [Abstract]              
Total revenues 7 6 27 28      
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties              
Income Statement [Abstract]              
Total revenues 489 429 1,447 1,302      
Costs incurred on behalf of managed and franchised properties              
Income Statement [Abstract]              
Owned and leased hotels 487 425 1,447 1,313      
Costs incurred on behalf of managed and franchised properties $ 487 425 $ 1,447 1,313      
As Reported              
Income Statement [Abstract]              
Total revenues   1,119   3,501      
Depreciation and amortization   92   274      
Other direct costs   9   34      
Selling, general, and administrative   89   278      
Direct and selling, general, and administrative expenses   1,062   3,259      
Net gains and interest income from marketable securities held to fund rabbi trusts   12   37      
Equity earnings (losses) from unconsolidated hospitality ventures   1   (1)      
Interest expense   (20)   (61)      
Gains on sales of real estate   0   34      
Other income (loss), net   (19)   23      
INCOME BEFORE INCOME TAXES   31   274      
PROVISION FOR INCOME TAXES   (14)   (100)      
NET INCOME   17   174      
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS   (1)   (1)      
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION   $ 16   $ 173      
Net income—Basic (in dollars per share)   $ 0.14   $ 1.38      
Net income attributable to Hyatt Hotels Corporation—Basic (in dollars per share)   0.13   1.37      
Net income—Diluted (in dollars per share)   0.14   1.37      
Net income attributable to Hyatt Hotels Corporation—Diluted (in dollars per share)   $ 0.13   $ 1.36      
Statement of Financial Position [Abstract]              
Investments           211  
Intangibles, net           683  
Deferred tax assets           242  
Other assets           1,006  
TOTAL ASSETS           7,672  
Accounts payable           175  
Accrued expenses and other current liabilities           635  
Current contract liabilities           0  
Long-term contract liabilities           0  
Other long-term liabilities           1,725  
Total liabilities           4,131  
Retained earnings           2,742  
Accumulated other comprehensive loss           (185)  
Total equity           3,531  
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY           7,672  
As Reported | Owned and leased hotels              
Income Statement [Abstract]              
Total revenues   $ 518   $ 1,667      
Owned and leased hotels   409   1,266      
Costs incurred on behalf of managed and franchised properties   409   1,266      
As Reported | Management, franchise, and other fees              
Income Statement [Abstract]              
Total revenues   122   374      
As Reported | Amortization of management and franchise agreement assets constituting payments to customers              
Income Statement [Abstract]              
Total revenues   0   0      
As Reported | Net management, franchise, and other fees              
Income Statement [Abstract]              
Total revenues   122   374      
As Reported | Other revenues              
Income Statement [Abstract]              
Total revenues   16   53      
As Reported | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties              
Income Statement [Abstract]              
Total revenues   463   1,407      
As Reported | Costs incurred on behalf of managed and franchised properties              
Income Statement [Abstract]              
Owned and leased hotels   463   1,407      
Costs incurred on behalf of managed and franchised properties   463   1,407      
Effect of the adoption | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Total revenues   (49)   (156)      
Depreciation and amortization   (4)   (13)      
Other direct costs   (6)   (14)      
Selling, general, and administrative   0   0      
Direct and selling, general, and administrative expenses   (51)   (129)      
Net gains and interest income from marketable securities held to fund rabbi trusts   (1)   (2)      
Equity earnings (losses) from unconsolidated hospitality ventures   0   0      
Interest expense   0   0      
Gains on sales of real estate   0   26      
Other income (loss), net   3   9      
INCOME BEFORE INCOME TAXES   4   6      
PROVISION FOR INCOME TAXES   (2)   (3)      
NET INCOME   2   3      
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS   0   0      
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION   $ 2   $ 3      
Net income—Basic (in dollars per share)   $ 0.01   $ 0.02      
Net income attributable to Hyatt Hotels Corporation—Basic (in dollars per share)   0.01   0.02      
Net income—Diluted (in dollars per share)   0.01   0.02      
Net income attributable to Hyatt Hotels Corporation—Diluted (in dollars per share)   $ 0.01   $ 0.02      
Statement of Financial Position [Abstract]              
Investments           1  
Intangibles, net           (378)  
Deferred tax assets           (101)  
Other assets           378  
TOTAL ASSETS           (100)  
Accounts payable           (39)  
Accrued expenses and other current liabilities           (283)  
Current contract liabilities           348  
Long-term contract liabilities           424  
Other long-term liabilities           (862)  
Total liabilities           (412)  
Retained earnings         172 312  
Accumulated other comprehensive loss           0  
Total equity           312  
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY           $ (100)  
Effect of the adoption | Accounting Standards Update 2016-01 And Accounting Standards Update 2016-16              
Statement of Financial Position [Abstract]              
Investments         (27)    
Intangibles, net         0    
Deferred tax assets         1    
Other assets         22    
TOTAL ASSETS         (4)    
Accounts payable         0    
Accrued expenses and other current liabilities         0    
Current contract liabilities         0    
Long-term contract liabilities         0    
Other long-term liabilities         0    
Total liabilities         0    
Retained earnings         64    
Accumulated other comprehensive loss         (68)    
Total equity         (4)    
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND EQUITY         $ (4)    
Effect of the adoption | Owned and leased hotels              
Income Statement [Abstract]              
Owned and leased hotels   $ (3)   $ (8)      
Costs incurred on behalf of managed and franchised properties   (3)   (8)      
Effect of the adoption | Owned and leased hotels | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Total revenues   (2)   (6)      
Effect of the adoption | Management, franchise, and other fees | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Total revenues   1   (7)      
Effect of the adoption | Amortization of management and franchise agreement assets constituting payments to customers | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Total revenues   (4)   (13)      
Effect of the adoption | Net management, franchise, and other fees | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Total revenues   (3)   (20)      
Effect of the adoption | Other revenues | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Total revenues   (10)   (25)      
Effect of the adoption | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Total revenues   (34)   (105)      
Effect of the adoption | Costs incurred on behalf of managed and franchised properties | Accounting Standards Update 2014-09              
Income Statement [Abstract]              
Owned and leased hotels   (38)   (94)      
Costs incurred on behalf of managed and franchised properties   $ (38)   $ (94)      
v3.10.0.1
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Disaggregation of Revenue [Line Items]        
Revenues $ 1,074 $ 1,070 $ 3,316 $ 3,345
Rooms revenues        
Disaggregation of Revenue [Line Items]        
Revenues 274 308 840 958
Food and beverage        
Disaggregation of Revenue [Line Items]        
Revenues 135 155 481 553
Other        
Disaggregation of Revenue [Line Items]        
Revenues 41 53 129 150
Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 450 516 1,450 1,661
Base management fees        
Disaggregation of Revenue [Line Items]        
Revenues 55 51 167 150
Incentive management fees        
Disaggregation of Revenue [Line Items]        
Revenues 33 31 105 95
Franchise fees        
Disaggregation of Revenue [Line Items]        
Revenues 33 30 96 86
Other fees        
Disaggregation of Revenue [Line Items]        
Revenues 7 6 24 22
License fees        
Disaggregation of Revenue [Line Items]        
Revenues 5 5 15 14
Management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 133 123 407 367
Contra revenue        
Disaggregation of Revenue [Line Items]        
Revenues (5) (4) (15) (13)
Net management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 128 119 392 354
Other revenues        
Disaggregation of Revenue [Line Items]        
Revenues 7 6 27 28
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Disaggregation of Revenue [Line Items]        
Revenues 489 429 1,447 1,302
Operating segments | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 443 510 1,428 1,654
Operating segments | Owned and leased hotels | Rooms revenues        
Disaggregation of Revenue [Line Items]        
Revenues 276 312 848 969
Operating segments | Owned and leased hotels | Food and beverage        
Disaggregation of Revenue [Line Items]        
Revenues 133 152 474 544
Operating segments | Owned and leased hotels | Other        
Disaggregation of Revenue [Line Items]        
Revenues 34 46 106 128
Operating segments | Owned and leased hotels | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 443 510 1,428 1,641
Operating segments | Owned and leased hotels | Base management fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | Incentive management fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | Franchise fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | Other fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | License fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | Management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | Contra revenue        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | Net management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Owned and leased hotels | Other revenues        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 13
Operating segments | Owned and leased hotels | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Americas management and franchising        
Disaggregation of Revenue [Line Items]        
Revenues 538 486 1,619 1,485
Operating segments | Americas management and franchising | Rooms revenues        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Americas management and franchising | Food and beverage        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Americas management and franchising | Other        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Americas management and franchising | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Americas management and franchising | Base management fees        
Disaggregation of Revenue [Line Items]        
Revenues 48 47 150 147
Operating segments | Americas management and franchising | Incentive management fees        
Disaggregation of Revenue [Line Items]        
Revenues 14 15 47 46
Operating segments | Americas management and franchising | Franchise fees        
Disaggregation of Revenue [Line Items]        
Revenues 32 30 94 84
Operating segments | Americas management and franchising | Other fees        
Disaggregation of Revenue [Line Items]        
Revenues 1 2 10 12
Operating segments | Americas management and franchising | License fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Americas management and franchising | Management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 95 94 301 289
Operating segments | Americas management and franchising | Contra revenue        
Disaggregation of Revenue [Line Items]        
Revenues (4) (3) (10) (9)
Operating segments | Americas management and franchising | Net management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 91 91 291 280
Operating segments | Americas management and franchising | Other revenues        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | Americas management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Disaggregation of Revenue [Line Items]        
Revenues 447 395 1,328 1,205
Operating segments | ASPAC management and franchising        
Disaggregation of Revenue [Line Items]        
Revenues 54 46 156 134
Operating segments | ASPAC management and franchising | Rooms revenues        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | ASPAC management and franchising | Food and beverage        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | ASPAC management and franchising | Other        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | ASPAC management and franchising | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | ASPAC management and franchising | Base management fees        
Disaggregation of Revenue [Line Items]        
Revenues 11 10 32 28
Operating segments | ASPAC management and franchising | Incentive management fees        
Disaggregation of Revenue [Line Items]        
Revenues 16 15 50 44
Operating segments | ASPAC management and franchising | Franchise fees        
Disaggregation of Revenue [Line Items]        
Revenues 1 0 2 2
Operating segments | ASPAC management and franchising | Other fees        
Disaggregation of Revenue [Line Items]        
Revenues 2 2 6 5
Operating segments | ASPAC management and franchising | License fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | ASPAC management and franchising | Management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 30 27 90 79
Operating segments | ASPAC management and franchising | Contra revenue        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 (1) (1)
Operating segments | ASPAC management and franchising | Net management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 30 27 89 78
Operating segments | ASPAC management and franchising | Other revenues        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | ASPAC management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Disaggregation of Revenue [Line Items]        
Revenues 24 19 67 56
Operating segments | EAME/SW Asia management and franchising        
Disaggregation of Revenue [Line Items]        
Revenues 36 31 103 87
Operating segments | EAME/SW Asia management and franchising | Rooms revenues        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Food and beverage        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Other        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Base management fees        
Disaggregation of Revenue [Line Items]        
Revenues 9 8 25 22
Operating segments | EAME/SW Asia management and franchising | Incentive management fees        
Disaggregation of Revenue [Line Items]        
Revenues 10 8 29 24
Operating segments | EAME/SW Asia management and franchising | Franchise fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Other fees        
Disaggregation of Revenue [Line Items]        
Revenues 2 1 4 3
Operating segments | EAME/SW Asia management and franchising | License fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 21 17 58 49
Operating segments | EAME/SW Asia management and franchising | Contra revenue        
Disaggregation of Revenue [Line Items]        
Revenues (1) (1) (4) (3)
Operating segments | EAME/SW Asia management and franchising | Net management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 20 16 54 46
Operating segments | EAME/SW Asia management and franchising | Other revenues        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Disaggregation of Revenue [Line Items]        
Revenues 16 15 49 41
Corporate and other        
Disaggregation of Revenue [Line Items]        
Revenues 28 25 92 73
Corporate and other | Rooms revenues        
Disaggregation of Revenue [Line Items]        
Revenues 5 6 18 18
Corporate and other | Food and beverage        
Disaggregation of Revenue [Line Items]        
Revenues 2 3 7 9
Corporate and other | Other        
Disaggregation of Revenue [Line Items]        
Revenues 7 7 23 22
Corporate and other | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 14 16 48 49
Corporate and other | Base management fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Corporate and other | Incentive management fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Corporate and other | Franchise fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Corporate and other | Other fees        
Disaggregation of Revenue [Line Items]        
Revenues 2 1 4 2
Corporate and other | License fees        
Disaggregation of Revenue [Line Items]        
Revenues 5 5 15 14
Corporate and other | Management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 7 6 19 16
Corporate and other | Contra revenue        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Corporate and other | Net management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues 7 6 19 16
Corporate and other | Other revenues        
Disaggregation of Revenue [Line Items]        
Revenues 5 3 22 8
Corporate and other | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Disaggregation of Revenue [Line Items]        
Revenues 2      
Eliminations        
Disaggregation of Revenue [Line Items]        
Revenues (25) (28) (82) (88)
Eliminations | Rooms revenues        
Disaggregation of Revenue [Line Items]        
Revenues (7) (10) (26) (29)
Eliminations | Food and beverage        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Eliminations | Other        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Eliminations | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues (7) (10) (26) (29)
Eliminations | Base management fees        
Disaggregation of Revenue [Line Items]        
Revenues (13) (14) (40) (47)
Eliminations | Incentive management fees        
Disaggregation of Revenue [Line Items]        
Revenues (7) (7) (21) (19)
Eliminations | Franchise fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Eliminations | Other fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Eliminations | License fees        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Eliminations | Management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues (20) (21) (61) (66)
Eliminations | Contra revenue        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Eliminations | Net management, franchise, and other fees        
Disaggregation of Revenue [Line Items]        
Revenues (20) (21) (61) (66)
Eliminations | Other revenues        
Disaggregation of Revenue [Line Items]        
Revenues 2 3 5 7
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Eliminations | Owned and leased hotels        
Disaggregation of Revenue [Line Items]        
Revenues 7 10 26 29
Eliminations | Americas management and franchising        
Disaggregation of Revenue [Line Items]        
Revenues 16 18 52 58
Eliminations | ASPAC management and franchising        
Disaggregation of Revenue [Line Items]        
Revenues 1 0 1 1
Eliminations | EAME/SW Asia management and franchising        
Disaggregation of Revenue [Line Items]        
Revenues $ 3 $ 3 $ 8 $ 7
v3.10.0.1
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2018
Jan. 01, 2018
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]              
Contract assets $ 1   $ 1       $ 0
Current contract liabilities 332   332     $ 348 348
Current contract liabilities, dollar change     $ (16)        
Current contract liabilities, percent change     (4.60%)        
Long-term contract liabilities 433   $ 433     $ 424 424
Long-term contract liabilities, dollar change     $ 9        
Long-term contract liabilities, percent change     2.40%        
Total contract liabilities 765   $ 765       772
Contract liabilities, dollar change     $ (7)        
Contract liabilities, percent change     (0.80%)        
Revenue recognized from contract with customer 222 $ 216 $ 663 $ 639      
Advanced deposits              
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]              
Total contract liabilities 55   55       59
Deferred revenue related to the loyalty program              
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]              
Total contract liabilities 584   584       561
Deferred revenue related to system-wide services              
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]              
Total contract liabilities 14   14       9
Initial fees received from franchise owners              
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]              
Total contract liabilities 33   33       27
Other deferred revenue              
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]              
Total contract liabilities $ 79   $ 79       $ 116
Scenario, Forecast              
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]              
Contract assets         $ 0    
v3.10.0.1
Revenue from Contracts with Customers - Remaining Performance Obligation (Details)
$ in Millions
9 Months Ended
Sep. 30, 2018
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 110
Revenue, Performance Obligation, Description of Timing Revenues received for free nights granted through our co-branded credit card as the awards are required to be redeemed within 12 months; and Revenues related to advanced bookings at owned and leased hotels as each stay has a duration of 12 months or less.
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent recognized 20.00%
Remaining performance obligation, period 1 year
v3.10.0.1
Debt and Equity Securities - Schedule of Equity Method Investment Balances (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]    
Equity method investments $ 225 $ 185
v3.10.0.1
Debt and Equity Securities - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Dec. 31, 2013
Schedule of Debt and Equity Method Investments            
Equity method investment, realized gain on disposal $ 1   $ 11 $ 2    
Equity method investment, net sales proceeds 7   17 4    
Equity method investment, net purchase price $ 4   4      
Equity method investment, impairment charges   $ 3 $ 16 $ 3    
Common stock, shares sold (in shares) 0   0      
Held-to-maturity securities $ 48   $ 48   $ 47  
Equity securities without a readily determinable fair value 9   9   $ 27  
Impairment charges on equity securities without readily determinable fair value 22   22      
Playa Hotels & Resorts N.V. | Common shares            
Schedule of Debt and Equity Method Investments            
Increase in other income (loss) $ (14)   $ (14)      
Playa Hotels & Resorts N.V. | Preferred shares            
Schedule of Debt and Equity Method Investments            
Available-for-sale securities, amortized cost basis           $ 271
v3.10.0.1
Debt and Equity Securities - Summarized Financial Information (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Investments, Debt and Equity Securities [Abstract]        
Total revenues $ 135 $ 196 $ 399 $ 649
Gross operating profit 53 80 141 225
Income (loss) from continuing operations (12) 38 (15) 36
Net income (loss) $ (12) $ 38 $ (15) $ 36
v3.10.0.1
Debt and Equity Securities - Held to Fund Operating Programs (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Held for operating programs    
Schedule of Investments    
Total marketable securities held for investment/operating purposes $ 918 $ 916
Less current portion of marketable securities held to fund operating programs included in cash and cash equivalents, short-term investments, and prepaids and other assets (157) (156)
Marketable securities held to fund operating programs included in other assets 761 760
Deferred compensation plans held in rabbi trusts    
Schedule of Investments    
Total marketable securities held for investment/operating purposes 413 402
Loyalty program    
Schedule of Investments    
Total marketable securities held for investment/operating purposes 391 403
Captive insurance companies    
Schedule of Investments    
Total marketable securities held for investment/operating purposes $ 114 $ 111
v3.10.0.1
Debt and Equity Securities - Gain (loss) on Investments Held to Fund Operating Programs (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Gain (Loss) on Securities [Line Items]        
Loyalty program $ 10 $ 11 $ 19 $ 35
Net gains and interest income from marketable securities held to fund rabbi trusts 10 11 19 35
Loyalty program        
Gain (Loss) on Securities [Line Items]        
Loyalty program 1 2 (2) 9
Net gains and interest income from marketable securities held to fund rabbi trusts 1 2 (2) 9
Deferred compensation plans held in rabbi trusts        
Gain (Loss) on Securities [Line Items]        
Loyalty program 10 11 19 35
Unrealized gains 5 8 7 24
Realized gains 5 3 12 11
Net gains and interest income from marketable securities held to fund rabbi trusts $ 10 $ 11 $ 19 $ 35
v3.10.0.1
Debt and Equity Securities - Held for Investment Purposes (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Schedule of Investments    
Common shares $ 117 $ 131
Held for Investment Purposes    
Schedule of Investments    
Interest-bearing money market funds 38 26
Time deposits 200 37
Common shares 117 131
Total marketable securities held for investment/operating purposes 355 194
Less current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (238) (63)
Marketable securities held for investment purposes included in other assets $ 117 $ 131
v3.10.0.1
Debt and Equity Securities - Preferred Shares (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Realized losses $ 0 $ 0 $ (2) $ (41)
Interest income $ 7 5 $ 19 106
Playa Hotels & Resorts B.V. | Preferred shares        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis        
Fair value beginning balance       290
Gross unrealized losses       (54)
Realized losses       (40)
Interest income       94
Cash redemption       (290)
Fair value ending balance   $ 0   $ 0
Redeemable convertible preferred shares redemption, price per share (in dollars per share)   $ 8.40   $ 8.40
v3.10.0.1
Debt and Equity Securities - Fair Value of Investments (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure $ 1,273 $ 1,110
Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 88 75
Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 413 402
Level One - Quoted Prices in Active Markets for Identical Assets | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 117 131
Level Two - Significant Other Observable Inputs | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 212 50
Level Two - Significant Other Observable Inputs | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 158 158
Level Two - Significant Other Observable Inputs | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 46 47
Level Two - Significant Other Observable Inputs | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 168 179
Level Two - Significant Other Observable Inputs | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 22 25
Level Two - Significant Other Observable Inputs | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 46 40
Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 3 3
Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 88 75
Cash and cash equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 88 75
Cash and cash equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level One - Quoted Prices in Active Markets for Identical Assets | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 217 49
Short-term investments | Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Level One - Quoted Prices in Active Markets for Identical Assets | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Level Two - Significant Other Observable Inputs | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 204 39
Short-term investments | Level Two - Significant Other Observable Inputs | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Level Two - Significant Other Observable Inputs | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 1 2
Short-term investments | Level Two - Significant Other Observable Inputs | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 12 8
Short-term investments | Level Two - Significant Other Observable Inputs | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Level Two - Significant Other Observable Inputs | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 90 95
Prepaids and other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets | Level Two - Significant Other Observable Inputs | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets | Level Two - Significant Other Observable Inputs | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 37 38
Prepaids and other assets | Level Two - Significant Other Observable Inputs | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 6 7
Prepaids and other assets | Level Two - Significant Other Observable Inputs | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 30 33
Prepaids and other assets | Level Two - Significant Other Observable Inputs | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 5 6
Prepaids and other assets | Level Two - Significant Other Observable Inputs | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 11 10
Prepaids and other assets | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 1 1
Other assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 878 891
Other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 413 402
Other assets | Level One - Quoted Prices in Active Markets for Identical Assets | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 117 131
Other assets | Level Two - Significant Other Observable Inputs | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 8 11
Other assets | Level Two - Significant Other Observable Inputs | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 121 120
Other assets | Level Two - Significant Other Observable Inputs | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 39 38
Other assets | Level Two - Significant Other Observable Inputs | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 126 138
Other assets | Level Two - Significant Other Observable Inputs | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 17 19
Other assets | Level Two - Significant Other Observable Inputs | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 35 30
Other assets | Level Two - Significant Other Observable Inputs | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure $ 2 $ 2
v3.10.0.1
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable            
Total long-term financing receivables, net of allowances $ 14   $ 19      
Unsecured financing            
Accounts, Notes, Loans and Financing Receivable            
Unsecured financing to hotel owners 158   127      
Less: current portion of financing receivables, included in receivables, net (45)   0      
Less: allowance for losses (99) $ (109) (108) $ (107) $ (105) $ (100)
Total long-term financing receivables, net of allowances $ 14   $ 19      
v3.10.0.1
Financing Receivables - Allowance for Losses and Impairments (Details) - Unsecured financing - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Allowance for Losses and Impairments        
Allowance beginning Balance $ 109 $ 105 $ 108 $ 100
Provisions 2 1 3 4
Write-offs (12) 0    
Other adjustments 0 1 (2) 1
Allowance ending Balance $ 99 $ 107 $ 109 $ 105
v3.10.0.1
Financing Receivables - Credit Monitoring (Details) - Unsecured financing - USD ($)
$ in Millions
9 Months Ended 12 Months Ended
Sep. 30, 2018
Dec. 31, 2017
Jun. 30, 2018
Sep. 30, 2017
Jun. 30, 2017
Dec. 31, 2016
Unsecured Financing Receivables            
Gross loan balance (principal and interest) $ 158 $ 127        
Related allowance (99) (108) $ (109) $ (107) $ (105) $ (100)
Net financing receivables 59 19        
Gross receivables on non-accrual status 99 108        
Loans            
Unsecured Financing Receivables            
Gross loan balance (principal and interest) 58 13        
Related allowance 0 0        
Net financing receivables 58 13        
Gross receivables on non-accrual status 0 0        
Impaired loans            
Unsecured Financing Receivables            
Impaired Loans 50 59        
Impaired loans, allowance (50) (59)        
Net financing receivables 0 0        
Gross receivables on non-accrual status 50 59        
Impaired financing receivable, unpaid principal balance 36 44        
Impaired financing receivable, average recorded investment 54 58        
Total loans            
Unsecured Financing Receivables            
Gross loan balance (principal and interest) 108 72        
Related allowance (50) (59)        
Net financing receivables 58 13        
Gross receivables on non-accrual status 50 59        
Other financing arrangements            
Unsecured Financing Receivables            
Gross loan balance (principal and interest) 50 55        
Related allowance (49) (49)        
Net financing receivables 1 6        
Gross receivables on non-accrual status $ 49 $ 49        
v3.10.0.1
Financing Receivables - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Significant unobservable inputs (level three)    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation    
Level three financing receivables $ 60 $ 20
v3.10.0.1
Acquisitions and Dispositions - Acquisitions Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Business Acquisition        
Cash consideration transferred   $ 263 $ 259  
Goodwill $ 132 132   $ 150
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary   0 9  
Payments for repurchase of redeemable preferred stock   10 0  
Hyatt Regency Phoenix        
Business Acquisition        
Business acquisition costs 139      
Business combination, proration costs 1      
Business acquisition, property and equipment 136 136    
Hyatt Regency Indian Wells Resort And Spa        
Business Acquisition        
Business acquisition costs 120      
Business acquisition, property and equipment $ 119 119    
Exhale Enterprises Inc        
Business Acquisition        
Cash consideration transferred     16  
Cash acquired     1  
Indefinite-lived intangibles     9  
Goodwill     4  
Goodwill expected tax deductible amount     3  
Miraval Group        
Business Acquisition        
Business acquisition, property and equipment     172  
Cash consideration transferred     237  
Indefinite-lived intangibles     37  
Goodwill     21  
Goodwill expected tax deductible amount     10  
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary     $ 9  
Redeemable preferred shares, preferred return     12.00%  
Payments for repurchase of redeemable preferred stock   $ 10    
v3.10.0.1
Acquisitions and Dispositions - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Business Acquisition      
Goodwill $ 132   $ 150
Other definite-lived intangibles      
Business Acquisition      
Weighted-average useful life 6 years    
Miraval Group      
Business Acquisition      
Current assets, net of cash acquired   $ 1  
Property and equipment   172  
Indefinite-lived intangibles   37  
Goodwill   21  
Total assets   252  
Current liabilities   13  
Deferred tax liabilities   3  
Total liabilities   16  
Total net assets acquired attributable to Hyatt Hotels Corporation   236  
Total net assets acquired attributable to noncontrolling interests   1  
Total net assets acquired   237  
Goodwill expected tax deductible amount   10  
Miraval Group | Management Agreement      
Business Acquisition      
Definite-lived intangibles   $ 14  
Weighted-average useful life   20 years  
Miraval Group | Other definite-lived intangibles      
Business Acquisition      
Definite-lived intangibles   $ 7  
Miraval Group | Other definite-lived intangibles | Minimum      
Business Acquisition      
Weighted-average useful life   2 years  
Miraval Group | Other definite-lived intangibles | Maximum      
Business Acquisition      
Weighted-average useful life   7 years  
v3.10.0.1
Acquisitions and Dispositions - Dispositions Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds from sales of real estate, net of cash disposed     $ 1,334 $ 296  
Gains (losses) on sales of real estate $ 239 $ 0 769 60  
Impairment of assets 21 0 21 0  
Equity method investments 225   $ 225   $ 185
Like-kind exchange period for replacement property identified     45 days    
Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds released 23        
Hyatt Regency Mexico City | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Disposal group, consideration 405   $ 405    
Proceeds from sales of real estate, net of cash disposed 360        
Unsecured financing receivable 45        
Gains (losses) on sales of real estate 240   240    
Impairment of assets $ 21   21    
Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort & Spa | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds from sales of real estate, net of cash disposed     992    
Gains (losses) on sales of real estate     531    
Pre-tax net income   $ 5 $ 15 20  
Land Held For Development And Sold In 2018 | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Consideration in exchange for the third party investment 50.00%   50.00%    
Land Held For Development And Sold In 2018 | Disposal group, disposed of by sale | Unconsolidated Hospitality Venture          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Equity method investments $ 45   $ 45    
Hyatt Regency Grand Cypress | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds from sales of real estate, net of cash disposed       202  
Gains (losses) on sales of real estate       26  
Hyatt Regency Louisville | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds from sales of real estate, net of cash disposed       65  
Gains (losses) on sales of real estate       35  
Land Held For Development and sold in 2017 | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds from sales of real estate and other       $ 29  
Equity method investment, ownership percentage   50.00%   50.00%  
Hyatt Regency Coconut Point Resort & Spa | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds held as restricted for use     $ 221    
Hyatt Regency Phoenix And Hyatt Regency Indian Wells Resort And Spa | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Proceeds used to in acquisition $ 198        
Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch | Disposal group, disposed of by sale          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Real estate sale proceeds held as restricted cash in investing activities         $ 207
v3.10.0.1
Acquisitions and Dispositions - Assets Held For Sale (Details)
$ in Millions
Sep. 30, 2018
USD ($)
Hyatt House Hotel | Disposal Group, Held-for-sale, Not Discontinued Operations  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Assets held for sale $ 44
v3.10.0.1
Intangibles, Net - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Schedule of Intangible Asset by Major Class      
Intangible assets, gross $ 377   $ 376
Accumulated amortization (81)   (71)
Intangibles, net 296 $ 305 305
Brand and other indefinite-lived intangibles      
Schedule of Intangible Asset by Major Class      
Intangible assets, gross 53   53
Management and franchise agreement intangibles      
Schedule of Intangible Asset by Major Class      
Intangible assets, gross $ 178   178
Weighted- average useful lives in years 23 years    
Lease related intangibles      
Schedule of Intangible Asset by Major Class      
Intangible assets, gross $ 123   127
Weighted- average useful lives in years 110 years    
Advanced bookings intangibles      
Schedule of Intangible Asset by Major Class      
Intangible assets, gross $ 15   9
Weighted- average useful lives in years 5 years    
Other definite-lived intangibles      
Schedule of Intangible Asset by Major Class      
Intangible assets, gross $ 8   $ 9
Weighted- average useful lives in years 6 years    
v3.10.0.1
Intangibles, Net - Amortization Expense Table (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization expense $ 3 $ 3 $ 10 $ 10
v3.10.0.1
Other Assets (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Other Assets, Noncurrent [Abstract]      
Marketable securities held to fund rabbi trusts $ 413   $ 402
Management and franchise agreement assets constituting payments to customers 385   378
Loyalty program marketable securities 293   298
Common shares of Playa N.V. 117   131
Long-term investments 112   109
Other 75   66
Total other assets $ 1,395 $ 1,406 $ 1,384
v3.10.0.1
Debt - Narrative (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Debt Instrument          
Long-term debt, net of current maturities $ 1,622,000,000   $ 1,622,000,000   $ 1,440,000,000
Discounts and offering expenses 16,000,000   16,000,000   14,000,000
Loss on extinguishment of debt 7,000,000 $ 0 7,000,000 $ 0  
Revolving credit facility          
Debt Instrument          
Repayments of revolving credit agreement during period     20,000,000    
Borrowings from revolving credit facility during period     20,000,000    
Line of credit outstanding 0   0   $ 0
Revolving credit facility, remaining borrowing capacity $ 1,500,000,000   $ 1,500,000,000    
Revolving credit facility, weighted average interest rate 4.85%   4.85%    
Line of Credit | Revolving credit facility          
Debt Instrument          
Line of credit facility $ 1,500,000,000.0   $ 1,500,000,000.0    
2028 Notes | Senior Notes          
Debt Instrument          
Long-term debt, fair value $ 400,000,000   $ 400,000,000    
Debt instrument, stated percent 4.375%   4.375%    
Issue price percentage 99.866%        
Proceeds from issuance of debt $ 396,000,000        
Discounts and offering expenses 4,000,000   $ 4,000,000    
2019 Notes | Senior Notes          
Debt Instrument          
Long-term debt, fair value $ 196,000,000   $ 196,000,000    
Debt instrument, stated percent 6.875%   6.875%    
Redemption price $ 203,000,000        
Loss on extinguishment of debt 7,000,000        
2021 Notes | Senior Notes          
Debt Instrument          
Long-term debt, fair value $ 250,000,000   $ 250,000,000    
Debt instrument, stated percent 5.375%   5.375%    
2023 Notes | Senior Notes          
Debt Instrument          
Long-term debt, fair value $ 350,000,000   $ 350,000,000    
Debt instrument, stated percent 3.375%   3.375%    
2026 Notes | Senior Notes          
Debt Instrument          
Long-term debt, fair value $ 400,000,000   $ 400,000,000    
Debt instrument, stated percent 4.85%   4.85%    
v3.10.0.1
Debt - Fair Value (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Debt Instrument    
Capital lease obligations $ 13 $ 13
Unamortized discount and deferred financing fees 16 14
Quoted prices in active markets for identical assets (level one)    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value 0 0
Significant other observable inputs (level two)    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value 1,591 1,459
Significant unobservable inputs (level three)    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value 65 87
Carrying value    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value 1,636 1,452
Fair value    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value $ 1,656 $ 1,546
v3.10.0.1
Debt - Interest Rate Locks (Details)
Sep. 30, 2018
USD ($)
Interest_rate_lock
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Number of interest rate locks held | Interest_rate_lock 2
Number of interest rate locks settled | Interest_rate_lock 1
Interest Rate Contract  
Derivative Instruments and Hedging Activities Disclosures [Line Items]  
Derivative, notional amount $ 425,000,000
Interest rate locks settled 225,000,000
Interest rate locks, remaining amounts $ 200,000,000
v3.10.0.1
Other Long-Term Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Other Liabilities [Abstract]      
Deferred compensation plans held to fund rabbi trusts (Note 4) $ 413   $ 402
Guarantee liabilities (Note 12) 79   104
Self-insurance liabilities (Note 12) 76   69
Deferred income taxes 42   62
Other 227   226
Total other long-term liabilities $ 837 $ 863 $ 863
v3.10.0.1
Income Taxes (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Tax Credit Carryforward [Line Items]          
Effective income tax rate 7.70% 45.20% 21.20% 36.70%  
Tax Act, provisional net deferred tax assets     $ 1    
Tax Cuts And Jobs Act Of 2017, provisional income tax expense         $ 97
Tax Cuts And Jobs Act Of 2017, change in transition tax for foreign earnings     2    
Tax Act, transition tax for foreign earnings         13
Foreign tax credit, provisional valuation allowance     2    
Foreign tax credit, valuation allowance         15
Reversal of deferred tax expense     7 $ 9  
Total unrecognized tax benefits $ 93   93   94
Amount of unrecognized tax benefits that would affect the tax rate if recognized         33
Accounting Standards Update 2014-09          
Tax Credit Carryforward [Line Items]          
Reversal of deferred tax expense         $ 52
Settlement with Taxing Authority          
Tax Credit Carryforward [Line Items]          
Amount of unrecognized tax benefits that would affect the tax rate if recognized $ 59   59    
Estimated income tax liability based on taxing authority’s assessment     177    
Estimated income tax liability, interest     $ 33    
v3.10.0.1
Commitments and Contingencies - Commitments and Performance Guarantees Narrative (Details)
€ in Millions
9 Months Ended
Sep. 30, 2018
USD ($)
hotel
Sep. 30, 2018
EUR (€)
hotel
Jun. 30, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Dec. 31, 2016
USD ($)
Loss Contingencies              
Commitment to loan or investment $ 370,000,000            
Performance guarantee              
Loss Contingencies              
Remaining maximum exposure 319,000,000            
Guarantor obligations, liability (asset), current carrying value 37,000,000   $ 41,000,000 $ 71,000,000 $ 66,000,000 $ 69,000,000 $ 79,000,000
Performance guarantee | Other long-term liabilities              
Loss Contingencies              
Guarantor obligations, liability (asset), current carrying value 30,000,000     45,000,000      
Performance guarantee | Accrued expenses and other current liabilitiess              
Loss Contingencies              
Guarantor obligations, liability (asset), current carrying value 7,000,000     26,000,000      
Performance guarantee | Receivables              
Loss Contingencies              
Guarantor obligations, liability (asset), current carrying value 0     0      
Performance test clause guarantee              
Loss Contingencies              
Guarantor obligations, liability (asset), current carrying value $ 0     0      
The four managed hotels in France | Performance guarantee              
Loss Contingencies              
Hotels managed In France | hotel 4 4          
Performance guarantee term 7 years            
Remaining performance guarantee term 1 year 9 months            
Remaining maximum exposure $ 268,000,000 € 231          
Guarantor obligations, liability (asset), current carrying value $ 28,000,000   $ 36,000,000 $ 58,000,000 $ 53,000,000 $ 57,000,000 $ 66,000,000
v3.10.0.1
Commitments and Contingencies - Schedule of Guarantor Obligations (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Guarantor Obligations            
Amortization of initial guarantee obligation liability into income $ (4) $ (5)     $ (14) $ (14)
Performance guarantee expense (income), net (6) (14)     (41) (54)
Performance guarantee            
Guarantor Obligations            
Beginning balance 41 69 $ 71 $ 79 71 79
Initial guarantee obligation liability     0 3    
Amortization of initial guarantee obligation liability into income (4) (5) (10) (9)    
Performance guarantee expense (income), net 6 14 35 40    
Net payments during the period (7) (15) (55) (50)    
Foreign currency exchange, net 1 3 0 6    
Ending balance 37 66 41 69 37 66
Performance guarantee | The four managed hotels in France            
Guarantor Obligations            
Beginning balance 36 57 58 66 58 66
Initial guarantee obligation liability     0 0    
Amortization of initial guarantee obligation liability into income (3) (4) (8) (7)    
Performance guarantee expense (income), net 3 13 36 41    
Net payments during the period (9) (16) (50) (49)    
Foreign currency exchange, net 1 3 0 6    
Ending balance 28 53 36 57 28 53
Performance guarantee | Other performance guarantees            
Guarantor Obligations            
Beginning balance 5 12 13 13 13 13
Initial guarantee obligation liability     0 3    
Amortization of initial guarantee obligation liability into income (1) (1) (2) (2)    
Performance guarantee expense (income), net 3 1 (1) (1)    
Net payments during the period 2 1 (5) (1)    
Foreign currency exchange, net 0 0 0 0    
Ending balance $ 9 $ 13 $ 5 $ 12 $ 9 $ 13
v3.10.0.1
Commitments and Contingencies - Schedule of Debt Guarantees (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Loss Contingencies    
Debt repayment and other guarantees, other long-term liabilities $ 79 $ 104
Debt repayment and other guarantees    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 750  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 375  
Debt repayment and other guarantees, other long-term liabilities 49 59
Debt repayment and other guarantees | Hotel Property in Washington State    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 215  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 0  
Debt repayment and other guarantees, other long-term liabilities 19 26
Debt repayment and other guarantees | Hotel properties in India    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 166  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 166  
Debt repayment and other guarantees, other long-term liabilities 11 17
Debt repayment and other guarantees | Hotel property in Massachusetts    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 102  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 102  
Debt repayment and other guarantees, other long-term liabilities 1 1
Debt repayment and other guarantees | Hotel and residential properties in Brazil    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 95  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 40  
Debt repayment and other guarantees, other long-term liabilities 3 4
Debt repayment and other guarantees | Hotel property in Oregon    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 61  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 10  
Debt repayment and other guarantees, other long-term liabilities 4 0
Debt repayment and other guarantees | Hotel properties in California    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 31  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 13  
Debt repayment and other guarantees, other long-term liabilities 4 6
Debt repayment and other guarantees | Hotel property in Minnesota    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 25  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 25  
Debt repayment and other guarantees, other long-term liabilities 1 2
Debt repayment and other guarantees | Hotel property in Arizona    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 25  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 0  
Debt repayment and other guarantees, other long-term liabilities 1 1
Debt repayment and other guarantees | Other    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 30  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 19  
Debt repayment and other guarantees, other long-term liabilities 5 $ 2
Debt repayment and other guarantees | Hotel property in Washington State and Hotel property in Oregon    
Loss Contingencies    
Debt repayment and other guarantees, maximum potential future payments 45  
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties 4  
Debt repayment and other guarantees | Joint venture | Hotel properties in India    
Loss Contingencies    
Debt repayment and other guarantees, maximum exposure net of recoverability from third parties $ 83  
Debt repayment and other guarantees, equity method investment, ownership percentage 50.00%  
v3.10.0.1
Commitments and Contingencies - Guarantee Liabilities Fair Value Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2018
Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]    
Guarantees, fair value disclosure $ 151 $ 177
v3.10.0.1
Commitments and Contingencies - Insurance, Collective Bargaining Agreements, Surety Bonds, and Letters of Credit, and Other Narrative (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2018
Dec. 31, 2017
Loss Contingencies    
Self insurance reserve, current $ 37 $ 32
Self-insurance liabilities (Note 12) 76 $ 69
Surety bonds 26  
Maximum    
Loss Contingencies    
Maximum exposure of possible loss $ 17  
United States    
Loss Contingencies    
Multiemployer plans, collective-bargaining arrangement, percentage of participants 24.00%  
Letter of credit    
Loss Contingencies    
Letters of credit outstanding, amount $ 297  
Letter of credit | Self insurance collateral    
Loss Contingencies    
Letters of credit outstanding, amount $ 9  
v3.10.0.1
Equity - Schedule of Stockholders' Equity and Noncontrolling Interests (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Jan. 01, 2018
Dec. 31, 2017
Equity Roll Forward            
Beginning balance, adjusted           $ 3,839
Beginning balance     $ 3,843 $ 4,080    
Net income attributable to Hyatt Hotels Corporation $ 237 $ 18 725 176    
Other comprehensive income 74 0 51 105    
Contributions from noncontrolling interests       1    
Repurchase of common stock     (654) (555)    
Dividends     (52)      
Directors compensation     2 2    
Employee stock plan issuance     3 3    
Share-based payment activity     21 20    
Ending balance 3,935 3,832 3,935 3,832    
Retained earnings 3,791   3,791   $ 3,118 3,054
Accounting Standards Update 2014-09 | Restatement Adjustment            
Equity Roll Forward            
Beginning balance     312      
Net income attributable to Hyatt Hotels Corporation   2   3    
Retained earnings         $ 172 312
Stockholders' equity            
Equity Roll Forward            
Beginning balance, adjusted           3,833
Beginning balance       4,075    
Net income attributable to Hyatt Hotels Corporation     725 176    
Other comprehensive income     51 105    
Contributions from noncontrolling interests       0    
Repurchase of common stock     (654) (555)    
Dividends     (52)      
Directors compensation     2 2    
Employee stock plan issuance     3 3    
Share-based payment activity     21 20    
Ending balance 3,929 3,826 3,929 3,826    
Noncontrolling interests in consolidated subsidiaries            
Equity Roll Forward            
Beginning balance, adjusted           $ 6
Beginning balance       5    
Net income attributable to Hyatt Hotels Corporation     0 0    
Other comprehensive income     0 0    
Contributions from noncontrolling interests       1    
Repurchase of common stock     0 0    
Dividends     0      
Directors compensation     0 0    
Employee stock plan issuance     0 0    
Share-based payment activity     0 0    
Ending balance $ 6 $ 6 $ 6 $ 6    
v3.10.0.1
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Total Equity          
Beginning balance, adjusted         $ 3,839
Beginning balance     $ 3,843 $ 4,080  
Ending balance $ 3,935 $ 3,832 3,935 3,832  
Realized losses 0 0 2 41  
Foreign currency translation adjustments          
Total Equity          
Beginning balance, adjusted         (243)
Beginning balance (266) (239)   (299)  
Current period other comprehensive income (loss) before reclassification 9 11 (29) 71  
Amount reclassified from accumulated other comprehensive loss (a) 62 0 77 0  
Ending balance (195) (228) (195) (228)  
Unrealized gains on AFS securities          
Total Equity          
Beginning balance   78   33  
Current period other comprehensive income (loss) before reclassification   (12)   8  
Amount reclassified from accumulated other comprehensive loss (a)   0   25  
Ending balance   66   66  
Unrecognized pension cost          
Total Equity          
Beginning balance, adjusted         (7)
Beginning balance (7) (7)   (7)  
Current period other comprehensive income (loss) before reclassification 0 0 0 0  
Amount reclassified from accumulated other comprehensive loss (a) 0 0 0 0  
Ending balance (7) (7) (7) (7)  
Unrealized losses on derivative instruments          
Total Equity          
Beginning balance, adjusted         (3)
Beginning balance (3) (4)   (4)  
Current period other comprehensive income (loss) before reclassification 3 1 3 1  
Amount reclassified from accumulated other comprehensive loss (a) 0 0 0 0  
Ending balance 0 (3) 0 (3)  
Accumulated other comprehensive loss          
Total Equity          
Beginning balance, adjusted         $ (253)
Beginning balance (276) (172)   (277)  
Current period other comprehensive income (loss) before reclassification 12 0 (26) 80  
Amount reclassified from accumulated other comprehensive loss (a) 62 0 77 25  
Ending balance $ (202) $ (172) $ (202) (172)  
Preferred shares | Playa Hotels & Resorts B.V.          
Total Equity          
Realized losses       40  
Realized losses, net of tax       $ 25  
v3.10.0.1
Equity - Share Repurchase and Dividend (Details) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Sep. 20, 2018
Jul. 31, 2018
Jun. 28, 2018
May 16, 2018
Mar. 29, 2018
Feb. 14, 2018
Oct. 01, 2017
Nov. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Oct. 30, 2018
Dec. 31, 2017
Dec. 31, 2016
Share Repurchase                              
Stock repurchase program, authorized amount                           $ 1,250,000,000 $ 500,000,000
Stock repurchased and retired during period (in shares)                     8,560,012 9,492,729      
Stock repurchased and retired during period, excluding insignificant expenses                     $ 674,000,000 $ 535,000,000      
Stock repurchased and retired during period                     $ 654,000,000 $ 555,000,000      
Percent of stock outstanding repurchased during period                     7.00% 7.00%      
Stock repurchase program, remaining authorized repurchase amount                 $ 210,000,000   $ 210,000,000        
Cash dividend paid (in dollars per share) $ 0.15   $ 0.15   $ 0.15                    
Cash dividend declared (in dollars per share)   $ 0.15   $ 0.15   $ 0.15     $ 0.15 $ 0 $ 0.45 $ 0      
Weighted Average                              
Share Repurchase                              
Stock repurchased and retired during period (in dollars per share)                     $ 78.42 $ 56.37      
May 2018 ASR                              
Share Repurchase                              
Stock repurchased and retired during period (in shares)                     2,481,341        
Stock repurchased and retired during period, excluding insignificant expenses                     $ 200,000,000        
May 2018 ASR | Weighted Average                              
Share Repurchase                              
Stock repurchased and retired during period (in dollars per share)                     $ 80.60        
August 2017 ASR                              
Share Repurchase                              
Stock repurchased and retired during period (in shares)             264,697         1,401,787      
Stock repurchased during period, shares (in shares)             1,666,484                
Stock repurchased and retired during period (in dollars per share)             $ 60.01                
Stock repurchased and retired during period, excluding insignificant expenses                       $ 100,000,000      
Stock repurchased and retired during period, shares yet to be delivered, value                       20,000,000      
August 2017 ASR | Weighted Average                              
Share Repurchase                              
Stock repurchased and retired during period (in dollars per share)                       $ 57.07      
March 2017 ASR                              
Share Repurchase                              
Stock repurchased and retired during period (in shares)                       5,393,669      
Stock repurchased and retired during period, excluding insignificant expenses                       $ 300,000,000      
March 2017 ASR | Weighted Average                              
Share Repurchase                              
Stock repurchased and retired during period (in dollars per share)                       $ 55.62      
November 2017 ASR                              
Share Repurchase                              
Stock repurchased and retired during period (in shares)                     244,260        
Stock repurchased and retired during period               $ 20,000,000              
Subsequent event                              
Share Repurchase                              
Stock repurchase program, authorized amount                         $ 750,000,000    
v3.10.0.1
Stock-Based Compensation - Compensation Expense Related to Long-Term Incentive Plan (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award        
Compensation expense $ 5 $ 5 $ 28 $ 26
SARs        
Share-based Compensation Arrangement by Share-based Payment Award        
Compensation expense 1 1 10 10
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award        
Compensation expense 2 3 14 14
PSUs        
Share-based Compensation Arrangement by Share-based Payment Award        
Compensation expense $ 2 $ 1 $ 4 $ 2
v3.10.0.1
Stock-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
SARs and RSUs    
Share-based Compensation Arrangement by Share-based Payment Award    
Amortization period, deferred compensation expense 3 years  
Stock Appreciation Rights (SARS)    
Share-based Compensation Arrangement by Share-based Payment Award    
Grants in period (in shares) 504,760 625,740
Grants in period, weighted-average fair value at grant date (in dollars per share) $ 21.18 $ 16.42
Total unearned compensation $ 5  
Restricted Stock Units (RSUs)    
Share-based Compensation Arrangement by Share-based Payment Award    
Grants in period (in shares) 272,549 483,302
Grants in period, weighted-average fair value at grant date (in dollars per share) $ 79.90 $ 53.77
Total unearned compensation $ 17  
Performance Shares (PSUs)    
Share-based Compensation Arrangement by Share-based Payment Award    
Total unearned compensation $ 7  
Amortization period, deferred compensation expense 2 years  
Performance Shares (PSUs) | Performance Share Units (PSUs)    
Share-based Compensation Arrangement by Share-based Payment Award    
Grants in period (in shares) 89,441 102,115
Grants in period, weighted-average fair value at grant date (in dollars per share) $ 82.10 $ 52.65
Performance period 3 years  
v3.10.0.1
Related-Party Transactions - Legal Services (Details) - Family member of management - Related party legal services - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Related Party Transaction          
Legal services $ 2 $ 2 $ 5 $ 3  
Due to (from) related parties $ 2   $ 2   $ 0
v3.10.0.1
Related-Party Transactions - Equity Method Investments (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Minimum          
Related Party Transaction          
Equity method investment, ownership percentage 24.00%   24.00%    
Maximum          
Related Party Transaction          
Equity method investment, ownership percentage 50.00%   50.00%    
Equity method investee          
Related Party Transaction          
Management, franchise, and other fees $ 5 $ 6 $ 15 $ 18  
Due (to) from related parties 14   14   $ 11
Guarantee fees $ 2 $ 1 $ 5 $ 4  
v3.10.0.1
Related-Party Transactions - Share Conversion (Details) - $ / shares
3 Months Ended 9 Months Ended
Oct. 01, 2018
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Related Party Transaction            
Stock repurchased and retired during period (in shares)       8,560,012 9,492,729  
Common Class B            
Related Party Transaction            
Conversion of stock, shares converted (in shares)   950,161 10,154,050 1,207,355 14,926,420  
Common stock, par value per share (in dollars per share)   $ 0.01   $ 0.01   $ 0.01
Common Class A            
Related Party Transaction            
Common stock, par value per share (in dollars per share)   $ 0.01 $ 0.01 $ 0.01 $ 0.01 $ 0.01
Stock repurchased and retired during period (in shares)       257,194    
Subsequent event | Common Class B            
Related Party Transaction            
Stock repurchased and retired during period (in shares) 950,161          
v3.10.0.1
Related-Party Transactions - Share Repurchase (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Related Party Transaction      
Stock repurchased during period   $ 654 $ 555
Percent of stock outstanding repurchased during period   7.00% 7.00%
Common Class B      
Related Party Transaction      
Stock repurchased during period, shares (in shares) 1,813,459 2,427,000 1,813,459
Stock repurchased during period (in dollars per share) $ 59.29 $ 78.11 $ 59.29
Stock repurchased during period $ 107 $ 190 $ 107
Percent of stock outstanding repurchased during period   2.00% 2.00%
v3.10.0.1
Segment Information - Summarized Consolidated Financial Information by Segment (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Segment Reporting Information        
Total revenues $ 1,074 $ 1,070 $ 3,316 $ 3,345
Adjusted EBITDA 175 177 595 619
Depreciation and amortization 81 88 243 261
Owned and leased hotels        
Segment Reporting Information        
Total revenues 450 516 1,450 1,661
Other revenues        
Segment Reporting Information        
Total revenues 7 6 27 28
Management, franchise, and other fees        
Segment Reporting Information        
Total revenues 133 123 407 367
Contra revenue        
Segment Reporting Information        
Total revenues (5) (4) (15) (13)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Total revenues 489 429 1,447 1,302
Operating segments | Owned and leased hotels        
Segment Reporting Information        
Total revenues 443 510 1,428 1,654
Adjusted EBITDA 91 104 324 382
Depreciation and amortization 65 75 197 222
Operating segments | Owned and leased hotels | Owned and leased hotels        
Segment Reporting Information        
Total revenues 443 510 1,428 1,641
Operating segments | Owned and leased hotels | Other revenues        
Segment Reporting Information        
Total revenues 0 0 0 13
Operating segments | Owned and leased hotels | Management, franchise, and other fees        
Segment Reporting Information        
Total revenues 0 0 0 0
Operating segments | Owned and leased hotels | Contra revenue        
Segment Reporting Information        
Total revenues 0 0 0 0
Operating segments | Owned and leased hotels | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Total revenues 0 0 0 0
Operating segments | Americas management and franchising        
Segment Reporting Information        
Total revenues 538 486 1,619 1,485
Adjusted EBITDA 83 81 266 250
Depreciation and amortization 2 2 6 6
Operating segments | Americas management and franchising | Other revenues        
Segment Reporting Information        
Total revenues 0 0 0 0
Operating segments | Americas management and franchising | Management, franchise, and other fees        
Segment Reporting Information        
Total revenues 95 94 301 289
Operating segments | Americas management and franchising | Contra revenue        
Segment Reporting Information        
Total revenues (4) (3) (10) (9)
Operating segments | Americas management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Total revenues 447 395 1,328 1,205
Operating segments | ASPAC management and franchising        
Segment Reporting Information        
Total revenues 54 46 156 134
Adjusted EBITDA 19 17 55 48
Depreciation and amortization 1 0 1 0
Operating segments | ASPAC management and franchising | Other revenues        
Segment Reporting Information        
Total revenues 0 0 0 0
Operating segments | ASPAC management and franchising | Management, franchise, and other fees        
Segment Reporting Information        
Total revenues 30 27 90 79
Operating segments | ASPAC management and franchising | Contra revenue        
Segment Reporting Information        
Total revenues 0 0 (1) (1)
Operating segments | ASPAC management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Total revenues 24 19 67 56
Operating segments | EAME/SW Asia management and franchising        
Segment Reporting Information        
Total revenues 36 31 103 87
Adjusted EBITDA 12 10 33 26
Depreciation and amortization 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Other revenues        
Segment Reporting Information        
Total revenues 0 0 0 0
Operating segments | EAME/SW Asia management and franchising | Management, franchise, and other fees        
Segment Reporting Information        
Total revenues 21 17 58 49
Operating segments | EAME/SW Asia management and franchising | Contra revenue        
Segment Reporting Information        
Total revenues (1) (1) (4) (3)
Operating segments | EAME/SW Asia management and franchising | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Total revenues 16 15 49 41
Eliminations        
Segment Reporting Information        
Total revenues (25) (28) (82) (88)
Adjusted EBITDA (1) (2) 2 3
Eliminations | Other revenues        
Segment Reporting Information        
Total revenues 2 3 5 7
Eliminations | Management, franchise, and other fees        
Segment Reporting Information        
Total revenues (20) (21) (61) (66)
Eliminations | Contra revenue        
Segment Reporting Information        
Total revenues 0 0 0 0
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Total revenues 0 0 0 0
Eliminations | Owned and leased hotels        
Segment Reporting Information        
Total revenues 7 10 26 29
Eliminations | Americas management and franchising        
Segment Reporting Information        
Total revenues 16 18 52 58
Eliminations | ASPAC management and franchising        
Segment Reporting Information        
Total revenues 1 0 1 1
Eliminations | EAME/SW Asia management and franchising        
Segment Reporting Information        
Total revenues 3 3 8 7
Eliminations | Corporate and other        
Segment Reporting Information        
Total revenues (2) (3) (5) (7)
Corporate and other        
Segment Reporting Information        
Total revenues 26 25 89 73
Adjusted EBITDA (29) (33) (85) (90)
Depreciation and amortization 13 11 39 33
Corporate and other | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Total revenues $ 2 $ 0 $ 3 $ 0
v3.10.0.1
Segment Information - Reconciliation of Net Income attributable to Hyatt Hotels Corporation to EBITDA and a Reconciliation of EBITDA to Consolidated Adjusted EBITDA (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Segment Reporting Information        
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 237 $ 18 $ 725 $ 176
Interest expense 19 20 57 61
Provision for income taxes 19 16 194 103
Depreciation and amortization 81 88 243 261
EBITDA 356 142 1,219 601
Revenues (1,074) (1,070) (3,316) (3,345)
Costs incurred on behalf of managed and franchised properties 487 425 1,447 1,313
Equity (earnings) losses from unconsolidated hospitality ventures 6 (1) 17 1
Stock-based compensation expense 5 5 28 26
Gains on sales of real estate (239) 0 (769) (60)
Impairment of assets 21 0 21 0
Other (income) loss, net 9 16 22 (32)
Pro rata share of unconsolidated hospitality ventures Adjusted EBITDA 14 15 42 59
Adjusted EBITDA 175 177 595 619
Contra revenue        
Segment Reporting Information        
Revenues 5 4 15 13
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties        
Segment Reporting Information        
Revenues $ (489) $ (429) $ (1,447) $ (1,302)
v3.10.0.1
Earnings Per Share - Schedule of the Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Numerator:        
Net income $ 237 $ 19 $ 725 $ 177
Net income and accretion attributable to noncontrolling interests 0 (1) 0 (1)
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 237 $ 18 $ 725 $ 176
Denominator:        
Basic weighted average shares outstanding (in shares) 111,356,759 124,010,961 114,829,210 126,399,472
Share-based compensation and equity classified forward contract (in shares) 1,867,226 1,396,922 1,954,863 1,315,462
Diluted weighted average shares outstanding (in shares) 113,223,985 125,407,883 116,784,073 127,714,934
Basic Earnings Per Share:        
Net income—Basic (in dollars per share) $ 2.12 $ 0.15 $ 6.31 $ 1.40
Net income and accretion attributable to noncontrolling interests - Basic (in dollars per share) (0.00) (0.01) (0.00) (0.01)
Net income attributable to Hyatt Hotels Corporation—Basic (in dollars per share) 2.12 0.14 6.31 1.39
Diluted Earnings Per Share:        
Net income—Diluted (in dollars per share) 2.09 0.15 6.21 1.39
Net income and accretion attributable to noncontrolling interests - Diluted (in dollars per share) (0.00) (0.01) (0.00) (0.01)
Net income attributable to Hyatt Hotels Corporation—Diluted (in dollars per share) $ 2.09 $ 0.14 $ 6.21 $ 1.38
v3.10.0.1
Earnings Per Share - Anti-dilutive Shares Issued (Details) - shares
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Stock Appreciation Rights (SARS)        
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Antidilutive securities excluded from computation of earnings per share (in shares) 0 29,100 0 32,300
Restricted Stock Units (RSUs)        
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Antidilutive securities excluded from computation of earnings per share (in shares) 0 400 0 200
v3.10.0.1
Other Income (Loss), Net (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Dec. 31, 2017
Other Income and Expenses [Abstract]          
Interest income $ 7 $ 5 $ 19 $ 106  
Depreciation recovery 5 7 16 19  
Performance guarantee liability amortization 4 5 14 14  
Debt repayment guarantee liability amortization 2 3 8 8  
Cease use liability 0 (21) 0 (21)  
Realized losses 0 0 (2) (41)  
Impairment of an equity security without a readily determinable fair value 0 0 (22) 0  
Performance guarantee expense (income), net (6) (14) (41) (54)  
Loss on extinguishment of debt (7) 0 (7) 0  
Unrealized gains (losses) (15)   (21)    
Unrealized gains (losses)   0   3  
Other, net 1 (1) 14 (2)  
Other income (loss), net $ (9) $ (16) $ (22) $ 32  
Cease use liability         $ 21
v3.10.0.1
Subsequent Events (Details) - Subsequent event - USD ($)
$ in Millions
Oct. 06, 2018
Oct. 30, 2018
Oct. 09, 2018
Two Roads Hospitality LLC      
Subsequent Event [Line Items]      
Business acquisition costs $ 480    
Variable consideration $ 120    
Disposal Group, Held-for-sale, Not Discontinued Operations | Hyatt House Hotel      
Subsequent Event [Line Items]      
Disposal group, consideration     $ 48
Common Stock      
Subsequent Event [Line Items]      
Stock repurchase program, additional authorized amount   $ 750