HYATT HOTELS CORP, 10-K filed on 2/20/2020
Annual Report
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Cover Page - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Jan. 31, 2020
Jun. 28, 2019
Document Information      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2019    
Document Transition Report false    
Entity File Number 001-34521    
Entity Registrant Name HYATT HOTELS CORP    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 20-1480589    
Entity Address, Address Line One 150 North Riverside Plaza    
Entity Address, Address Line Two 8th Floor,    
Entity Address, City or Town Chicago,    
Entity Address, State or Province IL    
Entity Address, Postal Zip Code 60606    
City Area Code 312    
Local Phone Number 750-1234    
Title of 12(b) Security Class A Common Stock, $0.01 par value    
Trading Symbol H    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Emerging Growth Company false    
Entity Shell Company false    
Entity Public Float     $ 2,838.0
Entity Central Index Key 0001468174    
Current Fiscal Year End Date --12-31    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Amendment Flag false    
Documents Incorporated by Reference
Part III of this Annual Report on Form 10-K incorporates by reference portions of the registrant's Proxy Statement for its 2020 Annual Meeting of Stockholders to be held on May 20, 2020.
   
Common Class A      
Document Information      
Entity Common Stock, Shares Outstanding   35,841,277  
Common Class B      
Document Information      
Entity Common Stock, Shares Outstanding   65,463,274  
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Consolidated Statements of Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
REVENUES:      
Revenue $ 5,020 $ 4,454 $ 4,462
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:      
Depreciation and amortization 329 327 348
Other direct costs 133 48 31
Selling, general, and administrative 417 320 377
Direct and selling, general, and administrative expenses 4,823 4,122 4,202
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts 62 (11) 45
Equity earnings (losses) from unconsolidated hospitality ventures (10) 8 219
Interest expense (75) (76) (80)
Gains on sales of real estate 723 772 236
Asset impairments (18) (25) 0
Other income (loss), net 127 (49) 42
INCOME BEFORE INCOME TAXES 1,006 951 722
PROVISION FOR INCOME TAXES (240) (182) (332)
NET INCOME 766 769 390
NET INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS 0 0 (1)
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 766 $ 769 $ 389
EARNINGS PER SHARE—Basic      
Net Income - basic (in dollars per share) $ 7.33 $ 6.79 $ 3.13
Net income attributable to Hyatt Hotels Corporation - Basic (in dollars per share) 7.33 6.79 3.12
EARNINGS PER SHARE—Diluted      
Net Income - diluted (in dollars per share) 7.21 6.68 3.09
Net income attributable to Hyatt Hotels Corporation - Diluted (in dollars per share) $ 7.21 $ 6.68 $ 3.08
Owned and leased hotels      
REVENUES:      
Revenue $ 1,848 $ 1,918 $ 2,184
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:      
Costs incurred on behalf of managed and franchised properties 1,424 1,446 1,664
Management, franchise, and other fees      
REVENUES:      
Revenue 608 552 498
Amortization of management and franchise agreement assets constituting payments to customers      
REVENUES:      
Revenue (22) (20) (18)
Net management, franchise, and other fees      
REVENUES:      
Revenue 586 532 480
Other revenues      
REVENUES:      
Revenue 125 48 36
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties      
REVENUES:      
Revenue 2,461 1,956 1,762
Costs incurred on behalf of managed and franchised properties      
DIRECT AND SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES:      
Costs incurred on behalf of managed and franchised properties $ 2,520 $ 1,981 $ 1,782
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Net income $ 766 $ 769 $ 390
Other comprehensive income (loss), net of taxes:      
Foreign currency translation adjustments, net of tax (benefit) expense of $-, $(1), and $1 for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively 8 52 56
Unrecognized pension (cost) benefit, net of tax (benefit) expense of $(1), $1, and $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively (4) 2 0
Unrealized gains on available-for-sale debt securities, net of tax expense of $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively, and unrealized gains on available-for-sale equity securities, net of tax expense of $23 for the year ended December 31, 2017 1 0 35
Unrealized gains (losses) on derivative activity, net of tax (benefit) expense of $(5), $-, and $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively (14) (1)  
Unrealized gains (losses) on derivative activity, net of tax (benefit) expense of $(5), $-, and $- for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively     1
Other comprehensive income (loss) (9) 53 92
COMPREHENSIVE INCOME 757 822 482
COMPREHENSIVE INCOME AND ACCRETION ATTRIBUTABLE TO NONCONTROLLING INTERESTS 0 0 (1)
COMPREHENSIVE INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 757 $ 822 $ 481
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Consolidated Statements of Comprehensive Income Parenthetical - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Comprehensive Income [Abstract]      
Foreign currency translation adjustments, net of tax (benefit) expense $ 0 $ (1) $ 1
Unrecognized pension costs, net of tax expense (benefit) (1) 1 0
Unrealized gains on available-for-sale debt securities tax 0 0 0
Unrealized gains on available-for-sale equity securities tax     23
Unrealized gains on derivative activity, net of tax expense $ (5) $ 0  
Unrealized gains on derivative activity, net of tax expense     $ 0
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
CURRENT ASSETS:    
Cash and cash equivalents $ 893 $ 570
Restricted cash 150 33
Short-term investments 68 116
Receivables, net of allowances of $32 and $26 at December 31, 2019 and December 31, 2018, respectively 421 427
Inventories 12 14
Prepaids and other assets 134 149
Prepaid income taxes 28 36
Total current assets 1,706 1,345
Equity method investments 232 233
Property and equipment, net 3,456 3,608
Financing receivables, net of allowances 35 13
Operating lease right-of-use assets 493  
Goodwill 326 283
Intangibles, net 437 628
Deferred tax assets 144 180
Other assets 1,588 1,353
TOTAL ASSETS 8,417 7,643
CURRENT LIABILITIES:    
Current maturities of long-term debt 11 11
Accounts payable 150 151
Accrued expenses and other current liabilities 304 361
Current contract liabilities 445 388
Accrued compensation and benefits 144 150
Current operating lease liabilities 32  
Total current liabilities 1,086 1,061
Long-term debt 1,612 1,623
Long-term contract liabilities 475 442
Long-term operating lease liabilities 393  
Other long-term liabilities 884 840
Total liabilities 4,450 3,966
Commitments and contingencies (see Note 15)
EQUITY:    
Preferred stock, $0.01 par value per share, 10,000,000 shares authorized and none outstanding as of December 31, 2019 and December 31, 2018 0 0
Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 36,109,179 issued and outstanding at December 31, 2019, and Class B common stock, $0.01 par value per share, 397,457,686 shares authorized, 65,463,274 shares issued and outstanding at December 31, 2019. Class A common stock, $0.01 par value per share, 1,000,000,000 shares authorized, 39,507,817 issued and outstanding at December 31, 2018, and Class B common stock, $0.01 par value per share, 399,110,240 shares authorized, 67, 1 1
Additional paid-in capital 0 50
Retained earnings 4,170 3,819
Accumulated other comprehensive loss (209) (200)
Total stockholders' equity 3,962 3,670
Noncontrolling interests in consolidated subsidiaries 5 7
Total equity 3,967 3,677
TOTAL LIABILITIES AND EQUITY $ 8,417 $ 7,643
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Consolidated Balance Sheet Parentheticals - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Allowance for doubtful accounts receivable, current $ 32 $ 26
Preferred stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares outstanding (in shares) 0 0
Common stock, shares, issued (in shares) 0  
Common Class A    
Common stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares, outstanding (in shares) 36,109,179 39,507,817
Common stock, shares, issued (in shares) 36,109,179 39,507,817
Common Class B    
Common stock, par or stated value per share (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 397,457,686 399,110,240
Common stock, shares, outstanding (in shares) 65,463,274 67,115,828
Common stock, shares, issued (in shares) 65,463,274 67,115,828
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income $ 766 $ 769 $ 390
Adjustments to reconcile net income to net cash provided by operating activities:      
Gains on sales of real estate (723) (772) (236)
Depreciation and amortization 329 327 348
Release of contingent consideration liability (30) 0 0
Amortization of share awards 35 28 32
Amortization of operating lease right-of-use assets 35    
Deferred income taxes 28 (33) 56
Asset impairments 18 47 0
Equity (earnings) losses from unconsolidated hospitality ventures 10 (8) (219)
Amortization of management and franchise agreement assets constituting payments to customers 22 20 18
Gain on sale of contractual right (16) 0 0
Realized (gains) losses, net (2) 3 41
Unrealized (gains) losses, net (26) 47 (1)
Distributions from unconsolidated hospitality ventures 13 17 29
Other (55) (25) 4
Increase (decrease) in cash attributable to changes in assets and liabilities and other      
Receivables, net (29) 14 (37)
Inventories 1 0 12
Prepaid income taxes 10 (5) 14
Accounts payable, accrued expenses, and other current liabilities 26 (80) 102
Operating lease liabilities (34)    
Accrued compensation and benefits (1) 6 22
Other long-term liabilities 73 51 53
Other, net (54) (65) (41)
Net cash provided by operating activities 396 341 587
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchases of marketable securities and short-term investments (350) (665) (469)
Proceeds from marketable securities and short-term investments 349 624 480
Contributions to equity method and other investments (48) (60) (89)
Return of equity method and other investments 28 51 425
Acquisitions, net of cash acquired (18) (678) (259)
Capital expenditures (369) (297) (298)
Issuance of financing receivables (18) (2) 0
Proceeds from financing receivables 46 0 0
Proceeds from sales of real estate, net of cash disposed 940 1,382 663
Proceeds from sale of contractual right 21 0 0
Pre-condemnation proceeds 0 7 15
Other investing activities 4 12 (11)
Net cash provided by investing activities 585 374 457
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from long-term debt, net of issuance costs of $-, $4, and $-, respectively 400 416 670
Repayments of debt (409) (231) (782)
Repurchase of common stock (421) (946) (743)
Contingent consideration paid (24) 0 0
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary 0 0 9
Repayments of redeemable noncontrolling interest in preferred shares in a subsidiary 0 (10) 0
Dividends paid (80) (68) 0
Other financing activities (7) (11) (12)
Net cash used in financing activities (541) (850) (858)
EFFECT OF EXCHANGE RATE CHANGES ON CASH 1 5 (7)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH 441 (130) 179
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—BEGINNING OF YEAR 622 752 573
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—END OF PERIOD $ 1,063 $ 622 $ 752
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Consolidated Statements of Cash Flows - Supplemental Disclosure Information - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Statement of Cash Flows [Abstract]      
Debt issuance cost $ 0 $ 4 $ 0
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
Cash and cash equivalents 893 570 503
Restricted cash 150 33 234
Restricted cash included in other assets 20 19 15
Total cash, cash equivalents, and restricted cash 1,063 622 752
Cash paid during the period for interest 79 73 80
Cash paid during the period for income taxes 175 292 175
Cash paid for amounts included in the measurement of operating lease liabilities 50    
Non-cash investing and financing activities are as follows:      
Non-cash contributions to equity method investments (see Note 4, Note 15) 9 61 5
Non-cash issuance of financing receivables (see Note 6, Note 7) 1 45 0
Change in accrued capital expenditures (7) 13 9
Non-cash right-of-use assets obtained in exchange for operating lease liabilities 8    
Contingent liability (see Note 7) $ 0 $ 57 $ 0
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Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Millions
Total
Common Stock Amount
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Noncontrolling Interests in Consolidated Subsidiaries
Common Class A
Common Class A
Common Stock Amount
Common Class B
Common Class B
Common Stock Amount
Balance, beginning of period (in shares) at Dec. 31, 2016               39,952,061   90,863,209
Balance, beginning of period at Dec. 31, 2016 $ 4,080 $ 1 $ 1,686 $ 2,665 $ (277) $ 5        
Total comprehensive income 481     389 92          
Noncontrolling interests 1         1        
Repurchase of common stock (in shares)               (9,096,871)   (3,089,437)
Repurchase of common stock (743)   (743)              
Directors compensation 2   2              
Employee stock plan issuance (in shares)               69,012    
Employee stock plan issuance 4   4              
Share-based payment activity (in shares)               287,012    
Share-based payment activity 18   18              
Class share conversions (in shares)               17,019,935   (17,019,935)
Balance, beginning of period (in shares) at Dec. 31, 2017               48,231,149   70,753,837
Balance, end of period at Dec. 31, 2017 3,843 1 967 3,054 (185) 6        
BALANCE—January 1, 2018         (253)          
Total comprehensive income 822     769 53          
Noncontrolling interests 1         1        
Repurchase of common stock (in shares)               (10,293,241)   (2,430,654)
Repurchase of common stock (946)   (946)           $ (190)  
Directors compensation $ 2   2              
Employee stock plan issuance (in shares) 61,900             61,900    
Employee stock plan issuance $ 5   5              
Share-based payment activity (in shares)               300,654    
Share-based payment activity 22   22              
Class share conversions (in shares)               1,207,355   (1,207,355)
Cash dividends (68)     (68)     $ (27)   (41)  
Balance, beginning of period (in shares) at Dec. 31, 2018               39,507,817   67,115,828
Balance, end of period at Dec. 31, 2018 3,677 1 50 3,819 (200) 7        
Total comprehensive income 757     766 (9)          
Noncontrolling interests (2)         (2)        
Repurchase of common stock (in shares)               (4,943,897)   (677,384)
Repurchase of common stock (421)   (86) (335)         (50)  
Directors compensation $ 2   2              
Employee stock plan issuance (in shares) 79,700             79,700    
Employee stock plan issuance $ 5   5              
Share-based payment activity (in shares)               490,389    
Share-based payment activity 29   29              
Class share conversions (in shares)               975,170   (975,170)
Cash dividends (80)     (80)     $ (29)   $ (51)  
Balance, beginning of period (in shares) at Dec. 31, 2019               36,109,179   65,463,274
Balance, end of period at Dec. 31, 2019 $ 3,967 $ 1 $ 0 $ 4,170 $ (209) $ 5        
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Consolidated Statements of Changes in Stockholders' Equity Parenthetical - $ / shares
12 Months Ended
Dec. 09, 2019
Sep. 09, 2019
Jun. 10, 2019
Mar. 11, 2019
Dec. 10, 2018
Sep. 20, 2018
Jun. 28, 2018
Mar. 29, 2018
Dec. 31, 2019
Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]                    
Cash dividends (in dollars per share) $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.19 $ 0.15
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Organization
12 Months Ended
Dec. 31, 2019
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, timeshare, fractional, and other forms of residential, vacation, and condominium ownership units. At December 31, 2019, (i) we operated or franchised 446 full service hotels, comprising 156,133 rooms throughout the world, (ii) we operated or franchised 467 select service hotels, comprising 66,978 rooms, of which 399 hotels are located in the United States, and (iii) our portfolio included 8 franchised all-inclusive Hyatt-branded resorts, comprising 3,153 rooms, and 3 wellness resorts, comprising 410 rooms. At December 31, 2019, our portfolio of properties operated in 65 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.
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Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation—Our consolidated financial statements present the results of operations, financial position, and cash flows of Hyatt Hotels Corporation and its majority owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates—We are required to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying Notes. Actual results could differ materially from such estimated amounts.
Revenue Recognition—Our revenues are primarily derived from the products and services provided to our customers and generally recognized when control of the product or service has transferred to the customer. Our customers include third-party hotel owners, guests at owned and leased hotels and spa and fitness centers, a third-party partner through our co-branded credit card program, and owners and guests of the condominium ownership units. A summary of our revenue streams is as follows:
Owned and leased hotels revenues—Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased hotels. 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.
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. Included within the aforementioned management fees are royalty fees that we earn in exchange for providing access to Hyatt's intellectual property ("IP"). 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. Other fees include license fee revenues associated with the licensing of the Hyatt brand names through our co-branded credit card program and sales of our branded residential ownership units as well as termination fees.
Net management, franchise, and other fees—Management, franchise, and other fees are reduced by the amortization of management and franchise agreement assets constituting payments to customers. 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 our residential management operations for our condominium ownership units, the sale of promotional awards through our co-branded credit cards, and spa and fitness revenues from Exhale.
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 reimbursed costs relate primarily to payroll at managed properties, as well as system-wide services and the loyalty program operated on behalf of owners.
The products and services we offer to our customers 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. Fees are generally payable on a monthly basis as the third-party hotel owners derive value from access to our IP. Royalty fees are recognized over time 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 deferred and recognized through management, franchise, and other fees over the expected customer life, which is typically the initial term of the franchise agreement.
System-wide services—We provide system-wide 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, this promise 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. 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 monthly based upon an annual estimate of costs to be incurred and recognized as revenue commensurate with incurring the cost. 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. 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 will impact our net income.
Hotel management agreement services—Under the terms of our management agreements, we provide hotel management agreement services, which form a single performance obligation that qualifies as a series. In exchange, we receive variable consideration in the form of management fees, which are comprised of base and/or 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 as services are rendered.
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.
Loyalty program administration—We administer the loyalty program for the benefit of Hyatt's portfolio of properties during the period of their participation in the loyalty program. Under the program, members earn points based on their spend at our properties, by transacting with our strategic loyalty alliances, or in connection with spend on the Hyatt co-branded credit cards, which may be redeemed for the right to stay at participating
properties, as well as for other goods and services from third parties. 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. These two promises are not distinct because the promise to market and manage the program does not benefit the customer without the related arrangement for award redemptions. The costs of administering 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. A portion of our owned and leased hotels revenues is deferred upon initial stay as points are earned by program members at owned or leased hotels, and revenues are recognized upon redemption at owned or leased hotels.
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. The revenue recognized each period includes an estimate of the loyalty points that will eventually be redeemed and 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. Any revenues in excess of the anticipated future redemptions are used to fund the other operational expenses of the program.
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 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 commissions is made based on the terms of each contract.
Residential management operations
We provide services related to the residential management business pursuant to rental management agreements with individual property owners or homeowners' associations whereby the property owners and/or homeowners' association participate in our rental program. The services provided include reservations, housekeeping, security, and concierge assistance to guests in exchange for a variable fee based on a revenue sharing agreement with the owner of the condominium ownership unit. The services represent an individual performance obligation. Revenue is recognized over time as services are rendered or upon completion of the guest's stay at the condominium ownership unit. We are responsible for establishing pricing as well as fulfilling the services during the guest's stay and, as a result, we are deemed to be the principal in the transaction.
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 provided to the customer. If a guest purchases a spa or fitness package, the fixed price is allocated to each distinct product or service based on the stand-alone selling price for each item.
Co-branded credit cards
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 as the licensee derives value from access to Hyatt's brand name. 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 or expiration of a card member's promotional awards, which is recognized net of redemption expense when we are the agent. 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.
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 represent 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;
revenues and operating profits of the hotels for the promise to provide management agreement services to the hotels;
award night redemptions or point redemptions with third-party partners for the administration of the loyalty program performance obligation; and
cardholder spend for the license to the Hyatt name through our co-branded credit cards, 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 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.
We have applied the practical expedient that permits the omission of prior-period information about revenue allocated to future performance obligations.
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. Due to certain profitability hurdles in our management agreements, 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 recorded in accounts receivable. Contract assets are included in receivables, net on our consolidated balance sheets. Payments received in advance of performance under the contract are classified as current or long-term contract liabilities on our consolidated balance sheets and recognized as revenue as we perform under the contract.
Cash Equivalents—We consider all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents.
Restricted Cash—We had restricted cash of $170 million and $52 million at December 31, 2019 and December 31, 2018, of which $20 million and $19 million, respectively, are recorded in other assets on our consolidated balance sheets, which includes:
$115 million at December 31, 2019 related to sale proceeds from the disposition of the property adjacent to Grand Hyatt San Francisco pursuant to a potential like-kind exchange (see Note 7);
$30 million and $28 million, respectively, related to debt service on bonds related to our ownership in Grand Hyatt San Antonio (see Note 11);
$9 million related to our captive insurance subsidiary for minimum capital and surplus requirements in accordance with local insurance regulations (see Note 15); and
$16 million and $15 million, respectively, related to escrow deposits and other arrangements.
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 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. When there is indication a loss in value has occurred, we evaluate the carrying value in comparison to the estimated fair value of the investment. Fair value is based upon internally developed discounted cash flow models, third-party appraisals, and if appropriate, current estimated net sales proceeds from pending offers. The principal inputs used in the discounted cash flow analysis requiring judgment are the projected future cash flows, the discount rate, and the capitalization rate assumptions. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. If the estimated fair value is less than carrying value, we use our judgment to determine if the decline in value is other than temporary. In determining this, we consider factors including, but not limited to, the length of time and extent of the decline, loss of value as a percentage of the cost, financial condition and near-term financial projections, our intent and ability to recover the lost value, and current economic conditions. Impairments deemed other than temporary are charged to equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income. For additional information about equity method investments, see Note 4.
Debt and Equity Securities—Excluding the aforementioned 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 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. Net gains and losses, both realized and unrealized, and impairment charges on equity securities are recognized in other income (loss), net on our consolidated statements of income.
Debt securities include 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 recognized in net gains (losses) 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 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 consolidated balance sheets. Realized gains and losses on debt securities are recognized in other income (loss), net on our consolidated statements of income.
HTM securities—investments which we have the intent and ability to hold until maturity and are recorded at amortized cost.
Our preferred shares earn a return that is recognized as interest income in other income (loss), net as earned unless we determine collection is at risk.
AFS and HTM securities are assessed for impairment quarterly. To determine if an impairment is other than temporary for debt securities, we consider the duration and severity of the loss position, the strength of the underlying collateral, the term to maturity, credit rating, and our intent to sell. For debt securities that are deemed other than temporarily impaired and there is no intent to sell, impairments are separated into the amount related to the credit loss, which is typically recognized in other income (loss), net on our consolidated statements of income and the amount related to all other factors, which is recorded in accumulated other comprehensive loss on our consolidated balance sheets. For debt securities that are deemed other than temporarily impaired and there is intent to sell, impairments in their entirety are recognized in other income (loss), net on our consolidated statements of income. For additional information about debt and equity securities, see Note 4.
Foreign Currency—The functional currency of our consolidated entities located outside the United States of America is generally the local currency. The assets and liabilities of these entities are translated into U.S. dollars at year-end exchange rates, and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in earnings. Gains and losses from foreign exchange rate changes related to intercompany receivables and payables of a long-term nature are generally included in accumulated other comprehensive loss. Gains and losses from foreign exchange rate movement related to intercompany receivables and payables that are not long-term are included in earnings.
Financing Receivables—Financing receivables represent contractual rights to receive money either on demand or on fixed or determinable dates and are recognized on our consolidated balance sheets at amortized cost. We recognize interest income as earned and provide an allowance for cancellations and defaults. Our financing receivables are composed of individual unsecured loans and other types of unsecured financing arrangements provided to hotel owners. These financing receivables generally have stated maturities and interest rates, however, the repayment terms vary and may be dependent upon future cash flows of the hotel.
On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We determine our financing to hotel owners to be non-performing if interest or principal is greater than 90 days past due based on the contractual terms of the individual financing receivables, if an impairment charge is recognized for a loan, or if a provision is established for our other financing arrangements. If we consider a financing receivable to be non-performing, we place the financing receivable on non-accrual status.
We individually assess all loans within financing receivables for impairment quarterly. This assessment is based on an analysis of several factors including current economic conditions and industry trends, as well as the specific risk characteristics of these loans including capital structure, loan performance, market factors, and the underlying hotel performance. When it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement or if projected future cash flows available for repayment of unsecured receivables indicate there is a collection risk, we measure the impairment based on the present value of projected future cash flows discounted at the loan's effective interest rate. For impaired loans, we establish a specific loan loss reserve for the difference between the recorded investment in the loan and the estimated fair value.
In addition to loans, we include other types of financing arrangements in unsecured financing to hotel owners which we do not assess individually for impairment. We regularly evaluate our reserves for these other financing arrangements.
We write off financing to hotel owners when we determine the receivables are uncollectible and when all commercially reasonable means of recovering the receivable balances have been exhausted.
We recognize interest income when received for impaired loans and financing receivables on non-accrual status which is recognized in other income (loss), net in our consolidated statements of income. Accrual of interest income is resumed when the receivable becomes contractually current and collection doubts are removed. For additional information about financing receivables, see Note 6.
Accounts Receivable—Our accounts receivable primarily consists of trade receivables due from guests for services rendered at our owned and leased properties and from hotel owners with whom we have management and franchise agreements for services rendered and for reimbursements of costs incurred on behalf of managed and franchised properties. We record an accounts receivable reserve when losses are probable, based on an assessment of past collection activity and current business conditions.
Inventories—Inventories are comprised of operating supplies and equipment that have a period of consumption of two years or less and food and beverage items at our owned and leased hotels which are generally valued at the lower of cost (first-in, first-out) or net realizable value.
Property and Equipment and Definite-Lived Intangible Assets—Property and equipment is stated at cost, including interest incurred during development and construction periods, less accumulated depreciation. Definite-lived intangible assets are recorded at the acquisition-date fair value, less accumulated amortization. Depreciation and amortization are recognized over the estimated useful lives of the assets, primarily on the straight-line method.
Property and equipment are depreciated over the following:
Buildings and improvements
10-50 years
Leasehold improvements
The shorter of the lease term or useful life of asset
Furniture and equipment
3-20 years
Computers
3-7 years
Definite-lived intangible assets are amortized over the following:
Management and franchise agreement intangibles
4 - 30 years
Advanced booking intangibles
1 - 7 years

We assess property and equipment and definite-lived intangible assets for impairment quarterly. When events or circumstances indicate the carrying amount may not be recoverable, we evaluate the net book value of the assets for impairment by comparison to the projected undiscounted future cash flows of the assets. The principal factor used in the undiscounted cash flow analysis requiring judgment is the projected future operating cash flows, which are based on historical data, various internal estimates, and a variety of external resources, and are developed as part of our routine, long-term planning process.
If the projected undiscounted future cash flows are less than the net book value of the assets, the fair value is determined based upon internally developed discounted cash flows of the assets, third-party appraisals or broker valuations, and if appropriate, current estimated net sales proceeds from pending offers. The principal inputs used in the discounted cash flow analysis requiring judgment are the projected future operating cash flows, the discount rates, and the capitalization rate assumptions. The excess of the net book value over the estimated fair value is recognized in asset impairments on our consolidated statements of income.
We evaluate the carrying value of our property and equipment and definite-lived intangible assets based on our plans, at the time, for such assets and consider qualitative factors such as future development in the surrounding area, status of local competition, and any significant adverse changes in the business climate. Changes to our plans, including a decision to dispose of or change the intended use of an asset, may have a material impact on the carrying value of the asset.
For additional information about property and equipment and definite-lived intangible assets, see Notes 5 and 9, respectively.
Leases—We primarily lease land, buildings, office space, spas and fitness centers, and equipment. We determine if an arrangement is an operating or finance lease at inception. For our hotel management agreements, we apply judgment in order to determine whether the contract is accounted for as a lease or management agreement based on the specific facts and circumstances of each agreement. In evaluating whether an agreement constitutes a lease, we review the contractual terms to determine which party obtains both the economic benefits and control of the assets. In arrangements where we control the assets and obtain the economic benefits, we account for the contract as a lease.
Certain of our leases include options to extend the lease term by 1 to 99 years. We include lease extension options in our operating ROU assets and lease liabilities when it is reasonably certain that we will exercise the options. The range of extension options included in our operating ROU assets and lease liabilities is approximately 1 to 20 years. Our lease agreements do not contain any significant residual value guarantees or restrictive covenants.
We assess ROU assets for impairment quarterly. When events or circumstances indicate the carrying value may not be recoverable, we evaluate the net book value of the asset for impairment by comparison to the projected undiscounted future cash flows. If the carrying value of the asset is determined to not be recoverable and is in excess of the estimated fair value, we recognize an impairment charge in asset impairments on our consolidated statements of income.
As our leases do not provide an implicit borrowing rate, we use our estimated IBR to determine the present value of our lease payments and apply a portfolio approach. We apply judgment in estimating our IBR including factors related to currency risk and our credit risk. We also give consideration to our recent debt issuances as well as publicly available data for instruments with similar characteristics when determining our IBR. 
Our operating leases may include the following terms: (i) fixed minimum lease payments, (ii) variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, (iii) lease payments equal to the greater of a minimum or variable lease payments based on a percentage of the hotel's profitability measure, as defined in the lease, (iv) lease payments adjusted for changes in an index or market value, or (v) variable lease payments based on a percentage split of the total gross revenue, as defined in the leases, related to our residential management operations. Future lease payments that are contingent are not included in the measurement of the operating lease liability or in the future maturities table, see Note 8.
For office space, land, and hotel leases, we do not separate the lease and nonlease components, which primarily relate to common area maintenance and utilities. We combine lease and nonlease components for those leases where we are the lessor, and we exclude all leases that are twelve months or less from the ROU assets and lease liabilities.
Acquisitions—We evaluate the facts and circumstances of each acquisition to determine whether the transaction should be accounted for as an asset acquisition or a business combination.
Under the supervision of management, independent third-party valuation specialists estimate the fair value of the assets or businesses acquired using various recognized valuation methods including the income approach, cost approach, relief from royalty approach, and sales comparison approach, which are primarily based on Level Three assumptions. Assumptions utilized in determining the fair value under these approaches include, but are not limited to, historical financial results when applicable, projected cash flows, discount rates, capitalization rates, royalty rates, current market conditions, likelihood of contract renewals, and comparable transactions. In a business combination, the fair value is allocated to tangible assets and liabilities and identifiable intangible assets, with any remaining value assigned to goodwill, if applicable. In an asset acquisition, any difference between the consideration paid and the fair value of the assets acquired is allocated across the identified assets based on the relative fair value. When we acquire the remaining ownership interest in or the property from an unconsolidated hospitality venture in a step acquisition, we estimate the fair value of our equity interest using the assumed cash proceeds we would receive from sale to a third party at a market sales price, which is determined using the aforementioned fair value methodologies and assumptions.
The results of operations of properties or businesses have been included in our consolidated statements of income since their respective dates of acquisition. Assets acquired and liabilities assumed in acquisitions are recorded on our consolidated balance sheets at the respective acquisition dates based upon their estimated fair values (see Note 7). In business combinations, the purchase price allocations may be based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision when we receive final information, including appraisals and other analyses.
Acquisition-related costs incurred in conjunction with a business combination are recognized in other income (loss), net on our consolidated statements of income. In an asset acquisition, these costs are included in the total consideration paid and allocated to the acquired assets.
Goodwill—Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As required, we evaluate goodwill for impairment annually during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. Goodwill impairment is determined by comparing the fair value of a reporting unit to its carrying amount.
We evaluate the fair value of the reporting unit either by performing a qualitative or quantitative assessment. In any given year, we can elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If it is not more likely than not that the fair value is in excess of the carrying value, or we elect to bypass the qualitative assessment, we proceed to the quantitative assessment.
When determining fair value, we utilize internally developed discounted future cash flow models, third-party valuation specialist models, third-party appraisals or broker valuations and, if appropriate, current estimated net sales proceeds from pending offers. Under the discounted cash flow approach, we utilize various assumptions requiring judgment, including projected future cash flows, discount rates, and capitalization rates. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we recognize an impairment charge in asset impairments on our consolidated statements of income based on the amount by which the reporting unit's carrying value exceeded its fair value, limited to the carrying amount of goodwill. For additional information about goodwill, see Note 9.
Indefinite-Lived Intangible Assets—We have certain brand and other indefinite-lived intangibles that were acquired through various business combinations. At the time of each respective acquisition, fair value was estimated using a relief from royalty methodology.
As required, we evaluate indefinite-lived intangible assets for impairment annually during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. We use the relief from royalty method to estimate the fair value. When determining fair value, we utilize internally developed discounted future cash flow models and third-party valuation specialist models, which include various assumptions requiring judgment, including projected future cash flows, discount rates, and market royalty rates. Our estimates of projected cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we recognize an impairment charge in asset impairments on our consolidated statements of income. For additional information about indefinite-lived intangible assets, see Note 9.
Guarantees—We enter into performance guarantees related to certain hotels we manage. We also enter into debt repayment and other guarantees with respect to unconsolidated hospitality ventures, certain managed or franchised hotels, and other properties. We record a liability for the fair value of these guarantees at their inception date. In order to estimate the fair value, we use a Monte Carlo simulation to model the probability of possible outcomes. The valuation methodology requires that we make certain assumptions and judgments regarding discount rates, volatility, hotel operating results, and hotel property sales prices. The fair value is not re-valued due to future changes in assumptions. The corresponding offset depends on the circumstances in which the guarantee was issued and is recorded to equity method investments, other assets, or expense. We amortize the liability for the fair value of a guarantee into income over the term of the guarantee using a systematic and rational, risk-based approach. Guarantees related to our managed or franchised hotels and other properties are amortized into income in other income (loss), net in our consolidated statements of income. Guarantees related to our unconsolidated hospitality ventures are amortized into equity earnings (losses) from unconsolidated hospitality ventures in our consolidated statements of income. On a quarterly basis, we evaluate the likelihood of funding under a guarantee. To the extent we determine an obligation to fund is both probable and estimable based upon performance during the period, we record a separate contingent liability in other income (loss), net or equity earnings (losses) from unconsolidated hospitality ventures. For additional information about guarantees, see Note 15.
Income Taxes—We account for income taxes to recognize the amount of taxes payable or refundable for the current year and the amount of deferred tax assets and liabilities resulting from the future tax consequences of differences between the financial statements and tax basis of the respective assets and liabilities. We recognize the financial statement effect of a tax position when, based on the technical merits of the uncertain tax position, it is more likely than not to be sustained on a review by taxing authorities. We review these estimates and make changes to recorded amounts of uncertain tax positions as facts and circumstances warrant. For additional information about income taxes, see Note 14.
Fair Value—We apply the provisions of fair value measurement to various financial instruments, which we measure at fair value on a recurring basis, and to various financial and nonfinancial assets and liabilities, which we measure at fair value on a nonrecurring basis. We disclose the fair value of our financial assets and liabilities based on observable market information where available or on market participant assumptions. These assumptions are subjective in nature, involve matters of judgment, and, therefore, fair values cannot always be determined with precision. When determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy are as follows:
Level One—Fair values based on unadjusted quoted prices in active markets for identical assets and liabilities;
Level Two—Fair values based on quoted market prices for similar assets and liabilities in active markets, quoted prices in inactive markets for identical assets and liabilities, and inputs other than quoted market prices that are observable for the asset or liability; and
Level Three—Fair values based on inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Valuation techniques could include the use of discounted cash flow models and similar techniques.
We typically utilize the market approach and income approach for valuing our financial instruments. The market approach utilizes prices and information generated by market transactions involving identical or similar assets and liabilities and the income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). For instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the classification within the fair value hierarchy has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value
measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy.
The fair value of debt and equity securities is discussed in Note 4; the fair value of financing receivables is discussed in Note 6; the fair value of long-term debt is discussed in Note 11; and the fair value of our guarantee liabilities is discussed in Note 15. Excluding the aforementioned assets and liabilities, the carrying values of our current financial assets and current financial liabilities approximate fair values. We recognize transfers in and transfers out of the levels of the fair value hierarchy as of the end of each quarterly reporting period.
Stock-Based Compensation—As part of our LTIP, we award SARs, RSUs, and PSUs to certain employees and directors:
SARs—Each vested SAR gives the holder the right to the difference between the value of one share of our Class A common stock at the exercise date and the value of one share of our Class A common stock at the grant date. Vested SARs can be exercised over their life as determined in accordance with the LTIP. All SARs have a 10-year contractual term, are settled in shares of our Class A common stock, and are accounted for as equity instruments.
We recognize the compensation expense for SARs on a straight-line basis from the date of grant through the requisite service period. The exercise price of these SARs is the fair value of our common stock at the grant date, based on a valuation of the Company prior to the IPO or the closing share price on the date of grant (as applicable). We recognize the effect of forfeitures for SARs as they occur.
RSUs—Each vested RSU will generally be settled by delivery of a single share of our Class A common stock and therefore is accounted for as an equity instrument. In certain situations, we also grant a limited number of cash-settled RSUs, which are recorded as a liability instrument. The cash-settled RSUs represent an insignificant portion of certain previous grants.
The value of the RSUs is based upon the fair value of our common stock at the grant date, based upon a valuation of the Company prior to IPO or the closing stock price of our Class A common stock for the December 2009 award and all subsequent awards. Awards issued prior to our November 2009 IPO are deferred in nature and will be settled once all tranches of the award have fully vested or otherwise as provided in the relevant agreements, while all awards issued in December 2009 and later will be settled as each individual tranche vests under the relevant agreements. We recognize compensation expense over the requisite service period of the individual grant, which is generally between one and four years unless the employee meets retirement eligibility criteria resulting in immediate recognition. We recognize the effect of forfeitures as they occur.
Under certain circumstances, we may issue performance-based RSUs which vest in tranches according to performance targets that are established annually. The value of the RSUs is determined using the fair value of our common stock at the grant date based upon the closing stock price of our Class A common stock. Due to the fact the performance tests, and therefore the vesting criteria, are established annually, each award tranche may have its own grant date. We issued 140,000 of such RSUs during the year ended December 31, 2019, for which, 126,000 RSUs have not met the grant date criteria and are therefore, not deemed granted as of December 31, 2019.
PSUs—The Company has granted PSUs to certain executive officers. PSUs vest and are settled in Class A common stock based upon the performance of the Company through the end of the applicable three-year performance period relative to the applicable performance target and are generally subject to continued employment through the applicable performance period. The PSUs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions.
For additional information about stock-based compensation, see Note 17.
Loyalty Program—The loyalty program is funded through contributions from participating properties and third-party loyalty alliances based on eligible revenues from loyalty program members and returns on marketable securities. The funds are used for the redemption of member awards and payment of operating expenses. Operating costs are expensed as incurred through costs incurred on behalf of managed and franchised properties.
The program invests amounts received from the properties in marketable securities which are included in other current and noncurrent assets (see Note 4). Deferred revenues related to the loyalty program are classified as current and long-term contract liabilities on our consolidated balance sheets (see Note 3). The costs of administering the loyalty program, including
the estimated cost of award redemption, are charged to the participating properties and third-party loyalty alliances based on members' qualified expenditures.
Adopted Accounting Standards
Leases—In February 2016, the Financial Accounting Standards Board ("FASB") released ASU 2016-02. ASU 2016-02 requires lessees to record lease contracts on the balance sheet by recognizing a ROU asset and lease liability with certain practical expedients available. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make fixed minimum lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of fixed minimum lease payments over the lease term, including optional periods for which it is reasonably certain the renewal option will be exercised.
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, were effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted.
We adopted ASU 2016-02 utilizing the optional transition approach under ASU 2018-11 and applied the package of practical expedients beginning January 1, 2019. As a result of utilizing the optional transition method, our reporting for periods prior to January 1, 2019 continue to be reported in accordance with Leases (Topic 840).
For leases in place upon adoption, we used the remaining lease term as of January 1, 2019 in determining the IBR. For the initial measurement of the lease liabilities for leases commencing on or after January 1, 2019, the IBR at the lease commencement date was applied.
For operating leases, the adoption of ASU 2016-02 resulted in the initial recognition of ROU assets of $512 million and related lease liabilities of $452 million on our consolidated balance sheet at January 1, 2019. Upon adoption, we reclassified $103 million of intangibles, net related to below market leases and $49 million of deferred rent and other lease liabilities to the operating ROU assets. The net tax impact upon adoption was insignificant. The adoption of ASU 2016-02 did not significantly impact our accounting for finance leases or for those leases where we are the lessor. Additionally, the adoption of ASU 2016-02 did not materially affect our consolidated statements of income or our consolidated statements of cash flows.
The impact on our consolidated balance sheet upon adoption of ASU 2016-02 was as follows:
 
December 31, 2018
 
January 1, 2019
 

As reported
 
Effect of the adoption of ASU 2016-02
 
As adjusted
ASSETS
 
 
 
 
 
Prepaids and other assets
$
149

 
$
(2
)
 
$
147

Intangibles, net
628

 
(103
)
 
525

Other assets
1,353

 
(7
)
 
1,346

Operating lease right-of-use assets

 
512

 
512

TOTAL ASSETS
$
7,643

 
$
400

 
$
8,043

LIABILITIES AND EQUITY
 
 
 
 
 
Accounts payable
$
151

 
$
(1
)
 
$
150

Accrued expenses and other current liabilities
361

 
(2
)
 
359

Current operating lease liabilities

 
34

 
34

Long-term operating lease liabilities

 
418

 
418

Other long-term liabilities
840

 
(49
)
 
791

Total liabilities
3,966

 
400

 
4,366

Total equity
3,677

 

 
3,677

TOTAL LIABILITIES AND EQUITY
$
7,643

 
$
400

 
$
8,043



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 early adopted ASU 2018-15 on January 1, 2019 on a prospective basis which did not materially impact our consolidated financial statements.
Future Adoption of Accounting Standards
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 allowances for credit losses 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. While we continue to evaluate the impact of adopting ASU 2016-13 and its disclosure requirements, we do not expect a material impact upon adoption.
v3.19.3.a.u2
Revenue from Contracts with Customers
12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregated Revenues
The following tables present our revenues disaggregated by the nature of the product or service:
 
Year Ended December 31, 2019
 
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
$
1,058

$

$

$

$
25

$
(35
)
$
1,048

Food and beverage
607




12


619

Other
143




38


181

Owned and leased hotels
1,808




75

(35
)
1,848

 
 
 
 
 
 
 
 
Base management fees

227

46

37


(50
)
260

Incentive management fees

65

72

38


(24
)
151

Franchise fees

136

4

1



141

Other fees

5

14

7

6


32

License fees




24


24

Management, franchise, and other fees

433

136

83

30

(74
)
608

Amortization of management and franchise agreement assets constituting payments to customers

(15
)
(2
)
(5
)


(22
)
Net management, franchise, and other fees

418

134

78

30

(74
)
586

 
 
 
 
 
 
 
 
Other revenues

89



35

1

125

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

2,268

113

74

6


2,461

 
 
 
 
 
 
 
 
Total
$
1,808

$
2,775

$
247

$
152

$
146

$
(108
)
$
5,020

 
Year Ended December 31, 2018
 
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
$
1,110

$

$

$

$
23

$
(33
)
$
1,100

Food and beverage
636




10


646

Other
143




29


172

Owned and leased hotels
1,889




62

(33
)
1,918

 
 
 
 
 
 
 
 
Base management fees

200

44

34


(53
)
225

Incentive management fees

67

71

39


(29
)
148

Franchise fees

123

3

1



127

Other fees

10

9

6

6


31

License fees




21


21

Management, franchise, and other fees

400

127

80

27

(82
)
552

Amortization of management and franchise agreement assets constituting payments to customers

(13
)
(2
)
(5
)


(20
)
Net management, franchise, and other fees

387

125

75

27

(82
)
532

 
 
 
 
 
 
 
 
Other revenues




43

5

48

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

1,787

95

68

6


1,956

 
 
 
 
 
 
 
 
Total
$
1,889

$
2,174

$
220

$
143

$
138

$
(110
)
$
4,454

 
Year Ended December 31, 2017
 
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
$
1,270

$

$

$

$
22

$
(38
)
$
1,254

Food and beverage
722




11


733

Other
167




30


197

Owned and leased hotels
2,159




63

(38
)
2,184

 
 
 
 
 
 
 
 
Base management fees

193

39

29


(59
)
202

Incentive management fees

62

65

35


(27
)
135

Franchise fees

112

2




114

Other fees

13

6

5

4


28

License fees




19


19

Management, franchise, and other fees

380

112

69

23

(86
)
498

Amortization of management and franchise agreement assets constituting payments to customers

(12
)
(1
)
(5
)


(18
)
Net management, franchise, and other fees

368

111

64

23

(86
)
480

 
 
 
 
 
 
 
 
Other revenues
13




14

9

36

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

1,625

79

58



1,762

 
 
 
 
 
 
 
 
Total
$
2,172

$
1,993

$
190

$
122

$
100

$
(115
)
$
4,462


Contract Balances
Our contract assets are insignificant at December 31, 2019 and December 31, 2018.
Contract liabilities are comprised of the following:
 
December 31, 2019
 
December 31, 2018
Deferred revenue related to the loyalty program
$
671

 
$
596

Advanced deposits
77

 
81

Initial fees received from franchise owners
41

 
35

Deferred revenue related to system-wide services
5

 
7

Other deferred revenue
126

 
111

Total contract liabilities
$
920

 
$
830



The following table summarizes the activity in our contract liabilities:
 
2019
 
2018
Beginning balance, January 1
$
830

 
$
772

Cash received and other
1,025

 
964

Revenue recognized
(935
)
 
(906
)
Ending balance, December 31
$
920

 
$
830


Revenue recognized during the years ended December 31, 2019 and December 31, 2018 included in the contract liabilities balance at the beginning of each year was $375 million and $356 million, respectively. This revenue primarily relates to the loyalty program, which is recognized net of redemption reimbursements paid to third parties, and advanced deposits.
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 $130 million at December 31, 2019, of which we expect to recognize approximately 20% of the 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 cards 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.
v3.19.3.a.u2
Debt and Equity Securities
12 Months Ended
Dec. 31, 2019
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
Equity method investments were $232 million and $233 million at December 31, 2019 and December 31, 2018, respectively, and are primarily recorded on our owned and leased hotels segment.
The carrying values and ownership interests of our investments in unconsolidated hospitality ventures accounted for under the equity method are as follows:
Investee
Existing or future hotel property
Ownership interest
 
Carrying value
December 31, 2019
 
December 31, 2018
Hyatt of Baja, S. de. R.L. de C.V.
Park Hyatt Los Cabos
50.0
%
 
$
48

 
$
46

HP Boston Partners, LLC
Hyatt Place Boston/Seaport District
50.0
%
 
29

 
29

Hotel am Belvedere Holding GmbH & Co KG
Andaz Vienna Am Belvedere

50.0
%
 
22

 
25

San Jose Hotel Partners, LLC
Hyatt Place San Jose Airport, Hyatt House San Jose Airport
40.0
%
 
20

 
18

Desarrolladora Hotelera Acueducto, S. de R.L. de C.V.
Hyatt Regency Andares Guadalajara

50.0
%
 
14

 
13

Portland Hotel Properties, LLC
Hyatt Centric Downtown Portland
40.0
%
 
13

 
13

CBR HCN, LLC
Hyatt Centric Downtown Nashville
40.0
%
 
12

 

HH Nashville JV Holdings, LLC
Hyatt House Nashville at Vanderbilt
50.0
%
 
11

 
12

33 Beale Street Hotel Company, LLC
Hyatt Centric Memphis
50.0
%
 
11

 

HP Atlanta Centennial Park JV, LLC
Hyatt Place Atlanta/Centennial Park
50.0
%
 
10

 
10

Hotel Hoyo Uno, S. de R.L. de C.V.
Andaz Mayakoba Resort Riviera Maya
40.0
%
 
10

 
16

Other
Various
 
 
32

 
51

Total equity method investments
 
 
 
$
232

 
$
233


The following tables present summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method:
 
Years Ended December 31,
2019
 
2018
 
2017
Total revenues
$
496

 
$
513

 
$
832

Gross operating profit
179

 
182

 
289

Income (loss) from continuing operations
(24
)
 
(16
)
 
54

Net income (loss)
(24
)
 
(16
)
 
54

 
December 31, 2019
 
December 31, 2018
Current assets
$
231

 
$
228

Noncurrent assets
1,417

 
1,345

Total assets
$
1,648

 
$
1,573

 
 
 
 
Current liabilities
$
143

 
$
141

Noncurrent liabilities
1,270

 
1,148

Total liabilities
$
1,413

 
$
1,289


During the year ended December 31, 2019, we had the following activity:
We recognized $8 million of gains in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income resulting from sales activity related to certain equity method investments within our owned and leased hotels segment and received $25 million of related sales proceeds.
During the year ended December 31, 2018, we had the following activity:
We recognized $40 million of net gains in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income resulting from sales activity related to certain equity method investments primarily within our owned and leased hotels segment and received $43 million of related sales proceeds.
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. We recognized $16 million of impairment charges related to these investments in equity earnings (losses) from unconsolidated hospitality ventures in our owned and leased hotels segment on our consolidated statements of income as the carrying value was in excess of fair value.
During the year ended December 31, 2017, we had the following activity:
In conjunction with the sale of Avendra, an equity method investment within our Americas management and franchising segment, to Aramark, we received approximately $217 million of net proceeds and recognized a $217 million gain in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income.
We recognized $6 million of gains in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income resulting from sales activity related to certain equity method investments within our owned and leased hotels segment and received $12 million of related sales proceeds.
During the years ended December 31, 2019, December 31, 2018, and December 31, 2017, we recognized $7 million, $16 million, and $3 million of impairment charges, respectively, in equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income as the carrying values were in excess of fair values. The fair values were determined to be Level Three fair value measures, and the impairments were deemed other-than-temporary.
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 consolidated balance sheets, were as follows:
 
December 31, 2019
 
December 31, 2018
Loyalty program (Note 10)
$
483

 
$
397

Deferred compensation plans held in rabbi trusts (Note 10 and Note 13)
450

 
367

Captive insurance companies
180

 
133

Total marketable securities held to fund operating programs
$
1,113

 
$
897

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
(219
)
 
(174
)
Marketable securities held to fund operating programs included in other assets
$
894

 
$
723


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 consolidated statements of income:
 
Years Ended December 31,
2019
 
2018
 
2017
Loyalty program (Note 21)
$
26

 
$
4

 
$
9


Net realized and unrealized gains (losses) and interest income from marketable securities held to fund rabbi trusts are recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts on our consolidated statements of income:
 
Years Ended December 31,
 
2019
 
2018
 
2017
Unrealized gains (losses), net
$
42

 
$
(45
)
 
$
20

Realized gains, net
20

 
34

 
25

Net gains (losses) and interest income from marketable securities held to fund rabbi trusts
$
62

 
$
(11
)
 
$
45


Our captive insurance companies hold marketable securities which include AFS debt securities that 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 2020 through 2024.
Marketable Securities Held for Investment Purposes—Marketable securities held for investment purposes, which are recorded at fair value and included on our consolidated balance sheets, were as follows:
 
December 31, 2019
 
December 31, 2018
Interest-bearing money market funds
$
147

 
$
14

Common shares of Playa N.V. (Note 10)
102

 
87

Time deposits
37

 
100

Total marketable securities held for investment purposes
$
286

 
$
201

Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments
(184
)
 
(114
)
Marketable securities held for investment purposes included in other assets
$
102

 
$
87


We hold common shares of Playa Hotels & Resorts N.V. ("Playa N.V.") which are accounted for as an equity security with a readily determinable fair value as we do not have the ability to significantly influence the operations of the entity. 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 $15 million of unrealized gains and
$44 million of unrealized losses for the years ended December 31, 2019 and December 31, 2018, respectively, recognized in other income (loss), net on our consolidated statements of income (see Note 21). We did not sell any shares of common stock during the year ended December 31, 2019.
Other Investments
HTM Debt Securities—At December 31, 2019 and December 31, 2018, we held $58 million and $49 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 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 models 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 December 31, 2019 and December 31, 2018, we had $7 million and $9 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.
Due to ongoing operating cash flow shortfalls in the business underlying an equity security during the year ended December 31, 2018, we recognized a $22 million impairment charge for our full investment balance in other income (loss), net on our consolidated statements of income (see Note 21) as 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 year ended December 31, 2018, the entity in which we held our investment disposed of its assets.
Fair Value—We measured the following financial assets at fair value on a recurring basis:
 
December 31, 2019
 
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
$
269

 
$
269

 
$

 
$

 
$

Mutual funds
502

 

 

 

 
502

Common shares
102

 

 

 

 
102

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
47

 

 
41

 

 
6

U.S. government obligations
202

 

 
4

 
31

 
167

U.S. government agencies
50

 

 
3

 
6

 
41

Corporate debt securities
161

 

 
20

 
18

 
123

Mortgage-backed securities
23

 

 

 
4

 
19

Asset-backed securities
39

 

 

 
6

 
33

Municipal and provincial notes and bonds
4

 

 

 
1

 
3

Total
$
1,399

 
$
269

 
$
68

 
$
66

 
$
996


 
December 31, 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
367

 

 

 

 
367

Common shares
87

 

 

 

 
87

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
113

 

 
104

 

 
9

U.S. government obligations
169

 

 

 
37

 
132

U.S. government agencies
52

 

 
2

 
7

 
43

Corporate debt securities
151

 

 
10

 
25

 
116

Mortgage-backed securities
23

 

 

 
5

 
18

Asset-backed securities
46

 

 

 
10

 
36

Municipal and provincial notes and bonds
2

 

 

 

 
2

Total
$
1,098

 
$
88

 
$
116

 
$
84

 
$
810


During the years ended December 31, 2019 and December 31, 2018, 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.
We invest a portion of our cash into short-term interest-bearing money market funds that have a maturity of less than 90 days. Consequently, the balances are recorded in cash and cash equivalents. The funds are held with open-ended registered investment companies, and the fair value of the funds is classified as Level One as we are able to obtain market available pricing information on an ongoing basis. The fair value of our mutual funds is classified as Level One as they trade with sufficient frequency and volume to enable us to obtain pricing information on an ongoing basis. Time deposits are recorded at par value, which approximates fair value, and are classified as Level Two. The remaining securities are classified as Level Two due to the use and weighting of multiple market inputs being considered in the final price of the security. Market inputs include quoted market prices from active markets for identical securities, quoted market prices for identical securities in inactive markets, and quoted market prices in active and inactive markets for similar securities.
v3.19.3.a.u2
Property and Equipment, Net
12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net PROPERTY AND EQUIPMENT, NET
 
December 31, 2019
 
December 31, 2018
Land
$
690

 
$
713

Buildings
3,285

 
3,583

Leasehold improvements
194

 
215

Furniture, equipment, and computers
1,183

 
1,178

Construction in progress
253

 
158

Property and equipment
5,605

 
5,847

Less: accumulated depreciation
(2,149
)
 
(2,239
)
Total property and equipment, net
$
3,456

 
$
3,608


 
Years Ended December 31,
2019
 
2018
 
2017
Depreciation expense
$
304

 
$
312

 
$
335


Interest capitalized as a cost of property and equipment was $6 million, $3 million, and $4 million for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively.
v3.19.3.a.u2
Financing Receivables
12 Months Ended
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Financing Receivables FINANCING RECEIVABLES
 
December 31, 2019
 
December 31, 2018
Unsecured financing to hotel owners
$
135

 
$
159

Less: current portion of financing receivables, included in receivables, net

 
(45
)
Less: allowance for losses
(100
)
 
(101
)
Total long-term financing receivables, net of allowances
$
35

 
$
13


Allowance for Losses and ImpairmentsThe following table summarizes the activity in our unsecured financing receivables allowance:
 
2019
 
2018
Allowance at January 1
$
101

 
$
108

Provisions
6

 
7

Write-offs
(6
)
 
(12
)
Other adjustments
(1
)
 
(2
)
Allowance at December 31
$
100

 
$
101


Credit MonitoringOur unsecured financing receivables were as follows:
 
December 31, 2019
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
33

 
$
(1
)
 
$
32

 
$

Impaired loans (1)
43

 
(43
)
 

 
43

Total loans
76

 
(44
)
 
32

 
43

 Other financing arrangements
59

 
(56
)
 
3

 
56

Total unsecured financing receivables
$
135

 
$
(100
)
 
$
35

 
$
99

(1) The unpaid principal balance was $33 million and the average recorded loan balance was $46 million at December 31, 2019.
 
December 31, 2018
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
58

 
$

 
$
58

 
$

Impaired loans (2)
50

 
(50
)
 

 
50

Total loans
108

 
(50
)
 
58

 
50

Other financing arrangements
51

 
(51
)
 

 
51

Total unsecured financing receivables
$
159

 
$
(101
)
 
$
58

 
$
101

(2) The unpaid principal balance was $36 million and the average recorded loan balance was $54 million at December 31, 2018.
Fair ValueWe estimated the fair value of financing receivables to be approximately $36 million and $59 million at December 31, 2019 and December 31, 2018, respectively. The fair values, which are classified as Level Three in the fair value hierarchy, are estimated using discounted future cash flow models. The principal inputs used are projected future cash flows and the discount rate, which is generally the effective interest rate of the loan.
v3.19.3.a.u2
Acquisitions and Dispositions
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Acquisitions and Dispositions ACQUISITIONS AND DISPOSITIONS
Acquisitions
Two Roads Hospitality, LLC—During the year ended December 31, 2018, we acquired all of the outstanding equity interests of Two Roads in a business combination for a purchase price of $405 million. The transaction also included potential additional consideration including (i) up to $96 million if the sellers completed specific actions with respect to certain of the acquired management agreements within 120 days from the date of acquisition and (ii) up to $8 million in the event of the
execution of certain potential new management agreements related to the development of certain potential new deals previously identified and generated by the sellers or affiliates of the sellers within one year of the closing of the transaction. One of the sellers is indirectly owned by a limited partnership affiliated with the brother of our Executive Chairman.
We closed on the transaction on November 30, 2018 and paid cash of $415 million, net of $37 million cash acquired. Cash paid at closing was inclusive of a $36 million payment of the aforementioned additional consideration and $4 million of other purchase price adjustments. Related to the $68 million of potential additional consideration, we recorded a $57 million contingent liability in accrued expenses and other current liabilities on our consolidated balance sheet at December 31, 2018, which represented our estimate of remaining expected consideration to be paid.
Net assets acquired were determined as follows:
Cash paid, net of cash acquired
$
415

Cash acquired
37

Contingent consideration liability
57

Net assets acquired at December 31, 2018
$
509

Post-acquisition working capital adjustments
(2
)
Net assets acquired at December 31, 2019
$
507


As it relates to the $57 million contingent consideration liability recorded at December 31, 2018, of which $3 million remains at December 31, 2019, the following occurred during the year ended December 31, 2019:
The sellers completed the aforementioned specific actions with respect to certain management agreements, and we paid $24 million of additional consideration to the sellers.
For those management agreements where the specific actions were not completed or payment is no longer probable, we released $30 million of the contingent liability to other income (loss), net on our consolidated statements of income during the year ended December 31, 2019 (see Note 21).
The acquisition includes management and license agreements for operating and pipeline hotels primarily across North America and Asia under five hospitality brands.
During the year ended December 31, 2019, the fair values of the assets acquired and liabilities assumed were revised as we refined our analysis of contract terms and renewal assumptions which affected the underlying cash flows in the valuation. This resulted in a $38 million reduction in intangibles, net with an offsetting increase in goodwill on our consolidated balance sheet at December 31, 2019. We finalized the fair values of the assets acquired and liabilities assumed, which are classified as Level Three in the fair value hierarchy, during 2019. The fair values are based on information that was available as of the date of acquisition and estimated using discounted future cash flow models and relief from royalty method, including revenue projections based on the expected contract terms, renewal assumptions, and long-term growth rates, as well as the selection of discount rates.
The following table summarizes the fair value of the identifiable net assets acquired:
Cash
$
32

Receivables
20

Other current assets
2

Equity method investment
2

Property and equipment
2

Indefinite-lived intangibles (1), (5)
96

Management agreement intangibles (2), (5)
205

Goodwill (3)
199

Other assets (4)
25

Total assets
$
583

 
 
Advanced deposits (6)
$
20

Other current liabilities
23

Other long-term liabilities (4)
33

Total liabilities
76

Total net assets acquired
$
507

(1) Includes brand-related intangibles.
(2) Amortized over useful lives of 1 to 19 years, with a weighted-average useful life of approximately 12 years.
(3) The goodwill, of which $154 million is tax deductible, is attributable to the growth opportunities we expect to realize by expanding into new markets and enhancing guest experiences through these newly acquired lifestyle brands (see Note 9).
(4) Includes $13 million of pre-acquisition liabilities relating to certain foreign filing positions, including $4 million of interest and penalties. We recorded an offsetting indemnification asset which we expect to collect under contractual arrangements (see Note 14).
(5) See Note 9 for impairment discussion.
(6) Included in contract liabilities (see Note 3).
Hyatt Regency Phoenix—During the year ended December 31, 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 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 year ended December 31, 2018, we completed an asset acquisition of Hyatt Regency Indian Wells Resort & Spa from an unrelated third party for a purchase price of approximately $120 million, net of proration adjustments. 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 year ended December 31, 2017, we acquired the equity of 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 year ended December 31, 2017, we acquired 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 approximately 95% of Cranwell during the year ended December 31, 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
$
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%. During the year ended December 31, 2018, the preferred shares were redeemed for $10 million.
Dispositions
Grand Hyatt Seoul—During the year ended December 31, 2019, we sold the shares of the entity which owns Grand Hyatt Seoul and adjacent land to an unrelated third party for approximately $467 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. We entered into a long-term management agreement for the property upon sale. The sale resulted in a $349 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2019. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment.
Contractual Right—During the year ended December 31, 2019, we sold our contractual right to purchase Hyatt Regency Portland at the Oregon Convention Center to an unrelated third party for approximately $21 million, net of closing costs. We entered into a long-term management agreement for the property upon sale. The sale resulted in a $16 million pre-tax gain which was recognized in other income (loss), net on our consolidated statements of income during the year ended December 31, 2019 (see Note 21).
Land—During the year ended December 31, 2019, we acquired $15 million of land through an asset acquisition from an unrelated third party to develop a hotel in Austin, Texas and subsequently sold the land and related construction in progress through an asset disposition during 2019.
Hyatt Regency Atlanta—During the year ended December 31, 2019, we sold Hyatt Regency Atlanta to an unrelated third party for approximately $346 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. We entered into a long-term management agreement for the property upon sale. The sale resulted in a $272 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2019. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment.
Land and Lease Assignment—During the year ended December 31, 2019, we sold the property adjacent to Grand Hyatt San Francisco and assigned the related Apple store lease to an unrelated third party for approximately $115 million, net of closing costs and proration adjustments, and accounted for the transaction as an asset disposition. The sale resulted in a $101 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2019. The operating results and financial position of this property prior to the sale remain within our owned and leased hotels segment.

A Hyatt House Hotel—During the year ended December 31, 2018, we sold a select service property for $48 million, net of closing costs and proration adjustments, to an unrelated third party and accounted for the transaction as an asset disposition. We entered into a long-term management agreement for the property upon sale. The sale resulted in a $4 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2018. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment.

Hyatt Regency Mexico City—During the year ended December 31, 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, 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 $46 million of unsecured financing receivables which were repaid in full during the year ended December 31, 2019 (see Note 6). The sale resulted in a pre-tax gain of approximately $238 million, which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2018. In connection with the disposition, we recognized a $21 million goodwill impairment charge in asset impairments on our consolidated statements of income during the year ended December 31, 2018. The assets disposed represented the entirety of the related reporting unit and therefore, no business operations remained to support the related goodwill, which was therefore impaired (see Note 9). The operating results and financial position prior to the sale remain within our owned and leased hotels segment.

Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort and Spa—During the year ended December 31, 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 accounted for the transaction as an asset disposition. We 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 consolidated statements of income during the year ended December 31, 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 and $23 million during the years ended December 31, 2018 and December 31, 2017, respectively.

Land Held for Development—A wholly owned subsidiary held undeveloped land in Los Cabos, Mexico. During the year ended December 31, 2018, an unrelated third party invested in the subsidiary in exchange for a 50% ownership interest resulting in derecognition of the subsidiary and the recognition of an investment in an unconsolidated hospitality venture at fair value of $45 million.
Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course—During the year ended December 31, 2017, we sold Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course to an unrelated third party for $58 million, net of closing costs and proration adjustments, and entered into a long-term franchise agreement for the property upon sale. The sale resulted in a $17 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2017. The operating results and financial position of this hotel prior to the sale remain within our owned and leased hotels segment.
Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa—During the year ended December 31, 2017, we sold Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa to an unrelated third party as a portfolio for $296 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 $159 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 2017. The operating results and financial position of these hotels prior to the sale remain within our owned and leased hotels segment.
Hyatt Regency Grand Cypress—During the year ended December 31, 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 for the property upon sale. The sale resulted in a $26 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 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 year ended December 31, 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 for the property upon sale. The sale resulted in a $35 million pre-tax gain which was recognized in gains on sales of real estate on our consolidated statements of income during the year ended December 31, 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 year ended December 31, 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 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 and are unavailable for our use until released. The proceeds are recorded as restricted cash on our 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 the property adjacent to Grand Hyatt San Francisco during the year ended December 31, 2019, $115 million of proceeds were held as restricted for use in a potential like-kind exchange.

In conjunction with the sale of Hyatt Regency Coconut Point Resort and Spa during the year ended December 31, 2018, $221 million of proceeds were held as restricted for use in a potential like-kind exchange. During the year ended December 31, 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, $207 million of proceeds were 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 year ended December 31, 2018.
v3.19.3.a.u2
Leases
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases LEASES
Lessee
A summary of operating lease expense is as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Minimum rentals
$
50

 
$
38

 
$
42

Contingent rentals
97

 
47

 
52

Total operating lease expense
$
147

 
$
85

 
$
94


Total lease expense related to short-term leases and finance leases was insignificant for the year ended December 31, 2019.
Supplemental balance sheet information related to finance leases is as follows:
 
December 31, 2019
Property and equipment, net (1)
$
9

Current maturities of long-term debt
2

Long-term debt
9

Total finance lease liabilities
$
11


(1) Finance lease assets are net of $14 million of accumulated amortization.
Weighted-average remaining lease terms and discount rates are as follows:
 
December 31, 2019
Weighted-average remaining lease term in years
 
Operating leases (1)
21

Finance leases
7

 
 
Weighted-average discount rate
 
Operating leases
3.7
%
Finance leases
0.9
%
(1) Certain of our hotel and land leases have nominal or contingent rental payments and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term.

The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Finance leases
2020
$
47

 
$
3

2021
45

 
2

2022
42

 
2

2023
39

 
2

2024
36

 
2

Thereafter
422

 
3

Total minimum lease payments
$
631

 
$
14

Less: amount representing interest
(206
)
 
(3
)
Present value of minimum lease payments
$
425

 
$
11


The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Capital leases
2019
$
46

 
$
3

2020
42

 
3

2021
42

 
2

2022
38

 
2

2023
35

 
2

Thereafter
448

 
5

Total minimum lease payments
$
651

 
$
17

Less: amount representing interest
 
 
(5
)
Present value of minimum lease payments
 
 
$
12


Lessor—We lease retail space under operating leases at certain of our owned hotels. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. We recognized rental income within owned and leased hotels revenues on our consolidated statements of income as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Rental income
$
23

 
$
25

 
$
27


The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2020
$
19

2021
13

2022
11

2023
8

2024
4

Thereafter
8

Total minimum lease receipts
$
63


The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2019
$
22

2020
18

2021
16

2022
15

2023
11

Thereafter
48

Total minimum lease receipts
$
130


Leases LEASES
Lessee
A summary of operating lease expense is as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Minimum rentals
$
50

 
$
38

 
$
42

Contingent rentals
97

 
47

 
52

Total operating lease expense
$
147

 
$
85

 
$
94


Total lease expense related to short-term leases and finance leases was insignificant for the year ended December 31, 2019.
Supplemental balance sheet information related to finance leases is as follows:
 
December 31, 2019
Property and equipment, net (1)
$
9

Current maturities of long-term debt
2

Long-term debt
9

Total finance lease liabilities
$
11


(1) Finance lease assets are net of $14 million of accumulated amortization.
Weighted-average remaining lease terms and discount rates are as follows:
 
December 31, 2019
Weighted-average remaining lease term in years
 
Operating leases (1)
21

Finance leases
7

 
 
Weighted-average discount rate
 
Operating leases
3.7
%
Finance leases
0.9
%
(1) Certain of our hotel and land leases have nominal or contingent rental payments and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term.

The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Finance leases
2020
$
47

 
$
3

2021
45

 
2

2022
42

 
2

2023
39

 
2

2024
36

 
2

Thereafter
422

 
3

Total minimum lease payments
$
631

 
$
14

Less: amount representing interest
(206
)
 
(3
)
Present value of minimum lease payments
$
425

 
$
11


The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Capital leases
2019
$
46

 
$
3

2020
42

 
3

2021
42

 
2

2022
38

 
2

2023
35

 
2

Thereafter
448

 
5

Total minimum lease payments
$
651

 
$
17

Less: amount representing interest
 
 
(5
)
Present value of minimum lease payments
 
 
$
12


Lessor—We lease retail space under operating leases at certain of our owned hotels. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. We recognized rental income within owned and leased hotels revenues on our consolidated statements of income as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Rental income
$
23

 
$
25

 
$
27


The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2020
$
19

2021
13

2022
11

2023
8

2024
4

Thereafter
8

Total minimum lease receipts
$
63


The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2019
$
22

2020
18

2021
16

2022
15

2023
11

Thereafter
48

Total minimum lease receipts
$
130


Leases LEASES
Lessee
A summary of operating lease expense is as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Minimum rentals
$
50

 
$
38

 
$
42

Contingent rentals
97

 
47

 
52

Total operating lease expense
$
147

 
$
85

 
$
94


Total lease expense related to short-term leases and finance leases was insignificant for the year ended December 31, 2019.
Supplemental balance sheet information related to finance leases is as follows:
 
December 31, 2019
Property and equipment, net (1)
$
9

Current maturities of long-term debt
2

Long-term debt
9

Total finance lease liabilities
$
11


(1) Finance lease assets are net of $14 million of accumulated amortization.
Weighted-average remaining lease terms and discount rates are as follows:
 
December 31, 2019
Weighted-average remaining lease term in years
 
Operating leases (1)
21

Finance leases
7

 
 
Weighted-average discount rate
 
Operating leases
3.7
%
Finance leases
0.9
%
(1) Certain of our hotel and land leases have nominal or contingent rental payments and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term.

The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Finance leases
2020
$
47

 
$
3

2021
45

 
2

2022
42

 
2

2023
39

 
2

2024
36

 
2

Thereafter
422

 
3

Total minimum lease payments
$
631

 
$
14

Less: amount representing interest
(206
)
 
(3
)
Present value of minimum lease payments
$
425

 
$
11


The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Capital leases
2019
$
46

 
$
3

2020
42

 
3

2021
42

 
2

2022
38

 
2

2023
35

 
2

Thereafter
448

 
5

Total minimum lease payments
$
651

 
$
17

Less: amount representing interest
 
 
(5
)
Present value of minimum lease payments
 
 
$
12


Lessor—We lease retail space under operating leases at certain of our owned hotels. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues. We recognized rental income within owned and leased hotels revenues on our consolidated statements of income as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Rental income
$
23

 
$
25

 
$
27


The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2020
$
19

2021
13

2022
11

2023
8

2024
4

Thereafter
8

Total minimum lease receipts
$
63


The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2019
$
22

2020
18

2021
16

2022
15

2023
11

Thereafter
48

Total minimum lease receipts
$
130


v3.19.3.a.u2
Goodwill and Intangible Assets, Net
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net GOODWILL AND INTANGIBLE ASSETS, NET
 
Owned and leased hotels
 
Americas management and franchising
 
ASPAC management and franchising
 
EAME/SW Asia management and franchising
 
Corporate and other
 
Total
Balance at January 1, 2018
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
189

 
$
33

 
$

 
$

 
$
23

 
$
245

Accumulated impairment losses
(95
)
 

 

 

 

 
(95
)
Goodwill, net
$
94

 
$
33

 
$

 
$

 
$
23

 
$
150

Activity during the year
 
 
 
 
 
 
 
 
 
 
 
Additions

 
135

 
18

 
3

 
2

 
158

Impairment losses
(21
)
 

 

 

 
(4
)
 
(25
)
Balance at December 31, 2018
 
 
 
 
 
 
 
 
 
 

Goodwill
189

 
168

 
18

 
3

 
25

 
403

Accumulated impairment losses
(116
)
 

 

 

 
(4
)
 
(120
)
Goodwill, net
$
73

 
$
168

 
$
18

 
$
3

 
$
21

 
$
283

Activity during the year
 
 
 
 
 
 
 
 
 
 
 
Measurement period adjustments (Note 7)

 
64

 
(18
)
 
(3
)
 

 
43

Balance at December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Goodwill
189

 
232

 

 

 
25

 
446

Accumulated impairment losses
(116
)
 

 

 

 
(4
)
 
(120
)
Goodwill, net
$
73

 
$
232

 
$

 
$

 
$
21

 
$
326


 
December 31, 2019
 
Weighted-average useful lives in years
 
December 31, 2018
Management and franchise agreement intangibles
$
367

 
18

 
$
390

Lease related intangibles

 

 
121

Brand and other indefinite-lived intangibles
144

 

 
180

Advanced booking intangibles
14

 
5

 
14

Other definite-lived intangibles
8

 
6

 
8

Intangibles
533

 
 
 
713

Less: accumulated amortization
(96
)
 
 
 
(85
)
Intangibles, net
$
437

 
 
 
$
628


 
Years Ended December 31,
 
2019
 
2018
 
2017
Amortization expense
$
25

 
$
15

 
$
13


We estimate amortization expense for definite-lived intangibles as follows:
Years Ending December 31,
 
2020
$
28

2021
27

2022
25

2023
24

2024
23

Thereafter
166

Total amortization expense
$
293


During the year ended December 31, 2019, we recognized $18 million of impairment charges related to management and franchise agreement intangibles and brand and other indefinite-lived intangibles primarily as a result of contract terminations. The impairment charges were recognized in asset impairments on our consolidated statements of income, primarily within our Americas management and franchising segment, and are classified as Level Three in the fair value hierarchy. During the year ended December 31, 2018, we recognized $25 million of goodwill impairment charges primarily related to the HRMC transaction in asset impairments on our consolidated statements of income (see Note 7). During the year ended December 31, 2017, we did not recognize any impairment charges.
v3.19.3.a.u2
Other Assets
12 Months Ended
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets OTHER ASSETS
 
December 31, 2019
 
December 31, 2018
Marketable securities held to fund rabbi trusts (Note 4)
$
450

 
$
367

Management and franchise agreement assets constituting payments to customers (1)
423

 
396

Marketable securities held to fund the loyalty program (Note 4)
347

 
303

Long-term investments
162

 
112

Common shares of Playa N.V. (Note 4)
102

 
87

Other
104

 
88

Total other assets
$
1,588

 
$
1,353

(1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees.

v3.19.3.a.u2
Debt
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Debt DEBT
 
December 31, 2019
 
December 31, 2018
$250 million senior unsecured notes maturing in 2021—5.375%
$
250

 
$
250

$350 million senior unsecured notes maturing in 2023—3.375%
350

 
350

$400 million senior unsecured notes maturing in 2026—4.850%
400

 
400

$400 million senior unsecured notes maturing in 2028—4.375%
400

 
400

Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A
130

 
130

Contract Revenue Bonds, Senior Taxable Series 2005B
47

 
52

Floating average rate construction loan
49

 
55

Other
1

 
1

Total debt before finance lease obligations
1,627

 
1,638

Finance lease obligations
11

 
12

Total debt
1,638

 
1,650

Less: current maturities
(11
)
 
(11
)
Less: unamortized discounts and deferred financing fees
(15
)
 
(16
)
Total long-term debt
$
1,612

 
$
1,623


Under existing agreements, maturities of debt for the next five years and thereafter are as follows:
Years Ending December 31,
 
2020
$
11

2021
261

2022
11

2023
361

2024
12

Thereafter
982

Total maturities of debt
$
1,638


Senior Notes—At December 31, 2019 and December 31, 2018, we had unsecured Senior Notes as further described below. Interest on the Senior Notes is payable semi-annually. We may redeem all or a portion of the Senior Notes at any time at 100% of the principal amount of the Senior Notes redeemed together with the accrued and unpaid interest, plus a make-whole amount, if any. The amount of any make-whole payment depends, in part, on the yield of U.S. Treasury securities with a comparable maturity to the Senior Notes at the date of redemption. A summary of the terms of our outstanding Senior Notes, by year of issuance, is as follows:
In 2011, we issued $250 million of 5.375% senior notes due 2021, at an issue price of 99.846%.
In 2013, we issued $350 million of 3.375% senior notes due 2023, at an issue price of 99.498%.
In 2016, we issued $400 million of 4.850% senior notes due 2026, at an issue price of 99.920%.
In 2018, we issued 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 the 2019 Notes, and the remainder was used for general corporate purposes.
Debt Redemption—During the year ended December 31, 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 consolidated statements of income (see Note 21).
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A and Contract Revenue Bonds, Senior Taxable Series 2005B—During the year ended December 31, 2013, we acquired our partner's interest in the entity that owned Grand Hyatt San Antonio, and as a result, we consolidated $198 million of bonds, net of the $9 million bond discount, which is being amortized over the life of the bonds. The construction was financed in part by The City of San Antonio, Texas Convention Center Hotel Finance Corporation ("Texas Corporation"), a non-profit local government corporation created by the
City of San Antonio, Texas for the purpose of providing financing for a portion of the costs of constructing the hotel. On June 8, 2005, Texas Corporation issued $130 million of original principal amount Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A ("Series 2005A Bonds") and $78 million of original principal amount Contract Revenue Bonds, Senior Taxable Series 2005B ("Series 2005B Bonds"). The Series 2005A Bonds mature between 2034 and 2039, with interest ranging from 4.75% to 5.00%, and the remaining Series 2005B Bonds mature between 2020 and 2028, with interest ranging from 5.1% to 5.31%. The loan payments are required to be funded solely from net operating revenues of Grand Hyatt San Antonio, and in the event that net operating revenues are not sufficient to pay debt service, Texas Corporation under certain circumstances will be required to provide certain tax revenue to pay debt service on the 2005 Series Bonds. The indenture allows for optional early redemption of the Series 2005B Bonds subject to make-whole payments at any time with consent from Texas Corporation and beginning in 2015 for the Series 2005A Bonds. Interest is payable semi-annually.
Floating Average Rate Construction Loan—During the year ended December 31, 2012, we obtained a secured construction loan with Banco Nacional de Desenvolvimento Econômico e Social - BNDES ("BNDES") in order to develop Grand Hyatt Rio de Janeiro. The loan is split into four separate sub-loans, each with different interest rates. Sub-loans (a) and (b) mature in 2031 and sub-loans (c) and (d) mature in 2023. Borrowings under the four sub-loans bear interest at the following rates, depending on the applicable sub-loan: (a) and (b) the Brazilian Long Term Interest Rate - TJLP plus 2.92%, (c) 2.5%, and (d) the Brazilian Long Term Interest Rate - TJLP. On sub-loans (a), (b), and (d), when the TJLP rate exceeds 6%, the amount corresponding to the TJLP portion above 6% is required to be capitalized daily. At December 31, 2019, the weighted-average interest rates for the sub-loans we have drawn upon is 7.54%. The outstanding balance of the sub-loan subject to the interest rate described in (a) above is subject to adjustment on a daily basis based on BNDES's calculation of the weighted-average of exchange rate variations related to foreign currency funds raised by BNDES in foreign currency. At December 31, 2019 and December 31, 2018, we had Brazilian Real ("BRL") 197 million, or $49 million, and BRL 214 million, or $55 million, outstanding, respectively.
Revolving Credit Facility—During the year ended December 31, 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. Interest rates on outstanding borrowings are either LIBOR-based or based on an alternate base rate, with margins in each case based on our credit rating or, in certain circumstances, our credit rating and leverage ratio. During the year ended December 31, 2019, we had $400 million of borrowings and repayments on our revolving credit facility. The weighted-average interest rate on these borrowings was 3.47% at December 31, 2019. At December 31, 2019 and December 31, 2018, we had no balance outstanding.
The Company had $263 million and $277 million of letters of credit issued through additional banks at December 31, 2019 and December 31, 2018, respectively.
Fair Value—We estimated the fair value of debt, excluding finance 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 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 models is based on the selection of appropriate discount rates. Fluctuations in these assumptions will result in different estimates of fair value.
 
December 31, 2019
 
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)
$
1,627

 
$
1,740

 
$

 
$
1,680

 
$
60

(1) Excludes $11 million of finance lease obligations and $15 million of unamortized discounts and deferred financing fees.
 
December 31, 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 (2)
$
1,638

 
$
1,651

 
$

 
$
1,584

 
$
67


(2) Excludes $12 million of capital lease obligations and $16 million of unamortized discounts and deferred financing fees.
Interest Rate Locks—At December 31, 2019 and December 31, 2018, we had outstanding interest rate locks with $275 million and $200 million of notional value, respectively, and mandatory settlement dates of 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 outstanding derivative instruments are designated as cash flow hedges and deemed highly effective both at inception and at December 31, 2019.
During the years ended December 31, 2019 and December 31, 2018, we recognized $20 million and $4 million of pre-tax losses, respectively, in unrealized gains (losses) on derivative activity on our consolidated statements of comprehensive income. At December 31, 2019 and December 31, 2018, we had $24 million and $4 million of liabilities related to these derivative instruments, respectively, recorded in other long-term liabilities on our consolidated balance sheets. We estimated the fair values of interest rate locks, which are classified as Level Two in the fair value hierarchy, using discounted cash flow models. The primary sensitivity in these models is based on forward and discount curves.
During the year ended December 31, 2018, we settled interest rate locks with $225 million of notional value upon issuance of the 2028 Notes.
v3.19.3.a.u2
Employee Benefit Plans
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
Defined Benefit Plans—We sponsor supplemental executive retirement plans consisting of funded and unfunded defined benefit plans for certain former executives. Retirement benefits are based primarily on the former employees' salary, as defined, and are payable upon satisfaction of certain service and age requirements as defined by the plans. The accumulated benefit obligation related to the unfunded U.S. plan was $21 million and $19 million, of which $20 million and $18 million was classified as a long-term liability, at December 31, 2019 and December 31, 2018, respectively. At December 31, 2019, we expect benefits of $1 million to be paid annually over the next 10 years.
Defined Contribution Plans—We provide retirement benefits to certain eligible employees under the Retirement Savings Plan (a qualified plan under Internal Revenue Code Section 401(k)), the FRP, and other similar plans. For the years ended December 31, 2019, December 31, 2018, and December 31, 2017, we recorded expenses of $48 million, $41 million, and $39 million, respectively, related to the Retirement Savings Plan based on a percentage of eligible employee contributions on stipulated amounts. The majority of these contributions relate to hotel property level employees, which are reimbursable to us, and are included in revenues for the reimbursement of costs incurred on behalf of managed and franchised properties and costs incurred on behalf of managed and franchised properties on our consolidated statements of income.
Deferred Compensation Plans—We provide nonqualified deferred compensation for certain employees through the DCP. Contributions and investment elections are determined by the employees, and we provide contributions to certain eligible employees according to pre-established formulas. The DCP is fully funded through a rabbi trust, therefore changes in the underlying securities impact the deferred compensation liability, which is recorded in other long-term liabilities (see Note 13) and the corresponding marketable securities assets (see Note 4).
Employee Stock Purchase Program—We provide the Hyatt Hotels Corporation ESPP, which qualifies under Section 423 of the Internal Revenue Code. The ESPP provides eligible employees the opportunity to purchase shares of the Company's common stock on a quarterly basis through payroll deductions at a price equal to 95% of the fair value on the last trading day of each quarter. We issued 79,700 shares and 61,900 shares under the ESPP during 2019 and 2018, respectively.
v3.19.3.a.u2
Other Long-Term Liabilities
12 Months Ended
Dec. 31, 2019
Other Liabilities, Noncurrent [Abstract]  
Other Long-Term Liabilities OTHER LONG-TERM LIABILITIES
 
December 31, 2019

December 31, 2018
Deferred compensation plans funded by rabbi trusts (Note 4)
$
450

 
$
367

Income taxes payable
147

 
131

Self-insurance liabilities (Note 15)
80

 
78

Deferred income taxes (Note 14)
47

 
54

Guarantee liabilities (Note 15)
46

 
76

Other
114

 
134

Total other long-term liabilities
$
884

 
$
840


v3.19.3.a.u2
Income Taxes
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Our tax provision includes federal, state, local, and foreign income taxes.
 
Years Ended December 31,
2019
 
2018
 
2017
U.S. income before tax
$
466

 
$
652

 
$
650

Foreign income before tax
540

 
299

 
72

Income before income taxes
$
1,006

 
$
951

 
$
722


The provision (benefit) for income taxes from continuing operations is comprised of the following:
 
Years Ended December 31,
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
74

 
$
140

 
$
201

State
35

 
50

 
45

Foreign
103

 
25

 
30

Total Current
$
212

 
$
215

 
$
276

Deferred:
 
 
 
 
 
Federal
$
29

 
$
(35
)
 
$
46

State
2

 
(12
)
 
(3
)
Foreign
(3
)
 
14

 
13

Total Deferred
$
28

 
$
(33
)
 
$
56

Total
$
240

 
$
182

 
$
332


The following is a reconciliation of the statutory federal income tax rate to the effective tax rate from continuing operations:
 
Years Ended December 31,
2019
 
2018
 
2017
Statutory U.S. federal income tax rate
21.0
 %
 
21.0
 %
 
35.0
 %
State income taxes—net of federal tax benefit
2.7

 
2.6

 
3.8

Impact of foreign operations (excluding unconsolidated hospitality ventures losses)
(2.0
)
 
(5.6
)
 
(5.4
)
U.S. foreign tax credits

 
(1.6
)
 
0.7

2017 Tax Act deferred rate change

 
(0.1
)
 
6.3

2017 Tax Act deemed repatriation tax

 
0.3

 
1.8

Change in valuation allowances
1.0

 
0.9

 
1.0

Foreign unconsolidated hospitality ventures
0.5

 
0.9

 
0.9

Tax contingencies
0.3

 
1.0

 
1.0

Equity based compensation
0.2

 
0.3

 
0.6

General business credits
(0.3
)
 
(0.5
)
 
(0.3
)
Other
0.5

 
(0.1
)
 
0.5

Effective income tax rate
23.9
 %
 
19.1
 %
 
45.9
 %

Significant items affecting the 2019 effective tax rate include the state impact of U.S. operations and certain foreign net operating losses generated in the current year that are not expected to be utilized within the carryforward period. These expenses are offset by the benefits related to the rate differential on foreign operations, including a non-recurring benefit related to prior years recognized as a result of an agreement reached by the United States and Swiss tax authorities on Advanced Pricing Agreement terms covering tax years 2012 through 2021.

Significant items affecting the 2018 effective tax rate include the decrease in the U.S. corporate income tax rate from 35% to 21% as part of the 2017 Tax Act, the low effective tax rate on the HRMC transaction, and a $15 million release of a valuation
allowance on foreign tax credits expected to be utilized within the allowed carryforward period. These benefits are partially offset by the impact of certain foreign net operating losses generated that are not expected to be utilized in the future.

Significant items affecting the 2017 effective tax rate include a $45 million expense related to reducing our net deferred tax assets to the lower U.S. corporate income tax rate. Additional items that impacted the 2017 effective tax rate include an expense related to certain foreign net operating losses generated that are not expected to be utilized in the future, a $15 million valuation allowance on foreign tax credits not expected to be utilized in the future, and $13 million of expenses related to deemed repatriation tax as a result of the Tax Act. These expenses were partially offset by the benefit related to the rate differential of foreign operations and the recognition of $10 million of foreign tax credits generated by distributions from certain foreign subsidiaries.
The components of the net deferred tax assets and deferred tax liabilities are comprised of the following:
 
December 31, 2019
 
December 31, 2018
Deferred tax assets related to:
 
 
 
Employee benefits
$
134

 
$
133

Loyalty program
118

 
99

Long-term operating lease liabilities
103

 

Foreign and state net operating losses and credit carryforwards
50

 
57

Allowance for uncollectible assets
33

 
31

Investments
28

 
37

Unrealized losses
7

 
3

Interest and state benefits
3

 
3

Other
33

 
41

Valuation allowance
(41
)
 
(41
)
Total deferred tax asset
$
468

 
$
363

Deferred tax liabilities related to:
 
 
 
Property and equipment
$
(152
)
 
$
(131
)
Operating ROU assets
(105
)
 

Intangibles
(59
)
 
(49
)
Investments
(36
)
 
(16
)
Prepaid expenses
(9
)
 
(7
)
Unrealized gains
(2
)
 
(24
)
Other
(8
)
 
(10
)
Total deferred tax liabilities
$
(371
)
 
$
(237
)
Net deferred tax assets
$
97

 
$
126

Recognized in the balance sheet as:
 
 
 
Deferred tax assets—noncurrent
$
144

 
$
180

Deferred tax liabilities—noncurrent
(47
)
 
(54
)
Total
$
97

 
$
126


As a result of the adoption of ASU 2016-02, we recognized a deferred tax asset and an offsetting deferred tax liability for operating lease liabilities and operating ROU assets, respectively. Additionally, we reclassified existing deferred tax balances primarily from other deferred tax asset and property and equipment deferred tax liability balances. On a net basis, there was no change to our total net deferred tax assets as a result of the adoption.
During the year ended December 31, 2019, significant changes to our deferred tax balances include a $21 million increase in the property and equipment deferred tax liability as a result of book depreciation in excess of tax depreciation and a $10 million increase in the intangibles deferred tax liability due to tax amortization in excess of book, primarily driven by the Two Roads acquisition (see Note 7). 
At December 31, 2019, we have $451 million of accumulated undistributed earnings generated by our foreign subsidiaries, the majority of which have been subject to U.S. tax. Any additional taxes due with respect to such earnings or the excess of book basis over tax basis of our foreign investments would generally be limited to foreign withholding and U.S. state
income taxes. We continue to assert that undistributed net earnings with respect to certain foreign subsidiaries that have not previously been taxed in the U.S. are indefinitely reinvested.
At December 31, 2019, we have $46 million of deferred tax assets for future tax benefits related to foreign and state net operating losses and $4 million of benefits related to federal and state credits. Of these deferred tax assets, $23 million relates to net operating losses and federal and state credits that expire in 2020 through 2039. However, $27 million primarily relates to foreign net operating losses that have no expiration date and may be carried forward indefinitely. A valuation allowance of $41 million is recorded for certain deferred tax assets related to net operating losses and credits that we do not believe are more likely than not to be realized.
At December 31, 2019 and December 31, 2018, total unrecognized tax benefits were $125 million and $116 million, respectively, of which $36 million and $15 million, respectively, would impact the effective tax rate if recognized. It is reasonably possible that a reduction of up to $6 million of unrecognized tax benefits could occur within 12 months resulting from the expiration of certain tax statutes of limitations and tax settlements.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
2019
 
2018
Unrecognized tax benefits—beginning balance
$
116

 
$
94

Total increases—current-period tax positions
21

 
10

Total increases (decreases)—prior-period tax positions
(7
)
 
18

Settlements
(3
)
 
(1
)
Lapse of statute of limitations
(3
)
 
(4
)
Foreign currency fluctuation
1

 
(1
)
Unrecognized tax benefits—ending balance
$
125

 
$
116


In 2019, the $9 million net increase in uncertain tax positions is primarily related to an accrual for the U.S. treatment of the loyalty program. The decrease in prior period tax positions primarily relates to the effective settlement of certain federal and state tax matters.
In 2018, the $22 million net increase in uncertain tax positions is primarily related to an accrual for the U.S. treatment of the loyalty program. The increase in prior period tax positions relates to local tax filing positions identified as a result of the Two Roads acquisition (see Note 7) and a state tax accrual related to filing positions taken on the 2017 state tax returns.
We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. Total gross accrued interest and penalties were $22 million and $18 million at December 31, 2019 and December 31, 2018, respectively.
The amount of interest and penalties recognized as a component of income tax expense in 2019 was an expense of $5 million, primarily related to federal, state, and foreign tax matters. The amount of interest and penalties recognized as a component of income tax expense in 2018 was insignificant.
We are subject to audits by federal, state, and foreign tax authorities. We are currently under field exam by the IRS for tax years 2015 through 2017. U.S. tax years 2009 through 2011 are before the U.S. Tax Court concerning the tax treatment of the loyalty program. Additionally, U.S. tax years 2012 through 2014 are pending the outcome of the issue currently in U.S. Tax Court. If the IRS' position to include loyalty program contributions as taxable income to the Company is upheld, it would result in an income tax payment of $191 million (including $47 million of estimated interest, net of federal tax benefit) for all assessed years that would be partially offset by a deferred tax asset. As future tax benefits will be recognized at the reduced U.S. corporate income tax rate, $69 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 liability recorded in connection with this matter.
We have several state audits pending, specifically in Illinois and Florida. State income tax returns are generally subject to examination for a period of three to five years after filing of the return. However, the state impact of any federal changes remains subject to examination by various states for a period generally up to one year after formal notification to the states of the federal changes. We also have several foreign audits pending. The statutes of limitations for the foreign jurisdictions ranges from three to ten years after filing the applicable tax return.
v3.19.3.a.u2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
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 December 31, 2019, we are committed, under certain conditions, to lend or provide certain consideration to, or invest in, various business ventures up to $296 million, net of any related letters of credit.
Performance Guarantees—Certain of our contractual agreements with third-party hotel owners require us to guarantee payments to the owners if specified levels of operating profit are not achieved by their hotels (see Note 2).
Our most significant performance guarantee relates to the four managed hotels in France, which has a term of seven years and expires on April 30, 2020. This guarantee has a maximum cap, but does not have an annual cap. The remaining maximum exposure related to our performance guarantees at December 31, 2019 was $238 million, of which €147 million ($165 million using exchange rates at December 31, 2019) was related to the four managed hotels in France.
We had $33 million and $47 million of total net performance guarantee liabilities at December 31, 2019 and December 31, 2018, respectively, which included $14 million and $25 million recorded in other long-term liabilities and $19 million and $22 million recorded in accrued expenses and other current liabilities on our consolidated balance sheets, respectively.
 
 
The four managed hotels in France
 
Other performance guarantees
 
All performance guarantees
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Beginning balance, January 1
 
$
36

 
$
58

 
$
11

 
$
13

 
$
47

 
$
71

Initial guarantee obligation liability
 

 

 
7

 

 
7

 

Amortization of initial guarantee obligation liability into income
 
(15
)
 
(15
)
 
(3
)
 
(3
)
 
(18
)
 
(18
)
Performance guarantee expense, net
 
37

 
55

 
5

 
4

 
42

 
59

Net payments during the year
 
(37
)
 
(62
)
 
(7
)
 
(3
)
 
(44
)
 
(65
)
Foreign currency exchange, net
 
(1
)
 

 

 

 
(1
)
 

Ending balance, December 31
 
$
20

 
$
36

 
$
13

 
$
11

 
$
33

 
$
47


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 December 31, 2019 and December 31, 2018, there were no amounts recognized on our 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 and unconsolidated hospitality ventures 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 December 31, 2019
 
Other long-term liabilities recorded at December 31, 2018
 
Year of guarantee expiration
Hotel properties in India (1)
 
$
169

 
$
169

 
$
5

 
$
10

 
2020
Hotel and residential properties in Brazil (2), (3)
 
97

 
40

 
3

 
3

 
various, through 2023
Hotel properties in Tennessee (2)
 
44

 
20

 
8

 
2

 
various, through 2023
Hotel properties in California (2)
 
31

 
12

 
3

 
4

 
various, through 2021
Hotel property in Massachusetts (2), (4)
 
30

 
14

 
6

 
8

 
various, through 2022
Hotel property in Oregon (2), (4)
 
15

 
6

 
3

 
4

 
various, through 2022
Hotel property in Arizona (2), (3)
 
14

 

 
1

 
1

 
2021
Other (2), (5)
 
15

 
9

 
3

 
19

 
various, through 2022
Total
 
$
415

 
$
270

 
$
32

 
$
51

 
 


(1) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at December 31, 2019. We have the contractual right to recover amounts funded from an unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $85 million, taking into account our partner's 50% ownership interest in the unconsolidated hospitality venture. Under certain events or conditions, we have the right to force the sale of the properties in order to recover amounts funded.
(2) 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.
(3) 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.
(4) In conjunction with the debt repayment guarantees, we are subject to completion guarantees 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. At December 31, 2019, the maximum potential future payments are $3 million, and the maximum exposure net of recoverability from third parties is insignificant.
(5) At December 31, 2018, other-long term liabilities included a debt repayment guarantee for a hotel property in Washington State. During the year ended December 31, 2019, the debt was refinanced, and we are no longer a guarantor. As a result, we recognized a $15 million release of our debt repayment guarantee liability in other income (loss), net on our consolidated statements of income for the year ended December 31, 2019 (see Note 21).
At December 31, 2019, 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 $62 million and $128 million at December 31, 2019 and December 31, 2018, respectively. Based upon the lack of available market data, we have classified our guarantees as Level Three in the fair value hierarchy (see Note 2).
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. Reserves for losses in our captive insurance companies to be paid within 12 months are $41 million and $38 million at December 31, 2019 and December 31, 2018, respectively, and are recorded in accrued expenses and other current liabilities on our consolidated balance sheets, while reserves for losses in our captive insurance companies to be paid in future periods are $80 million and $78 million at December 31, 2019 and December 31, 2018, respectively, and are recorded in other long-term liabilities on our consolidated balance sheets.
Collective Bargaining Agreements—At December 31, 2019, approximately 23% 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 $48 million at December 31, 2019 and primarily relate to workers' compensation, taxes, licenses, construction liens, and utilities related to our lodging operations.
Letters of Credit—Letters of credit outstanding on our behalf at December 31, 2019 were $264 million, which relate to our ongoing operations, hotel properties under development in the U.S., 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. Of the letters of credit outstanding, $1 million reduces the available capacity under our revolving credit facility (see Note 11).
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 consolidated financial statements.
During the year ended December 31, 2018, we received a notice from the Indian tax authorities assessing additional service tax on our operations in India. We appealed this decision and do not believe a loss is probable, and therefore, we have not recognized a liability in connection with this matter. As of December 31, 2019, our maximum exposure is not expected to exceed $18 million.
v3.19.3.a.u2
Stockholders' Equity and Comprehensive Loss
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Stockholders' Equity and Comprehensive Loss STOCKHOLDERS' EQUITY AND COMPREHENSIVE LOSS
Common Stock—At December 31, 2019, Pritzker family business interests beneficially owned, in the aggregate, approximately 96.5% of our Class B common stock and approximately 2.9% of our Class A common stock, representing approximately 63.2% of the outstanding shares of our common stock and approximately 91.6% of the total voting power of our outstanding common stock. As a result, consistent with the voting agreements contained in the Amended and Restated Global Hyatt Agreement and Amended and Restated Foreign Global Hyatt Agreement, Pritzker family business interests are able to exert a significant degree of influence or actual control over our management and affairs and over matters requiring stockholder approval, including the election of directors and other significant corporate transactions. While the voting agreements are in effect, they may provide our board of directors with effective control over matters requiring stockholder approval. Because of our dual class ownership structure, Pritzker family business interests will continue to exert a significant degree of influence or actual control over matters requiring stockholder approval, even if they own less than 50% of the outstanding shares of our common stock. Pursuant to the Amended and Restated Global Hyatt Agreement and Amended and Restated Foreign Global Hyatt Agreement, the Pritzker family business interests have agreed to certain voting agreements and to certain limitations with respect to the sale of shares of our common stock. In addition, other stockholders beneficially own, in the aggregate, approximately 3.5% of our outstanding Class B common stock representing approximately 2.2% of the outstanding shares of our common stock and approximately 3.3% of the total voting power of our outstanding common stock. Pursuant to the 2007
Stockholders' Agreement, these entities have also agreed to certain voting agreements and to certain limitations with respect to the sale of shares of our common stock.
Share Repurchase—During 2019, 2018, and 2017, our board of directors authorized the repurchase of up to $750 million, $750 million, and $1,250 million, respectively, of our common stock. These repurchases may be made from time to time in the open market, in privately negotiated transactions, or otherwise, including pursuant to a Rule 10b5-1 plan or an accelerated share repurchase transaction, at prices we deem appropriate and subject to market conditions, applicable law, and other factors deemed relevant in our sole discretion. The common stock repurchase program applies to our Class A and Class B common stock. The common stock repurchase program does not obligate us to repurchase any dollar amount or number of shares of common stock, and the program may be suspended or discontinued at any time.
During the year ended December 31, 2019, we repurchased 5,621,281 shares of common stock. The shares of common stock were repurchased at a weighted-average price of $74.85 per share for an aggregate purchase price of $421 million, excluding related insignificant expenses. The shares repurchased during 2019 represented approximately 5% of our total shares of common stock outstanding at December 31, 2018.
During the year ended December 31, 2018, we entered into the following 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 (2)
2,481,341

 
$
80.60

 
$
200

November 2018 (2)
2,575,095

 
$
69.90

 
$
180


(1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share (see Note 20).
(2) The May 2018 ASR and the November 2018 ASR are collectively referred to as the "2018 ASR Agreements."
During the year ended December 31, 2018, we repurchased 12,723,895 shares of common stock, including settlement of the 2018 ASR Agreements and 244,260 shares representing the settlement of the November 2017 ASR. The shares of common stock were repurchased at a weighted-average price of $75.68 per share for an aggregate purchase price of $966 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. The shares repurchased during 2018 represented approximately 11% of our total shares of common stock outstanding at December 31, 2017.
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 year ended December 31, 2019 (see Note 18). At December 31, 2019, we had $997 million remaining under the share repurchase authorization.
Accumulated Other Comprehensive Loss
 
Balance at
January 1, 2019
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
December 31, 2019
Foreign currency translation adjustments (a)
$
(191
)
 
$
1

 
$
7

 
$
(183
)
Unrealized gains on AFS debt securities

 
1

 

 
1

Unrecognized pension cost
(5
)
 
(4
)
 

 
(9
)
Unrealized losses on derivative instruments
(4
)
 
(15
)
 
1

 
(18
)
Accumulated other comprehensive income (loss)
$
(200
)
 
$
(17
)
 
$
8

 
$
(209
)
(a) The amount reclassified from accumulated other comprehensive loss includes the net gain recognized in gains on sales of real estate related to the sale of shares of the entity which owns Grand Hyatt Seoul and adjacent land (see Note 7).
 
 
Balance at
January 1, 2018
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
December 31, 2018
Foreign currency translation adjustments (b)
$
(243
)
 
$
(25
)
 
$
77

 
$
(191
)
Unrecognized pension (cost) benefit
(7
)
 
2

 

 
(5
)
Unrealized losses on derivative instruments
(3
)
 
(1
)
 

 
(4
)
Accumulated other comprehensive income (loss)
$
(253
)
 
$
(24
)
 
$
77

 
$
(200
)
(b) The amount reclassified from accumulated other comprehensive loss includes 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 7).

DividendDuring the year ended December 31, 2019, we paid cash dividends of $29 million and $51 million, respectively, to Class A and Class B shareholders of record, and during the year ended December 31, 2018, we paid cash dividends of $27 million and $41 million, respectively, to Class A and Class B shareholders of record as follows:
Date declared
 
Dividend per share amount for Class A and Class B
 
Date of record
 
Date paid
February 13, 2019
 
$
0.19

 
February 27, 2019
 
March 11, 2019
May 17, 2019
 
$
0.19

 
May 29, 2019
 
June 10, 2019
July 31, 2019
 
$
0.19

 
August 27, 2019
 
September 9, 2019
October 30, 2019
 
$
0.19

 
November 26, 2019
 
December 9, 2019
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
October 30, 2018
 
$
0.15

 
November 28, 2018
 
December 10, 2018

v3.19.3.a.u2
Stock-Based Compensation
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
As part of our LTIP, we award SARs, RSUs, and PSUs to certain employees and non-employee directors (see Note 2). In addition, non-employee directors may elect to receive their annual fees and/or annual equity retainers in the form of shares of our Class A common stock. Under the LTIP, we are authorized to issue up to 14,375,000 shares. 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 consolidated statements of income. Stock-based compensation expense included in selling, general, and administration expense on our consolidated statements of income related to these awards was as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
SARs
$
11

 
$
10

 
$
11

RSUs
17

 
15

 
16

PSUs
6

 
4

 
2

Other
1

 

 

Total
$
35

 
$
29

 
$
29


The expected income tax benefit to be realized at the time of vest related to these awards for the years ended December 31, 2019, December 31, 2018, and December 31, 2017 was as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
SARs
$
3

 
$
2

 
$
3

RSUs
5

 
4

 
4

PSUs
2

 
1

 
1

Total
$
10

 
$
7

 
$
8


SARs—The following table sets forth a summary of the SAR grants in 2019, 2018, and 2017:
Grant date
 
Granted
 
Value at date of grant
 
Vesting period
 
Vesting start month
March 2019
 
643,989

 
$
17.11

 
25
% annually
 
March 2020
May 2018
 
38,918

 
21.84

 
25
% annually
 
March 2019
March 2018
 
465,842

 
21.13

 
25
% annually
 
March 2019
September 2017
 
20,139

 
18.62

 
25
% annually
 
September 2018
March 2017
 
605,601

 
16.35

 
25
% annually
 
March 2018

The weighted-average grant date fair value for the awards granted in 2019, 2018, and 2017 was $17.11, $21.18, and $16.42, respectively.
The fair value of each SAR was estimated based on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions:
 
2019
 
2018
 
2017
Exercise price
$
71.67

 
$
80.12

 
$
52.93

Expected life in years
6.25

 
6.24

 
6.24

Risk-free interest rate
2.40
%
 
2.79
%
 
2.11
%
Expected volatility
22.51
%
 
22.97
%
 
26.56
%
Annual dividend yield
1.06
%
 
0.75
%
 
%

Due to a lack of historical exercise activity, the expected life was estimated based on the midpoint between the vesting period and the contractual life of each SAR. The risk-free interest rate was based on U.S. Treasury instruments with similar expected life. We calculate volatility using our trading history over a time period consistent with our expected term assumption. The dividend yield assumption is based on the expected annualized dividend payment at the date of grant.
A summary of employee SAR activity is presented below:
 
SAR units
 
Weighted-average exercise price (in whole dollars)
 
Weighted-average remaining contractual term
Outstanding at December 31, 2018:
3,488,886

 
$
51.27

 
5.80
Granted
643,989

 
71.67

 
 
Exercised
(240,417
)
 
36.48

 
 
Forfeited or expired
(48,101
)
 
66.00

 
 
Outstanding at December 31, 2019:
3,844,357

 
$
55.51

 
5.78
Exercisable at December 31, 2019:
2,458,448

 
$
48.72

 
4.38

During the years ended December 31, 2019, December 31, 2018, and December 31, 2017, the intrinsic value of exercised SARs was $16 million, $7 million, and $24 million, respectively. The total intrinsic value of SARs outstanding at December 31, 2019 was $131 million, and the total intrinsic value for exercisable SARs was $101 million at December 31, 2019.
RSUs—The following table sets forth a summary of the employee RSU grants: 
Grant date
 
Granted
 
Value at date of grant
 
Aggregate value at date of grant
 
Vesting period
December 2019
 
9,695

 
$
82.50

 
$
1

 
various
May 2019
 
23,672

 
77.54

 
2

 
various
March 2019
 
329,239

 
71.67

 
24

 
various
February 2019
 
2,863

 
69.85

 

 
4 years
December 2018
 
9,650

 
67.34

 
1

 
various
September 2018
 
10,034

 
76.72

 
1

 
various
May 2018
 
4,306

 
81.27

 

 
4 years
March 2018
 
254,707

 
80.02

 
20

 
various
February 2018
 
3,502

 
78.52

 

 
4 years
December 2017
 
9,238

 
70.35

 
1

 
various
September 2017
 
22,357

 
61.50

 
1

 
various
September 2017
 
43,151

 
60.48

 
3

 
various
May 2017
 
1,390

 
57.51

 

 
4 years
March 2017
 
416,404

 
52.65

 
22

 
various

The weighted-average grant date fair value for the awards granted in 2019, 2018, and 2017 was $72.32, $79.47, and $54.08, respectively. The liability and related expense for granted cash-settled RSUs are insignificant at and for the year ended December 31, 2019.
A summary of the status of the nonvested employee RSU awards outstanding under the LTIP is presented below:
 
RSUs
 
Weighted-average grant date fair value
Nonvested at December 31, 2018:
796,830

 
$
61.31

Granted
365,469

 
72.32

Vested
(339,227
)
 
58.73

Forfeited or canceled
(47,790
)
 
62.69

Nonvested at December 31, 2019:
775,282

 
$
67.54


The total intrinsic value of nonvested RSUs at December 31, 2019 was $70 million.
PSUs—The following table sets forth a summary of PSU grants:
Year granted
 
Granted
 
Weighted-average grant date fair value
 
Performance period
 
Performance period start date
2019 PSUs
 
120,720

 
$
77.95

 
3 years
 
January 1, 2019
2018 PSUs
 
89,441

 
$
82.10

 
3 years
 
January 1, 2018
2017 PSUs
 
102,115

 
$
52.65

 
3 years
 
January 1, 2017

A summary of the status of the nonvested PSU awards outstanding under the LTIP is presented below:
 
PSUs
 
Weighted-average grant date fair value
Nonvested at December 31, 2018:
204,489

 
$
62.68

Granted
120,720

 
77.95

Vested
(61,545
)
 
47.36

Forfeited or canceled
(3,248
)
 
82.10

Nonvested at December 31, 2019:
260,416

 
$
73.14


At December 31, 2019, the total intrinsic value of nonvested PSUs if target performance is achieved was $23 million.
Unearned Compensation—Our total unearned compensation for our stock-based compensation programs at December 31, 2019 is as follows and is expected to be recorded as stock-based compensation expense:
 
2020
 
2021
 
2022
 
2023
 
Total
SARs
$
1

 
$
1

 
$

 
$

 
$
2

RSUs
7

 
4

 
3

 
1

 
15

PSUs
5

 
3

 

 

 
8

Total
$
13

 
$
8

 
$
3

 
$
1

 
$
25


v3.19.3.a.u2
Related-Party Transactions
12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related-Party Transactions RELATED-PARTY TRANSACTIONS
In addition to those included elsewhere in the Notes to our 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 2019, 2018, and 2017 is the brother-in-law of our Executive Chairman. We incurred $6 million, $6 million, and $3 million of legal fees with this firm for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively. At both December 31, 2019 and December 31, 2018, we had insignificant amounts due to the law firm.
Equity Method Investments—We have equity method investments in entities that own properties for which we receive management or franchise fees. We recognized $22 million, $20 million, and $24 million of fees for the years ended December 31, 2019, December 31, 2018, and December 31, 2017, respectively. In addition, in some cases we provide loans (see Note 6) or guarantees (see Note 15) to these entities. During the years ended December 31, 2019, December 31, 2018, and December 31, 2017, we recognized $4 million, $7 million, and $5 million, respectively, of income related to these guarantees. At both December 31, 2019 and December 31, 2018, we had $17 million of receivables due from these properties. Our ownership interest in these unconsolidated hospitality ventures varies from 24% to 50%. See Note 4 for further details regarding these investments.
Other Services—The brother of our Executive Chairman is affiliated with a limited partnership which has ownership interests in hotels from which we recognized $7 million of management and franchise fees during the year ended December 31, 2019. At both December 31, 2019 and December 31, 2018, we had insignificant receivables due from these properties.
Class B Share Conversion—During the years ended December 31, 2019 and December 31, 2018, 975,170 shares and 1,207,355 shares, respectively, of Class B common stock were converted on a share-for-share basis into shares of our Class A common stock, $0.01 par value per share. The shares of Class B common stock that were converted into shares of Class A common stock have been retired, thereby reducing the shares of Class B common stock authorized and outstanding.
Class B Share Repurchase—During 2019, we repurchased 677,384 shares of Class B common stock for a weighted-average price of $74.21 per share, for an aggregate purchase price of approximately $50 million. The shares repurchased represented approximately 1% of our total shares of common stock outstanding at December 31, 2018. During 2018, we repurchased 2,430,654 shares of Class B common stock at a weighted-average price of $78.10 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 at December 31, 2017. The shares of Class B common stock were repurchased in privately negotiated transactions from trusts or limited partnerships owned indirectly by trusts for the benefit of certain Pritzker family members or private charitable organizations affiliated with certain Pritzker family members and were retired, thereby reducing the shares of Class B common stock authorized and outstanding by the repurchased share amount.
v3.19.3.a.u2
Segment and Geographic Information
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment and Geographic Information SEGMENT AND GEOGRAPHIC INFORMATION
Our reportable segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the CODM to assess performance and make decisions regarding the allocation of resources. 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 cards 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 as well revenues from residential management operations. These reimbursed costs relate primarily to payroll at managed properties where the Company is the employer, as well as system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
ASPAC management and franchising—This segment derives its earnings primarily from a combination of hotel management 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 reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned hotel, which was sold during the year ended December 31, 2019, 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 reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
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 owned and leased hospitality ventures Adjusted EBITDA based on our ownership percentage of each owned and leased 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.
The table below shows summarized consolidated financial information by segment. Included within corporate and other are the results of Miraval and Exhale, Hyatt Residence Club license fees, results related to our co-branded credit cards, and unallocated corporate expenses.
 
Years Ended December 31,
2019
 
2018
 
2017
Owned and leased hotels
 
 
 
 
 
Owned and leased hotels revenues
$
1,808

 
$
1,889

 
$
2,159

Other revenues

 

 
13

Intersegment revenues (a)
35

 
33

 
38

Adjusted EBITDA
387

 
428

 
490

Depreciation and amortization
244

 
266

 
295

Capital expenditures
233

 
194

 
195

Americas management and franchising
 
 
 
 
 
Management, franchise, and other fees revenues
433

 
400

 
380

Contra revenue
(15
)
 
(13
)
 
(12
)
Other revenues
89

 

 

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
2,268

 
1,787

 
1,625

Intersegment revenues (a)
62

 
70

 
74

Adjusted EBITDA
376

 
352

 
327

Depreciation and amortization
24

 
9

 
7

Capital expenditures
2

 
1

 

ASPAC management and franchising
 
 
 
 
 
Management, franchise, and other fees revenues
136

 
127

 
112

Contra revenue
(2
)
 
(2
)
 
(1
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
113

 
95

 
79

Intersegment revenues (a)
2

 
2

 
2

Adjusted EBITDA
87

 
78

 
70

Depreciation and amortization
3

 
1

 
1

Capital expenditures
1

 
4

 
1

EAME/SW Asia management and franchising
 
 
 
 
 
Management, franchise, and other fees revenues
83

 
80

 
69

Contra revenue
(5
)
 
(5
)
 
(5
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
74

 
68

 
58

Intersegment revenues (a)
10

 
10

 
10

Adjusted EBITDA
49

 
46

 
37

Depreciation and amortization
1

 
1

 

Capital expenditures

 
1

 
1

Corporate and other
 
 
 
 
 
Revenues
140

 
132

 
100

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
6

 
6

 

Intersegment revenues (a)
(1
)
 
(5
)
 
(9
)
Adjusted EBITDA
(146
)
 
(127
)
 
(135
)
Depreciation and amortization
57

 
50

 
45

Capital expenditures
133

 
97

 
101

Eliminations
 
 
 
 
 
Revenues (a)
(108
)
 
(110
)
 
(115
)
Adjusted EBITDA
1

 

 
3

TOTAL
 
 
 
 
 
Revenues
$
5,020

 
$
4,454

 
$
4,462

Adjusted EBITDA
754

 
777

 
792

Depreciation and amortization
329

 
327

 
348

Capital expenditures
369

 
297

 
298

(a)
Intersegment revenues are included in the management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations.
The table below presents summarized consolidated balance sheet information by segment:
 
December 31, 2019
 
December 31, 2018
Total Assets:
 
 
 
Owned and leased hotels
$
4,203

 
$
4,118

Americas management and franchising
1,024

 
842

ASPAC management and franchising
260

 
203

EAME/SW Asia management and franchising
273

 
225

Corporate and other
2,657

 
2,255

Total
$
8,417

 
$
7,643


The following tables present revenues and property and equipment, net, operating lease ROU assets, intangibles, net, and goodwill by geographical region:
 
Years Ended December 31,
2019
 
2018
 
2017
Revenues:
 
 
 
 
 
United States
$
4,142

 
$
3,587

 
$
3,619

All foreign
878

 
867

 
843

Total
$
5,020

 
$
4,454

 
$
4,462

 
 
 
 
 
 
 
 
December 31, 2019
 
December 31, 2018
Property and equipment, net, Operating lease ROU assets, Intangibles, net, and Goodwill:
 
 
 
 
United States
 
$
3,798

 
$
3,670

All foreign
 
914

 
849

Total
 
$
4,712

 
$
4,519


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:
 
Years Ended December 31,
2019
 
2018
 
2017
Net income attributable to Hyatt Hotels Corporation
$
766

 
$
769

 
$
389

Interest expense
75

 
76

 
80

Provision for income taxes
240

 
182

 
332

Depreciation and amortization
329

 
327

 
348

EBITDA
1,410

 
1,354

 
1,149

Contra revenue
22

 
20

 
18

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
(2,461
)
 
(1,956
)
 
(1,762
)
Costs incurred on behalf of managed and franchised properties
2,520

 
1,981

 
1,782

Equity (earnings) losses from unconsolidated hospitality ventures
10

 
(8
)
 
(219
)
Stock-based compensation expense
35

 
29

 
29

Gains on sales of real estate
(723
)
 
(772
)
 
(236
)
Asset impairments
18

 
25

 

Other (income) loss, net
(127
)
 
49

 
(42
)
Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA
50

 
55

 
73

Adjusted EBITDA
$
754

 
$
777

 
$
792


v3.19.3.a.u2
Earnings Per Share
12 Months Ended
Dec. 31, 2019
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:
 
Years Ended December 31,
2019
 
2018
 
2017
Numerator:
 
 
 
 
 
Net income
$
766

 
$
769

 
$
390

Net income and accretion attributable to noncontrolling interests

 

 
(1
)
Net income attributable to Hyatt Hotels Corporation
$
766

 
$
769

 
$
389

Denominator:
 
 
 
 
 
Basic weighted-average shares outstanding
104,590,383

 
113,259,113

 
124,836,917

Share-based compensation and equity-classified forward contract
1,702,021

 
1,865,904

 
1,509,986

Diluted weighted-average shares outstanding
106,292,404

 
115,125,017

 
126,346,903

Basic Earnings Per Share:
 
 
 
 
 
Net income
$
7.33

 
$
6.79

 
$
3.13

Net income and accretion attributable to noncontrolling interests

 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
7.33

 
$
6.79

 
$
3.12

Diluted Earnings Per Share:
 
 
 
 
 
Net income
$
7.21

 
$
6.68

 
$
3.09

Net income and accretion attributable to noncontrolling interests

 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
7.21

 
$
6.68

 
$
3.08


The computations of diluted net income per share for the years ended December 31, 2019, December 31, 2018, and December 31, 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.
 
Years Ended December 31,
 
2019
 
2018
 
2017
SARs
13,000

 
100

 
21,400

RSUs

 


100


v3.19.3.a.u2
Other Income (Loss), Net
12 Months Ended
Dec. 31, 2019
Other Income and Expenses [Abstract]  
Other Income (Loss), Net OTHER INCOME (LOSS), NET
 
Years Ended December 31,
2019
 
2018
 
2017
Release of contingent consideration liability (Note 7)
$
30

 
$

 
$

Unrealized gains (losses), net (Note 4)
26

 
(47
)
 
1

Interest income (Note 4)
25

 
28

 
110

Depreciation recovery
25

 
22

 
27

Performance guarantee liability amortization (Note 15)
18

 
18

 
19

Release and amortization of debt repayment guarantee liability (Note 15)
18

 
11

 
10

Gain on sale of contractual right (Note 7)
16

 

 

Realized gains (losses), net
2

 
(3
)
 
(41
)
Foreign currency gains (losses), net
1

 
4

 
(2
)
Pre-condemnation income

 
4

 
18

Cease use liability

 

 
(21
)
Loss on extinguishment of debt (Note 11)

 
(7
)
 

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

 
(22
)
 

Transaction costs
(1
)
 
(10
)
 
(4
)
Performance guarantee expense, net (Note 15)
(42
)
 
(59
)
 
(77
)
Other, net
9

 
12

 
2

Other income (loss), net
$
127

 
$
(49
)
 
$
42


We recognized approximately $4 million and $18 million during the years ended December 31, 2018 and December 31, 2017, respectively, primarily related to pre-condemnation income for relinquishment of subterranean space at an owned hotel.
During the year ended December 31, 2017, we relocated our corporate headquarters and recognized a $21 million cease use liability.
During the year ended December 31, 2017, our convertible redeemable preferred shares in Playa Hotels & Resorts B.V., plus accrued and unpaid paid-in-kind dividends were redeemed, and we recognized $94 million of interest income and $40 million of realized losses.
v3.19.3.a.u2
Quarterly Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited) QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
The following table sets forth the historical unaudited quarterly financial data. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period.
 
Three Months Ended
December 31, 2019
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
Consolidated statements of income data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
1,275

 
$
1,215

 
$
1,289

 
$
1,241

 
$
1,138

 
$
1,074

 
$
1,133

 
$
1,109

Direct and selling, general, and administrative expenses
1,225

 
1,175

 
1,208

 
1,215

 
1,054

 
1,012

 
1,026

 
1,030

Net income
321

 
296

 
86

 
63

 
44

 
237

 
77

 
411

Net income attributable to Hyatt Hotels Corporation
321

 
296

 
86

 
63

 
44

 
237

 
77

 
411

Net income per share—basic
$
3.13

 
$
2.84

 
$
0.81

 
$
0.60

 
$
0.41

 
$
2.12

 
$
0.67

 
$
3.47

Net income per share—diluted
$
3.08

 
$
2.80

 
$
0.80

 
$
0.59

 
$
0.40

 
$
2.09

 
$
0.66

 
$
3.40

Cash dividends declared per share
$
0.19

 
$
0.19

 
$
0.19

 
$
0.19

 
$
0.15

 
$
0.15

 
$
0.15

 
$
0.15


v3.19.3.a.u2
Schedule II - Valuation and Qualifying Accounts [Schedule]
12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
For the Years Ended December 31, 2019, December 31, 2018, and December 31, 2017
(In millions of dollars)
Description
 
Balance at beginning of period
 
Additions charged to revenues, costs, and expenses
 
Additions charged to other accounts
 
Deductions
 
Balance at  end of period
Year Ended December 31, 2019:
 
 
 
 
 
 
 
 
 
 
Trade receivables—allowance for doubtful accounts
 
$
26

 
$
14

 
$

 
$
(8
)
 
$
32

Financing receivables—allowance for losses
 
101

 
6

 
(1
)
 
(6
)
 
100

Deferred tax assets—valuation allowance
 
41

 
6

 

 
(6
)
 
41

Year Ended December 31, 2018:
 
 
 
 
 
 
 
 
 
 
Trade receivables—allowance for doubtful accounts
 
21

 
15

 

 
(10
)
 
26

Financing receivables—allowance for losses
 
108

 
7

 
(2
)
A
(12
)
 
101

Deferred tax assets—valuation allowance
 
51

 
(10
)
 

 

 
41

Year Ended December 31, 2017:
 
 
 
 
 
 
 
 
 
 
Trade receivables—allowance for doubtful accounts
 
18

 
8

 

 
(5
)
 
21

Financing receivables—allowance for losses
 
100

 
6

 
2

A

 
108

Deferred tax assets—valuation allowance
 
27

 
24

B

 

 
51


A—This amount represents currency translation on foreign currency denominated financing receivables.
B—This amount represents the allowance related to our foreign tax credit carryforward balance.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation—Our consolidated financial statements present the results of operations, financial position, and cash flows of Hyatt Hotels Corporation and its majority owned and controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates—We are required to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying Notes. Actual results could differ materially from such estimated amounts.
Revenue Recognition
Revenue Recognition—Our revenues are primarily derived from the products and services provided to our customers and generally recognized when control of the product or service has transferred to the customer. Our customers include third-party hotel owners, guests at owned and leased hotels and spa and fitness centers, a third-party partner through our co-branded credit card program, and owners and guests of the condominium ownership units. A summary of our revenue streams is as follows:
Owned and leased hotels revenues—Owned and leased hotels revenues are derived from room rentals and services provided at our owned and leased hotels. 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.
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. Included within the aforementioned management fees are royalty fees that we earn in exchange for providing access to Hyatt's intellectual property ("IP"). 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. Other fees include license fee revenues associated with the licensing of the Hyatt brand names through our co-branded credit card program and sales of our branded residential ownership units as well as termination fees.
Net management, franchise, and other fees—Management, franchise, and other fees are reduced by the amortization of management and franchise agreement assets constituting payments to customers. 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 our residential management operations for our condominium ownership units, the sale of promotional awards through our co-branded credit cards, and spa and fitness revenues from Exhale.
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 reimbursed costs relate primarily to payroll at managed properties, as well as system-wide services and the loyalty program operated on behalf of owners.
The products and services we offer to our customers 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. Fees are generally payable on a monthly basis as the third-party hotel owners derive value from access to our IP. Royalty fees are recognized over time 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 deferred and recognized through management, franchise, and other fees over the expected customer life, which is typically the initial term of the franchise agreement.
System-wide services—We provide system-wide 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, this promise 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. 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 monthly based upon an annual estimate of costs to be incurred and recognized as revenue commensurate with incurring the cost. 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. 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 will impact our net income.
Hotel management agreement services—Under the terms of our management agreements, we provide hotel management agreement services, which form a single performance obligation that qualifies as a series. In exchange, we receive variable consideration in the form of management fees, which are comprised of base and/or 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 as services are rendered.
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.
Loyalty program administration—We administer the loyalty program for the benefit of Hyatt's portfolio of properties during the period of their participation in the loyalty program. Under the program, members earn points based on their spend at our properties, by transacting with our strategic loyalty alliances, or in connection with spend on the Hyatt co-branded credit cards, which may be redeemed for the right to stay at participating
properties, as well as for other goods and services from third parties. 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. These two promises are not distinct because the promise to market and manage the program does not benefit the customer without the related arrangement for award redemptions. The costs of administering 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. A portion of our owned and leased hotels revenues is deferred upon initial stay as points are earned by program members at owned or leased hotels, and revenues are recognized upon redemption at owned or leased hotels.
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. The revenue recognized each period includes an estimate of the loyalty points that will eventually be redeemed and 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. Any revenues in excess of the anticipated future redemptions are used to fund the other operational expenses of the program.
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 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 commissions is made based on the terms of each contract.
Residential management operations
We provide services related to the residential management business pursuant to rental management agreements with individual property owners or homeowners' associations whereby the property owners and/or homeowners' association participate in our rental program. The services provided include reservations, housekeeping, security, and concierge assistance to guests in exchange for a variable fee based on a revenue sharing agreement with the owner of the condominium ownership unit. The services represent an individual performance obligation. Revenue is recognized over time as services are rendered or upon completion of the guest's stay at the condominium ownership unit. We are responsible for establishing pricing as well as fulfilling the services during the guest's stay and, as a result, we are deemed to be the principal in the transaction.
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 provided to the customer. If a guest purchases a spa or fitness package, the fixed price is allocated to each distinct product or service based on the stand-alone selling price for each item.
Co-branded credit cards
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 as the licensee derives value from access to Hyatt's brand name. 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 or expiration of a card member's promotional awards, which is recognized net of redemption expense when we are the agent. 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.
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 represent 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;
revenues and operating profits of the hotels for the promise to provide management agreement services to the hotels;
award night redemptions or point redemptions with third-party partners for the administration of the loyalty program performance obligation; and
cardholder spend for the license to the Hyatt name through our co-branded credit cards, 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 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.
We have applied the practical expedient that permits the omission of prior-period information about revenue allocated to future performance obligations.
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. Due to certain profitability hurdles in our management agreements, 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 recorded in accounts receivable. Contract assets are included in receivables, net on our consolidated balance sheets. Payments received in advance of performance under the contract are classified as current or long-term contract liabilities on our consolidated balance sheets and recognized as revenue as we perform under the contract.
Loyalty Program—The loyalty program is funded through contributions from participating properties and third-party loyalty alliances based on eligible revenues from loyalty program members and returns on marketable securities. The funds are used for the redemption of member awards and payment of operating expenses. Operating costs are expensed as incurred through costs incurred on behalf of managed and franchised properties.
The program invests amounts received from the properties in marketable securities which are included in other current and noncurrent assets (see Note 4). Deferred revenues related to the loyalty program are classified as current and long-term contract liabilities on our consolidated balance sheets (see Note 3). The costs of administering the loyalty program, including
the estimated cost of award redemption, are charged to the participating properties and third-party loyalty alliances based on members' qualified expenditures.
Cash Equivalents
Cash Equivalents—We consider all highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents.
Equity Method Investments 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 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. When there is indication a loss in value has occurred, we evaluate the carrying value in comparison to the estimated fair value of the investment. Fair value is based upon internally developed discounted cash flow models, third-party appraisals, and if appropriate, current estimated net sales proceeds from pending offers. The principal inputs used in the discounted cash flow analysis requiring judgment are the projected future cash flows, the discount rate, and the capitalization rate assumptions. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. If the estimated fair value is less than carrying value, we use our judgment to determine if the decline in value is other than temporary. In determining this, we consider factors including, but not limited to, the length of time and extent of the decline, loss of value as a percentage of the cost, financial condition and near-term financial projections, our intent and ability to recover the lost value, and current economic conditions. Impairments deemed other than temporary are charged to equity earnings (losses) from unconsolidated hospitality ventures on our consolidated statements of income.
Debt and Equity Securities
Debt and Equity Securities—Excluding the aforementioned 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 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. Net gains and losses, both realized and unrealized, and impairment charges on equity securities are recognized in other income (loss), net on our consolidated statements of income.
Debt securities include 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 recognized in net gains (losses) 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 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 consolidated balance sheets. Realized gains and losses on debt securities are recognized in other income (loss), net on our consolidated statements of income.
HTM securities—investments which we have the intent and ability to hold until maturity and are recorded at amortized cost.
Our preferred shares earn a return that is recognized as interest income in other income (loss), net as earned unless we determine collection is at risk.
AFS and HTM securities are assessed for impairment quarterly. To determine if an impairment is other than temporary for debt securities, we consider the duration and severity of the loss position, the strength of the underlying collateral, the term to maturity, credit rating, and our intent to sell. For debt securities that are deemed other than temporarily impaired and there is no intent to sell, impairments are separated into the amount related to the credit loss, which is typically recognized in other income (loss), net on our consolidated statements of income and the amount related to all other factors, which is recorded in accumulated other comprehensive loss on our consolidated balance sheets. For debt securities that are deemed other than temporarily impaired and there is intent to sell, impairments in their entirety are recognized in other income (loss), net on our consolidated statements of income.
Foreign Currency
Foreign Currency—The functional currency of our consolidated entities located outside the United States of America is generally the local currency. The assets and liabilities of these entities are translated into U.S. dollars at year-end exchange rates, and the related gains and losses, net of applicable deferred income taxes, are reflected in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in earnings. Gains and losses from foreign exchange rate changes related to intercompany receivables and payables of a long-term nature are generally included in accumulated other comprehensive loss. Gains and losses from foreign exchange rate movement related to intercompany receivables and payables that are not long-term are included in earnings.
Financing Receivables
Financing Receivables—Financing receivables represent contractual rights to receive money either on demand or on fixed or determinable dates and are recognized on our consolidated balance sheets at amortized cost. We recognize interest income as earned and provide an allowance for cancellations and defaults. Our financing receivables are composed of individual unsecured loans and other types of unsecured financing arrangements provided to hotel owners. These financing receivables generally have stated maturities and interest rates, however, the repayment terms vary and may be dependent upon future cash flows of the hotel.
Financing Receivables - Non-performing Loans On an ongoing basis, we monitor the credit quality of our financing receivables based on payment activity. We determine our financing to hotel owners to be non-performing if interest or principal is greater than 90 days past due based on the contractual terms of the individual financing receivables, if an impairment charge is recognized for a loan, or if a provision is established for our other financing arrangements.
Financing Receivables - Impaired Loans
We individually assess all loans within financing receivables for impairment quarterly. This assessment is based on an analysis of several factors including current economic conditions and industry trends, as well as the specific risk characteristics of these loans including capital structure, loan performance, market factors, and the underlying hotel performance. When it is probable that we will be unable to collect all amounts due in accordance with the contractual terms of the individual loan agreement or if projected future cash flows available for repayment of unsecured receivables indicate there is a collection risk, we measure the impairment based on the present value of projected future cash flows discounted at the loan's effective interest rate. For impaired loans, we establish a specific loan loss reserve for the difference between the recorded investment in the loan and the estimated fair value.
In addition to loans, we include other types of financing arrangements in unsecured financing to hotel owners which we do not assess individually for impairment. We regularly evaluate our reserves for these other financing arrangements.
We write off financing to hotel owners when we determine the receivables are uncollectible and when all commercially reasonable means of recovering the receivable balances have been exhausted.
Financing Receivables - Non-accrual Status If we consider a financing receivable to be non-performing, we place the financing receivable on non-accrual status.We recognize interest income when received for impaired loans and financing receivables on non-accrual status which is recognized in other income (loss), net in our consolidated statements of income. Accrual of interest income is resumed when the receivable becomes contractually current and collection doubts are removed.
Accounts Receivable
Accounts Receivable—Our accounts receivable primarily consists of trade receivables due from guests for services rendered at our owned and leased properties and from hotel owners with whom we have management and franchise agreements for services rendered and for reimbursements of costs incurred on behalf of managed and franchised properties. We record an accounts receivable reserve when losses are probable, based on an assessment of past collection activity and current business conditions.
Inventories
Inventories—Inventories are comprised of operating supplies and equipment that have a period of consumption of two years or less and food and beverage items at our owned and leased hotels which are generally valued at the lower of cost (first-in, first-out) or net realizable value.
Property and Equipment and Definite-Lived Intangible Assets
Property and Equipment and Definite-Lived Intangible Assets—Property and equipment is stated at cost, including interest incurred during development and construction periods, less accumulated depreciation. Definite-lived intangible assets are recorded at the acquisition-date fair value, less accumulated amortization. Depreciation and amortization are recognized over the estimated useful lives of the assets, primarily on the straight-line method.
Property and equipment are depreciated over the following:
Buildings and improvements
10-50 years
Leasehold improvements
The shorter of the lease term or useful life of asset
Furniture and equipment
3-20 years
Computers
3-7 years
Definite-lived intangible assets are amortized over the following:
Management and franchise agreement intangibles
4 - 30 years
Advanced booking intangibles
1 - 7 years

We assess property and equipment and definite-lived intangible assets for impairment quarterly. When events or circumstances indicate the carrying amount may not be recoverable, we evaluate the net book value of the assets for impairment by comparison to the projected undiscounted future cash flows of the assets. The principal factor used in the undiscounted cash flow analysis requiring judgment is the projected future operating cash flows, which are based on historical data, various internal estimates, and a variety of external resources, and are developed as part of our routine, long-term planning process.
If the projected undiscounted future cash flows are less than the net book value of the assets, the fair value is determined based upon internally developed discounted cash flows of the assets, third-party appraisals or broker valuations, and if appropriate, current estimated net sales proceeds from pending offers. The principal inputs used in the discounted cash flow analysis requiring judgment are the projected future operating cash flows, the discount rates, and the capitalization rate assumptions. The excess of the net book value over the estimated fair value is recognized in asset impairments on our consolidated statements of income.
We evaluate the carrying value of our property and equipment and definite-lived intangible assets based on our plans, at the time, for such assets and consider qualitative factors such as future development in the surrounding area, status of local competition, and any significant adverse changes in the business climate. Changes to our plans, including a decision to dispose of or change the intended use of an asset, may have a material impact on the carrying value of the asset.
Acquisitions
Acquisitions—We evaluate the facts and circumstances of each acquisition to determine whether the transaction should be accounted for as an asset acquisition or a business combination.
Under the supervision of management, independent third-party valuation specialists estimate the fair value of the assets or businesses acquired using various recognized valuation methods including the income approach, cost approach, relief from royalty approach, and sales comparison approach, which are primarily based on Level Three assumptions. Assumptions utilized in determining the fair value under these approaches include, but are not limited to, historical financial results when applicable, projected cash flows, discount rates, capitalization rates, royalty rates, current market conditions, likelihood of contract renewals, and comparable transactions. In a business combination, the fair value is allocated to tangible assets and liabilities and identifiable intangible assets, with any remaining value assigned to goodwill, if applicable. In an asset acquisition, any difference between the consideration paid and the fair value of the assets acquired is allocated across the identified assets based on the relative fair value. When we acquire the remaining ownership interest in or the property from an unconsolidated hospitality venture in a step acquisition, we estimate the fair value of our equity interest using the assumed cash proceeds we would receive from sale to a third party at a market sales price, which is determined using the aforementioned fair value methodologies and assumptions.
The results of operations of properties or businesses have been included in our consolidated statements of income since their respective dates of acquisition. Assets acquired and liabilities assumed in acquisitions are recorded on our consolidated balance sheets at the respective acquisition dates based upon their estimated fair values (see Note 7). In business combinations, the purchase price allocations may be based upon preliminary estimates and assumptions. Accordingly, the allocations are subject to revision when we receive final information, including appraisals and other analyses.
Acquisition-related costs incurred in conjunction with a business combination are recognized in other income (loss), net on our consolidated statements of income. In an asset acquisition, these costs are included in the total consideration paid and allocated to the acquired assets.
Goodwill
Goodwill—Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. As required, we evaluate goodwill for impairment annually during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. Goodwill impairment is determined by comparing the fair value of a reporting unit to its carrying amount.
We evaluate the fair value of the reporting unit either by performing a qualitative or quantitative assessment. In any given year, we can elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is in excess of its carrying value. If it is not more likely than not that the fair value is in excess of the carrying value, or we elect to bypass the qualitative assessment, we proceed to the quantitative assessment.
When determining fair value, we utilize internally developed discounted future cash flow models, third-party valuation specialist models, third-party appraisals or broker valuations and, if appropriate, current estimated net sales proceeds from pending offers. Under the discounted cash flow approach, we utilize various assumptions requiring judgment, including projected future cash flows, discount rates, and capitalization rates. Our estimates of projected future cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we recognize an impairment charge in asset impairments on our consolidated statements of income based on the amount by which the reporting unit's carrying value exceeded its fair value, limited to the carrying amount of goodwill.
Indefinite-Lived Intangible Assets
Indefinite-Lived Intangible Assets—We have certain brand and other indefinite-lived intangibles that were acquired through various business combinations. At the time of each respective acquisition, fair value was estimated using a relief from royalty methodology.
As required, we evaluate indefinite-lived intangible assets for impairment annually during the fourth quarter of each year using balances at October 1 and at an interim date if indications of impairment exist. We use the relief from royalty method to estimate the fair value. When determining fair value, we utilize internally developed discounted future cash flow models and third-party valuation specialist models, which include various assumptions requiring judgment, including projected future cash flows, discount rates, and market royalty rates. Our estimates of projected cash flows are based on historical data, various internal estimates, and a variety of external sources, and are developed as part of our routine, long-term planning process. We then compare the estimated fair value to our carrying value. If the carrying value is in excess of the fair value, we recognize an impairment charge in asset impairments on our consolidated statements of income.
Guarantees Guarantees—We enter into performance guarantees related to certain hotels we manage. We also enter into debt repayment and other guarantees with respect to unconsolidated hospitality ventures, certain managed or franchised hotels, and other properties. We record a liability for the fair value of these guarantees at their inception date. In order to estimate the fair value, we use a Monte Carlo simulation to model the probability of possible outcomes. The valuation methodology requires that we make certain assumptions and judgments regarding discount rates, volatility, hotel operating results, and hotel property sales prices. The fair value is not re-valued due to future changes in assumptions. The corresponding offset depends on the circumstances in which the guarantee was issued and is recorded to equity method investments, other assets, or expense. We amortize the liability for the fair value of a guarantee into income over the term of the guarantee using a systematic and rational, risk-based approach. Guarantees related to our managed or franchised hotels and other properties are amortized into income in other income (loss), net in our consolidated statements of income. Guarantees related to our unconsolidated hospitality ventures are amortized into equity earnings (losses) from unconsolidated hospitality ventures in our consolidated statements of income. On a quarterly basis, we evaluate the likelihood of funding under a guarantee. To the extent we determine an obligation to fund is both probable and estimable based upon performance during the period, we record a separate contingent liability in other income (loss), net or equity earnings (losses) from unconsolidated hospitality ventures.
Income Taxes Income Taxes—We account for income taxes to recognize the amount of taxes payable or refundable for the current year and the amount of deferred tax assets and liabilities resulting from the future tax consequences of differences between the financial statements and tax basis of the respective assets and liabilities. We recognize the financial statement effect of a tax position when, based on the technical merits of the uncertain tax position, it is more likely than not to be sustained on a review by taxing authorities. We review these estimates and make changes to recorded amounts of uncertain tax positions as facts and circumstances warrant.
Fair Value
Fair Value—We apply the provisions of fair value measurement to various financial instruments, which we measure at fair value on a recurring basis, and to various financial and nonfinancial assets and liabilities, which we measure at fair value on a nonrecurring basis. We disclose the fair value of our financial assets and liabilities based on observable market information where available or on market participant assumptions. These assumptions are subjective in nature, involve matters of judgment, and, therefore, fair values cannot always be determined with precision. When determining fair value, we maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of the fair value hierarchy are as follows:
Level One—Fair values based on unadjusted quoted prices in active markets for identical assets and liabilities;
Level Two—Fair values based on quoted market prices for similar assets and liabilities in active markets, quoted prices in inactive markets for identical assets and liabilities, and inputs other than quoted market prices that are observable for the asset or liability; and
Level Three—Fair values based on inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. Valuation techniques could include the use of discounted cash flow models and similar techniques.
We typically utilize the market approach and income approach for valuing our financial instruments. The market approach utilizes prices and information generated by market transactions involving identical or similar assets and liabilities and the income approach uses valuation techniques to convert future amounts (for example, cash flows or earnings) to a single present amount (discounted). For instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the classification within the fair value hierarchy has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value
measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy.
Stock-Based Compensation
Stock-Based Compensation—As part of our LTIP, we award SARs, RSUs, and PSUs to certain employees and directors:
SARs—Each vested SAR gives the holder the right to the difference between the value of one share of our Class A common stock at the exercise date and the value of one share of our Class A common stock at the grant date. Vested SARs can be exercised over their life as determined in accordance with the LTIP. All SARs have a 10-year contractual term, are settled in shares of our Class A common stock, and are accounted for as equity instruments.
We recognize the compensation expense for SARs on a straight-line basis from the date of grant through the requisite service period. The exercise price of these SARs is the fair value of our common stock at the grant date, based on a valuation of the Company prior to the IPO or the closing share price on the date of grant (as applicable). We recognize the effect of forfeitures for SARs as they occur.
RSUs—Each vested RSU will generally be settled by delivery of a single share of our Class A common stock and therefore is accounted for as an equity instrument. In certain situations, we also grant a limited number of cash-settled RSUs, which are recorded as a liability instrument. The cash-settled RSUs represent an insignificant portion of certain previous grants.
The value of the RSUs is based upon the fair value of our common stock at the grant date, based upon a valuation of the Company prior to IPO or the closing stock price of our Class A common stock for the December 2009 award and all subsequent awards. Awards issued prior to our November 2009 IPO are deferred in nature and will be settled once all tranches of the award have fully vested or otherwise as provided in the relevant agreements, while all awards issued in December 2009 and later will be settled as each individual tranche vests under the relevant agreements. We recognize compensation expense over the requisite service period of the individual grant, which is generally between one and four years unless the employee meets retirement eligibility criteria resulting in immediate recognition. We recognize the effect of forfeitures as they occur.
Under certain circumstances, we may issue performance-based RSUs which vest in tranches according to performance targets that are established annually. The value of the RSUs is determined using the fair value of our common stock at the grant date based upon the closing stock price of our Class A common stock. Due to the fact the performance tests, and therefore the vesting criteria, are established annually, each award tranche may have its own grant date. We issued 140,000 of such RSUs during the year ended December 31, 2019, for which, 126,000 RSUs have not met the grant date criteria and are therefore, not deemed granted as of December 31, 2019.
PSUs—The Company has granted PSUs to certain executive officers. PSUs vest and are settled in Class A common stock based upon the performance of the Company through the end of the applicable three-year performance period relative to the applicable performance target and are generally subject to continued employment through the applicable performance period. The PSUs will vest at the end of the performance period only if the performance threshold is met and continued service requirements are satisfied; there is no interim performance metric except in the case of certain change in control transactions.
Adopted Accounting Standards and Future Adoption of Accounting Standards
Adopted Accounting Standards
Leases—In February 2016, the Financial Accounting Standards Board ("FASB") released ASU 2016-02. ASU 2016-02 requires lessees to record lease contracts on the balance sheet by recognizing a ROU asset and lease liability with certain practical expedients available. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make fixed minimum lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of fixed minimum lease payments over the lease term, including optional periods for which it is reasonably certain the renewal option will be exercised.
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, were effective for interim periods and fiscal years beginning after December 15, 2018, with early adoption permitted.
We adopted ASU 2016-02 utilizing the optional transition approach under ASU 2018-11 and applied the package of practical expedients beginning January 1, 2019. As a result of utilizing the optional transition method, our reporting for periods prior to January 1, 2019 continue to be reported in accordance with Leases (Topic 840).
For leases in place upon adoption, we used the remaining lease term as of January 1, 2019 in determining the IBR. For the initial measurement of the lease liabilities for leases commencing on or after January 1, 2019, the IBR at the lease commencement date was applied.
For operating leases, the adoption of ASU 2016-02 resulted in the initial recognition of ROU assets of $512 million and related lease liabilities of $452 million on our consolidated balance sheet at January 1, 2019. Upon adoption, we reclassified $103 million of intangibles, net related to below market leases and $49 million of deferred rent and other lease liabilities to the operating ROU assets. The net tax impact upon adoption was insignificant. The adoption of ASU 2016-02 did not significantly impact our accounting for finance leases or for those leases where we are the lessor. Additionally, the adoption of ASU 2016-02 did not materially affect our consolidated statements of income or our consolidated statements of cash flows.
The impact on our consolidated balance sheet upon adoption of ASU 2016-02 was as follows:
 
December 31, 2018
 
January 1, 2019
 

As reported
 
Effect of the adoption of ASU 2016-02
 
As adjusted
ASSETS
 
 
 
 
 
Prepaids and other assets
$
149

 
$
(2
)
 
$
147

Intangibles, net
628

 
(103
)
 
525

Other assets
1,353

 
(7
)
 
1,346

Operating lease right-of-use assets

 
512

 
512

TOTAL ASSETS
$
7,643

 
$
400

 
$
8,043

LIABILITIES AND EQUITY
 
 
 
 
 
Accounts payable
$
151

 
$
(1
)
 
$
150

Accrued expenses and other current liabilities
361

 
(2
)
 
359

Current operating lease liabilities

 
34

 
34

Long-term operating lease liabilities

 
418

 
418

Other long-term liabilities
840

 
(49
)
 
791

Total liabilities
3,966

 
400

 
4,366

Total equity
3,677

 

 
3,677

TOTAL LIABILITIES AND EQUITY
$
7,643

 
$
400

 
$
8,043



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 early adopted ASU 2018-15 on January 1, 2019 on a prospective basis which did not materially impact our consolidated financial statements.
Future Adoption of Accounting Standards
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 allowances for credit losses 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. While we continue to evaluate the impact of adopting ASU 2016-13 and its disclosure requirements, we do not expect a material impact upon adoption.
Lessor, Leases We lease retail space under operating leases at certain of our owned hotels. Rental payments are primarily fixed with certain variable payments based on a contractual percentage of revenues.
Employee Benefit Plans
Defined Contribution Plans—We provide retirement benefits to certain eligible employees under the Retirement Savings Plan (a qualified plan under Internal Revenue Code Section 401(k)), the FRP, and other similar plans. For the years ended December 31, 2019, December 31, 2018, and December 31, 2017, we recorded expenses of $48 million, $41 million, and $39 million, respectively, related to the Retirement Savings Plan based on a percentage of eligible employee contributions on stipulated amounts. The majority of these contributions relate to hotel property level employees, which are reimbursable to us, and are included in revenues for the reimbursement of costs incurred on behalf of managed and franchised properties and costs incurred on behalf of managed and franchised properties on our consolidated statements of income.
Deferred Compensation Plans—We provide nonqualified deferred compensation for certain employees through the DCP. Contributions and investment elections are determined by the employees, and we provide contributions to certain eligible employees according to pre-established formulas. Employee Stock Purchase Program—We provide the Hyatt Hotels Corporation ESPP, which qualifies under Section 423 of the Internal Revenue Code. The ESPP provides eligible employees the opportunity to purchase shares of the Company's common stock on a quarterly basis through payroll deductions at a price equal to 95% of the fair value on the last trading day of each quarter.Defined Benefit Plans—We sponsor supplemental executive retirement plans consisting of funded and unfunded defined benefit plans for certain former executives. Retirement benefits are based primarily on the former employees' salary, as defined, and are payable upon satisfaction of certain service and age requirements as defined by the plans.
Self Insurance Reserve 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 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 consolidated financial statements.
Segment Reporting
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 cards 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 as well revenues from residential management operations. These reimbursed costs relate primarily to payroll at managed properties where the Company is the employer, as well as system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
ASPAC management and franchising—This segment derives its earnings primarily from a combination of hotel management 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 reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned hotel, which was sold during the year ended December 31, 2019, 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 reimbursed costs relate primarily to system-wide services and the loyalty program operated on behalf of owners of managed and franchised properties. The intersegment revenues relate to management fees earned from the Company's owned and leased hotels and are eliminated in consolidation.
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 owned and leased hospitality ventures Adjusted EBITDA based on our ownership percentage of each owned and leased 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.
v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Property and Equipment Useful Lives
Property and equipment are depreciated over the following:
Buildings and improvements
10-50 years
Leasehold improvements
The shorter of the lease term or useful life of asset
Furniture and equipment
3-20 years
Computers
3-7 years
Schedule of Definite-Lived Intangible Assets
Definite-lived intangible assets are amortized over the following:
Management and franchise agreement intangibles
4 - 30 years
Advanced booking intangibles
1 - 7 years

 
December 31, 2019
 
Weighted-average useful lives in years
 
December 31, 2018
Management and franchise agreement intangibles
$
367

 
18

 
$
390

Lease related intangibles

 

 
121

Brand and other indefinite-lived intangibles
144

 

 
180

Advanced booking intangibles
14

 
5

 
14

Other definite-lived intangibles
8

 
6

 
8

Intangibles
533

 
 
 
713

Less: accumulated amortization
(96
)
 
 
 
(85
)
Intangibles, net
$
437

 
 
 
$
628


Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The impact on our consolidated balance sheet upon adoption of ASU 2016-02 was as follows:
 
December 31, 2018
 
January 1, 2019
 

As reported
 
Effect of the adoption of ASU 2016-02
 
As adjusted
ASSETS
 
 
 
 
 
Prepaids and other assets
$
149

 
$
(2
)
 
$
147

Intangibles, net
628

 
(103
)
 
525

Other assets
1,353

 
(7
)
 
1,346

Operating lease right-of-use assets

 
512

 
512

TOTAL ASSETS
$
7,643

 
$
400

 
$
8,043

LIABILITIES AND EQUITY
 
 
 
 
 
Accounts payable
$
151

 
$
(1
)
 
$
150

Accrued expenses and other current liabilities
361

 
(2
)
 
359

Current operating lease liabilities

 
34

 
34

Long-term operating lease liabilities

 
418

 
418

Other long-term liabilities
840

 
(49
)
 
791

Total liabilities
3,966

 
400

 
4,366

Total equity
3,677

 

 
3,677

TOTAL LIABILITIES AND EQUITY
$
7,643

 
$
400

 
$
8,043


v3.19.3.a.u2
Revenue from Contracts with Customers (Tables)
12 Months Ended
Dec. 31, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables present our revenues disaggregated by the nature of the product or service:
 
Year Ended December 31, 2019
 
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
$
1,058

$

$

$

$
25

$
(35
)
$
1,048

Food and beverage
607




12


619

Other
143




38


181

Owned and leased hotels
1,808




75

(35
)
1,848

 
 
 
 
 
 
 
 
Base management fees

227

46

37


(50
)
260

Incentive management fees

65

72

38


(24
)
151

Franchise fees

136

4

1



141

Other fees

5

14

7

6


32

License fees




24


24

Management, franchise, and other fees

433

136

83

30

(74
)
608

Amortization of management and franchise agreement assets constituting payments to customers

(15
)
(2
)
(5
)


(22
)
Net management, franchise, and other fees

418

134

78

30

(74
)
586

 
 
 
 
 
 
 
 
Other revenues

89



35

1

125

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

2,268

113

74

6


2,461

 
 
 
 
 
 
 
 
Total
$
1,808

$
2,775

$
247

$
152

$
146

$
(108
)
$
5,020

 
Year Ended December 31, 2018
 
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
$
1,110

$

$

$

$
23

$
(33
)
$
1,100

Food and beverage
636




10


646

Other
143




29


172

Owned and leased hotels
1,889




62

(33
)
1,918

 
 
 
 
 
 
 
 
Base management fees

200

44

34


(53
)
225

Incentive management fees

67

71

39


(29
)
148

Franchise fees

123

3

1



127

Other fees

10

9

6

6


31

License fees




21


21

Management, franchise, and other fees

400

127

80

27

(82
)
552

Amortization of management and franchise agreement assets constituting payments to customers

(13
)
(2
)
(5
)


(20
)
Net management, franchise, and other fees

387

125

75

27

(82
)
532

 
 
 
 
 
 
 
 
Other revenues




43

5

48

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

1,787

95

68

6


1,956

 
 
 
 
 
 
 
 
Total
$
1,889

$
2,174

$
220

$
143

$
138

$
(110
)
$
4,454

 
Year Ended December 31, 2017
 
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
$
1,270

$

$

$

$
22

$
(38
)
$
1,254

Food and beverage
722




11


733

Other
167




30


197

Owned and leased hotels
2,159




63

(38
)
2,184

 
 
 
 
 
 
 
 
Base management fees

193

39

29


(59
)
202

Incentive management fees

62

65

35


(27
)
135

Franchise fees

112

2




114

Other fees

13

6

5

4


28

License fees




19


19

Management, franchise, and other fees

380

112

69

23

(86
)
498

Amortization of management and franchise agreement assets constituting payments to customers

(12
)
(1
)
(5
)


(18
)
Net management, franchise, and other fees

368

111

64

23

(86
)
480

 
 
 
 
 
 
 
 
Other revenues
13




14

9

36

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

1,625

79

58



1,762

 
 
 
 
 
 
 
 
Total
$
2,172

$
1,993

$
190

$
122

$
100

$
(115
)
$
4,462


Summary of Contract Liability
Contract liabilities are comprised of the following:
 
December 31, 2019
 
December 31, 2018
Deferred revenue related to the loyalty program
$
671

 
$
596

Advanced deposits
77

 
81

Initial fees received from franchise owners
41

 
35

Deferred revenue related to system-wide services
5

 
7

Other deferred revenue
126

 
111

Total contract liabilities
$
920

 
$
830



The following table summarizes the activity in our contract liabilities:
 
2019
 
2018
Beginning balance, January 1
$
830

 
$
772

Cash received and other
1,025

 
964

Revenue recognized
(935
)
 
(906
)
Ending balance, December 31
$
920

 
$
830


v3.19.3.a.u2
Debt and Equity Securities (Tables)
12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Equity Method Investments
The carrying values and ownership interests of our investments in unconsolidated hospitality ventures accounted for under the equity method are as follows:
Investee
Existing or future hotel property
Ownership interest
 
Carrying value
December 31, 2019
 
December 31, 2018
Hyatt of Baja, S. de. R.L. de C.V.
Park Hyatt Los Cabos
50.0
%
 
$
48

 
$
46

HP Boston Partners, LLC
Hyatt Place Boston/Seaport District
50.0
%
 
29

 
29

Hotel am Belvedere Holding GmbH & Co KG
Andaz Vienna Am Belvedere

50.0
%
 
22

 
25

San Jose Hotel Partners, LLC
Hyatt Place San Jose Airport, Hyatt House San Jose Airport
40.0
%
 
20

 
18

Desarrolladora Hotelera Acueducto, S. de R.L. de C.V.
Hyatt Regency Andares Guadalajara

50.0
%
 
14

 
13

Portland Hotel Properties, LLC
Hyatt Centric Downtown Portland
40.0
%
 
13

 
13

CBR HCN, LLC
Hyatt Centric Downtown Nashville
40.0
%
 
12

 

HH Nashville JV Holdings, LLC
Hyatt House Nashville at Vanderbilt
50.0
%
 
11

 
12

33 Beale Street Hotel Company, LLC
Hyatt Centric Memphis
50.0
%
 
11

 

HP Atlanta Centennial Park JV, LLC
Hyatt Place Atlanta/Centennial Park
50.0
%
 
10

 
10

Hotel Hoyo Uno, S. de R.L. de C.V.
Andaz Mayakoba Resort Riviera Maya
40.0
%
 
10

 
16

Other
Various
 
 
32

 
51

Total equity method investments
 
 
 
$
232

 
$
233


Summarized Financial Information
The following tables present summarized financial information for all unconsolidated hospitality ventures in which we hold an investment accounted for under the equity method:
 
Years Ended December 31,
2019
 
2018
 
2017
Total revenues
$
496

 
$
513

 
$
832

Gross operating profit
179

 
182

 
289

Income (loss) from continuing operations
(24
)
 
(16
)
 
54

Net income (loss)
(24
)
 
(16
)
 
54

 
December 31, 2019
 
December 31, 2018
Current assets
$
231

 
$
228

Noncurrent assets
1,417

 
1,345

Total assets
$
1,648

 
$
1,573

 
 
 
 
Current liabilities
$
143

 
$
141

Noncurrent liabilities
1,270

 
1,148

Total liabilities
$
1,413

 
$
1,289


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 consolidated balance sheets, were as follows:
 
December 31, 2019
 
December 31, 2018
Loyalty program (Note 10)
$
483

 
$
397

Deferred compensation plans held in rabbi trusts (Note 10 and Note 13)
450

 
367

Captive insurance companies
180

 
133

Total marketable securities held to fund operating programs
$
1,113

 
$
897

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
(219
)
 
(174
)
Marketable securities held to fund operating programs included in other assets
$
894

 
$
723


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 consolidated statements of income:
 
Years Ended December 31,
2019
 
2018
 
2017
Loyalty program (Note 21)
$
26

 
$
4

 
$
9


Net realized and unrealized gains (losses) and interest income from marketable securities held to fund rabbi trusts are recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts on our consolidated statements of income:
 
Years Ended December 31,
 
2019
 
2018
 
2017
Unrealized gains (losses), net
$
42

 
$
(45
)
 
$
20

Realized gains, net
20

 
34

 
25

Net gains (losses) and interest income from marketable securities held to fund rabbi trusts
$
62

 
$
(11
)
 
$
45


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 consolidated balance sheets, were as follows:
 
December 31, 2019
 
December 31, 2018
Interest-bearing money market funds
$
147

 
$
14

Common shares of Playa N.V. (Note 10)
102

 
87

Time deposits
37

 
100

Total marketable securities held for investment purposes
$
286

 
$
201

Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments
(184
)
 
(114
)
Marketable securities held for investment purposes included in other assets
$
102

 
$
87


Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair Value—We measured the following financial assets at fair value on a recurring basis:
 
December 31, 2019
 
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
$
269

 
$
269

 
$

 
$

 
$

Mutual funds
502

 

 

 

 
502

Common shares
102

 

 

 

 
102

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
47

 

 
41

 

 
6

U.S. government obligations
202

 

 
4

 
31

 
167

U.S. government agencies
50

 

 
3

 
6

 
41

Corporate debt securities
161

 

 
20

 
18

 
123

Mortgage-backed securities
23

 

 

 
4

 
19

Asset-backed securities
39

 

 

 
6

 
33

Municipal and provincial notes and bonds
4

 

 

 
1

 
3

Total
$
1,399

 
$
269

 
$
68

 
$
66

 
$
996


 
December 31, 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
367

 

 

 

 
367

Common shares
87

 

 

 

 
87

Level Two - Significant Other Observable Inputs
 
 
 
 
 
 
 
 
 
Time deposits
113

 

 
104

 

 
9

U.S. government obligations
169

 

 

 
37

 
132

U.S. government agencies
52

 

 
2

 
7

 
43

Corporate debt securities
151

 

 
10

 
25

 
116

Mortgage-backed securities
23

 

 

 
5

 
18

Asset-backed securities
46

 

 

 
10

 
36

Municipal and provincial notes and bonds
2

 

 

 

 
2

Total
$
1,098

 
$
88

 
$
116

 
$
84

 
$
810


v3.19.3.a.u2
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
 
December 31, 2019
 
December 31, 2018
Land
$
690

 
$
713

Buildings
3,285

 
3,583

Leasehold improvements
194

 
215

Furniture, equipment, and computers
1,183

 
1,178

Construction in progress
253

 
158

Property and equipment
5,605

 
5,847

Less: accumulated depreciation
(2,149
)
 
(2,239
)
Total property and equipment, net
$
3,456

 
$
3,608


Depreciation
 
Years Ended December 31,
2019
 
2018
 
2017
Depreciation expense
$
304

 
$
312

 
$
335


v3.19.3.a.u2
Financing Receivables (Tables)
12 Months Ended
Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Financing Receivables
 
December 31, 2019
 
December 31, 2018
Unsecured financing to hotel owners
$
135

 
$
159

Less: current portion of financing receivables, included in receivables, net

 
(45
)
Less: allowance for losses
(100
)
 
(101
)
Total long-term financing receivables, net of allowances
$
35

 
$
13


Allowance for Losses and Impairments The following table summarizes the activity in our unsecured financing receivables allowance:
 
2019
 
2018
Allowance at January 1
$
101

 
$
108

Provisions
6

 
7

Write-offs
(6
)
 
(12
)
Other adjustments
(1
)
 
(2
)
Allowance at December 31
$
100

 
$
101


Credit Monitoring Our unsecured financing receivables were as follows:
 
December 31, 2019
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
33

 
$
(1
)
 
$
32

 
$

Impaired loans (1)
43

 
(43
)
 

 
43

Total loans
76

 
(44
)
 
32

 
43

 Other financing arrangements
59

 
(56
)
 
3

 
56

Total unsecured financing receivables
$
135

 
$
(100
)
 
$
35

 
$
99

(1) The unpaid principal balance was $33 million and the average recorded loan balance was $46 million at December 31, 2019.
 
December 31, 2018
 
Gross loan balance (principal and interest)
 
Related allowance
 
Net financing receivables
 
Gross receivables on non-accrual status
Loans
$
58

 
$

 
$
58

 
$

Impaired loans (2)
50

 
(50
)
 

 
50

Total loans
108

 
(50
)
 
58

 
50

Other financing arrangements
51

 
(51
)
 

 
51

Total unsecured financing receivables
$
159

 
$
(101
)
 
$
58

 
$
101

(2) The unpaid principal balance was $36 million and the average recorded loan balance was $54 million at December 31, 2018.
v3.19.3.a.u2
Acquisitions and Dispositions (Tables)
12 Months Ended
Dec. 31, 2019
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:
Cash
$
32

Receivables
20

Other current assets
2

Equity method investment
2

Property and equipment
2

Indefinite-lived intangibles (1), (5)
96

Management agreement intangibles (2), (5)
205

Goodwill (3)
199

Other assets (4)
25

Total assets
$
583

 
 
Advanced deposits (6)
$
20

Other current liabilities
23

Other long-term liabilities (4)
33

Total liabilities
76

Total net assets acquired
$
507

(1) Includes brand-related intangibles.
(2) Amortized over useful lives of 1 to 19 years, with a weighted-average useful life of approximately 12 years.
(3) The goodwill, of which $154 million is tax deductible, is attributable to the growth opportunities we expect to realize by expanding into new markets and enhancing guest experiences through these newly acquired lifestyle brands (see Note 9).
(4) Includes $13 million of pre-acquisition liabilities relating to certain foreign filing positions, including $4 million of interest and penalties. We recorded an offsetting indemnification asset which we expect to collect under contractual arrangements (see Note 14).
(5) See Note 9 for impairment discussion.
(6) Included in contract liabilities (see Note 3).
Net assets acquired were determined as follows:
Cash paid, net of cash acquired
$
415

Cash acquired
37

Contingent consideration liability
57

Net assets acquired at December 31, 2018
$
509

Post-acquisition working capital adjustments
(2
)
Net assets acquired at December 31, 2019
$
507


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
$
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.
v3.19.3.a.u2
Leases (Tables)
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Schedule of Rent Expense and Weighted Average Remaining Lease Terms and Discount Rates
A summary of operating lease expense is as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Minimum rentals
$
50

 
$
38

 
$
42

Contingent rentals
97

 
47

 
52

Total operating lease expense
$
147

 
$
85

 
$
94


Weighted-average remaining lease terms and discount rates are as follows:
 
December 31, 2019
Weighted-average remaining lease term in years
 
Operating leases (1)
21

Finance leases
7

 
 
Weighted-average discount rate
 
Operating leases
3.7
%
Finance leases
0.9
%
(1) Certain of our hotel and land leases have nominal or contingent rental payments and are excluded from the weighted-average remaining lease term calculation resulting in a lower weighted-average term.

Supplemental Balance Sheet Information
Supplemental balance sheet information related to finance leases is as follows:
 
December 31, 2019
Property and equipment, net (1)
$
9

Current maturities of long-term debt
2

Long-term debt
9

Total finance lease liabilities
$
11


Maturities of Finance Lease Liabilities in Accordance with ASC 842
The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Finance leases
2020
$
47

 
$
3

2021
45

 
2

2022
42

 
2

2023
39

 
2

2024
36

 
2

Thereafter
422

 
3

Total minimum lease payments
$
631

 
$
14

Less: amount representing interest
(206
)
 
(3
)
Present value of minimum lease payments
$
425

 
$
11


Maturities of Operating Lease Liabilities in Accordance with ASC 842
The maturities of lease liabilities in accordance with Leases (Topic 842) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Finance leases
2020
$
47

 
$
3

2021
45

 
2

2022
42

 
2

2023
39

 
2

2024
36

 
2

Thereafter
422

 
3

Total minimum lease payments
$
631

 
$
14

Less: amount representing interest
(206
)
 
(3
)
Present value of minimum lease payments
$
425

 
$
11


Maturities of Lease Liabilities in Accordance with ASC 840
The future minimum lease payments from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) in each of the next five years and thereafter are as follows:
Years ending December 31,
Operating leases
 
Capital leases
2019
$
46

 
$
3

2020
42

 
3

2021
42

 
2

2022
38

 
2

2023
35

 
2

Thereafter
448

 
5

Total minimum lease payments
$
651

 
$
17

Less: amount representing interest
 
 
(5
)
Present value of minimum lease payments
 
 
$
12


Operating Lease, Lease Income We recognized rental income within owned and leased hotels revenues on our consolidated statements of income as follows:
 
Years Ended December 31,
2019
 
2018
 
2017
Rental income
$
23

 
$
25

 
$
27


Future Minimum Lease Receipts in Accordance with ASC 842
The future minimum lease receipts in accordance with Leases (Topic 842) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2020
$
19

2021
13

2022
11

2023
8

2024
4

Thereafter
8

Total minimum lease receipts
$
63


Future Minimum Lease Receipts in Accordance with ASC 840
The future minimum lease receipts from our 2018 Form 10-K as filed in accordance with Leases (Topic 840) scheduled to be received in each of the next five years and thereafter are as follows:
Years Ending December 31,
 
2019
$
22

2020
18

2021
16

2022
15

2023
11

Thereafter
48

Total minimum lease receipts
$
130


v3.19.3.a.u2
Goodwill and Intangible Assets, Net (Tables)
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
 
Owned and leased hotels
 
Americas management and franchising
 
ASPAC management and franchising
 
EAME/SW Asia management and franchising
 
Corporate and other
 
Total
Balance at January 1, 2018
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
189

 
$
33

 
$

 
$

 
$
23

 
$
245

Accumulated impairment losses
(95
)
 

 

 

 

 
(95
)
Goodwill, net
$
94

 
$
33

 
$

 
$

 
$
23

 
$
150

Activity during the year
 
 
 
 
 
 
 
 
 
 
 
Additions

 
135

 
18

 
3

 
2

 
158

Impairment losses
(21
)
 

 

 

 
(4
)
 
(25
)
Balance at December 31, 2018
 
 
 
 
 
 
 
 
 
 

Goodwill
189

 
168

 
18

 
3

 
25

 
403

Accumulated impairment losses
(116
)
 

 

 

 
(4
)
 
(120
)
Goodwill, net
$
73

 
$
168

 
$
18

 
$
3

 
$
21

 
$
283

Activity during the year
 
 
 
 
 
 
 
 
 
 
 
Measurement period adjustments (Note 7)

 
64

 
(18
)
 
(3
)
 

 
43

Balance at December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Goodwill
189

 
232

 

 

 
25

 
446

Accumulated impairment losses
(116
)
 

 

 

 
(4
)
 
(120
)
Goodwill, net
$
73

 
$
232

 
$

 
$

 
$
21

 
$
326


 
December 31, 2019
 
Weighted-average useful lives in years
 
December 31, 2018
Management and franchise agreement intangibles
$
367

 
18

 
$
390

Lease related intangibles

 

 
121

Brand and other indefinite-lived intangibles
144

 

 
180

Advanced booking intangibles
14

 
5

 
14

Other definite-lived intangibles
8

 
6

 
8

Intangibles
533

 
 
 
713

Less: accumulated amortization
(96
)
 
 
 
(85
)
Intangibles, net
$
437

 
 
 
$
628


Schedule of Intangible Assets by Major Class
Definite-lived intangible assets are amortized over the following:
Management and franchise agreement intangibles
4 - 30 years
Advanced booking intangibles
1 - 7 years

 
December 31, 2019
 
Weighted-average useful lives in years
 
December 31, 2018
Management and franchise agreement intangibles
$
367

 
18

 
$
390

Lease related intangibles

 

 
121

Brand and other indefinite-lived intangibles
144

 

 
180

Advanced booking intangibles
14

 
5

 
14

Other definite-lived intangibles
8

 
6

 
8

Intangibles
533

 
 
 
713

Less: accumulated amortization
(96
)
 
 
 
(85
)
Intangibles, net
$
437

 
 
 
$
628


Schedule of Indefinite-Lived Intangible Assets
 
December 31, 2019
 
Weighted-average useful lives in years
 
December 31, 2018
Management and franchise agreement intangibles
$
367

 
18

 
$
390

Lease related intangibles

 

 
121

Brand and other indefinite-lived intangibles
144

 

 
180

Advanced booking intangibles
14

 
5

 
14

Other definite-lived intangibles
8

 
6

 
8

Intangibles
533

 
 
 
713

Less: accumulated amortization
(96
)
 
 
 
(85
)
Intangibles, net
$
437

 
 
 
$
628


Schedule of Intangible Asset Amortization Expense
 
Years Ended December 31,
 
2019
 
2018
 
2017
Amortization expense
$
25

 
$
15

 
$
13


Schedule of Definite-Lived Intangible Assets, Future Amortization Expense
We estimate amortization expense for definite-lived intangibles as follows:
Years Ending December 31,
 
2020
$
28

2021
27

2022
25

2023
24

2024
23

Thereafter
166

Total amortization expense
$
293


v3.19.3.a.u2
Other Assets (Tables)
12 Months Ended
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
 
December 31, 2019
 
December 31, 2018
Marketable securities held to fund rabbi trusts (Note 4)
$
450

 
$
367

Management and franchise agreement assets constituting payments to customers (1)
423

 
396

Marketable securities held to fund the loyalty program (Note 4)
347

 
303

Long-term investments
162

 
112

Common shares of Playa N.V. (Note 4)
102

 
87

Other
104

 
88

Total other assets
$
1,588

 
$
1,353

(1) Includes cash consideration as well as other forms of consideration provided, such as debt repayment or performance guarantees.

v3.19.3.a.u2
Debt (Tables)
12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Debt
 
December 31, 2019
 
December 31, 2018
$250 million senior unsecured notes maturing in 2021—5.375%
$
250

 
$
250

$350 million senior unsecured notes maturing in 2023—3.375%
350

 
350

$400 million senior unsecured notes maturing in 2026—4.850%
400

 
400

$400 million senior unsecured notes maturing in 2028—4.375%
400

 
400

Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A
130

 
130

Contract Revenue Bonds, Senior Taxable Series 2005B
47

 
52

Floating average rate construction loan
49

 
55

Other
1

 
1

Total debt before finance lease obligations
1,627

 
1,638

Finance lease obligations
11

 
12

Total debt
1,638

 
1,650

Less: current maturities
(11
)
 
(11
)
Less: unamortized discounts and deferred financing fees
(15
)
 
(16
)
Total long-term debt
$
1,612

 
$
1,623


Schedule of Maturities of Long-term Debt
Under existing agreements, maturities of debt for the next five years and thereafter are as follows:
Years Ending December 31,
 
2020
$
11

2021
261

2022
11

2023
361

2024
12

Thereafter
982

Total maturities of debt
$
1,638


Fair Value
 
December 31, 2019
 
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)
$
1,627

 
$
1,740

 
$

 
$
1,680

 
$
60

(1) Excludes $11 million of finance lease obligations and $15 million of unamortized discounts and deferred financing fees.
 
December 31, 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 (2)
$
1,638

 
$
1,651

 
$

 
$
1,584

 
$
67


(2) Excludes $12 million of capital lease obligations and $16 million of unamortized discounts and deferred financing fees.
v3.19.3.a.u2
Other Long-Term Liabilities (Tables)
12 Months Ended
Dec. 31, 2019
Other Liabilities, Noncurrent [Abstract]  
Other Long-Term Liabilities
 
December 31, 2019

December 31, 2018
Deferred compensation plans funded by rabbi trusts (Note 4)
$
450

 
$
367

Income taxes payable
147

 
131

Self-insurance liabilities (Note 15)
80

 
78

Deferred income taxes (Note 14)
47

 
54

Guarantee liabilities (Note 15)
46

 
76

Other
114

 
134

Total other long-term liabilities
$
884

 
$
840


v3.19.3.a.u2
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Tax, Domestic and Foreign
Our tax provision includes federal, state, local, and foreign income taxes.
 
Years Ended December 31,
2019
 
2018
 
2017
U.S. income before tax
$
466

 
$
652

 
$
650

Foreign income before tax
540

 
299

 
72

Income before income taxes
$
1,006

 
$
951

 
$
722


Schedule of Components of Income Tax Expense (Benefit)
The provision (benefit) for income taxes from continuing operations is comprised of the following:
 
Years Ended December 31,
2019
 
2018
 
2017
Current:
 
 
 
 
 
Federal
$
74

 
$
140

 
$
201

State
35

 
50

 
45

Foreign
103

 
25

 
30

Total Current
$
212

 
$
215

 
$
276

Deferred:
 
 
 
 
 
Federal
$
29

 
$
(35
)
 
$
46

State
2

 
(12
)
 
(3
)
Foreign
(3
)
 
14

 
13

Total Deferred
$
28

 
$
(33
)
 
$
56

Total
$
240

 
$
182

 
$
332


Schedule of Effective Income Tax Rate Reconciliation
The following is a reconciliation of the statutory federal income tax rate to the effective tax rate from continuing operations:
 
Years Ended December 31,
2019
 
2018
 
2017
Statutory U.S. federal income tax rate
21.0
 %
 
21.0
 %
 
35.0
 %
State income taxes—net of federal tax benefit
2.7

 
2.6

 
3.8

Impact of foreign operations (excluding unconsolidated hospitality ventures losses)
(2.0
)
 
(5.6
)
 
(5.4
)
U.S. foreign tax credits

 
(1.6
)
 
0.7

2017 Tax Act deferred rate change

 
(0.1
)
 
6.3

2017 Tax Act deemed repatriation tax

 
0.3

 
1.8

Change in valuation allowances
1.0

 
0.9

 
1.0

Foreign unconsolidated hospitality ventures
0.5

 
0.9

 
0.9

Tax contingencies
0.3

 
1.0

 
1.0

Equity based compensation
0.2

 
0.3

 
0.6

General business credits
(0.3
)
 
(0.5
)
 
(0.3
)
Other
0.5

 
(0.1
)
 
0.5

Effective income tax rate
23.9
 %
 
19.1
 %
 
45.9
 %

Schedule of Deferred Tax Assets and Liabilities
The components of the net deferred tax assets and deferred tax liabilities are comprised of the following:
 
December 31, 2019
 
December 31, 2018
Deferred tax assets related to:
 
 
 
Employee benefits
$
134

 
$
133

Loyalty program
118

 
99

Long-term operating lease liabilities
103

 

Foreign and state net operating losses and credit carryforwards
50

 
57

Allowance for uncollectible assets
33

 
31

Investments
28

 
37

Unrealized losses
7

 
3

Interest and state benefits
3

 
3

Other
33

 
41

Valuation allowance
(41
)
 
(41
)
Total deferred tax asset
$
468

 
$
363

Deferred tax liabilities related to:
 
 
 
Property and equipment
$
(152
)
 
$
(131
)
Operating ROU assets
(105
)
 

Intangibles
(59
)
 
(49
)
Investments
(36
)
 
(16
)
Prepaid expenses
(9
)
 
(7
)
Unrealized gains
(2
)
 
(24
)
Other
(8
)
 
(10
)
Total deferred tax liabilities
$
(371
)
 
$
(237
)
Net deferred tax assets
$
97

 
$
126

Recognized in the balance sheet as:
 
 
 
Deferred tax assets—noncurrent
$
144

 
$
180

Deferred tax liabilities—noncurrent
(47
)
 
(54
)
Total
$
97

 
$
126


Unrecognized Tax Benefits Reconciliation
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 
2019
 
2018
Unrecognized tax benefits—beginning balance
$
116

 
$
94

Total increases—current-period tax positions
21

 
10

Total increases (decreases)—prior-period tax positions
(7
)
 
18

Settlements
(3
)
 
(1
)
Lapse of statute of limitations
(3
)
 
(4
)
Foreign currency fluctuation
1

 
(1
)
Unrecognized tax benefits—ending balance
$
125

 
$
116


v3.19.3.a.u2
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Guarantor Obligations
 
 
The four managed hotels in France
 
Other performance guarantees
 
All performance guarantees
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Beginning balance, January 1
 
$
36

 
$
58

 
$
11

 
$
13

 
$
47

 
$
71

Initial guarantee obligation liability
 

 

 
7

 

 
7

 

Amortization of initial guarantee obligation liability into income
 
(15
)
 
(15
)
 
(3
)
 
(3
)
 
(18
)
 
(18
)
Performance guarantee expense, net
 
37

 
55

 
5

 
4

 
42

 
59

Net payments during the year
 
(37
)
 
(62
)
 
(7
)
 
(3
)
 
(44
)
 
(65
)
Foreign currency exchange, net
 
(1
)
 

 

 

 
(1
)
 

Ending balance, December 31
 
$
20

 
$
36

 
$
13

 
$
11

 
$
33

 
$
47


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 December 31, 2019
 
Other long-term liabilities recorded at December 31, 2018
 
Year of guarantee expiration
Hotel properties in India (1)
 
$
169

 
$
169

 
$
5

 
$
10

 
2020
Hotel and residential properties in Brazil (2), (3)
 
97

 
40

 
3

 
3

 
various, through 2023
Hotel properties in Tennessee (2)
 
44

 
20

 
8

 
2

 
various, through 2023
Hotel properties in California (2)
 
31

 
12

 
3

 
4

 
various, through 2021
Hotel property in Massachusetts (2), (4)
 
30

 
14

 
6

 
8

 
various, through 2022
Hotel property in Oregon (2), (4)
 
15

 
6

 
3

 
4

 
various, through 2022
Hotel property in Arizona (2), (3)
 
14

 

 
1

 
1

 
2021
Other (2), (5)
 
15

 
9

 
3

 
19

 
various, through 2022
Total
 
$
415

 
$
270

 
$
32

 
$
51

 
 


(1) Debt repayment guarantee is denominated in Indian rupees and translated using exchange rates at December 31, 2019. We have the contractual right to recover amounts funded from an unconsolidated hospitality venture, which is a related party. We expect our maximum exposure to be $85 million, taking into account our partner's 50% ownership interest in the unconsolidated hospitality venture. Under certain events or conditions, we have the right to force the sale of the properties in order to recover amounts funded.
(2) 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.
(3) 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.
(4) In conjunction with the debt repayment guarantees, we are subject to completion guarantees 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. At December 31, 2019, the maximum potential future payments are $3 million, and the maximum exposure net of recoverability from third parties is insignificant.
(5) At December 31, 2018, other-long term liabilities included a debt repayment guarantee for a hotel property in Washington State. During the year ended December 31, 2019, the debt was refinanced, and we are no longer a guarantor. As a result, we recognized a $15 million release of our debt repayment guarantee liability in other income (loss), net on our consolidated statements of income for the year ended December 31, 2019 (see Note 21).
v3.19.3.a.u2
Stockholders' Equity and Comprehensive Loss (Tables)
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Accelerated Shares Repurchased
During the year ended December 31, 2018, we entered into the following 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 (2)
2,481,341

 
$
80.60

 
$
200

November 2018 (2)
2,575,095

 
$
69.90

 
$
180


(1) The delivery of shares resulted in a reduction in weighted-average common shares outstanding for basic and diluted earnings per share (see Note 20).
(2) The May 2018 ASR and the November 2018 ASR are collectively referred to as the "2018 ASR Agreements."
Schedule of Accumulated Other Comprehensive Loss
 
Balance at
January 1, 2019
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
December 31, 2019
Foreign currency translation adjustments (a)
$
(191
)
 
$
1

 
$
7

 
$
(183
)
Unrealized gains on AFS debt securities

 
1

 

 
1

Unrecognized pension cost
(5
)
 
(4
)
 

 
(9
)
Unrealized losses on derivative instruments
(4
)
 
(15
)
 
1

 
(18
)
Accumulated other comprehensive income (loss)
$
(200
)
 
$
(17
)
 
$
8

 
$
(209
)
(a) The amount reclassified from accumulated other comprehensive loss includes the net gain recognized in gains on sales of real estate related to the sale of shares of the entity which owns Grand Hyatt Seoul and adjacent land (see Note 7).
 
 
Balance at
January 1, 2018
 
Current period other comprehensive income (loss) before reclassification
 
Amount reclassified from accumulated other comprehensive loss
 
Balance at
December 31, 2018
Foreign currency translation adjustments (b)
$
(243
)
 
$
(25
)
 
$
77

 
$
(191
)
Unrecognized pension (cost) benefit
(7
)
 
2

 

 
(5
)
Unrealized losses on derivative instruments
(3
)
 
(1
)
 

 
(4
)
Accumulated other comprehensive income (loss)
$
(253
)
 
$
(24
)
 
$
77

 
$
(200
)
(b) The amount reclassified from accumulated other comprehensive loss includes 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 7).

Dividends Declared During the year ended December 31, 2019, we paid cash dividends of $29 million and $51 million, respectively, to Class A and Class B shareholders of record, and during the year ended December 31, 2018, we paid cash dividends of $27 million and $41 million, respectively, to Class A and Class B shareholders of record as follows:
Date declared
 
Dividend per share amount for Class A and Class B
 
Date of record
 
Date paid
February 13, 2019
 
$
0.19

 
February 27, 2019
 
March 11, 2019
May 17, 2019
 
$
0.19

 
May 29, 2019
 
June 10, 2019
July 31, 2019
 
$
0.19

 
August 27, 2019
 
September 9, 2019
October 30, 2019
 
$
0.19

 
November 26, 2019
 
December 9, 2019
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
October 30, 2018
 
$
0.15

 
November 28, 2018
 
December 10, 2018

v3.19.3.a.u2
Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]  
Compensation Expense Related to Long-term Incentive Plan Stock-based compensation expense included in selling, general, and administration expense on our consolidated statements of income related to these awards was as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
SARs
$
11

 
$
10

 
$
11

RSUs
17

 
15

 
16

PSUs
6

 
4

 
2

Other
1

 

 

Total
$
35

 
$
29

 
$
29


Income Tax Benefit Share Based Compensation
The expected income tax benefit to be realized at the time of vest related to these awards for the years ended December 31, 2019, December 31, 2018, and December 31, 2017 was as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
SARs
$
3

 
$
2

 
$
3

RSUs
5

 
4

 
4

PSUs
2

 
1

 
1

Total
$
10

 
$
7

 
$
8


Stock Appreciation Rights by Grant Date The following table sets forth a summary of the SAR grants in 2019, 2018, and 2017:
Grant date
 
Granted
 
Value at date of grant
 
Vesting period
 
Vesting start month
March 2019
 
643,989

 
$
17.11

 
25
% annually
 
March 2020
May 2018
 
38,918

 
21.84

 
25
% annually
 
March 2019
March 2018
 
465,842

 
21.13

 
25
% annually
 
March 2019
September 2017
 
20,139

 
18.62

 
25
% annually
 
September 2018
March 2017
 
605,601

 
16.35

 
25
% annually
 
March 2018

Schedule of Share-based Payment Award SAR Valuation Assumptions
The fair value of each SAR was estimated based on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions:
 
2019
 
2018
 
2017
Exercise price
$
71.67

 
$
80.12

 
$
52.93

Expected life in years
6.25

 
6.24

 
6.24

Risk-free interest rate
2.40
%
 
2.79
%
 
2.11
%
Expected volatility
22.51
%
 
22.97
%
 
26.56
%
Annual dividend yield
1.06
%
 
0.75
%
 
%

Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity
A summary of employee SAR activity is presented below:
 
SAR units
 
Weighted-average exercise price (in whole dollars)
 
Weighted-average remaining contractual term
Outstanding at December 31, 2018:
3,488,886

 
$
51.27

 
5.80
Granted
643,989

 
71.67

 
 
Exercised
(240,417
)
 
36.48

 
 
Forfeited or expired
(48,101
)
 
66.00

 
 
Outstanding at December 31, 2019:
3,844,357

 
$
55.51

 
5.78
Exercisable at December 31, 2019:
2,458,448

 
$
48.72

 
4.38

Restricted Stock Units by Grant Date The following table sets forth a summary of the employee RSU grants: 
Grant date
 
Granted
 
Value at date of grant
 
Aggregate value at date of grant
 
Vesting period
December 2019
 
9,695

 
$
82.50

 
$
1

 
various
May 2019
 
23,672

 
77.54

 
2

 
various
March 2019
 
329,239

 
71.67

 
24

 
various
February 2019
 
2,863

 
69.85

 

 
4 years
December 2018
 
9,650

 
67.34

 
1

 
various
September 2018
 
10,034

 
76.72

 
1

 
various
May 2018
 
4,306

 
81.27

 

 
4 years
March 2018
 
254,707

 
80.02

 
20

 
various
February 2018
 
3,502

 
78.52

 

 
4 years
December 2017
 
9,238

 
70.35

 
1

 
various
September 2017
 
22,357

 
61.50

 
1

 
various
September 2017
 
43,151

 
60.48

 
3

 
various
May 2017
 
1,390

 
57.51

 

 
4 years
March 2017
 
416,404

 
52.65

 
22

 
various

Schedule of Nonvested Restricted Stock Units Activity
A summary of the status of the nonvested employee RSU awards outstanding under the LTIP is presented below:
 
RSUs
 
Weighted-average grant date fair value
Nonvested at December 31, 2018:
796,830

 
$
61.31

Granted
365,469

 
72.32

Vested
(339,227
)
 
58.73

Forfeited or canceled
(47,790
)
 
62.69

Nonvested at December 31, 2019:
775,282

 
$
67.54


Performance Vesting Restricted Stock The following table sets forth a summary of PSU grants:
Year granted
 
Granted
 
Weighted-average grant date fair value
 
Performance period
 
Performance period start date
2019 PSUs
 
120,720

 
$
77.95

 
3 years
 
January 1, 2019
2018 PSUs
 
89,441

 
$
82.10

 
3 years
 
January 1, 2018
2017 PSUs
 
102,115

 
$
52.65

 
3 years
 
January 1, 2017

Schedule of Nonvested Performance Awards
A summary of the status of the nonvested PSU awards outstanding under the LTIP is presented below:
 
PSUs
 
Weighted-average grant date fair value
Nonvested at December 31, 2018:
204,489

 
$
62.68

Granted
120,720

 
77.95

Vested
(61,545
)
 
47.36

Forfeited or canceled
(3,248
)
 
82.10

Nonvested at December 31, 2019:
260,416

 
$
73.14


Unearned Compensation Future Compensation Expense Our total unearned compensation for our stock-based compensation programs at December 31, 2019 is as follows and is expected to be recorded as stock-based compensation expense:
 
2020
 
2021
 
2022
 
2023
 
Total
SARs
$
1

 
$
1

 
$

 
$

 
$
2

RSUs
7

 
4

 
3

 
1

 
15

PSUs
5

 
3

 

 

 
8

Total
$
13

 
$
8

 
$
3

 
$
1

 
$
25


v3.19.3.a.u2
Segment and Geographic Information (Tables)
12 Months Ended
Dec. 31, 2019
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 and Exhale, Hyatt Residence Club license fees, results related to our co-branded credit cards, and unallocated corporate expenses.
 
Years Ended December 31,
2019
 
2018
 
2017
Owned and leased hotels
 
 
 
 
 
Owned and leased hotels revenues
$
1,808

 
$
1,889

 
$
2,159

Other revenues

 

 
13

Intersegment revenues (a)
35

 
33

 
38

Adjusted EBITDA
387

 
428

 
490

Depreciation and amortization
244

 
266

 
295

Capital expenditures
233

 
194

 
195

Americas management and franchising
 
 
 
 
 
Management, franchise, and other fees revenues
433

 
400

 
380

Contra revenue
(15
)
 
(13
)
 
(12
)
Other revenues
89

 

 

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
2,268

 
1,787

 
1,625

Intersegment revenues (a)
62

 
70

 
74

Adjusted EBITDA
376

 
352

 
327

Depreciation and amortization
24

 
9

 
7

Capital expenditures
2

 
1

 

ASPAC management and franchising
 
 
 
 
 
Management, franchise, and other fees revenues
136

 
127

 
112

Contra revenue
(2
)
 
(2
)
 
(1
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
113

 
95

 
79

Intersegment revenues (a)
2

 
2

 
2

Adjusted EBITDA
87

 
78

 
70

Depreciation and amortization
3

 
1

 
1

Capital expenditures
1

 
4

 
1

EAME/SW Asia management and franchising
 
 
 
 
 
Management, franchise, and other fees revenues
83

 
80

 
69

Contra revenue
(5
)
 
(5
)
 
(5
)
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
74

 
68

 
58

Intersegment revenues (a)
10

 
10

 
10

Adjusted EBITDA
49

 
46

 
37

Depreciation and amortization
1

 
1

 

Capital expenditures

 
1

 
1

Corporate and other
 
 
 
 
 
Revenues
140

 
132

 
100

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
6

 
6

 

Intersegment revenues (a)
(1
)
 
(5
)
 
(9
)
Adjusted EBITDA
(146
)
 
(127
)
 
(135
)
Depreciation and amortization
57

 
50

 
45

Capital expenditures
133

 
97

 
101

Eliminations
 
 
 
 
 
Revenues (a)
(108
)
 
(110
)
 
(115
)
Adjusted EBITDA
1

 

 
3

TOTAL
 
 
 
 
 
Revenues
$
5,020

 
$
4,454

 
$
4,462

Adjusted EBITDA
754

 
777

 
792

Depreciation and amortization
329

 
327

 
348

Capital expenditures
369

 
297

 
298

(a)
Intersegment revenues are included in the management, franchise, and other fees revenues, owned and leased hotels revenues, and other revenues and eliminated in Eliminations.
Reconciliation of Assets from Segment to Consolidated
The table below presents summarized consolidated balance sheet information by segment:
 
December 31, 2019
 
December 31, 2018
Total Assets:
 
 
 
Owned and leased hotels
$
4,203

 
$
4,118

Americas management and franchising
1,024

 
842

ASPAC management and franchising
260

 
203

EAME/SW Asia management and franchising
273

 
225

Corporate and other
2,657

 
2,255

Total
$
8,417

 
$
7,643


Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas
The following tables present revenues and property and equipment, net, operating lease ROU assets, intangibles, net, and goodwill by geographical region:
 
Years Ended December 31,
2019
 
2018
 
2017
Revenues:
 
 
 
 
 
United States
$
4,142

 
$
3,587

 
$
3,619

All foreign
878

 
867

 
843

Total
$
5,020

 
$
4,454

 
$
4,462

 
 
 
 
 
 
 
 
December 31, 2019
 
December 31, 2018
Property and equipment, net, Operating lease ROU assets, Intangibles, net, and Goodwill:
 
 
 
 
United States
 
$
3,798

 
$
3,670

All foreign
 
914

 
849

Total
 
$
4,712

 
$
4,519


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:
 
Years Ended December 31,
2019
 
2018
 
2017
Net income attributable to Hyatt Hotels Corporation
$
766

 
$
769

 
$
389

Interest expense
75

 
76

 
80

Provision for income taxes
240

 
182

 
332

Depreciation and amortization
329

 
327

 
348

EBITDA
1,410

 
1,354

 
1,149

Contra revenue
22

 
20

 
18

Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties
(2,461
)
 
(1,956
)
 
(1,762
)
Costs incurred on behalf of managed and franchised properties
2,520

 
1,981

 
1,782

Equity (earnings) losses from unconsolidated hospitality ventures
10

 
(8
)
 
(219
)
Stock-based compensation expense
35

 
29

 
29

Gains on sales of real estate
(723
)
 
(772
)
 
(236
)
Asset impairments
18

 
25

 

Other (income) loss, net
(127
)
 
49

 
(42
)
Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA
50

 
55

 
73

Adjusted EBITDA
$
754

 
$
777

 
$
792


v3.19.3.a.u2
Earnings Per Share (Tables)
12 Months Ended
Dec. 31, 2019
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:
 
Years Ended December 31,
2019
 
2018
 
2017
Numerator:
 
 
 
 
 
Net income
$
766

 
$
769

 
$
390

Net income and accretion attributable to noncontrolling interests

 

 
(1
)
Net income attributable to Hyatt Hotels Corporation
$
766

 
$
769

 
$
389

Denominator:
 
 
 
 
 
Basic weighted-average shares outstanding
104,590,383

 
113,259,113

 
124,836,917

Share-based compensation and equity-classified forward contract
1,702,021

 
1,865,904

 
1,509,986

Diluted weighted-average shares outstanding
106,292,404

 
115,125,017

 
126,346,903

Basic Earnings Per Share:
 
 
 
 
 
Net income
$
7.33

 
$
6.79

 
$
3.13

Net income and accretion attributable to noncontrolling interests

 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
7.33

 
$
6.79

 
$
3.12

Diluted Earnings Per Share:
 
 
 
 
 
Net income
$
7.21

 
$
6.68

 
$
3.09

Net income and accretion attributable to noncontrolling interests

 

 
(0.01
)
Net income attributable to Hyatt Hotels Corporation
$
7.21

 
$
6.68

 
$
3.08


Anti-dilutive Shares Issued
The computations of diluted net income per share for the years ended December 31, 2019, December 31, 2018, and December 31, 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.
 
Years Ended December 31,
 
2019
 
2018
 
2017
SARs
13,000

 
100

 
21,400

RSUs

 


100


v3.19.3.a.u2
Other Income (Loss), Net (Tables)
12 Months Ended
Dec. 31, 2019
Other Income and Expenses [Abstract]  
Other income (loss), net
 
Years Ended December 31,
2019
 
2018
 
2017
Release of contingent consideration liability (Note 7)
$
30

 
$

 
$

Unrealized gains (losses), net (Note 4)
26

 
(47
)
 
1

Interest income (Note 4)
25

 
28

 
110

Depreciation recovery
25

 
22

 
27

Performance guarantee liability amortization (Note 15)
18

 
18

 
19

Release and amortization of debt repayment guarantee liability (Note 15)
18

 
11

 
10

Gain on sale of contractual right (Note 7)
16

 

 

Realized gains (losses), net
2

 
(3
)
 
(41
)
Foreign currency gains (losses), net
1

 
4

 
(2
)
Pre-condemnation income

 
4

 
18

Cease use liability

 

 
(21
)
Loss on extinguishment of debt (Note 11)

 
(7
)
 

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

 
(22
)
 

Transaction costs
(1
)
 
(10
)
 
(4
)
Performance guarantee expense, net (Note 15)
(42
)
 
(59
)
 
(77
)
Other, net
9

 
12

 
2

Other income (loss), net
$
127

 
$
(49
)
 
$
42


v3.19.3.a.u2
Quarterly Financial Information (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Quarterly Financial Information
The following table sets forth the historical unaudited quarterly financial data. The information for each of these periods has been prepared on the same basis as the audited consolidated financial statements and, in our opinion, reflects all adjustments necessary to present fairly our financial results. Operating results for previous periods do not necessarily indicate results that may be achieved in any future period.
 
Three Months Ended
December 31, 2019
 
September 30, 2019
 
June 30, 2019
 
March 31, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
Consolidated statements of income data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
1,275

 
$
1,215

 
$
1,289

 
$
1,241

 
$
1,138

 
$
1,074

 
$
1,133

 
$
1,109

Direct and selling, general, and administrative expenses
1,225

 
1,175

 
1,208

 
1,215

 
1,054

 
1,012

 
1,026

 
1,030

Net income
321

 
296

 
86

 
63

 
44

 
237

 
77

 
411

Net income attributable to Hyatt Hotels Corporation
321

 
296

 
86

 
63

 
44

 
237

 
77

 
411

Net income per share—basic
$
3.13

 
$
2.84

 
$
0.81

 
$
0.60

 
$
0.41

 
$
2.12

 
$
0.67

 
$
3.47

Net income per share—diluted
$
3.08

 
$
2.80

 
$
0.80

 
$
0.59

 
$
0.40

 
$
2.09

 
$
0.66

 
$
3.40

Cash dividends declared per share
$
0.19

 
$
0.19

 
$
0.19

 
$
0.19

 
$
0.15

 
$
0.15

 
$
0.15

 
$
0.15


v3.19.3.a.u2
Organization (Details)
Dec. 31, 2019
hotel
country
room
Organization  
Number of countries in which entity operates (number of countries) | country 65
Full service  
Organization  
Number of hotels operated or franchised (number of hotels) 446
Number of rooms operated or franchised (number of rooms) | room 156,133
Select service  
Organization  
Number of hotels operated or franchised (number of hotels) 467
Number of rooms operated or franchised (number of rooms) | room 66,978
Select service | United States  
Organization  
Number of hotels operated or franchised (number of hotels) 399
All inclusive  
Organization  
Number of hotels operated or franchised (number of hotels) 8
Number of rooms operated or franchised (number of rooms) | room 3,153
Wellness resorts  
Organization  
Number of hotels operated or franchised (number of hotels) 3
Number of rooms operated or franchised (number of rooms) | room 410
v3.19.3.a.u2
Summary of Significant Accounting Policies - Narrative (Details) - USD ($)
$ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2019
Feb. 28, 2019
May 31, 2018
Feb. 28, 2018
May 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Jan. 01, 2019
Accounting Policies                  
Restricted cash $ 170         $ 170 $ 52    
Restricted cash included in other assets 20         20 19 $ 15  
Restricted cash, current 150         $ 150 33 $ 234  
Inventory supplies and equipment, maximum consumption period           2 years      
Operating lease right-of-use assets 493         $ 493     $ 512
Operating lease, liability 425         425      
Captive insurance subsidiary                  
Accounting Policies                  
Restricted cash, current 9         9      
Other restricted cash                  
Accounting Policies                  
Restricted cash, current 16         16 15    
Property Adjacent to Grand Hyatt San Francisco                  
Accounting Policies                  
Restricted cash, current 115         115      
Grand Hyatt San Antonio                  
Accounting Policies                  
Restricted cash, current $ 30         $ 30 $ 28    
Accounting Standards Update 2016-02                  
Accounting Policies                  
Operating lease right-of-use assets                 512
Operating lease, liability                 452
Stock appreciation rights (SARs)                  
Accounting Policies                  
Share-based compensation contractual term           10 years      
Performance Shares [Member]                  
Accounting Policies                  
Performance period           3 years 3 years 3 years  
Restricted stock units (RSUs)                  
Accounting Policies                  
Performance period   4 years 4 years 4 years 4 years        
Share-based compensation, issued during the period 140,000                
Share-based compensation arrangement, issued not granted 126,000                
PSUs                  
Accounting Policies                  
Share-based compensation, performance period           3 years      
Below Market Lease Related Intangibles | Accounting Standards Update 2016-02                  
Accounting Policies                  
Reclassification from assets and liabilities                 103
Deferred Lease Liabilities | Accounting Standards Update 2016-02                  
Accounting Policies                  
Reclassification from assets and liabilities                 $ (49)
Minimum                  
Accounting Policies                  
Lessee, operating and finance lease, extension term           1 year      
Operating lease, term of contract 1 year         1 year      
Minimum | Performance Shares [Member]                  
Accounting Policies                  
Performance period           1 year      
Maximum                  
Accounting Policies                  
Lessee, operating and finance lease, extension term           99 years      
Operating lease, term of contract 20 years         20 years      
Maximum | Performance Shares [Member]                  
Accounting Policies                  
Performance period           4 years      
v3.19.3.a.u2
Summary of Significant Accounting Policies - Property and Equipment (Details)
12 Months Ended
Dec. 31, 2019
Minimum | Buildings and improvements  
Property, Plant and Equipment  
Property, plant and equipment, useful life 10 years
Minimum | Furniture and equipment  
Property, Plant and Equipment  
Property, plant and equipment, useful life 3 years
Minimum | Computers  
Property, Plant and Equipment  
Property, plant and equipment, useful life 3 years
Maximum | Buildings and improvements  
Property, Plant and Equipment  
Property, plant and equipment, useful life 50 years
Maximum | Furniture and equipment  
Property, Plant and Equipment  
Property, plant and equipment, useful life 20 years
Maximum | Computers  
Property, Plant and Equipment  
Property, plant and equipment, useful life 7 years
v3.19.3.a.u2
Summary of Significant Accounting Policies - Intangible Assets (Details)
12 Months Ended
Dec. 31, 2019
Management and franchise agreement intangibles | Minimum  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived intangible asset, useful life 4 years
Management and franchise agreement intangibles | Maximum  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived intangible asset, useful life 30 years
Advanced booking intangibles | Minimum  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived intangible asset, useful life 1 year
Advanced booking intangibles | Maximum  
Finite-Lived Intangible Assets [Line Items]  
Finite-Lived intangible asset, useful life 7 years
v3.19.3.a.u2
Summary of Significant Accounting Policies - Schedule of Changes Due to Adoption of ASU 2016-02 (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
ASSETS          
Prepaids and other assets $ 134 $ 147 $ 149    
Intangibles, net 437 525 628    
Other assets 1,588 1,346 1,353    
Operating lease right-of-use assets 493 512      
TOTAL ASSETS 8,417 8,043 7,643    
LIABILITIES AND EQUITY          
Accounts payable 150 150 151    
Accrued expenses and other current liabilities 304 359 361    
Current operating lease liabilities 32 34      
Long-term operating lease liabilities 393 418      
Other long-term liabilities 884 791 840    
Total liabilities 4,450 4,366 3,966    
Total equity 3,967 3,677 3,677 $ 3,843 $ 4,080
TOTAL LIABILITIES AND EQUITY $ 8,417 8,043 $ 7,643    
Accounting Standards Update 2016-02          
ASSETS          
Prepaids and other assets   (2)      
Intangibles, net   (103)      
Other assets   (7)      
Operating lease right-of-use assets   512      
TOTAL ASSETS   400      
LIABILITIES AND EQUITY          
Accounts payable   (1)      
Accrued expenses and other current liabilities   (2)      
Current operating lease liabilities   34      
Long-term operating lease liabilities   418      
Other long-term liabilities   (49)      
Total liabilities   400      
Total equity   0      
TOTAL LIABILITIES AND EQUITY   $ 400      
v3.19.3.a.u2
Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Disaggregation of Revenue [Line Items]                      
Revenues $ 1,275 $ 1,215 $ 1,289 $ 1,241 $ 1,138 $ 1,074 $ 1,133 $ 1,109 $ 5,020 $ 4,454 $ 4,462
Rooms revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,048 1,100 1,254
Food and beverage                      
Disaggregation of Revenue [Line Items]                      
Revenues                 619 646 733
Other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 181 172 197
Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,848 1,918 2,184
Base management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 260 225 202
Incentive management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 151 148 135
Franchise fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 141 127 114
Other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 32 31 28
License fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 24 21 19
Management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 608 552 498
Amortization of management and franchise agreement assets constituting payments to customers                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (22) (20) (18)
Net management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 586 532 480
Other revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 125 48 36
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties                      
Disaggregation of Revenue [Line Items]                      
Revenues                 2,461 1,956 1,762
Operating Segments | Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,808 1,889 2,172
Operating Segments | Owned and leased hotels | Rooms revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,058 1,110 1,270
Operating Segments | Owned and leased hotels | Food and beverage                      
Disaggregation of Revenue [Line Items]                      
Revenues                 607 636 722
Operating Segments | Owned and leased hotels | Other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 143 143 167
Operating Segments | Owned and leased hotels | Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1,808 1,889 2,159
Operating Segments | Owned and leased hotels | Base management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | Incentive management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | Franchise fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | Other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | License fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | Management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | Amortization of management and franchise agreement assets constituting payments to customers                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | Net management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Owned and leased hotels | Other revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 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
Operating Segments | Americas management and franchising                      
Disaggregation of Revenue [Line Items]                      
Revenues                 2,775 2,174 1,993
Operating Segments | Americas management and franchising | Rooms revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Americas management and franchising | Food and beverage                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Americas management and franchising | Other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Americas management and franchising | Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Americas management and franchising | Base management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 227 200 193
Operating Segments | Americas management and franchising | Incentive management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 65 67 62
Operating Segments | Americas management and franchising | Franchise fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 136 123 112
Operating Segments | Americas management and franchising | Other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 5 10 13
Operating Segments | Americas management and franchising | License fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | Americas management and franchising | Management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 433 400 380
Operating Segments | Americas management and franchising | Amortization of management and franchise agreement assets constituting payments to customers                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (15) (13) (12)
Operating Segments | Americas management and franchising | Net management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 418 387 368
Operating Segments | Americas management and franchising | Other revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 89 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                 2,268 1,787 1,625
Operating Segments | ASPAC management and franchising                      
Disaggregation of Revenue [Line Items]                      
Revenues                 247 220 190
Operating Segments | ASPAC management and franchising | Rooms revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | ASPAC management and franchising | Food and beverage                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | ASPAC management and franchising | Other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | ASPAC management and franchising | Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | ASPAC management and franchising | Base management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 46 44 39
Operating Segments | ASPAC management and franchising | Incentive management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 72 71 65
Operating Segments | ASPAC management and franchising | Franchise fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 4 3 2
Operating Segments | ASPAC management and franchising | Other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 14 9 6
Operating Segments | ASPAC management and franchising | License fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | ASPAC management and franchising | Management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 136 127 112
Operating Segments | ASPAC management and franchising | Amortization of management and franchise agreement assets constituting payments to customers                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (2) (2) (1)
Operating Segments | ASPAC management and franchising | Net management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 134 125 111
Operating Segments | ASPAC management and franchising | Other revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 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                 113 95 79
Operating Segments | EAME/SW Asia management and franchising                      
Disaggregation of Revenue [Line Items]                      
Revenues                 152 143 122
Operating Segments | EAME/SW Asia management and franchising | Rooms revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | EAME/SW Asia management and franchising | Food and beverage                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | EAME/SW Asia management and franchising | Other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | EAME/SW Asia management and franchising | Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | EAME/SW Asia management and franchising | Base management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 37 34 29
Operating Segments | EAME/SW Asia management and franchising | Incentive management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 38 39 35
Operating Segments | EAME/SW Asia management and franchising | Franchise fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1 1 0
Operating Segments | EAME/SW Asia management and franchising | Other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 7 6 5
Operating Segments | EAME/SW Asia management and franchising | License fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Operating Segments | EAME/SW Asia management and franchising | Management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 83 80 69
Operating Segments | EAME/SW Asia management and franchising | Amortization of management and franchise agreement assets constituting payments to customers                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (5) (5) (5)
Operating Segments | EAME/SW Asia management and franchising | Net management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 78 75 64
Operating Segments | EAME/SW Asia management and franchising | Other revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 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                 74 68 58
Corporate and other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 146 138 100
Corporate and other | Rooms revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 25 23 22
Corporate and other | Food and beverage                      
Disaggregation of Revenue [Line Items]                      
Revenues                 12 10 11
Corporate and other | Other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 38 29 30
Corporate and other | Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 75 62 63
Corporate and other | Base management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Corporate and other | Incentive management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Corporate and other | Franchise fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Corporate and other | Other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 6 6 4
Corporate and other | License fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 24 21 19
Corporate and other | Management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 30 27 23
Corporate and other | Amortization of management and franchise agreement assets constituting payments to customers                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Corporate and other | Net management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 30 27 23
Corporate and other | Other revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 35 43 14
Corporate and other | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties                      
Disaggregation of Revenue [Line Items]                      
Revenues                 6 6 0
Eliminations                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (108) (110) (115)
Eliminations | Rooms revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (35) (33) (38)
Eliminations | Food and beverage                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Eliminations | Other                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Eliminations | Owned and leased hotels                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (35) (33) (38)
Eliminations | Base management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (50) (53) (59)
Eliminations | Incentive management fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (24) (29) (27)
Eliminations | Franchise fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Eliminations | Other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Eliminations | License fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Eliminations | Management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (74) (82) (86)
Eliminations | Amortization of management and franchise agreement assets constituting payments to customers                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Eliminations | Net management, franchise, and other fees                      
Disaggregation of Revenue [Line Items]                      
Revenues                 (74) (82) (86)
Eliminations | Other revenues                      
Disaggregation of Revenue [Line Items]                      
Revenues                 1 5 9
Eliminations | Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties                      
Disaggregation of Revenue [Line Items]                      
Revenues                 0 0 0
Eliminations | Americas management and franchising                      
Disaggregation of Revenue [Line Items]                      
Revenues                 62 70 74
Eliminations | ASPAC management and franchising                      
Disaggregation of Revenue [Line Items]                      
Revenues                 2 2 2
Eliminations | EAME/SW Asia management and franchising                      
Disaggregation of Revenue [Line Items]                      
Revenues                 $ 10 $ 10 $ 10
v3.19.3.a.u2
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Contract assets $ 0 $ 0  
Total contract liabilities 920 830 $ 772
Cash received from contract with customer 1,025 964  
Revenue recognized from contract with customer (935) (906)  
Revenue recognized from contract with customer beginning balance 375 356  
Deferred revenue related to the loyalty program      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Total contract liabilities 671 596  
Advanced deposits      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Total contract liabilities 77 81  
Initial fees received from franchise owners      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Total contract liabilities 41 35  
Deferred revenue related to system-wide services      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Total contract liabilities 5 7  
Other deferred revenue      
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]      
Total contract liabilities $ 126 $ 111  
v3.19.3.a.u2
Revenue from Contracts with Customers - Remaining Performance Obligation (Details)
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 130
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]: 2020-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, percent recognized 20.00%
Remaining performance obligation, period 1 year
v3.19.3.a.u2
Debt and Equity Securities - Carrying Value and Ownership Percentages of Equity Method Investments (Details) (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Schedule of Equity Method Investments    
Equity method investments $ 232 $ 233
Hyatt of Baja, S. de. R.L. de C.V.    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 50.00%  
Equity method investments $ 48 46
HP Boston Partners, LLC    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 50.00%  
Equity method investments $ 29 29
Hotel am Belvedere Holding GmbH & Co KG    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 50.00%  
Equity method investments $ 22 25
San Jose Hotel Partners, LLC    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 40.00%  
Equity method investments $ 20 18
Desarrolladora Hotelera Acueducto, S. de R.L. de C.V.    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 50.00%  
Equity method investments $ 14 13
Portland Hotel Properties, LLC    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 40.00%  
Equity method investments $ 13 13
CBR HCN, LLC    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 40.00%  
Equity method investments $ 12 0
HH Nashville JV Holdings, LLC    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 50.00%  
Equity method investments $ 11 12
33 Beale Street Hotel Company, LLC    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 50.00%  
Equity method investments $ 11 0
HP Atlanta Centennial Park JV, LLC    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 50.00%  
Equity method investments $ 10 10
Hotel Hoyo Uno, S. de R.L. de C.V.    
Schedule of Equity Method Investments    
Equity method investment, ownership percentage 40.00%  
Equity method investments $ 10 16
Other    
Schedule of Equity Method Investments    
Equity method investments $ 32 $ 51
v3.19.3.a.u2
Debt and Equity Securities - Summarized Financial Information (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]      
Total revenues $ 496 $ 513 $ 832
Gross operating profit 179 182 289
Income (loss) from continuing operations (24) (16) 54
Net income (loss) (24) (16) $ 54
Current assets 231 228  
Noncurrent assets 1,417 1,345  
Total assets 1,648 1,573  
Current liabilities 143 141  
Noncurrent liabilities 1,270 1,148  
Total liabilities $ 1,413 $ 1,289  
v3.19.3.a.u2
Debt and Equity Securities - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Schedule of Equity Method Investments      
Equity method investments $ 232 $ 233  
Equity method investment, impairment charges $ 7   $ 3
Common stock, shares sold (in shares) 0    
Held-to-maturity securities $ 58 49  
Equity securities without a readily determinable fair value 7 9  
Impairment charges on equity securities without readily determinable fair value   22  
Unconsolidated Hospitality Venture      
Schedule of Equity Method Investments      
Equity method investment, net purchase price   4  
Equity method investment, impairment charges   16  
Avendra LLC      
Schedule of Equity Method Investments      
Equity method investment, realized gain on disposal     217
Equity method investment, net sales proceeds     217
Playa Hotels & Resorts N.V. | Common shares      
Schedule of Equity Method Investments      
Increase in other income (loss) 15    
Decrease in other income (loss)   (44)  
Owned and leased hotels      
Schedule of Equity Method Investments      
Equity method investment, realized gain on disposal 8 40 6
Equity method investment, net sales proceeds $ 25 $ 43 $ 12
v3.19.3.a.u2
Debt and Equity Securities - Held to Fund Operating Programs (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Held for operating programs    
Schedule of Investments    
Total marketable securities held to fund operating programs $ 1,113 $ 897
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 (219) (174)
Marketable securities held to fund operating programs included in other assets 894 723
Loyalty program    
Schedule of Investments    
Total marketable securities held to fund operating programs 483 397
Deferred compensation plans held in rabbi trusts    
Schedule of Investments    
Total marketable securities held to fund operating programs 450 367
Captive insurance companies    
Schedule of Investments    
Total marketable securities held to fund operating programs $ 180 $ 133
v3.19.3.a.u2
Debt and Equity Securities - Gain (loss) on Investments Held to Fund Operating Programs (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Gain (Loss) on Securities [Line Items]      
Loyalty program $ 62 $ (11) $ 45
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts 62 (11) 45
Loyalty program      
Gain (Loss) on Securities [Line Items]      
Loyalty program 26 4 9
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts 26 4 9
Deferred compensation plans held in rabbi trusts      
Gain (Loss) on Securities [Line Items]      
Unrealized gains (losses), net 42 (45) 20
Realized gains, net $ 20 $ 34 $ 25
v3.19.3.a.u2
Debt and Equity Securities - Held for Investment Purposes (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Schedule of Investments    
Common shares of Playa N.V. (Note 10) $ 102 $ 87
Held for Investment Purposes    
Schedule of Investments    
Interest-bearing money market funds 147 14
Common shares of Playa N.V. (Note 10) 102 87
Time deposits 37 100
Total marketable securities held to fund operating programs 286 201
Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments (184) (114)
Marketable securities held for investment purposes included in other assets $ 102 $ 87
v3.19.3.a.u2
Debt and Equity Securities - Fair Value of Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure $ 1,399 $ 1,098
Quoted prices in active markets for identical assets (Level One) | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 269 88
Quoted prices in active markets for identical assets (Level One) | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 502 367
Quoted prices in active markets for identical assets (Level One) | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 102 87
Significant other observable inputs (Level Two) | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 47 113
Significant other observable inputs (Level Two) | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 202 169
Significant other observable inputs (Level Two) | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 50 52
Significant other observable inputs (Level Two) | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 161 151
Significant other observable inputs (Level Two) | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 23 23
Significant other observable inputs (Level Two) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 39 46
Significant other observable inputs (Level Two) | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 4 2
Cash and cash equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 269 88
Cash and cash equivalents | Quoted prices in active markets for identical assets (Level One) | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 269 88
Cash and cash equivalents | Quoted prices in active markets for identical assets (Level One) | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Quoted prices in active markets for identical assets (Level One) | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Significant other observable inputs (Level Two) | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Significant other observable inputs (Level Two) | 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 | Significant other observable inputs (Level Two) | 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 | Significant other observable inputs (Level Two) | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Significant other observable inputs (Level Two) | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Significant other observable inputs (Level Two) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Cash and cash equivalents | Significant other observable inputs (Level Two) | 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 68 116
Short-term investments | Quoted prices in active markets for identical assets (Level One) | 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 | Quoted prices in active markets for identical assets (Level One) | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Quoted prices in active markets for identical assets (Level One) | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Significant other observable inputs (Level Two) | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 41 104
Short-term investments | Significant other observable inputs (Level Two) | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 4 0
Short-term investments | Significant other observable inputs (Level Two) | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 3 2
Short-term investments | Significant other observable inputs (Level Two) | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 20 10
Short-term investments | Significant other observable inputs (Level Two) | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Significant other observable inputs (Level Two) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Short-term investments | Significant other observable inputs (Level Two) | 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 66 84
Prepaids and other assets | Quoted prices in active markets for identical assets (Level One) | 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 | Quoted prices in active markets for identical assets (Level One) | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets | Quoted prices in active markets for identical assets (Level One) | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets | Significant other observable inputs (Level Two) | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Prepaids and other assets | Significant other observable inputs (Level Two) | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 31 37
Prepaids and other assets | Significant other observable inputs (Level Two) | 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 | Significant other observable inputs (Level Two) | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 18 25
Prepaids and other assets | Significant other observable inputs (Level Two) | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 4 5
Prepaids and other assets | Significant other observable inputs (Level Two) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 6 10
Prepaids and other assets | Significant other observable inputs (Level Two) | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 1 0
Other assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 996 810
Other assets | Quoted prices in active markets for identical assets (Level One) | Interest-bearing money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 0 0
Other assets | Quoted prices in active markets for identical assets (Level One) | Mutual funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 502 367
Other assets | Quoted prices in active markets for identical assets (Level One) | Common shares    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 102 87
Other assets | Significant other observable inputs (Level Two) | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 6 9
Other assets | Significant other observable inputs (Level Two) | U.S. government obligations    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 167 132
Other assets | Significant other observable inputs (Level Two) | U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 41 43
Other assets | Significant other observable inputs (Level Two) | Corporate debt securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 123 116
Other assets | Significant other observable inputs (Level Two) | Mortgage-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 19 18
Other assets | Significant other observable inputs (Level Two) | Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure 33 36
Other assets | Significant other observable inputs (Level Two) | Municipal and provincial notes and bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Investments, fair value disclosure $ 3 $ 2
v3.19.3.a.u2
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Abstract]    
Land $ 690 $ 713
Buildings 3,285 3,583
Leasehold improvements 194 215
Furniture, equipment, and computers 1,183 1,178
Construction in progress 253 158
Property and equipment, gross 5,605 5,847
Less: accumulated depreciation (2,149) (2,239)
Total property and equipment, net $ 3,456 $ 3,608
v3.19.3.a.u2
Property and Equipment, Net - Depreciation Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 304 $ 312 $ 335
v3.19.3.a.u2
Property and Equipment, Net - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Property, Plant and Equipment [Abstract]      
Interest costs, capitalized during period $ 6 $ 3 $ 4
v3.19.3.a.u2
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Accounts, Notes, Loans, and Financing Receivable      
Total long-term financing receivables, net of allowances $ 35 $ 13  
Unsecured Financing      
Accounts, Notes, Loans, and Financing Receivable      
Unsecured financing to hotel owners 135 159  
Less: current portion of financing receivables, included in receivables, net 0 (45)  
Less: allowance for losses (100) (101) $ (108)
Total long-term financing receivables, net of allowances $ 35 $ 13  
v3.19.3.a.u2
Financing Receivables - Allowance For Credit Losses (Details) - Unsecured Financing - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Allowance for Losses and Impairments    
Allowance beginning balance $ 101 $ 108
Provisions 6 7
Write-offs (6) (12)
Other adjustments (1) (2)
Allowance ending balance $ 100 $ 101
v3.19.3.a.u2
Financing Receivables - Credit Monitoring (Details) - Unsecured Financing - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Total Unsecured Financing Receivables      
Gross loan balance (principal and interest) $ 135 $ 159  
Related allowance (100) (101) $ (108)
Net financing receivables 35 58  
Gross receivables on non-accrual status 99 101  
Loans      
Total Unsecured Financing Receivables      
Gross loan balance (principal and interest) 33 58  
Related allowance (1) 0  
Net financing receivables 32 58  
Gross receivables on non-accrual status 0 0  
Impaired loans      
Total Unsecured Financing Receivables      
Impaired loans 43 50  
Impaired loans, allowance (43) (50)  
Net financing receivables 0 0  
Gross receivables on non-accrual status 43 50  
Impaired financing receivables, unpaid principal balance 33 36  
Impaired financing receivables, average recorded investment 46 54  
Total loans      
Total Unsecured Financing Receivables      
Gross loan balance (principal and interest) 76 108  
Related allowance (44) (50)  
Net financing receivables 32 58  
Gross receivables on non-accrual status 43 50  
Other financing arrangements      
Total Unsecured Financing Receivables      
Gross loan balance (principal and interest) 59 51  
Related allowance (56) (51)  
Net financing receivables 3 0  
Gross receivables on non-accrual status $ 56 $ 51  
v3.19.3.a.u2
Financing Receivables - Fair Value Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Significant unobservable inputs (Level Three)    
Total Unsecured Financing Receivables    
Level three financing receivables $ 36 $ 59
v3.19.3.a.u2
Acquisitions and Dispositions - Acquisitions Narrative (Details)
$ in Millions
12 Months Ended
Nov. 30, 2018
USD ($)
asset_acquired
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Jan. 01, 2019
USD ($)
Business Acquisition          
Acquisitions, net of cash acquired   $ 18 $ 678 $ 259  
Post-acquisition working capital adjustments   (2)      
Contingent liability   0 57 0  
Partial release of contingent consideration   (30) 0 0  
Intangibles, net   437 628   $ 525
Goodwill   326 283 150  
Proceeds from redeemable noncontrolling interest in preferred shares in a subsidiary   0 0 9  
Payments for repurchase of redeemable preferred stock   0 10 0  
Two Roads Hospitality LLC          
Business Acquisition          
Purchase price $ 405        
Additional consideration, completion of specific actions $ 96        
Time to meet agreed upon actions 120 days        
Additional consideration, event of execution of certain agreements within one year of closing $ 8        
Acquisitions, net of cash acquired 415        
Cash acquired 37        
Additional consideration 36        
Other purchase price adjustments 4        
Additional amount that could be funded 68        
Contingent liability 57 3 57    
Total net assets acquired   507 509    
Contingent liability   24      
Partial release of contingent consideration   30      
Intangibles, net   $ 38      
Property and equipment acquired 2        
Indefinite-lived Intangibles 96        
Goodwill 199        
Goodwill expected to be tax deductible $ 154        
Two Roads Hospitality LLC | Brand intangibles          
Business Acquisition          
Number of brands acquired | asset_acquired 5        
Hyatt Regency Phoenix          
Business Acquisition          
Business combination, consideration transferred     139    
Property and equipment acquired     136    
Hyatt Regency Indian Wells Resort And Spa          
Business Acquisition          
Business combination, consideration transferred     120    
Property and equipment acquired     119    
Exhale Enterprises Inc          
Business Acquisition          
Acquisitions, net of cash acquired       16  
Cash acquired       1  
Indefinite-lived Intangibles       9  
Goodwill       4  
Goodwill expected to be tax deductible       $ 3  
Cranwell Spa and Golf Resort          
Business Acquisition          
Business acquisition, remaining interest percent acquired in acquisition       95.00%  
Miraval Group          
Business Acquisition          
Acquisitions, net of cash acquired       $ 237  
Total net assets acquired       237  
Property and equipment acquired       172  
Indefinite-lived Intangibles       37  
Goodwill       21  
Goodwill expected to be tax deductible       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    
v3.19.3.a.u2
Acquisitions and Dispositions - Two Roads Hospitality Acquisition, Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Millions
12 Months Ended
Nov. 30, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Business Acquisition        
Goodwill   $ 326 $ 283 $ 150
Income tax examination, penalties and interest expense (benefit)   $ 5 $ 0  
Two Roads Hospitality LLC        
Business Acquisition        
Cash $ 32      
Receivables 20      
Other current assets 2      
Equity method investment 2      
Property and equipment 2      
Indefinite-lived intangibles 96      
Management agreement intangibles 205      
Goodwill 199      
Other assets 25      
Total assets 583      
Advanced deposits (6) 20      
Other current liabilities 23      
Other long-term liabilities 33      
Total liabilities 76      
Total net assets acquired 507      
Goodwill expected to be tax deductible 154      
Prior year tax liabilities 13      
Income tax examination, penalties and interest expense (benefit) $ 4      
Minimum | Management Agreement | Two Roads Hospitality LLC        
Business Acquisition        
Weighted average useful life 1 year      
Maximum | Management Agreement | Two Roads Hospitality LLC        
Business Acquisition        
Weighted average useful life 19 years      
Weighted average | Management Agreement | Two Roads Hospitality LLC        
Business Acquisition        
Weighted average useful life 12 years      
v3.19.3.a.u2
Acquisitions and Dispositions - Miraval and Cranwell Spa & Golf Resort, Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2017
Dec. 31, 2018
Business Acquisition      
Goodwill $ 326 $ 150 $ 283
Miraval Group      
Business Acquisition      
Current assets   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   236  
Total net assets acquired attributable to noncontrolling interests   1  
Total net assets acquired   237  
Goodwill expected to be tax deductible   10  
Management Agreement | Miraval Group      
Business Acquisition      
Management agreement intangibles   $ 14  
Weighted average useful life   20 years  
Other definite-lived intangibles      
Business Acquisition      
Weighted average useful life 6 years    
Other definite-lived intangibles | Miraval Group      
Business Acquisition      
Management agreement intangibles   $ 7  
Minimum | Other definite-lived intangibles | Miraval Group      
Business Acquisition      
Weighted average useful life   2 years  
Maximum | Other definite-lived intangibles | Miraval Group      
Business Acquisition      
Weighted average useful life   7 years  
v3.19.3.a.u2
Acquisitions and Dispositions - Dispositions Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Significant Acquisitions and Disposals      
Proceeds from sales of real estate, net $ 940 $ 1,382 $ 663
Asset impairments 18 25 0
Equity method investments 232 233  
Disposal group, disposed of by sale | Grand Hyatt Seoul      
Significant Acquisitions and Disposals      
Proceeds from sale of real estate 467    
Gains (losses) on sales of real estate 349    
Disposal group, disposed of by sale | Contractual Rights      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate 16    
Advanced deposits 21    
Disposal group, disposed of by sale | Hyatt Regency Atlanta      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate 272    
Proceeds from sales of real estate, net 346    
Disposal group, disposed of by sale | Property Adjacent to Grand Hyatt San Francisco      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate 101    
Proceeds from sales of real estate, net 115    
Disposal group, disposed of by sale | A Hyatt House Hotel      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate   4  
Proceeds from sales of real estate, net   48  
Disposal group, disposed of by sale | Hyatt Regency Mexico City      
Significant Acquisitions and Disposals      
Proceeds from sale of real estate   405  
Gains (losses) on sales of real estate   238  
Proceeds from sales of real estate, net   360  
Consideration from sales of assets, unsecured financing receivable   46  
Asset impairments   21  
Disposal group, disposed of by sale | Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort & Spa      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate   531  
Proceeds from sales of real estate, net   992  
Disposal group, including discontinued operation, operating income (loss)   $ 15 23
Disposal group, disposed of by sale | Land Held For Development And Sold In 2018      
Significant Acquisitions and Disposals      
Consideration in exchange for third party investment   50.00%  
Disposal group, disposed of by sale | Hyatt Regency Monterey Hotel & Spa on Del Monte Golf Course      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate     17
Proceeds from sales of real estate, net     58
Disposal group, disposed of by sale | Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch and Royal Palms Resort and Spa      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate     159
Proceeds from sales of real estate, net     296
Disposal group, disposed of by sale | Hyatt Regency Grand Cypress      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate     26
Proceeds from sales of real estate, net     202
Disposal group, disposed of by sale | Hyatt Regency Louisville      
Significant Acquisitions and Disposals      
Gains (losses) on sales of real estate     35
Proceeds from sales of real estate, net     65
Disposal group, disposed of by sale | Land and Construction in Progress, Sold in 2017      
Significant Acquisitions and Disposals      
Proceeds from sales of real estate and other     $ 29
Equity method investment, ownership percentage     50.00%
Unconsolidated Hospitality Venture | Disposal group, disposed of by sale | Land Held For Development And Sold In 2018      
Significant Acquisitions and Disposals      
Equity method investments   $ 45  
Land Held for Development      
Significant Acquisitions and Disposals      
Payments to acquire land $ 15    
v3.19.3.a.u2
Acquisitions and Dispositions - Like-Kind Exchanges Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Like-kind exchange, period for replacement property 45 days    
Disposal group, disposed of by sale      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Real estate proceeds released   $ 23  
Disposal group, disposed of by sale | Grand Hyatt San Francisco, Andaz Maui at Wailea Resort, and Hyatt Regency Coconut Point Resort & Spa      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Sales proceeds transferred to escrow as restricted cash $ 115    
Disposal group, disposed of by sale | Hyatt Regency Coconut Point Resort & Spa      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Sales proceeds transferred to escrow as restricted cash   221  
Disposal group, disposed of by sale | Hyatt Regency Phoenix And Hyatt Regency Indian Wells Resort And Spa      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Real estate proceeds used for business acquisition   $ 198  
Disposal group, disposed of by sale | Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations      
Like-kind exchange, period for replacement property   180 days  
Sales proceeds transferred to escrow as restricted cash     $ 207
v3.19.3.a.u2
Leases - Schedule of Rent Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Leases [Abstract]      
Minimum rentals $ 50 $ 38 $ 42
Contingent rentals 97 47 52
Total operating lease expense $ 147 $ 85 $ 94
v3.19.3.a.u2
Leases - Supplemental Balance Sheet Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
Leases [Abstract]  
Property and equipment, net $ 9
Current maturities of long-term debt 2
Long-term debt 9
Total finance lease liabilities 11
Finance lease, amortization $ 14
v3.19.3.a.u2
Leases - Weighted Average Remaining Lease Term and Discount Rates (Details)
Dec. 31, 2019
Leases [Abstract]  
Weighted-average remaining lease term - operating leases 21 years
Weighted-average remaining lease term - finance leases 7 years
Weighted-average discount rate - operating leases 3.70%
Weighted-average discount rate - finance leases 0.90%
v3.19.3.a.u2
Leases - Maturities of Lease Liabilities in Accordance with ASC 842 (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Operating leases  
2020 $ 47
2021 45
2022 42
2023 39
2024 36
Thereafter 422
Total minimum lease payments 631
Less: amount representing interest (206)
Total operating lease liabilities 425
Finance leases  
2020 3
2021 2
2022 2
2023 2
2024 2
Thereafter 3
Total minimum lease payments 14
Less: amount representing interest (3)
Total finance lease liabilities $ 11
v3.19.3.a.u2
Leases - Maturities of Lease Liabilities in Accordance with ASC 840 (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Operating leases  
2019 $ 46
2020 42
2021 42
2022 38
2023 35
Thereafter 448
Total minimum lease payments 651
Capital leases  
2019 3
2020 3
2021 2
2022 2
2023 2
Thereafter 5
Total minimum lease payments 17
Less: amount representing interest (5)
Present value of minimum lease payments $ 12
v3.19.3.a.u2
Leases - Rental Income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Leases [Abstract]      
Rental income $ 23 $ 25 $ 27
v3.19.3.a.u2
Leases - Maturities of Future Minimum Lease Receipts Under ASC 842 (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Leases [Abstract]  
2020 $ 19
2021 13
2022 11
2023 8
2024 4
Thereafter 8
Total minimum lease receipts $ 63
v3.19.3.a.u2
Leases - Maturities of Future Minimum Lease Receipts Under ASC 840 (Details)
$ in Millions
Dec. 31, 2018
USD ($)
Leases [Abstract]  
2019 $ 22
2020 18
2021 16
2022 15
2023 11
Thereafter 48
Total minimum lease receipts $ 130
v3.19.3.a.u2
Goodwill and Intangible Assets, Net - Goodwill Changes Table (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Goodwill      
Goodwill, beginning balance $ 403,000,000 $ 245,000,000  
Accumulated impairment losses, beginning balance (120,000,000) (95,000,000)  
Goodwill, net, beginning balance 283,000,000 150,000,000  
Additions   158,000,000  
Impairment losses   (25,000,000) $ 0
Measurement period adjustments (Note 7) (43,000,000)    
Goodwill, ending balance 446,000,000 403,000,000 245,000,000
Accumulated impairment losses, ending balance (120,000,000) (120,000,000) (95,000,000)
Goodwill, net, ending balance 326,000,000 283,000,000 150,000,000
Operating Segments | Owned and leased hotels      
Goodwill      
Goodwill, beginning balance 189,000,000 189,000,000  
Accumulated impairment losses, beginning balance (116,000,000) (95,000,000)  
Goodwill, net, beginning balance 73,000,000 94,000,000  
Additions   0  
Impairment losses   (21,000,000)  
Measurement period adjustments (Note 7) 0    
Goodwill, ending balance 189,000,000 189,000,000 189,000,000
Accumulated impairment losses, ending balance (116,000,000) (116,000,000) (95,000,000)
Goodwill, net, ending balance 73,000,000 73,000,000 94,000,000
Operating Segments | Americas management and franchising      
Goodwill      
Goodwill, beginning balance 168,000,000 33,000,000  
Accumulated impairment losses, beginning balance 0 0  
Goodwill, net, beginning balance 168,000,000 33,000,000  
Additions   135,000,000  
Impairment losses   0  
Measurement period adjustments (Note 7) (64,000,000)    
Goodwill, ending balance 232,000,000 168,000,000 33,000,000
Accumulated impairment losses, ending balance 0 0 0
Goodwill, net, ending balance 232,000,000 168,000,000 33,000,000
Operating Segments | ASPAC management and franchising      
Goodwill      
Goodwill, beginning balance 18,000,000 0  
Accumulated impairment losses, beginning balance 0 0  
Goodwill, net, beginning balance 18,000,000 0  
Additions   18,000,000  
Impairment losses   0  
Measurement period adjustments (Note 7) 18,000,000    
Goodwill, ending balance 0 18,000,000 0
Accumulated impairment losses, ending balance 0 0 0
Goodwill, net, ending balance 0 18,000,000 0
Operating Segments | EAME/SW Asia management and franchising      
Goodwill      
Goodwill, beginning balance 3,000,000    
Accumulated impairment losses, beginning balance 0 0  
Goodwill, net, beginning balance 3,000,000    
Additions   3,000,000  
Impairment losses   0  
Measurement period adjustments (Note 7) 3,000,000    
Goodwill, ending balance 0 3,000,000  
Accumulated impairment losses, ending balance 0 0 0
Goodwill, net, ending balance 0 3,000,000  
Corporate and other      
Goodwill      
Goodwill, beginning balance 25,000,000 23,000,000  
Accumulated impairment losses, beginning balance (4,000,000) 0  
Goodwill, net, beginning balance 21,000,000 23,000,000  
Additions   2,000,000  
Impairment losses   (4,000,000)  
Measurement period adjustments (Note 7) 0    
Goodwill, ending balance 25,000,000 25,000,000 23,000,000
Accumulated impairment losses, ending balance (4,000,000) (4,000,000) 0
Goodwill, net, ending balance $ 21,000,000 $ 21,000,000 $ 23,000,000
v3.19.3.a.u2
Goodwill and Intangible Assets, Net - Intangible Assets Table (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Schedule of Intangible Asset by Major Class      
Intangibles $ 533   $ 713
Less: accumulated amortization (96)   (85)
Intangibles, net 437 $ 525 628
Management and franchise agreement intangibles      
Schedule of Intangible Asset by Major Class      
Intangibles $ 367   390
Weighted average useful life 18 years    
Lease related intangibles      
Schedule of Intangible Asset by Major Class      
Intangibles $ 0   121
Advanced booking intangibles      
Schedule of Intangible Asset by Major Class      
Intangibles $ 14   14
Weighted average useful life 5 years    
Other definite-lived intangibles      
Schedule of Intangible Asset by Major Class      
Intangibles $ 8   8
Weighted average useful life 6 years    
Brand and other indefinite-lived intangibles      
Schedule of Intangible Asset by Major Class      
Intangibles $ 144   $ 180
v3.19.3.a.u2
Goodwill and Intangible Assets, Net - Amortization Expense Table (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 25 $ 15 $ 13
v3.19.3.a.u2
Goodwill and Intangible Assets, Net - Future Amortization Table (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Estimate Amortization Expense For Definite-lived Intangibles  
2020 $ 28
2021 27
2022 25
2023 24
2024 23
Thereafter 166
Total amortization expense $ 293
v3.19.3.a.u2
Goodwill and Intangible Assets, Net - Impairment Charges (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]      
Impairment losses   $ 25,000,000 $ 0
Management and franchise agreement intangibles      
Finite-Lived Intangible Assets [Line Items]      
Impairment losses $ 18,000,000 $ 25,000,000  
v3.19.3.a.u2
Other Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Other Assets, Noncurrent [Abstract]      
Marketable securities held to fund rabbi trusts (Note 4) $ 450   $ 367
Management and franchise agreement assets constituting payments to customers (1) 423   396
Marketable securities held to fund the loyalty program (Note 4) 347   303
Long-term investments 162   112
Common shares of Playa N.V. (Note 4) 102   87
Other 104   88
Total other assets $ 1,588 $ 1,346 $ 1,353
v3.19.3.a.u2
Debt - Schedule of Debt (Details)
R$ in Millions
Dec. 31, 2019
USD ($)
Dec. 31, 2019
BRL (R$)
Dec. 31, 2018
USD ($)
Dec. 31, 2018
BRL (R$)
Dec. 31, 2016
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2011
USD ($)
Debt Instrument              
Long-term debt gross $ 1,627,000,000   $ 1,638,000,000        
Other 1,000,000   1,000,000        
Finance lease obligations 11,000,000            
Finance lease obligations     12,000,000        
Total debt 1,638,000,000   1,650,000,000        
Less: current maturities (11,000,000)   (11,000,000)        
Less: unamortized discounts and deferred financing fees (15,000,000)   (16,000,000)        
Total long-term debt 1,612,000,000   1,623,000,000        
$196 million senior unsecured notes maturing in 2019—6.875% | Senior Notes              
Debt Instrument              
Debt instrument, face amount     196,000,000        
$250 million senior unsecured notes maturing in 2021—5.375%              
Debt Instrument              
Debt instrument, face amount 250,000,000            
$250 million senior unsecured notes maturing in 2021—5.375% | Senior Notes              
Debt Instrument              
Long-term debt gross $ 250,000,000   250,000,000        
Debt instrument, face amount             $ 250,000,000
Debt instrument, interest rate, stated percentage 5.375% 5.375%         5.375%
$350 million senior unsecured notes maturing in 2023—3.375%              
Debt Instrument              
Debt instrument, face amount $ 350,000,000            
$350 million senior unsecured notes maturing in 2023—3.375% | Senior Notes              
Debt Instrument              
Long-term debt gross $ 350,000,000   350,000,000        
Debt instrument, face amount           $ 350,000,000  
Debt instrument, interest rate, stated percentage 3.375% 3.375%       3.375%  
$400 million senior unsecured notes maturing in 2026—4.850%              
Debt Instrument              
Debt instrument, face amount $ 400,000,000            
$400 million senior unsecured notes maturing in 2026—4.850% | Senior Notes              
Debt Instrument              
Long-term debt gross $ 400,000,000   400,000,000        
Debt instrument, face amount         $ 400,000,000    
Debt instrument, interest rate, stated percentage 4.85% 4.85%     4.85%    
$400 million senior unsecured notes maturing in 2028—4.375%              
Debt Instrument              
Debt instrument, face amount $ 400,000,000            
$400 million senior unsecured notes maturing in 2028—4.375% | Senior Notes              
Debt Instrument              
Long-term debt gross $ 400,000,000   400,000,000        
Less: unamortized discounts and deferred financing fees     (4,000,000)        
Debt instrument, interest rate, stated percentage 4.375% 4.375%          
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A | Contract Revenue Bonds              
Debt Instrument              
Long-term debt gross $ 130,000,000   130,000,000        
Contract Revenue Bonds, Senior Taxable Series 2005B | Contract Revenue Bonds              
Debt Instrument              
Long-term debt gross 47,000,000   52,000,000        
Floating average rate construction loan              
Debt Instrument              
Floating average rate construction loan $ 49,000,000 R$ 197 $ 55,000,000 R$ 214      
v3.19.3.a.u2
Debt - Schedule of Maturities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Maturities of Debt    
2019 $ 11  
2020 261  
2021 11  
2022 361  
2023 12  
Thereafter 982  
Total debt $ 1,638 $ 1,650
v3.19.3.a.u2
Debt - Senior Notes Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2013
Dec. 31, 2011
Debt Instrument            
Unamortized discounts and deferred financing fees $ 15,000,000 $ 16,000,000        
Loss on extinguishment of debt 0 7,000,000 $ 0      
2021 Notes            
Debt Instrument            
Debt instrument, face amount 250,000,000          
2023 Notes            
Debt Instrument            
Debt instrument, face amount 350,000,000          
2026 Notes            
Debt Instrument            
Debt instrument, face amount 400,000,000          
$400 million senior unsecured notes maturing in 2028—4.375%            
Debt Instrument            
Debt instrument, face amount $ 400,000,000          
Senior Notes            
Debt Instrument            
Debt instrument, redemption price, percentage 100.00%          
Senior Notes | 2021 Notes            
Debt Instrument            
Debt instrument, face amount           $ 250,000,000
Debt instrument, interest rate, stated percentage 5.375%         5.375%
Issue price percentage           99.846%
Senior Notes | 2023 Notes            
Debt Instrument            
Debt instrument, face amount         $ 350,000,000  
Debt instrument, interest rate, stated percentage 3.375%       3.375%  
Issue price percentage         99.498%  
Senior Notes | 2026 Notes            
Debt Instrument            
Debt instrument, face amount       $ 400,000,000    
Debt instrument, interest rate, stated percentage 4.85%     4.85%    
Issue price percentage       99.92%    
Senior Notes | $400 million senior unsecured notes maturing in 2028—4.375%            
Debt Instrument            
Debt instrument, interest rate, stated percentage 4.375%          
Proceeds from issuance of debt   396,000,000        
Unamortized discounts and deferred financing fees   4,000,000        
Senior Notes | 2019 Notes            
Debt Instrument            
Debt instrument, face amount   196,000,000        
Make-whole premium   203,000,000        
Loss on extinguishment of debt   $ 7,000,000        
v3.19.3.a.u2
Debt - Contract Revenue Bonds Narrative (Details) - Contract Revenue Bonds - USD ($)
$ in Millions
Dec. 31, 2013
Jun. 08, 2005
Debt Instrument    
Long-term debt $ 198  
Debt instrument, unamortized discount $ 9  
Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A    
Debt Instrument    
Long-term debt   $ 130
Contract Revenue Bonds, Senior Taxable Series 2005B    
Debt Instrument    
Long-term debt   $ 78
Minimum | Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A    
Debt Instrument    
Debt instrument, interest rate, stated percentage   4.75%
Minimum | Contract Revenue Bonds, Senior Taxable Series 2005B    
Debt Instrument    
Debt instrument, interest rate, stated percentage   5.10%
Maximum | Tax-Exempt Contract Revenue Empowerment Zone Bonds, Series 2005A    
Debt Instrument    
Debt instrument, interest rate, stated percentage   5.00%
Maximum | Contract Revenue Bonds, Senior Taxable Series 2005B    
Debt Instrument    
Debt instrument, interest rate, stated percentage   5.31%
v3.19.3.a.u2
Debt - Floating Average Rate Construction Loan Narrative (Details) - Floating average rate construction loan
R$ in Millions, $ in Millions
12 Months Ended
Dec. 31, 2012
sub-loan
Dec. 31, 2019
USD ($)
Dec. 31, 2019
BRL (R$)
Dec. 31, 2018
USD ($)
Dec. 31, 2018
BRL (R$)
Debt Instrument          
Number of loans 4        
Debt, weighted average interest rate   7.54% 7.54%    
Floating average rate construction loan   $ 49 R$ 197 $ 55 R$ 214
Subloan (b)          
Debt Instrument          
Debt instrument, basis spread on variable rate 2.92%        
Subloan (c)          
Debt Instrument          
Debt instrument, interest rate, stated percentage 2.50%        
Brazilian long-term interest rate | Sub Loans (b) and (d)          
Debt Instrument          
Debt instrument, variable interest rate percent, threshold for daily capitalization 6.00%        
v3.19.3.a.u2
Debt - Revolving Credit Facility Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Revolving credit facility    
Debt Instrument    
Proceeds from revolving credit facility during period $ 400,000,000  
Revolving credit facility, weighted average interest rate 3.47%  
Revolving credit facility, outstanding balance   $ 0
Line of credit | Revolving credit facility    
Debt Instrument    
Line of credit facility, maximum borrowing capacity $ 1,500,000,000  
Additional non-revolving credit facility banks    
Debt Instrument    
Revolving credit facility, remaining borrowing capacity $ 263,000,000 $ 277,000,000
v3.19.3.a.u2
Debt - Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Debt Instrument    
Finance lease obligations $ 11  
Unamortized discounts and deferred financing fees 15 $ 16
Capital lease obligations   12
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 1,680 1,584
Significant unobservable inputs (Level Three)    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value 60 67
Carrying value    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value 1,627 1,638
Fair value    
Debt Instrument    
Debt, excluding capital lease obligations and unamortized discounts and deferred financing fees, fair value $ 1,740 $ 1,651
v3.19.3.a.u2
Debt - Interest Rate Locks (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Derivative [Line Items]    
Unrealized gains (losses) on derivative activity, net of tax benefit $ (20,000,000) $ (4,000,000)
Interest Rate Contract    
Derivative [Line Items]    
Derivative, notional amount 275,000,000 200,000,000
Derivative liability, noncurrent $ 24,000,000 4,000,000
Interest rate locks settled   $ 225,000,000
v3.19.3.a.u2
Employee Benefit Plans - Defined Benefit Plans (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Retirement Benefits [Abstract]    
Accumulated benefit obligation $ 21 $ 19
Accrued long-term benefit liability 20 $ 18
Expected benefits to be paid annually over the next 10 years $ 1  
v3.19.3.a.u2
Employee Benefit Plans - Defined Contribution Plans (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Retirement Benefits [Abstract]      
Defined contribution plans $ 48 $ 41 $ 39
v3.19.3.a.u2
Employee Benefit Plans - Employee Stock Purchase Program (Details) - shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Retirement Benefits [Abstract]    
Price per share for the ESPP (percentage) 95.00%  
Stock issued during period, shares, ESPP (in shares) 79,700 61,900
v3.19.3.a.u2
Other Long-Term Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Other Liabilities, Noncurrent [Abstract]      
Deferred compensation plans funded by rabbi trusts (Note 4) $ 450   $ 367
Income taxes payable 147   131
Self-insurance liabilities (Note 15) 80   78
Deferred income taxes (Note 14) 47   54
Guarantee liabilities (Note 15) 46   76
Other 114   134
Total other long-term liabilities $ 884 $ 791 $ 840
v3.19.3.a.u2
Income Taxes - Domestic and Foreign Components of Pretax Income (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
U.S. income before tax $ 466 $ 652 $ 650
Foreign income before tax 540 299 72
INCOME BEFORE INCOME TAXES $ 1,006 $ 951 $ 722
v3.19.3.a.u2
Income Taxes - Provision (Benefit) for Income Taxes from Continuing Operations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Current:      
Federal $ 74 $ 140 $ 201
State 35 50 45
Foreign 103 25 30
Total Current 212 215 276
Deferred:      
Federal 29 (35) 46
State 2 (12) (3)
Foreign (3) 14 13
Total Deferred 28 (33) 56
Total $ 240 $ 182 $ 332
v3.19.3.a.u2
Income Taxes - Effective Tax Rate Reconciliation (Details)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Disclosure [Abstract]      
Statutory U.S. federal income tax rate 21.00% 21.00% 35.00%
State income taxes—net of federal tax benefit 2.70% 2.60% 3.80%
Impact of foreign operations (excluding unconsolidated hospitality ventures losses) (2.00%) (5.60%) (5.40%)
U.S. foreign tax credits 0.00% (1.60%) 0.70%
2017 Tax Act deferred rate change 0.00% (0.10%) 6.30%
2017 Tax Act deemed repatriation tax 0.00% 0.30% 1.80%
Change in valuation allowances 1.00% 0.90% 1.00%
Foreign unconsolidated hospitality ventures 0.50% 0.90% 0.90%
Tax contingencies 0.30% 1.00% 1.00%
Equity based compensation 0.20% 0.30% 0.60%
General business credits (0.30%) (0.50%) (0.30%)
Other 0.50% (0.10%) 0.50%
Effective income tax rate 23.90% 19.10% 45.90%
v3.19.3.a.u2
Income Taxes - Effective Tax Rate Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Income Tax Contingency    
Foreign tax credit, valuation allowance $ 15 $ 15
Tax Act, provisional income tax expense (benefit)   45
Tax Act, provisional expense   13
Statute expiration on state tax filing positions    
Income Tax Contingency    
Effective income tax rate reconciliation, tax contingency, amount   $ 10
v3.19.3.a.u2
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Dec. 31, 2018
Deferred tax assets related to:    
Employee benefits $ 134 $ 133
Loyalty program 118 99
Long-term operating lease liabilities 103  
Foreign and state net operating losses and credit carryforwards 50 57
Allowance for uncollectible assets 33 31
Investments 28 37
Unrealized losses 7 3
Interest and state benefits 3 3
Other 33 41
Valuation allowance (41) (41)
Total deferred tax asset 468 363
Deferred tax liabilities related to:    
Property and equipment (152) (131)
Operating ROU assets (105)  
Intangibles (59) (49)
Investments (36) (16)
Prepaid expenses (9) (7)
Unrealized gains (2) (24)
Other (8) (10)
Total deferred tax liabilities (371) (237)
Net deferred tax assets 97 126
Deferred tax assets—noncurrent 144 180
Deferred tax liabilities—noncurrent $ (47) $ (54)
v3.19.3.a.u2
Income Taxes - Unrecognized Taxes Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Nov. 30, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Contingency        
Deferred tax liabilities, property and equipment   $ 152 $ 131  
Undistributed earnings of foreign subsidiaries   451    
Deferred tax assets, operating loss carryforwards   50 57  
Deferred tax assets, operating loss carryforwards, not subject to expiration   27    
Operating loss carryforwards, valuation allowance   41    
Unrecognized tax benefits   125 116 $ 94
Amount of unrecognized tax benefits that would impact effective tax rate if recognized   36 15  
Significant change in unrecognized tax benefits is reasonably possible   6    
Unrecognized tax benefits, increase resulting from current period tax positions   21 10  
Unrecognized tax benefits, income tax penalties and interest accrued   22 18  
Income tax examination, penalties and interest expense (benefit)   5 0  
State and foreign        
Income Tax Contingency        
Deferred tax assets, operating loss carryforwards   46    
Deferred tax assets, operating loss carryforwards expiring   23    
Federal and state        
Income Tax Contingency        
Deferred tax assets, tax credit carryforwards   4    
Domestic tax authority        
Income Tax Contingency        
Unrecognized tax benefits, increase resulting from current period tax positions   9 $ 22  
Possible settlement with taxing authority        
Income Tax Contingency        
Amount of unrecognized tax benefits that would impact effective tax rate if recognized   69    
Estimated income tax liability based on taxing authority's assessment   191    
Estimated interest, net of federal tax benefit, included in taxing authority assessment   47    
Two Roads Hospitality LLC        
Income Tax Contingency        
Deferred tax liabilities, property and equipment   21    
Deferred tax liabilities, intangible assets   $ 10    
Income tax examination, penalties and interest expense (benefit) $ 4      
v3.19.3.a.u2
Income Taxes - Unrecognized Tax Benefits Rollforward (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Unrecognized Tax Benefits    
Unrecognized tax benefits—beginning balance $ 116 $ 94
Total increases—current-period tax positions 21 10
Total increases (decreases)—prior-period tax positions (7)  
Total increases (decreases)—prior-period tax positions   18
Settlements (3) (1)
Lapse of statute of limitations (3) (4)
Foreign currency fluctuation 1  
Foreign currency fluctuation   (1)
Unrecognized tax benefits—ending balance $ 125 $ 116
v3.19.3.a.u2
Commitments and Contingencies - Commitments, Guarantees Narrative (Details)
€ in Millions
12 Months Ended
Dec. 31, 2019
USD ($)
hotel
Dec. 31, 2019
EUR (€)
hotel
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Performance guarantees        
Loss Contingencies        
Remaining maximum exposure $ 238,000,000      
Guarantor obligations, liability (asset), current carrying value 33,000,000   $ 47,000,000 $ 71,000,000
Performance Test Clause Guarantee        
Loss Contingencies        
Guarantor obligations, liability (asset), current carrying value $ 0   0  
The four managed hotels in France | Performance guarantees        
Loss Contingencies        
Performance guarantee initial term 7 years      
Remaining maximum exposure $ 165,000,000 € 147    
Number of hotels managed | hotel 4 4    
Guarantor obligations, liability (asset), current carrying value $ 20,000,000   36,000,000 $ 58,000,000
Other long-term liabilities | Performance guarantees        
Loss Contingencies        
Guarantor obligations, liability (asset), current carrying value 14,000,000   25,000,000  
Accrued expenses and other current liabilities | Performance guarantees        
Loss Contingencies        
Guarantor obligations, liability (asset), current carrying value 19,000,000   $ 22,000,000  
Various Business Ventures        
Loss Contingencies        
Commitment to loan or investment $ 296,000,000      
v3.19.3.a.u2
Commitments and Contingencies - Schedule of Guarantor Obligations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Guarantor Obligations      
Amortization of initial guarantee obligation liability into income $ (18) $ (18) $ (19)
Performance guarantee expense, net 42 59 77
Foreign currency exchange, net 1 4 (2)
Performance guarantees      
Guarantor Obligations      
Beginning Balance 47 71  
Initial guarantee obligation liability 7 0  
Amortization of initial guarantee obligation liability into income (18) (18)  
Performance guarantee expense, net 42 59  
Net payments during the year (44) (65)  
Foreign currency exchange, net (1) 0  
Ending Balance 33 47 71
The four managed hotels in France | Performance guarantees      
Guarantor Obligations      
Beginning Balance 36 58  
Initial guarantee obligation liability 0 0  
Amortization of initial guarantee obligation liability into income (15) (15)  
Performance guarantee expense, net 37 55  
Net payments during the year (37) (62)  
Foreign currency exchange, net (1) 0  
Ending Balance 20 36 58
Other performance guarantees | Performance guarantees      
Guarantor Obligations      
Beginning Balance 11 13  
Initial guarantee obligation liability 7 0  
Amortization of initial guarantee obligation liability into income (3) (3)  
Performance guarantee expense, net 5 4  
Net payments during the year (7) (3)  
Foreign currency exchange, net 0 0  
Ending Balance $ 13 $ 11 $ 13
v3.19.3.a.u2
Commitments and Contingencies - Debt Repayment and Other Guarantee (Details) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Loss Contingencies      
Guarantor obligations, carrying value, noncurrent $ 46,000,000 $ 76,000,000  
Release and amortization of debt repayment guarantee liability 18,000,000 11,000,000 $ 10,000,000
Debt repayment and other guarantees      
Loss Contingencies      
Maximum potential future payments 415,000,000    
Maximum exposure net of recoverability from third parties 270,000,000    
Guarantor obligations, carrying value, noncurrent 32,000,000 51,000,000  
Debt repayment and other guarantees | Hotel properties in India      
Loss Contingencies      
Maximum potential future payments 169,000,000    
Maximum exposure net of recoverability from third parties 169,000,000    
Guarantor obligations, carrying value, noncurrent 5,000,000 10,000,000  
Debt repayment and other guarantees | Hotel and Residential Properties In Brazil      
Loss Contingencies      
Maximum potential future payments 97,000,000    
Maximum exposure net of recoverability from third parties 40,000,000    
Guarantor obligations, carrying value, noncurrent 3,000,000 3,000,000  
Debt repayment and other guarantees | Hotel Properties In Tennessee      
Loss Contingencies      
Maximum potential future payments 44,000,000    
Maximum exposure net of recoverability from third parties 20,000,000    
Guarantor obligations, carrying value, noncurrent 8,000,000 2,000,000  
Debt repayment and other guarantees | Hotel properties in California      
Loss Contingencies      
Maximum potential future payments 31,000,000    
Maximum exposure net of recoverability from third parties 12,000,000    
Guarantor obligations, carrying value, noncurrent 3,000,000 4,000,000  
Debt repayment and other guarantees | Hotel property in Massachusetts      
Loss Contingencies      
Maximum potential future payments 30,000,000    
Maximum exposure net of recoverability from third parties 14,000,000    
Guarantor obligations, carrying value, noncurrent 6,000,000 8,000,000  
Debt repayment and other guarantees | Hotel Property In Oregon      
Loss Contingencies      
Maximum potential future payments 15,000,000    
Maximum exposure net of recoverability from third parties 6,000,000    
Guarantor obligations, carrying value, noncurrent 3,000,000 4,000,000  
Debt repayment and other guarantees | Hotel property in Arizona      
Loss Contingencies      
Maximum potential future payments 14,000,000    
Maximum exposure net of recoverability from third parties 0    
Guarantor obligations, carrying value, noncurrent 1,000,000 1,000,000  
Debt repayment and other guarantees | Other      
Loss Contingencies      
Maximum potential future payments 15,000,000    
Maximum exposure net of recoverability from third parties 9,000,000    
Guarantor obligations, carrying value, noncurrent 3,000,000 $ 19,000,000  
Release and amortization of debt repayment guarantee liability 15,000,000    
Joint venture | Debt repayment and other guarantees | Hotel properties in India      
Loss Contingencies      
Maximum exposure net of recoverability from third parties $ 85,000,000    
Equity method investment, ownership percentage 50.00%    
Construction Loans | Debt repayment and other guarantees      
Loss Contingencies      
Maximum exposure net of recoverability from third parties $ 0    
Completion Guarantee | Debt repayment and other guarantees      
Loss Contingencies      
Maximum potential future payments $ 3,000,000    
v3.19.3.a.u2
Commitments and Contingencies - Additional Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Loss Contingencies    
Guarantees, fair value disclosure $ 62 $ 128
Self Insurance reserve, current 41 38
Self-insurance liabilities (Note 15) 80 $ 78
Surety bonds 48  
Letter of Credit    
Loss Contingencies    
Letters of credit outstanding 264  
Letters of credit outstanding, reduction to available capacity 1  
Maximum    
Loss Contingencies    
Estimate of possible loss $ 18  
Various US    
Loss Contingencies    
Multiemployer plans, collective-bargaining arrangement, percentage of participants 23.00%  
v3.19.3.a.u2
Stockholders' Equity and Comprehensive Loss - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Share Repurchase      
Stock repurchase program, authorized amount $ 1,250,000,000 $ 750,000,000 $ 750,000,000
Stock repurchased and retired during period (in shares) 244,260 5,621,281 12,723,895
Stock repurchased and retired during period   $ 421,000,000 $ 966,000,000
Percent repurchased (percentage)   5.00% 11.00%
Stock repurchase program, remaining authorized repurchase amount   $ 997,000,000  
Weighted average      
Share Repurchase      
Stock repurchased and retired during period (in dollars per share)   $ 74.85 $ 75.68
Pritzker Family Business Interests      
Common Stock      
Percent of Class B Common Stock owned (percentage)   96.50%  
Percent of outstanding shares of Common Stock (percentage)   63.20%  
Percent of total voting power, Common Stock (percentage)   91.60%  
Pritzker Family Business Interests | Maximum      
Common Stock      
Percent of Class A Common Stock owned (percentage)   2.90%  
Other Business Interests With Significant Ownership Percentage      
Common Stock      
Percent of Class B Common Stock owned (percentage)   3.50%  
Percent of outstanding shares of Common Stock (percentage)   2.20%  
Percent of total voting power, Common Stock (percentage)   3.30%  
November 2017 ASR      
Share Repurchase      
Stock repurchased and retired during period     $ 20,000,000
v3.19.3.a.u2
Stockholders' Equity and Comprehensive Loss - Schedule of Shares Repurchased (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Share Repurchases      
Stock repurchased and retired during period (in shares) 244,260 5,621,281 12,723,895
Total cash paid   $ 421 $ 966
Weighted average      
Share Repurchases      
Stock repurchased and retired during period (in dollars per share)   $ 74.85 $ 75.68
May 2018 ASR      
Share Repurchases      
Stock repurchased and retired during period (in shares)     2,481,341
Total cash paid     $ 200
May 2018 ASR | Weighted average      
Share Repurchases      
Stock repurchased and retired during period (in dollars per share)     $ 80.60
November 2018 ASR      
Share Repurchases      
Stock repurchased and retired during period (in shares)     2,575,095
Total cash paid     $ 180
November 2018 ASR | Weighted average      
Share Repurchases      
Stock repurchased and retired during period (in dollars per share)     $ 69.90
v3.19.3.a.u2
Stockholders' Equity and Comprehensive Loss - Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Increase (Decrease) in AOCI    
Balance, beginning of period $ 3,677 $ 3,843
Balance, end of period 3,967 3,677
Foreign currency translation adjustments (a)    
Increase (Decrease) in AOCI    
Balance, beginning of period (191)  
Beginning balance, adjusted   (243)
Current period other comprehensive income (loss) before reclassification 1 (25)
Amount reclassified from accumulated other comprehensive loss 7 77
Balance, end of period (183) (191)
Unrealized gains on AFS debt securities    
Increase (Decrease) in AOCI    
Balance, beginning of period 0  
Current period other comprehensive income (loss) before reclassification 1  
Amount reclassified from accumulated other comprehensive loss 0  
Balance, end of period 1 0
Unrecognized pension cost    
Increase (Decrease) in AOCI    
Balance, beginning of period (5)  
Beginning balance, adjusted   (7)
Current period other comprehensive income (loss) before reclassification (4) 2
Amount reclassified from accumulated other comprehensive loss 0 0
Balance, end of period (9) (5)
Unrealized losses on derivative instruments    
Increase (Decrease) in AOCI    
Balance, beginning of period (4)  
Beginning balance, adjusted   (3)
Current period other comprehensive income (loss) before reclassification (15) (1)
Amount reclassified from accumulated other comprehensive loss 1 0
Balance, end of period (18) (4)
Accumulated other comprehensive income (loss)    
Increase (Decrease) in AOCI    
Balance, beginning of period (200) (185)
Beginning balance, adjusted   (253)
Current period other comprehensive income (loss) before reclassification (17) (24)
Amount reclassified from accumulated other comprehensive loss 8 77
Balance, end of period $ (209) $ (200)
v3.19.3.a.u2
Stockholders' Equity and Comprehensive Loss - Dividend (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Dec. 09, 2019
Oct. 30, 2019
Sep. 09, 2019
Jul. 31, 2019
Jun. 10, 2019
May 17, 2019
Mar. 11, 2019
Feb. 13, 2019
Dec. 10, 2018
Oct. 30, 2018
Sep. 20, 2018
Jul. 31, 2018
Jun. 28, 2018
May 16, 2018
Mar. 29, 2018
Feb. 14, 2018
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Class of Stock [Line Items]                                                    
Dividends                                                 $ 80 $ 68
Cash dividends declared (in dollars per share)   $ 0.19   $ 0.19   $ 0.19   $ 0.19   $ 0.15   $ 0.15   $ 0.15   $ 0.15 $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.15 $ 0.15 $ 0.15 $ 0.15    
Cash dividends (in dollars per share) $ 0.19   $ 0.19   $ 0.19   $ 0.19   $ 0.15   $ 0.15   $ 0.15   $ 0.15                   $ 0.19 $ 0.15
Common Class A                                                    
Class of Stock [Line Items]                                                    
Dividends                                                 $ 29 $ 27
Common Class B                                                    
Class of Stock [Line Items]                                                    
Dividends                                                 $ 51 $ 41
v3.19.3.a.u2
Stock-Based Compensation - Compensation Expense Related To Long-Term Incentive Plan (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award      
Number of shares authorized for share based compensation (in shares) 14,375,000    
Compensation expense $ 35 $ 29 $ 29
Stock appreciation rights (SARs)      
Share-based Compensation Arrangement by Share-based Payment Award      
Compensation expense 11 10 11
Restricted stock units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award      
Compensation expense 17 15 16
PSUs      
Share-based Compensation Arrangement by Share-based Payment Award      
Compensation expense 6 4 2
Other      
Share-based Compensation Arrangement by Share-based Payment Award      
Compensation expense $ 1 $ 0 $ 0
v3.19.3.a.u2
Stock-Based Compensation - Income Tax Benefit Share Based Compensation (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Income Tax Benefit Share Based Compensation      
Employee service share-based compensation, tax benefit $ 10 $ 7 $ 8
Stock appreciation rights (SARs)      
Income Tax Benefit Share Based Compensation      
Employee service share-based compensation, tax benefit 3 2 3
Restricted stock units (RSUs)      
Income Tax Benefit Share Based Compensation      
Employee service share-based compensation, tax benefit 5 4 4
PSUs      
Income Tax Benefit Share Based Compensation      
Employee service share-based compensation, tax benefit $ 2 $ 1 $ 1
v3.19.3.a.u2
Stock-Based Compensation - Stock Appreciation Rights by Grant Date (Details) - Stock appreciation rights (SARs) - $ / shares
1 Months Ended 12 Months Ended
Mar. 31, 2019
May 31, 2018
Mar. 31, 2018
Sep. 30, 2017
Mar. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award                
Granted (in shares)           643,989    
Grants in period, weighted-average fair value at grant date (in dollars per share)           $ 17.11 $ 21.18 $ 16.42
25% annually                
Share-based Compensation Arrangement by Share-based Payment Award                
Granted (in shares) 643,989 38,918 465,842 20,139 605,601      
Grants in period, weighted-average fair value at grant date (in dollars per share) $ 17.11 $ 21.84 $ 21.13 $ 18.62 $ 16.35      
Vesting period 25.00% 25.00% 25.00% 25.00% 25.00%      
v3.19.3.a.u2
Stock-Based Compensation - SAR Valuation Assumptions (Details) - Stock appreciation rights (SARs) - $ / shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award      
Exercise price (in dollars per share) $ 71.67 $ 80.12 $ 52.93
Expected life in years 6 years 3 months 6 years 2 months 26 days 6 years 2 months 26 days
Risk-free interest rate 2.40% 2.79% 2.11%
Expected volatility 22.51% 22.97% 26.56%
Annual dividend yield 1.06% 0.75% 0.00%
v3.19.3.a.u2
Stock-Based Compensation - Summary of SAR Activity (Details) - Stock appreciation rights (SARs) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Beginning balance (in shares) 3,488,886    
Granted (in shares) 643,989    
Exercised (in shares) (240,417)    
Forfeited or expired (in shares) (48,101)    
Ending balance (in shares) 3,844,357 3,488,886  
Exercisable (in shares) 2,458,448    
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Exercise Price [Roll Forward]      
Beginning balance, weighted average exercise price (in dollars per share) $ 51.27    
Grants in period, weighted-average fair value at grant date (in dollars per share) 71.67    
Exercises in period, weighted average exercise price (in dollars per share) 36.48    
Forfeited or expired, weighted average exercise price (in dollars per share) 66.00    
Ending balance, weighted average exercise price (in dollars per share) 55.51 $ 51.27  
Exercisable, weighted average exercise price (in dollars per share) $ 48.72    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]      
Outstanding, weighted average remaining contractual term 5 years 9 months 10 days 5 years 9 months 18 days  
Exercisable, weighted average contractual term 4 years 4 months 17 days    
Exercised intrinsic value $ 16 $ 7 $ 24
Outstanding intrinsic value 131    
Exercisable intrinsic value $ 101    
v3.19.3.a.u2
Stock-Based Compensation - RSU Activity by Grant Date (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2019
May 31, 2019
Mar. 31, 2019
Feb. 28, 2019
Dec. 31, 2018
Sep. 30, 2018
May 31, 2018
Mar. 31, 2018
Feb. 28, 2018
Dec. 31, 2017
Sep. 30, 2017
May 31, 2017
Mar. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award                                
Stock-based compensation expense                           $ 35.0 $ 29.0 $ 29.0
Restricted stock units (RSUs)                                
Share-based Compensation Arrangement by Share-based Payment Award                                
Granted (in shares) 9,695 23,672 329,239 2,863 9,650 10,034 4,306 254,707 3,502 9,238   1,390 416,404 365,469    
Grants in period, weighted-average fair value at grant date (in dollars per share) $ 82.50 $ 77.54 $ 71.67 $ 69.85 $ 67.34 $ 76.72 $ 81.27 $ 80.02 $ 78.52 $ 70.35   $ 57.51 $ 52.65 $ 72.32 $ 79.47 $ 54.08
Total value $ 1.0 $ 2.0 $ 24.0 $ 0.0 $ 1.0 $ 1.0 $ 0.0 $ 20.0 $ 0.0 $ 1.0   $ 0.0 $ 22.0      
Vesting period       4 years     4 years   4 years     4 years        
Stock-based compensation expense                           $ 17.0 $ 15.0 $ 16.0
Cash settled restricted stock units (RSUs)                                
Share-based Compensation Arrangement by Share-based Payment Award                                
Liability for cash-settled RSU's $ 0.0                         0.0    
Stock-based compensation expense                           $ 0.0    
September 2017 Award One | Restricted stock units (RSUs)                                
Share-based Compensation Arrangement by Share-based Payment Award                                
Granted (in shares)                     22,357          
Grants in period, weighted-average fair value at grant date (in dollars per share)                     $ 61.50          
Total value                     $ 1.0          
September 2017 Award Two | Restricted stock units (RSUs)                                
Share-based Compensation Arrangement by Share-based Payment Award                                
Granted (in shares)                     43,151          
Grants in period, weighted-average fair value at grant date (in dollars per share)                     $ 60.48          
Total value                     $ 3.0          
v3.19.3.a.u2
Stock-Based Compensation - Summary of RSU Activity (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 12 Months Ended
Dec. 31, 2019
May 31, 2019
Mar. 31, 2019
Feb. 28, 2019
Dec. 31, 2018
Sep. 30, 2018
May 31, 2018
Mar. 31, 2018
Feb. 28, 2018
Dec. 31, 2017
May 31, 2017
Mar. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Date Fair Value [Roll Forward]                              
Beginning balance, nonvested weighted average (in dollars per share)                         $ 62.68    
Ending balance, nonvested weighted average (in dollars per share) $ 73.14       $ 62.68               $ 73.14 $ 62.68  
Restricted stock units (RSUs)                              
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]                              
Beginning balance (in shares)                         796,830    
Granted (in shares) 9,695 23,672 329,239 2,863 9,650 10,034 4,306 254,707 3,502 9,238 1,390 416,404 365,469    
Vested (in shares)                         (339,227)    
Forfeited or canceled (in shares)                         (47,790)    
Ending balance (in shares) 775,282       796,830               775,282 796,830  
Share-based Compensation Arrangement by Share-based Payment Award, Weighted Average Date Fair Value [Roll Forward]                              
Beginning balance, nonvested weighted average (in dollars per share)                         $ 61.31    
Granted, weighted-average (in dollars per share) $ 82.50 $ 77.54 $ 71.67 $ 69.85 $ 67.34 $ 76.72 $ 81.27 $ 80.02 $ 78.52 $ 70.35 $ 57.51 $ 52.65 72.32 $ 79.47 $ 54.08
Vested, weighted average (in dollars per share)                         58.73    
Forfeited or canceled, weighted average (in dollars per share)                         62.69    
Ending balance, nonvested weighted average (in dollars per share) $ 67.54       $ 61.31               $ 67.54 $ 61.31  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]                              
Intrinsic value, nonvested $ 70                       $ 70    
v3.19.3.a.u2
Stock-Based Compensation - Summary of PSU and PS Activity (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Beginning balance, nonvested weighted average (in dollars per share) $ 62.68    
Ending balance, nonvested weighted average (in dollars per share) $ 73.14 $ 62.68  
PSUs      
Share-based Compensation Arrangement by Share-based Payment Award      
PSUs Granted (in shares) 120,720 89,441 102,115
Granted, weighted-average (in dollars per share) $ 77.95 $ 82.10 $ 52.65
Performance period 3 years 3 years 3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Beginning balance (in shares) 204,489    
Granted (in shares) 120,720 89,441 102,115
Vested (in shares) (61,545)    
Forfeited or canceled (in shares) (3,248)    
Ending balance (in shares) 260,416 204,489  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Granted, weighted-average (in dollars per share) $ 77.95 $ 82.10 $ 52.65
Vested, weighted average (in dollars per share) 47.36    
Forfeited or canceled, weighted average (in dollars per share) $ 82.10    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract]      
Intrinsic value, nonvested $ 23    
v3.19.3.a.u2
Stock-Based Compensation - Unearned Compensation (Details)
$ in Millions
Dec. 31, 2019
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense $ 25
Stock appreciation rights (SARs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 2
Restricted stock units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 15
PSUs  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 8
2020  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 13
2020 | Stock appreciation rights (SARs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 1
2020 | Restricted stock units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 7
2020 | PSUs  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 5
2021  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 8
2021 | Stock appreciation rights (SARs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 1
2021 | Restricted stock units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 4
2021 | PSUs  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 3
2022  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 3
2022 | Stock appreciation rights (SARs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 0
2022 | Restricted stock units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 3
2022 | PSUs  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 0
2023  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 1
2023 | Stock appreciation rights (SARs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 0
2023 | Restricted stock units (RSUs)  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense 1
2023 | PSUs  
Share-based Compensation Arrangement by Share-based Payment Award  
Future compensation expense $ 0
v3.19.3.a.u2
Related-Party Transactions - Legal Services Narrative (Details) - Family member of management - Related party legal services - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Related Party Transaction      
Legal services $ 6,000,000 $ 6,000,000 $ 3,000,000
Due (to) from related party $ 0 $ 0  
v3.19.3.a.u2
Related-Party Transactions - Equity Method Investments Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Minimum      
Related Party Transaction      
Equity method investment, ownership percentage 24.00%    
Maximum      
Related Party Transaction      
Equity method investment, ownership percentage 50.00%    
Equity method investments      
Related Party Transaction      
Management and franchise fees revenues $ 22 $ 20 $ 24
Guarantee fees 4 7 $ 5
Due (to) from related party $ 17 $ 17  
v3.19.3.a.u2
Related-Party Transactions - Other Services Narrative (Details) - Limited Partnership Affiliated with Executive Chairman - Management Agreement - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Related Party Transaction    
Management fees $ 7,000,000  
Receivables due from related parties $ 0 $ 0
v3.19.3.a.u2
Related-Party Transactions - Class B Share Conversion (Details) - $ / shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Common Class B    
Related Party Transaction    
Conversion of stock, shares converted (in shares) 975,170 1,207,355
Common stock, par value per share (in dollars per share) $ 0.01 $ 0.01
Common Class A    
Related Party Transaction    
Common stock, par value per share (in dollars per share) $ 0.01 $ 0.01
v3.19.3.a.u2
Related-Party Transactions - Class B Shares Repurchased (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Related Party Transaction        
Stock repurchased and retired during period (in shares) 244,260 5,621,281 12,723,895  
Stock repurchased and retired during period   $ 421 $ 946 $ 743
Percent of stock outstanding repurchased during period   5.00% 11.00%  
Common Class B        
Related Party Transaction        
Stock repurchased and retired during period (in shares)   677,384 2,430,654  
Stock repurchased and retired during period (in dollars per share)   $ 74.21 $ 78.10  
Stock repurchased and retired during period   $ 50 $ 190  
Percent of stock outstanding repurchased during period   1.00% 2.00%  
v3.19.3.a.u2
Segment and Geographic Information - Summarized Consolidated Financial Information by Segment (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information                      
Revenue $ 1,275 $ 1,215 $ 1,289 $ 1,241 $ 1,138 $ 1,074 $ 1,133 $ 1,109 $ 5,020 $ 4,454 $ 4,462
Adjusted EBITDA                 754 777 792
Depreciation and amortization                 329 327 348
Capital expenditures                 369 297 298
Operating Segments | Owned and leased hotels                      
Segment Reporting Information                      
Adjusted EBITDA                 387 428 490
Depreciation and amortization                 244 266 295
Capital expenditures                 233 194 195
Operating Segments | Americas management and franchising                      
Segment Reporting Information                      
Revenue                 2,775 2,174 1,993
Adjusted EBITDA                 376 352 327
Depreciation and amortization                 24 9 7
Capital expenditures                 2 1 0
Operating Segments | ASPAC management and franchising                      
Segment Reporting Information                      
Revenue                 247 220 190
Adjusted EBITDA                 87 78 70
Depreciation and amortization                 3 1 1
Capital expenditures                 1 4 1
Operating Segments | EAME/SW Asia management and franchising                      
Segment Reporting Information                      
Revenue                 152 143 122
Adjusted EBITDA                 49 46 37
Depreciation and amortization                 1 1 0
Capital expenditures                 0 1 1
Corporate and Other                      
Segment Reporting Information                      
Revenue                 140 132 100
Adjusted EBITDA                 (146) (127) (135)
Depreciation and amortization                 57 50 45
Capital expenditures                 133 97 101
Intersegment Eliminations                      
Segment Reporting Information                      
Revenue                 (108) (110) (115)
Adjusted EBITDA                 1 0 3
Intersegment Eliminations | Owned and leased hotels                      
Segment Reporting Information                      
Revenue                 35 33 38
Intersegment Eliminations | Americas management and franchising                      
Segment Reporting Information                      
Revenue                 62 70 74
Intersegment Eliminations | ASPAC management and franchising                      
Segment Reporting Information                      
Revenue                 2 2 2
Intersegment Eliminations | EAME/SW Asia management and franchising                      
Segment Reporting Information                      
Revenue                 10 10 10
Intersegment Eliminations | Corporate and Other                      
Segment Reporting Information                      
Revenue                 (1) (5) (9)
Owned and leased hotels                      
Segment Reporting Information                      
Revenue                 1,848 1,918 2,184
Owned and leased hotels | Operating Segments | Owned and leased hotels                      
Segment Reporting Information                      
Revenue                 1,808 1,889 2,159
Owned and leased hotels | Operating Segments | Americas management and franchising                      
Segment Reporting Information                      
Revenue                 0 0 0
Owned and leased hotels | Operating Segments | ASPAC management and franchising                      
Segment Reporting Information                      
Revenue                 0 0 0
Owned and leased hotels | Operating Segments | EAME/SW Asia management and franchising                      
Segment Reporting Information                      
Revenue                 0 0 0
Owned and leased hotels | Intersegment Eliminations                      
Segment Reporting Information                      
Revenue                 (35) (33) (38)
Other revenues                      
Segment Reporting Information                      
Revenue                 125 48 36
Other revenues | Operating Segments | Owned and leased hotels                      
Segment Reporting Information                      
Revenue                 0 0 13
Other revenues | Operating Segments | Americas management and franchising                      
Segment Reporting Information                      
Revenue                 89 0 0
Other revenues | Operating Segments | ASPAC management and franchising                      
Segment Reporting Information                      
Revenue                 0 0 0
Other revenues | Operating Segments | EAME/SW Asia management and franchising                      
Segment Reporting Information                      
Revenue                 0 0 0
Other revenues | Intersegment Eliminations                      
Segment Reporting Information                      
Revenue                 1 5 9
Management, franchise, and other fees                      
Segment Reporting Information                      
Revenue                 608 552 498
Management, franchise, and other fees | Operating Segments | Americas management and franchising                      
Segment Reporting Information                      
Revenue                 433 400 380
Management, franchise, and other fees | Operating Segments | ASPAC management and franchising                      
Segment Reporting Information                      
Revenue                 136 127 112
Management, franchise, and other fees | Operating Segments | EAME/SW Asia management and franchising                      
Segment Reporting Information                      
Revenue                 83 80 69
Management, franchise, and other fees | Intersegment Eliminations                      
Segment Reporting Information                      
Revenue                 (74) (82) (86)
Contra revenue                      
Segment Reporting Information                      
Revenue                 (22) (20) (18)
Contra revenue | Operating Segments | Americas management and franchising                      
Segment Reporting Information                      
Revenue                 (15) (13) (12)
Contra revenue | Operating Segments | ASPAC management and franchising                      
Segment Reporting Information                      
Revenue                 (2) (2) (1)
Contra revenue | Operating Segments | EAME/SW Asia management and franchising                      
Segment Reporting Information                      
Revenue                 (5) (5) (5)
Contra revenue | Intersegment Eliminations                      
Segment Reporting Information                      
Revenue                 0 0 0
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties                      
Segment Reporting Information                      
Revenue                 2,461 1,956 1,762
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Operating Segments | Americas management and franchising                      
Segment Reporting Information                      
Revenue                 2,268 1,787 1,625
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Operating Segments | ASPAC management and franchising                      
Segment Reporting Information                      
Revenue                 113 95 79
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Operating Segments | EAME/SW Asia management and franchising                      
Segment Reporting Information                      
Revenue                 74 68 58
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Corporate and Other                      
Segment Reporting Information                      
Revenue                 6 6 0
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties | Intersegment Eliminations                      
Segment Reporting Information                      
Revenue                 $ 0 $ 0 $ 0
v3.19.3.a.u2
Segment and Geographic Information - Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2019
Jan. 01, 2019
Dec. 31, 2018
Segment Reporting Information      
Assets $ 8,417 $ 8,043 $ 7,643
Operating Segments | Owned and leased hotels      
Segment Reporting Information      
Assets 4,203   4,118
Operating Segments | Americas management and franchising      
Segment Reporting Information      
Assets 1,024   842
Operating Segments | ASPAC management and franchising      
Segment Reporting Information      
Assets 260   203
Operating Segments | EAME/SW Asia management and franchising      
Segment Reporting Information      
Assets 273   225
Corporate and other      
Segment Reporting Information      
Assets $ 2,657   $ 2,255
v3.19.3.a.u2
Segment and Geographic Information - Schedule of Revenues from External Customers and Long-Lived Assets (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets                      
Revenue $ 1,275 $ 1,215 $ 1,289 $ 1,241 $ 1,138 $ 1,074 $ 1,133 $ 1,109 $ 5,020 $ 4,454 $ 4,462
Property and equipment, net, intangibles, net and goodwill 4,712       4,519       4,712 4,519  
United States                      
Revenues from External Customers and Long-Lived Assets                      
Revenue                 4,142 3,587 3,619
Property and equipment, net, intangibles, net and goodwill 3,798       3,670       3,798 3,670  
All foreign                      
Revenues from External Customers and Long-Lived Assets                      
Revenue                 878 867 $ 843
Property and equipment, net, intangibles, net and goodwill $ 914       $ 849       $ 914 $ 849  
v3.19.3.a.u2
Segment and Geographic 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 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Segment Reporting Information                      
Net income attributable to Hyatt Hotels Corporation $ 321 $ 296 $ 86 $ 63 $ 44 $ 237 $ 77 $ 411 $ 766 $ 769 $ 389
Interest expense                 75 76 80
Provision for income taxes                 240 182 332
Depreciation and amortization                 329 327 348
EBITDA                 1,410 1,354 1,149
Revenue $ (1,275) $ (1,215) $ (1,289) $ (1,241) $ (1,138) $ (1,074) $ (1,133) $ (1,109) (5,020) (4,454) (4,462)
Equity (earnings) losses from unconsolidated hospitality ventures                 10 (8) (219)
Stock-based compensation expense                 35 29 29
Gains on sales of real estate                 (723) (772) (236)
Asset impairments                 18 25 0
Other (income) loss, net                 (127) 49 (42)
Pro rata share of unconsolidated owned and leased hospitality ventures Adjusted EBITDA                 50 55 73
Adjusted EBITDA                 754 777 792
Contra revenue                      
Segment Reporting Information                      
Revenue                 22 20 18
Revenues for the reimbursement of costs incurred on behalf of managed and franchised properties                      
Segment Reporting Information                      
Revenue                 (2,461) (1,956) (1,762)
Costs incurred on behalf of managed and franchised properties                      
Segment Reporting Information                      
Costs incurred on behalf of managed and franchised properties                 $ 2,520 $ 1,981 $ 1,782
v3.19.3.a.u2
Earnings Per Share - Schedule of the Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Numerator:                      
Net income $ 321 $ 296 $ 86 $ 63 $ 44 $ 237 $ 77 $ 411 $ 766 $ 769 $ 390
Net income and accretion attributable to noncontrolling interests                 0 0 (1)
NET INCOME ATTRIBUTABLE TO HYATT HOTELS CORPORATION $ 321 $ 296 $ 86 $ 63 $ 44 $ 237 $ 77 $ 411 $ 766 $ 769 $ 389
Denominator:                      
Basic weighted-average shares outstanding (in shares)                 104,590,383 113,259,113 124,836,917
Share-based compensation and equity-classified forward contract (in shares)                 1,702,021 1,865,904 1,509,986
Diluted weighted-average shares outstanding (in shares)                 106,292,404 115,125,017 126,346,903
EARNINGS PER SHARE—Basic                      
Net Income - basic (in dollars per share) $ 3.13 $ 2.84 $ 0.81 $ 0.60 $ 0.41 $ 2.12 $ 0.67 $ 3.47 $ 7.33 $ 6.79 $ 3.13
Net income and accretion attributable to noncontrolling interests - Basic (in dollars per share)                 0 0 (0.01)
Net income attributable to Hyatt Hotels Corporation - Basic (in dollars per share)                 7.33 6.79 3.12
EARNINGS PER SHARE—Diluted                      
Net Income - diluted (in dollars per share) $ 3.08 $ 2.80 $ 0.80 $ 0.59 $ 0.40 $ 2.09 $ 0.66 $ 3.40 7.21 6.68 3.09
Net income and accretion attributable to noncontrolling interests - Diluted (in dollars per share)                 0 0 (0.01)
Net income attributable to Hyatt Hotels Corporation - Diluted (in dollars per share)                 $ 7.21 $ 6.68 $ 3.08
v3.19.3.a.u2
Earnings Per Share - Anti-dilutive Shares Issued (Details) - shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Stock appreciation rights (SARs)      
Antidilutive Securities Excluded from Computation of Earnings Per Share      
Antidilutive securities excluded from the computations of earnings per share (in shares) 13,000 100 21,400
Restricted stock units (RSUs)      
Antidilutive Securities Excluded from Computation of Earnings Per Share      
Antidilutive securities excluded from the computations of earnings per share (in shares) 0 0 100
v3.19.3.a.u2
Other Income (Loss), Net (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Other Income and Expenses [Abstract]      
Release of contingent consideration liability (Note 7) $ 30 $ 0 $ 0
Unrealized gains (losses), net (Note 4) 26 (47) 1
Interest income (Note 4) 25 28 110
Depreciation recovery 25 22 27
Performance guarantee liability amortization (Note 15) 18 18 19
Release and amortization of debt repayment guarantee liability (Note 15) 18 11 10
Gain on sale of contractual right (Note 7) 16 0 0
Realized gains (losses), net 2 (3) (41)
Foreign currency gains (losses), net 1 4 (2)
Pre-condemnation income 0 4 18
Cease use liability 0 0 (21)
Loss on extinguishment of debt (Note 11) 0 (7) 0
Impairment of an equity security without a readily determinable fair value (Note 4) 0 (22) 0
Transaction costs (1) (10) (4)
Performance guarantee expense, net (Note 15) (42) (59) (77)
Other, net 9 12 2
Other income (loss), net $ 127 $ (49) $ 42
v3.19.3.a.u2
Other Income (Loss), Net Other Income (Loss), Net - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Other Income and Expenses [Abstract]      
Pre-condemnation income $ 0 $ 4 $ 18
Recorded cease use liability     21
Schedule of Equity Method Investments      
Interest income (Note 4) $ 25 $ 28 110
Preferred shares | Playa Hotels & Resorts B.V.      
Schedule of Equity Method Investments      
Interest income (Note 4)     94
Realized losses     $ 40
v3.19.3.a.u2
Quarterly Financial Information (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Oct. 30, 2019
Jul. 31, 2019
May 17, 2019
Feb. 13, 2019
Oct. 30, 2018
Jul. 31, 2018
May 16, 2018
Feb. 14, 2018
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]                                      
Revenue                 $ 1,275 $ 1,215 $ 1,289 $ 1,241 $ 1,138 $ 1,074 $ 1,133 $ 1,109 $ 5,020 $ 4,454 $ 4,462
Direct and selling, general, and administrative expenses                 1,225 1,175 1,208 1,215 1,054 1,012 1,026 1,030 4,823 4,122 4,202
Net income                 321 296 86 63 44 237 77 411 766 769 390
Net income attributable to Hyatt Hotels Corporation                 $ 321 $ 296 $ 86 $ 63 $ 44 $ 237 $ 77 $ 411 $ 766 $ 769 $ 389
Net Income per share - basic (in dollars per share)                 $ 3.13 $ 2.84 $ 0.81 $ 0.60 $ 0.41 $ 2.12 $ 0.67 $ 3.47 $ 7.33 $ 6.79 $ 3.13
Net Income per share - diluted (in dollars per share)                 3.08 2.80 0.80 0.59 0.40 2.09 0.66 3.40 $ 7.21 $ 6.68 $ 3.09
Cash dividends, declared per share (in dollars per share) $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.19 $ 0.19 $ 0.19 $ 0.19 $ 0.15 $ 0.15 $ 0.15 $ 0.15      
v3.19.3.a.u2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Trade receivables—allowance for doubtful accounts      
Valuation and Qualifying Accounts Disclosure      
Balance at beginning of period $ 26 $ 21 $ 18
Additions charged to revenues, costs, and expenses 14 15 8
Additions charged to other accounts 0 0 0
Deductions (8) (10) (5)
Balance at end of period 32 26 21
Financing receivables—allowance for losses      
Valuation and Qualifying Accounts Disclosure      
Balance at beginning of period 101 108 100
Additions charged to revenues, costs, and expenses 6 7 6
Additions charged to other accounts (1) (2) 2
Deductions (6) (12)  
Balance at end of period 100 101 108
Deferred tax assets—valuation allowance      
Valuation and Qualifying Accounts Disclosure      
Balance at beginning of period 41 51 27
Additions charged to revenues, costs, and expenses 6 (10) 24
Additions charged to other accounts 0 0 0
Deductions (6) 0 0
Balance at end of period $ 41 $ 41 $ 51
v3.19.3.a.u2
Label Element Value
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption $ (4,000,000) [1]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 3,839,000,000
Retained Earnings [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption 64,000,000 [1]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 3,118,000,000
Additional Paid-in Capital [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 967,000,000
AOCI Attributable to Parent [Member]  
Cumulative Effect of New Accounting Principle in Period of Adoption us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption (68,000,000) [1]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 (253,000,000)
Common Stock [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 1,000,000
Noncontrolling Interest [Member]  
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 $ 6,000,000
Common Class A [Member] | Common Stock [Member]  
Shares, Outstanding us-gaap_SharesOutstanding 48,231,149
Common Class B [Member] | Common Stock [Member]  
Shares, Outstanding us-gaap_SharesOutstanding 70,753,837
[1] Cumulative Cumulative adjustment due to adoption of ASU 2016-01 and ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. Upon the adoption of ASU 2016-01, the unrealized gains and losses on our equity securities previously classified as available-for-sale are recognized in other income (loss), net.