Dispositions

12 Months Ended

Dec. 31, 2019

Disposal Group Not Discontinued Operation Disposal Disclosures [Abstract]

Dispositions

11. Dispositions

We disposed of 14 hotels in 2019, four hotels in 2018 and four hotels in 2017 and recorded gains on sales of approximately $339 million, $279 million and $99 million, respectively. In connection with the sale of the Hilton Melbourne South Wharf in 2017, we recorded in 2017 Australian capital gain tax of $17 million that was paid with respect to the gain on sale.

Additionally, on September 21, 2018, we sold the New York Marriott Marquis retail and theater commercial units and the related signage areas of the hotel (the “Retail”) to Vornado Realty Trust for a sale price of $442 million and recorded a gain of approximately $386 million, which is net of the non-cash incurrence of a liability of approximately $35 million related to Vornado’s contractual right to future real estate tax rebates. Substantially all of the net proceeds from the sale of the Retail were used to close out a reverse like-kind exchange structure established in connection with the acquisition of the Hyatt portfolio in March 2018. We elected to pay U.S. federal and applicable state corporate income tax of approximately $16 million on the capital gain generated by the sale proceeds not used to close out the reverse like-kind exchange rather than distribute such capital gain to our stockholders.