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Investments in Affiliates
12 Months Ended
Dec. 31, 2021
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investments in Affiliates
4.
Investments in Affiliates

We own investments in joint ventures for which the equity method of accounting is used. The debt of our joint ventures, if any, is non-recourse to, and not guaranteed by, us, and a default of such debt does not trigger a default under any of our debt instruments. We carry our investments at historical cost which, due to debt restructurings or distributions, may result in a negative investment balance. However, a negative investment balance does not represent a funding obligation for us or for our partners. Investments in affiliates consist of the following (in millions):

 

 

 

As of December 31, 2021

 

 

Ownership Interests

 

 

Our Investment

 

 

Our Portion of Debt

 

 

Total Debt

 

 

Distributions received in 2021 ⁽¹⁾

 

 

Assets

Asia/Pacific JV

 

 

25

%

 

$

7

 

 

$

 

 

$

 

 

$

 

 

A 36% interest in seven hotels and an office building in India

Maui JV

 

 

67

%

 

 

44

 

 

 

17

 

 

 

25

 

 

 

10

 

 

131-unit vacation ownership project in Maui, HI

Hyatt Place JV

 

 

50

%

 

 

(11

)

 

 

30

 

 

 

60

 

 

 

 

 

One hotel in Nashville, TN

Harbor Beach JV

 

 

49.9

%

 

 

(39

)

 

 

75

 

 

 

150

 

 

 

6

 

 

One hotel in Fort Lauderdale, FL

Philadelphia Marriott Downtown JV

 

 

11

%

 

 

(7

)

 

 

22

 

 

 

201

 

 

 

 

 

One hotel in Philadelphia, PA

Fifth Wall Ventures

 

 

 

 

 

42

 

 

 

 

 

 

 

 

 

5

 

 

Real estate industry technology investment

Other investments

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

$

42

 

 

$

144

 

 

$

436

 

 

$

21

 

 

 

 

 

 

 

As of December 31, 2020

 

 

Ownership Interests

 

 

Our Investment

 

 

Our Portion of Debt

 

 

Total Debt

 

 

Distributions received in 2020 ⁽¹⁾

 

 

Assets

Asia/Pacific JV

 

 

25

%

 

$

10

 

 

$

 

 

$

 

 

$

 

 

A 36% interest in seven hotels and an office building in India

Maui JV

 

 

67

%

 

 

46

 

 

 

18

 

 

 

27

 

 

 

10

 

 

131-unit vacation ownership project in Maui, HI

Hyatt Place JV

 

 

50

%

 

 

(13

)

 

 

30

 

 

 

60

 

 

 

 

 

One hotel in Nashville, TN

Harbor Beach JV

 

 

49.9

%

 

 

(39

)

 

 

75

 

 

 

150

 

 

 

 

 

One hotel in Fort Lauderdale, FL

Philadelphia Marriott Downtown JV

 

 

11

%

 

 

(7

)

 

 

22

 

 

 

205

 

 

 

 

 

One hotel in Philadelphia, PA

Fifth Wall Ventures

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

 

 

Real estate industry technology investment

Other investments

 

 

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

$

21

 

 

$

145

 

 

$

442

 

 

$

10

 

 

 

___________

(1)
Distributions received were funded by cash from operations unless otherwise noted.

In 2020, our Maui timeshare joint venture recorded a $21 million impairment expense, of which our share was $14 million, on its inventory of timeshare units. This impairment expense is reflected through equity in (earnings) losses of affiliates on our consolidated statements of operations.

Subsequent to year-end, on January 20, 2022 we entered into definitive agreements with Noble Investment Group, LLC, and certain other entities and persons related to Noble Investment Group, LLC. We invested an aggregate of $35 million of cash and issued approximately $56 million of Host L.P. OP units to acquire a non-voting minority equity interest in Noble Management Holdings, LLC and Noble Investment Holdings, LLC representing 49% of (a) the net fee income of the Noble Investment Group business in respect of existing and future Noble Investment Group funds and other revenue-based activities, (b) 40% of the gross carried interest earned on the funds beginning as of closing, and (c) proceeds received from general partner commitments to future funds. As part of our investment, we have made a $150 million capital commitment to the next Noble fund.

Upon certain triggers being met, we have the ability to acquire up to 100% of Noble Management Holdings, LLC and Noble Investment Holdings, LLC. To the extent certain triggers are met and we have not exercised our call right, Noble Investment Group, LLC has a one-time ability, but not the obligation, to exercise its put right to cause us to purchase up to an additional 26% of Noble Management Holdings, LLC and Noble Investment Holdings, LLC.