QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||
Emerging growth company |
Page No. | ||||||||
PART I | FINANCIAL INFORMATION | |||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | OTHER INFORMATION | |||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Accounts receivable, net of allowance for credit losses of $ | |||||||||||
Prepaid expenses | |||||||||||
Other | |||||||||||
Total current assets (variable interest entities – $ | |||||||||||
Intangibles and Other Assets: | |||||||||||
Goodwill | |||||||||||
Brands | |||||||||||
Management and franchise contracts, net | |||||||||||
Other intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Property and equipment, net | |||||||||||
Deferred income tax assets | |||||||||||
Other | |||||||||||
Total intangibles and other assets (variable interest entities – $ | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND EQUITY (DEFICIT) | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable, accrued expenses and other | $ | $ | |||||||||
Current maturities of long-term debt | |||||||||||
Current portion of deferred revenues | |||||||||||
Current portion of liability for guest loyalty program | |||||||||||
Total current liabilities (variable interest entities – $ | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities | |||||||||||
Deferred revenues | |||||||||||
Deferred income tax liabilities | |||||||||||
Liability for guest loyalty program | |||||||||||
Other | |||||||||||
Total liabilities (variable interest entities – $ | |||||||||||
Commitments and contingencies – see Note 13 | |||||||||||
Equity (Deficit): | |||||||||||
Common stock, $ | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Hilton stockholders' deficit | ( | ( | |||||||||
Noncontrolling interests | |||||||||||
Total deficit | ( | ( | |||||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT) | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenues | |||||||||||
Franchise and licensing fees | $ | $ | |||||||||
Base and other management fees | |||||||||||
Incentive management fees | |||||||||||
Owned and leased hotels | |||||||||||
Other revenues | |||||||||||
Other revenues from managed and franchised properties | |||||||||||
Total revenues | |||||||||||
Expenses | |||||||||||
Owned and leased hotels | |||||||||||
Depreciation and amortization | |||||||||||
General and administrative | |||||||||||
Other expenses | |||||||||||
Other expenses from managed and franchised properties | |||||||||||
Total expenses | |||||||||||
Gain on sales of assets, net | |||||||||||
Operating income | |||||||||||
Interest expense | ( | ( | |||||||||
Loss on foreign currency transactions | ( | ||||||||||
Loss on investments in unconsolidated affiliate | ( | ||||||||||
Other non-operating income (loss), net | ( | ||||||||||
Income before income taxes | |||||||||||
Income tax expense | ( | ( | |||||||||
Net income | |||||||||||
Net income attributable to noncontrolling interests | ( | ( | |||||||||
Net income attributable to Hilton stockholders | $ | $ | |||||||||
Earnings per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Cash dividends declared per share | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss), net of tax benefit (expense): | |||||||||||
Currency translation adjustment, net of tax of $ | ( | ( | |||||||||
Pension liability adjustment, net of tax of $( | |||||||||||
Cash flow hedge adjustment, net of tax of $( | ( | ||||||||||
Total other comprehensive loss | ( | ( | |||||||||
Comprehensive income | |||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ( | |||||||||
Comprehensive income attributable to Hilton stockholders | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of contract acquisition costs | |||||||||||
Depreciation and amortization expenses | |||||||||||
Gain on sales of assets, net | ( | ||||||||||
Loss on foreign currency transactions | |||||||||||
Loss on investments in unconsolidated affiliate | |||||||||||
Share-based compensation expense | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Contract acquisition costs, net of refunds | ( | ( | |||||||||
Working capital changes and other | |||||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities: | |||||||||||
Capital expenditures for property and equipment | ( | ( | |||||||||
Issuance of financing receivables | ( | ||||||||||
Proceeds from asset dispositions | |||||||||||
Settlements of undesignated derivative financial instruments | ( | ||||||||||
Capitalized software costs | ( | ( | |||||||||
Investments in unconsolidated affiliates | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities: | |||||||||||
Borrowings | |||||||||||
Repayment of debt | ( | ( | |||||||||
Debt issuance costs | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Repurchases of common stock | ( | ( | |||||||||
Share-based compensation tax withholdings | ( | ( | |||||||||
Proceeds from share-based compensation | |||||||||||
Settlements of interest rate swap with financing component | |||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash, restricted cash and cash equivalents | ( | ( | |||||||||
Net increase (decrease) in cash, restricted cash and cash equivalents | ( | ||||||||||
Cash, restricted cash and cash equivalents, beginning of period | |||||||||||
Cash, restricted cash and cash equivalents, end of period | $ | $ |
(in millions) | |||||
Balance as of December 31, 2023 | $ | ||||
Cash received in advance and not recognized as revenue | |||||
Revenue recognized(1) | ( | ||||
Other(2) | ( | ||||
Balance as of March 31, 2024 | $ |
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Property and equipment, net | |||||||||||
Deferred income tax assets | |||||||||||
Other non-current assets | |||||||||||
Accounts payable, accrued expenses and other | |||||||||||
Long-term debt(1)(2) |
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Senior secured term loan facility with a rate of | $ | $ | |||||||||
Senior secured term loan facility with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Senior notes with a rate of | |||||||||||
Finance lease liabilities with a weighted average rate of | |||||||||||
Other debt of consolidated VIEs with a weighted average rate of | |||||||||||
Less: unamortized deferred financing costs and discounts | ( | ( | |||||||||
Less: current maturities of long-term debt(3) | ( | ( | |||||||||
$ | $ |
March 31, 2024 | |||||||||||||||||||||||
Hierarchy Level | |||||||||||||||||||||||
Carrying Value(1) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate swap | $ | $ | — | $ | $ | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Long-term debt(2) | — |
December 31, 2023 | |||||||||||||||||||||||
Hierarchy Level | |||||||||||||||||||||||
Carrying Value(1) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate swap | $ | $ | — | $ | $ | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Long-term debt(2) | — | ||||||||||||||||||||||
Expected volatility(1) | % | ||||
Dividend yield(2) | % | ||||
Risk-free rate(3) | % | ||||
Expected term (in years)(4) |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions, except per share amounts) | |||||||||||
Basic EPS: | |||||||||||
Numerator: | |||||||||||
Net income attributable to Hilton stockholders | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted average shares outstanding | |||||||||||
Basic EPS | $ | $ | |||||||||
Diluted EPS: | |||||||||||
Numerator: | |||||||||||
Net income attributable to Hilton stockholders | $ | $ | |||||||||
Denominator: | |||||||||||
Weighted average shares outstanding(1) | |||||||||||
Diluted EPS | $ | $ |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity (Deficit) Attributable to Hilton Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Equity (Deficit) Attributable to Hilton Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||
Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( |
Currency Translation Adjustment(1) | Pension Liability Adjustment(2) | Cash Flow Hedge Adjustment(3) | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance as of December 31, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance as of March 31, 2024 | $ | ( | $ | ( | $ | $ | ( |
Currency Translation Adjustment(1) | Pension Liability Adjustment(2) | Cash Flow Hedge Adjustment(3) | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Balance as of March 31, 2023 | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Franchise and licensing fees | $ | $ | |||||||||
Base and other management fees(1) | |||||||||||
Incentive management fees | |||||||||||
Management and franchise | |||||||||||
Ownership | |||||||||||
Segment revenues | |||||||||||
Amortization of contract acquisition costs | ( | ( | |||||||||
Other revenues | |||||||||||
Other revenues from managed and franchised properties | |||||||||||
Intersegment fees elimination(1) | ( | ( | |||||||||
Total revenues | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Management and franchise(1) | $ | $ | |||||||||
Ownership(1) | ( | ||||||||||
Segment operating income | |||||||||||
Amortization of contract acquisition costs | ( | ( | |||||||||
Other revenues, less other expenses | |||||||||||
Net other expenses from managed and franchised properties | ( | ( | |||||||||
Depreciation and amortization expenses | ( | ( | |||||||||
General and administrative expenses | ( | ( | |||||||||
Gain on sales of assets, net | |||||||||||
Operating income | |||||||||||
Interest expense | ( | ( | |||||||||
Loss on foreign currency transactions | ( | ||||||||||
Loss on investments in unconsolidated affiliate | ( | ||||||||||
Other non-operating income (loss), net | ( | ||||||||||
Income before income taxes | $ | $ |
As of or for the | |||||||||||
Three Months Ended | |||||||||||
March 31, 2024 | |||||||||||
Hotels | Rooms(1) | ||||||||||
Hotel system | |||||||||||
Openings | 106 | 16,800 | |||||||||
Net additions(2) | 94 | 14,200 | |||||||||
Development pipeline | |||||||||||
Additions | 234 | 29,800 | |||||||||
Count as of period end(3)(4) | 3,375 | 472,300 |
Three Months Ended | Change | |||||||||||||
March 31, 2024 | 2024 vs. 2023 | |||||||||||||
System-wide | ||||||||||||||
Occupancy | 67.2 | % | 0.2 | % | pts. | |||||||||
ADR | $ | 154.91 | 1.7 | % | ||||||||||
RevPAR | $ | 104.16 | 2.0 | % | ||||||||||
U.S. | ||||||||||||||
Occupancy | 67.7 | % | (0.6) | % | pts. | |||||||||
ADR | $ | 161.67 | 0.5 | % | ||||||||||
RevPAR | $ | 109.53 | (0.4) | % | ||||||||||
Americas (excluding U.S.) | ||||||||||||||
Occupancy | 65.8 | % | 1.4 | % | pts. | |||||||||
ADR | $ | 157.60 | 5.0 | % | ||||||||||
RevPAR | $ | 103.67 | 7.3 | % | ||||||||||
Europe | ||||||||||||||
Occupancy | 64.9 | % | 3.1 | % | pts. | |||||||||
ADR | $ | 141.99 | 4.5 | % | ||||||||||
RevPAR | $ | 92.14 | 9.7 | % | ||||||||||
MEA | ||||||||||||||
Occupancy | 73.6 | % | 2.4 | % | pts. | |||||||||
ADR | $ | 193.22 | 11.0 | % | ||||||||||
RevPAR | $ | 142.23 | 14.8 | % | ||||||||||
Asia Pacific | ||||||||||||||
Occupancy | 65.2 | % | 1.3 | % | pts. | |||||||||
ADR | $ | 114.90 | 5.7 | % | ||||||||||
RevPAR | $ | 74.95 | 7.9 | % |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in millions) | |||||||||||
Net income | $ | 268 | $ | 209 | |||||||
Interest expense | 131 | 116 | |||||||||
Income tax expense | 97 | 93 | |||||||||
Depreciation and amortization expenses | 36 | 37 | |||||||||
EBITDA | 532 | 455 | |||||||||
Gain on sales of assets, net | (7) | — | |||||||||
Loss on foreign currency transactions | 1 | — | |||||||||
Loss on investments in unconsolidated affiliate(1) | — | 92 | |||||||||
Loss on debt guarantees(2) | 47 | — | |||||||||
FF&E replacement reserves | 11 | 8 | |||||||||
Share-based compensation expense | 41 | 33 | |||||||||
Amortization of contract acquisition costs | 12 | 10 | |||||||||
Net other expenses from managed and franchised properties | 109 | 38 | |||||||||
Other adjustments(3) | 4 | 5 | |||||||||
Adjusted EBITDA | $ | 750 | $ | 641 |
Three Months Ended | Percent | ||||||||||||||||
March 31, | Change | ||||||||||||||||
2024 | 2023 | 2024 vs. 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
Franchise and licensing fees | $ | 571 | $ | 508 | 12.4 | ||||||||||||
Base and other management fees | $ | 106 | $ | 80 | 32.5 | ||||||||||||
Incentive management fees | 70 | 65 | 7.7 | ||||||||||||||
Total management fees | $ | 176 | $ | 145 | 21.4 |
Three Months Ended | Percent | ||||||||||||||||
March 31, | Change | ||||||||||||||||
2024 | 2023 | 2024 vs. 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
Owned and leased hotels revenues | $ | 255 | $ | 248 | 2.8 |
Three Months Ended | Percent | ||||||||||||||||
March 31, | Change | ||||||||||||||||
2024 | 2023 | 2024 vs. 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
Other revenues | $ | 50 | $ | 35 | 42.9 |
Three Months Ended | Percent | ||||||||||||||||
March 31, | Change | ||||||||||||||||
2024 | 2023 | 2024 vs. 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
Owned and leased hotels expenses | $ | 247 | $ | 251 | (1.6) |
Three Months Ended | Percent | ||||||||||||||||
March 31, | Change | ||||||||||||||||
2024 | 2023 | 2024 vs. 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
Depreciation and amortization expenses | $ | 36 | $ | 37 | (2.7) | ||||||||||||
General and administrative expenses | 104 | 91 | 14.3 | ||||||||||||||
Other expenses | 30 | 21 | 42.9 |
Three Months Ended | Percent | ||||||||||||||||
March 31, | Change | ||||||||||||||||
2024 | 2023 | 2024 vs. 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
Interest expense | $ | (131) | $ | (116) | 12.9 | ||||||||||||
Loss on foreign currency transactions | (1) | — | NM(1) | ||||||||||||||
Loss on investments in unconsolidated affiliate | — | (92) | NM(1) | ||||||||||||||
Other non-operating income (loss), net | (36) | 12 | NM(1) | ||||||||||||||
Income tax expense | (97) | (93) | 4.3 |
Three Months Ended | Percent | ||||||||||||||||
March 31, | Change | ||||||||||||||||
2024 | 2023 | 2024 vs. 2023 | |||||||||||||||
(in millions) | |||||||||||||||||
Net cash provided by operating activities | $ | 346 | $ | 330 | 4.8 | ||||||||||||
Net cash used in investing activities | (27) | (85) | (68.2) | ||||||||||||||
Net cash provided by (used in) financing activities | 238 | (547) | NM(1) |
Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Program(2) | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(2) (in millions) | ||||||||||||||||||||
January 1, 2024 to January 31, 2024 | 1,281,038 | $ | 185.26 | 1,281,038 | $ | 3,545 | |||||||||||||||||
February 1, 2024 to February 29, 2024 | 988,846 | 197.32 | 988,846 | 3,350 | |||||||||||||||||||
March 1, 2024 to March 31, 2024 | 1,107,145 | 207.76 | 1,107,145 | 3,120 | |||||||||||||||||||
Total | 3,377,029 | 196.17 | 3,377,029 |
Exhibit Number | Exhibit Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
4.1 | Indenture, with respect to the 5.875% Senior Notes and 6.125% Senior Notes, dated as of March 26, 2024, by and among Hilton Domestic Operating Company Inc., the guarantors from time to time party thereto and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed on March 27, 2024). | |||||||
4.2 | ||||||||
4.3 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | Inline XBRL Instance Document - this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
HILTON WORLDWIDE HOLDINGS INC. | ||||||||
By: | /s/ Christopher J. Nassetta | |||||||
Name: | Christopher J. Nassetta | |||||||
Title: | President and Chief Executive Officer | |||||||
By: | /s/ Kevin J. Jacobs | |||||||
Name: | Kevin J. Jacobs | |||||||
Title: | Chief Financial Officer and President, Global Development |
Performance Component (each weighted at 25%) | Threshold (Achievement Percentage of 50%) | Target (Achievement Percentage of 100%) | Maximum (Achievement Percentage of 200%) | Performance Period | ||||||||||
2026 Adjusted EBITDA | $ | $ | $ | January 1, 2026 to December 31, 2026 | ||||||||||
2026 FCF/Share | $ | $ | $ | January 1, 2026 to December 31, 2026 | ||||||||||
2024 – 2026 NUG CAGR | % | % | % | January 1, 2024 to December 31, 2026 | ||||||||||
2026 RevPAR Index (Growth over Prior Year) | pts | pts | pts | January 1, 2026 to December 31, 2026 |
CALIFORNIA If the Participant is primarily a resident of, or primarily provides services in, California on (i) the Date of Grant or (ii) the Termination Date: (a) Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply after the Termination Date, (b) During the portion of the Restricted Period which follows the Termination Date, Section 1(a)(iv) of Appendix A shall be amended to delete the words “or hire any employee who was employed by the Company Group as of the Termination Date”, (c) The following sentence shall be added to Section 2(d) of Appendix A: “Nothing in this agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful.” (d) The following sentence shall be added as Section 2(c)(v) of Appendix A: “Notwithstanding any other provision of Appendix A to the contrary, this Section 2(c) of Appendix A is subject to the provisions of California Labor Code Sections 2870, 2871 and 2872. In accordance with Section 2870 of the California Labor Code, the Participant’s obligation to assign to the Company Group the Participant’s right, title and interest throughout the world in and to all Works does not apply to any Works the Participant developed entirely on the Participant’s own time without using the Company Group’s equipment, supplies, facilities, or Confidential Information except for such Works that relate to either (i) the business of the Company Group at the time of conception or reduction to practice of the Works, or actual or demonstrably anticipated research or development of the Company Group or (ii) result from any work performed by the Participant for the Company Group. A copy of California Labor Code Sections 2870, 2871 and 2872 is attached to the State Restrictive Covenant Annex as Exhibit 1. The Participant agrees to disclose all Works to the Company Group, even if the Participant does not believe that the Participant is required under Section 2(c) of Appendix A, or pursuant to California Labor Code Section 2870, to assign the Participant’s interest in such Works to the Company Group or its nominee.” (e) To the extent the Participant is a party to any other agreement or arrangement with the Company Group which contains restrictive covenants still in effect which conflict with the terms of this California supplement, such restrictive covenants shall to that extent be superseded and replaced by the terms stated herein. (f) Notwithstanding anything in the Agreement to the contrary, Appendix A shall be governed by California law, without regard to principles of conflicts of law. |
COLORADO If the Participant is primarily a resident of, or primarily provides services in, Colorado on (i) the Date of Grant or (ii) the Termination Date: (a) Sections 1(a)(i) and 1(a)(iv) of Appendix A shall not apply after the Termination Date unless the Participant earns, as of the Date of Grant and the date on which enforcement is sought, an amount of annualized cash compensation equivalent or greater than $74,250 (which is the threshold amount for 2024 and represents 60% of Colorado’s “threshold amount for highly compensated workers,” which is subject to annual adjustments pursuant to Colorado law); and (b) Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns, as of the Date of Grant and the date on which enforcement is sought, an amount of annualized cash compensation equivalent to or greater than $123,750 (which is the threshold amount for 2024 and represents 100% of Colorado’s “threshold amount for highly compensated workers,” which is subject to annual adjustments pursuant to Colorado law). The Participant acknowledges that the Participant was provided a separate notice of the terms of the above-referenced restrictions at least 14 days before the earlier of (1) the effective date of the Restrictive Covenants or (2) the Date of Grant. | ||
DISTRICT OF COLUMBIA If the Participant is a “covered employee,” as defined by the District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 (as amended): (a) Section 1(a)(ii) of Appendix A shall not apply after the Termination Date; and (b) During the Employment Term, Section 1(a)(ii) of Appendix A shall apply only to the extent permitted by District of Columbia law. A “covered employee” is an individual who performs work for pay in the District of Columbia for an employer and who is not a “highly compensated employee,” and (i) spends (or, for new hires, is reasonably anticipated to spend) more than 50% of his or her work time for the employer working in the District of Columbia, or (ii) whose employment for the employer is or will be based in the District of Columbia and the employee regularly spends (or, for new hires, is reasonably anticipated to spend) a substantial amount of his or her work time for the employer in the District of Columbia and no more than 50% of his or her work time for such employer in another jurisdiction. The term “covered employee” does not include partners in a partnership. A “highly compensated employee” is an employee who earns or is reasonably expected to earn from his or her employer compensation greater than or equal to $150,000 in a consecutive 12-month period (which is the threshold amount for 2023 and will be adjusted annually for inflation beginning on January 1, 2024 based on adjustments to the Consumer Price Index for All Urban Consumers, in the Washington Metropolitan Statistical Area, as published by the Bureau of Labor Statistics Urban Consumers, in the Washington Metropolitan Statistical Area, as published by the Bureau of Labor Statistics of the US Department of Labor). If the Participant is a “highly compensated employee”: (a) As applied to Section 1(a)(ii) of Appendix A, the Restricted Period shall not exceed 365 days from the Termination Date; and (b) The Participant is provided with the following notice, at least 14 days prior to the execution of the Agreement: The District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES). |
GEORGIA If the Participant is primarily a resident of, or primarily provides services in, Georgia on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant (1) customarily and regularly solicits customers or prospective customers for his or her employer; (2) customarily and regularly engages in making sales or obtaining orders or contracts for products or services to be performed by others; (3) has the authority to hire or fire other employees or particular weight is given to the Participant’s suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; or (4) performs the duties of a “key employee” or professional. A “key employee” is someone with “a high level of notoriety, fame, reputation, or public persona as the employer’s representative or spokesperson or has gained a high level of influence or credibility with the employer’s customers, vendors, or other business relationships or is intimately involved in the planning for or direction of the business of the employer or a defined unit of the business of the employer. Such term also means an employee in possession of selective or specialized skills, learning, or abilities or customer contacts or customer information who has obtained such skills, learning, abilities, contacts, or information by reason of having worked for the employer.” | ||
IDAHO If the Participant is primarily a resident of, or primarily provides services in, Idaho on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant is a “key employee” or “key independent contractor”; and (b) Section 1(a)(ii) of Appendix A shall be limited after the Termination Date to direct competition. A “key employee” and “key independent contractor” is someone who, by reason of the employer’s investment of time, money, trust, exposure to the public, or exposure to technologies, intellectual property, business plans, business processes and methods of operation, customers, vendors or other business relationships during the course of employment, have gained a high level of inside knowledge, influence, credibility, notoriety, fame, reputation or public persona as a representative or spokesperson of the employer and, as a result, have the ability to harm or threaten an employer’s legitimate business interests. | ||
ILLINOIS If the Participant is primarily a resident of, or primarily provides services in, Illinois on (i) the Date of Grant or (ii) the Termination Date: (a) Sections 1(a)(i) and 1(a)(iv) of Appendix A shall not apply after the Termination Date unless the Participant’s actual or expected annual rate of “earnings” (as defined by Illinois law) exceeds $45,000 per year (which is the threshold amount through the end of 2026, after which this amount will increase in $2,500 increments in each of 2027, 2032, and 2037, with $52,500 as the minimum threshold amount in 2037); and (b) Section 1(a)(ii) of the Appendix A shall not apply after the Termination Date unless the Participant’s actual or expected annual rate of “earnings” (as defined by Illinois law) exceeds $75,000 per year (which is the threshold amount through the end of 2026, after which this amount will increase in $5,000 increments in each of 2027, 2032, and 2037, with $90,000 as the minimum threshold amount in 2037). |
LOUISIANA If the Participant is primarily a resident of, or primarily provides services in, Louisiana on (i) the Date of Grant or (ii) the Termination Date, then Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply for more than two years after the Termination Date. Within the State of Louisiana, Sections 1(a)(i) and 1(a)(ii) of Appendix A shall apply in, and the definition of “Restricted Area” shall apply to, the following parishes municipalities, or parts thereof, so long as the Company Group continues to carry on business therein, and outside of Louisiana shall not be limited except as provided in Appendix A: Acadia Parish, Allen Parish, Ascension Parish, Assumption Parish, Avoyelles Parish, Beauregard Parish, Bienville Parish, Bossier Parish, Caddo Parish, Calcasieu Parish, Caldwell Parish, Cameron Parish, Catahoula Parish, Claiborne Parish, Concordia Parish, DeSoto Parish, East Baton Rouge Parish, East Carroll Parish, East Feliciana Parish, Evangeline Parish, Franklin Parish, Grant Parish, Iberia Parish, Iberville Parish, Jackson Parish, Jefferson Parish, Jefferson Davis Parish, Lafayette Parish, Lafourche Parish, LaSalle Parish, Lincoln Parish, Livingston Parish, Madison Parish, Morehouse Parish, Natchitoches Parish, Orleans Parish, Ouachita Parish, Plaquemines Parish, Pointe Coupee Parish, Rapides Parish, Red River Parish, Richland Parish, Sabine Parish, St. Bernard Parish, St. Charles Parish, St. Helena Parish, St. James Parish, St. John the Baptist Parish, St. Landry Parish, St. Martin Parish, St. Mary Parish, St. Tammany Parish, Tangipahoa Parish, Tensas Parish, Terrebonne Parish, Union Parish, Vermilion Parish, Vernon Parish, Washington Parish, Webster Parish, West Baton Rouge Parish, West Carroll Parish, West Feliciana Parish, and Winn Parish. |
MAINE If the Participant is primarily a resident of, or primarily provides services in, Maine on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns wages equal to, or greater than, 400% of the federal poverty level; and (b) The terms of Section 1(a)(ii) of Appendix A, with respect to the post-employment portion of the Restricted Period, shall not take effect until the later of (i) one year after the commencement of the Participant’s employment or (ii) 6 months after the Participant executes the Agreement. | ||
MARYLAND If the Participant is primarily a resident of, or primarily provides services in, Maryland on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns wages equal to, or greater than, 150% of the state minimum wage. | ||
MASSACHUSETTS If the Participant is, and has been for at least 30 days immediately preceding the Termination Date, a resident of, or primarily providing services in, the Commonwealth of Massachusetts: (a) Section 1(a)(ii) of Appendix A shall not apply after the Termination Date, if the Participant is Terminated without Cause (as modified by this Massachusetts supplement); (c) With respect to Section 1(a)(ii) of Appendix A, the Restricted Period shall not exceed 12 months from the Termination Date, unless the Participant has breached his or her fiduciary duty to the Company Group or the Participant has unlawfully taken, physically or electronically, property belonging to the Company Group, in which case the Restricted Period may not exceed 2 years from the Termination Date; (d) The Company Group, at its discretion, including based on a determination by the Company Group, in its discretion, that additional consideration is required by Massachusetts law to render Section 1(a)(ii) of Appendix A enforceable, may elect to enforce such covenant by making garden leave payments to the Participant during the post-termination portion of the Restricted Period (but for no more than 12 months following the Termination Date) at a rate of up to 50% of the highest annualized base salary or service fees, as applicable, paid to the Participant by the Company Group within the 2-year period preceding the Termination Date (“Garden Leave Payments”). Any Garden Leave Payments paid to the Participant pursuant to this Massachusetts supplement may be reduced based on consideration of the Fair Market Value of the incentive compensation provided pursuant to the Agreement and determined in good faith by the Company Group as of the Termination Date or by (or may reduce and not be in addition to) any severance or separation pay that the Participant is otherwise entitled to receive from any member of the Company Group pursuant to an agreement, plan, or otherwise; (e) The Company Group, in its sole discretion, may elect at any time prior to the Termination Date, or on such later date to the extent permitted by applicable law, to waive the restrictions set forth in Section 1(a)(ii) of Appendix A, upon which such waiver shall automatically terminate the Company Group’s obligations to compensate the Participant under Section (c) of this Massachusetts supplement. In such event, the Participant shall have no further obligations under Section 1(a)(ii) of Appendix A. Such waiver shall be in writing, and shall have no effect on the Participant’s obligations under the remainder of Appendix A, which shall continue in full force and effect in all respects. The Participant acknowledges and agrees that nothing in this Section (d) gives the Participant an election as to compliance with Section 1(a)(ii) of Appendix A; (f) For purposes of enforcement of Section 1(a)(ii) of Appendix A (and no other provision of the Agreement or the Plan), “Cause” shall include any good faith determination by the Company Group that the Participant has significantly underperformed in providing services to the Company Group or engaged in conduct or behavior that violates any policy of the Company Group or is detrimental to the Company or any member of the Company Group or its reputation; (g) The Participant acknowledges and agrees that the benefits provided by the Agreement and the Garden Leave Payments (where applicable) constitute sufficient mutually agreed-upon consideration for Section 1(a)(ii) of Appendix A; and (h) The Participant’s agreement to the non-competition covenant in Section 1(a)(ii) of Appendix A shall be effective upon the later of the Participant’s acceptance of the Award or the date that is 10 business days after the Participant was provided with notice of the non-competition agreement. |
MINNESOTA If the Participant is primarily a resident of, or primarily provides services in, Minnesota on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period. | ||
NEVADA If the Participant is primarily a resident of, or primarily provides services in, Nevada on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period: (i) in territories in which the Company Group has not established customer contracts or goodwill or undertaken concrete steps to establish operations; or (ii) to prevent the Participant from providing services to a former customer or client of Company Group so long as (1) the Participant did not solicit the former customer or client, (2) the customer or client voluntarily left and sought the Participant’s services and (3) the Participant has otherwise complied with the provisions of Section 1(a)(ii) of Appendix A with respect to time, geographic area and scope of restrained activity. (b) During the post-employment portion of the Restricted Period, if the Participant’s Termination was part of a reduction of force, reorganization or similar restructuring of the Company Group, Section 1(a)(ii) of Appendix A shall only apply during the period of time which the Company Group pays the Participant’s salary, benefits or equivalent compensation, including severance pay, if any. | ||
NEW HAMPSHIRE If the Participant is primarily a resident of, or primarily provides services in, New Hampshire on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period, if the Participant earns an hourly rate that is less than or equal to (i) 200% of the federal minimum wage or (ii) 200% of the tipped minimum wage pursuant to New Hampshire law. |
NORTH DAKOTA If the Participant is primarily a resident of, or primarily provides services in, North Dakota on (i) the Date of Grant or (ii) the Termination Date: (a) Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period; and (b) Section 1(a)(iv) of Appendix A shall only apply during the post-employment portion of the Restricted Period to the extent permitted by applicable North Dakota law. | ||
OKLAHOMA If the Participant is primarily a resident of, or primarily provides services in, on Oklahoma (i) the Date of Grant or (ii) the Termination Date: (a) During the post-employment portion of the Restricted Period, Section 1(a)(i) of Appendix A shall be limited to restricting direct solicitation of established customers or clients of the Company Group; and (b) Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period. | ||
OREGON If the Participant is primarily a resident of, or primarily provides services in, Oregon on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period, unless: (i) the Award was granted in connection with either (A) a written employment offer that provided, at least two (2) weeks’ notice before the first day of employment, that a non-competition agreement was required or (B) the Participant’s subsequent bona fide advancement; and (ii) the Participant’s total annual compensation, including commissions, as of the Termination Date, exceeds $108,576 (which is the threshold amount for 2023 and subject to annual adjustments for inflation based on adjustments to the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the US Department of Labor), unless the Company Group provides the Participant compensation during the post-employment portion of the Restricted Period, in which Section 1(a)(ii) of Appendix A applies, in an amount equal to the greater of 50% of the Participant’s annual gross base salary and commissions as of the Termination Date or 50% of $108,576 (which is the threshold amount for 2023 and subject to annual adjustments pursuant to Oregon law as described in this provision) during the post-employment portion of the Restricted Period. (c) The Company shall provide the Participant a signed copy of Appendix A within 30 days following the Termination Date. (d) Section 1(a)(ii) of Appendix A shall not apply for more than 12 months after the Termination Date. |
PUERTO RICO If the Participant is primarily a resident of, or primarily provides services in, Puerto Rico on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date. | ||
RHODE ISLAND If the Participant is primarily a resident of, or primarily provides services in, Rhode Island on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date, if the Participant’s average annual earnings (as defined by Rhode Island law) are less than, or equal to, 250% of the federal poverty level for individuals as established by the United States Department of Health and Human Services federal poverty guidelines. | ||
SOUTH DAKOTA If the Participant is primarily a resident of, or primarily provides services in, South Dakota on (i) the Date of Grant or (ii) the Termination Date, Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply for more than two years after the Termination Date. | ||
UTAH If the Participant is primarily a resident of, or primarily provides services in, Utah on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date. |
VIRGINIA If the Participant is primarily a resident of, or primarily provides services in, Virginia on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply during the post-employment period of the Restricted Period, if the Participant is considered a “low-wage employee”, which is defined as anyone earning, over a rolling 52-week period preceding the Termination Date, less than Virginia’s average weekly wage, which for the first quarter of 2023 was equivalent to approximately $77,000. A low-wage employee does not include an employee whose earnings are derived, in whole or in predominant part, from sales commissions, incentives, or bonuses; and (b) Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not prohibit the Participant from providing services to the Company Group’s customers or clients during the post-employment period of the Restricted Period, if the Participant does not initiate contact with or solicit such customer or client, to the extent required by Virginia law. |
WASHINGTON If the Participant is primarily a resident of, or primarily provides services in, Washington on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant’s annualized “earnings” (as defined by Washington law) from the Company Group exceed $120,560 per year (which is the threshold amount for 2024 and subject to annual adjustments pursuant to Washington law); (b) If the Participant’s Termination is a result of a layoff, should any member of the Company Group choose to enforce the provisions of Section 1(a)(ii) of Appendix A, then during the post-employment portion of the Restricted Period, the Company (or other member of the Company Group, as applicable) shall pay the Participant compensation equivalent to the Participant’s base salary as of the Termination Date, minus any severance or other compensation paid by the Company Group and any compensation the Participant earns through subsequent non-competitive employment during the post-termination portion of the Restricted Period; and (c) Section 1(a)(ii) of Appendix A shall not apply for more than eighteen months after the Termination Date. | ||
WISCONSIN If the Participant is primarily a resident of, or primarily provides services in, Wisconsin on (i) the Date of Grant or (ii) the Termination Date: (a) For the post-employment portion of the Restricted Period, Section 1(a)(i) of Appendix A shall be amended to delete the words “or prospective”; (b) Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date; and (c) Section 2(a) of Appendix A shall remain in effect until three years following the Termination Date with respect to Confidential Information that is not a trade secret, and, with respect to trade secrets, for as long as the information is a trade secret. |
Participant Name | Number of Restricted Stock Units Granted | Vesting Schedule | Date of Grant | ||||||||
#ParticipantName# | #QuantityGranted# RSUs | 50% vests on March 3 of 2025 and 2026 (each, a “vesting date”) | #GrantDate# |
HILTON WORLDWIDE HOLDINGS INC. | |||||
By: | /s/ Christopher J. Nassetta | ||||
Christopher J. Nassetta | |||||
President and Chief Executive Officer | |||||
By: | /s/ Laura Fuentes | ||||
Laura Fuentes | |||||
Executive Vice President and Chief Human Resources Officer |
CALIFORNIA If the Participant is primarily a resident of, or primarily provides services in, California on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply after the Termination Date, (b)During the portion of the Restricted Period which follows the Termination Date, Section 1(a)(iv) of Appendix A shall be amended to delete the words “or hire any employee who was employed by the Company Group as of the Termination Date”, (c)The following sentence shall be added to Section 2(d) of Appendix A: “Nothing in this agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful.” (d)The following sentence shall be added as Section 2(c)(v) of Appendix A: “Notwithstanding any other provision of Appendix A to the contrary, this Section 2(c) of Appendix A is subject to the provisions of California Labor Code Sections 2870, 2871 and 2872. In accordance with Section 2870 of the California Labor Code, the Participant’s obligation to assign to the Company Group the Participant’s right, title and interest throughout the world in and to all Works does not apply to any Works the Participant developed entirely on the Participant’s own time without using the Company Group’s equipment, supplies, facilities, or Confidential Information except for such Works that relate to either (i) the business of the Company Group at the time of conception or reduction to practice of the Works, or actual or demonstrably anticipated research or development of the Company Group or (ii) result from any work performed by the Participant for the Company Group. A copy of California Labor Code Sections 2870, 2871 and 2872 is attached to the State Restrictive Covenant Annex as Exhibit 1. The Participant agrees to disclose all Works to the Company Group, even if the Participant does not believe that the Participant is required under Section 2(c) of Appendix A, or pursuant to California Labor Code Section 2870, to assign the Participant’s interest in such Works to the Company Group or its nominee.” (e)To the extent the Participant is a party to any other agreement or arrangement with the Company Group which contains restrictive covenants still in effect which conflict with the terms of this California supplement, such restrictive covenants shall to that extent be superseded and replaced by the terms stated herein. (f)Notwithstanding anything in the Agreement to the contrary, Appendix A shall be governed by California law, without regard to principles of conflicts of law. |
COLORADO If the Participant is primarily a resident of, or primarily provides services in, Colorado on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(iv) of Appendix A shall not apply after the Termination Date unless the Participant earns, as of the Date of Grant and the date on which enforcement is sought, an amount of annualized cash compensation equivalent or greater than $74,250 (which is the threshold amount for 2024 and represents 60% of Colorado’s “threshold amount for highly compensated workers,” which is subject to annual adjustments pursuant to Colorado law); and (b)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns, as of the Date of Grant and the date on which enforcement is sought, an amount of annualized cash compensation equivalent to or greater than $123,750 (which is the threshold amount for 2024 and represents 100% of Colorado’s “threshold amount for highly compensated workers,” which is subject to annual adjustments pursuant to Colorado law). The Participant acknowledges that the Participant was provided a separate notice of the terms of the above-referenced restrictions at least 14 days before the earlier of (1) the effective date of the Restrictive Covenants or (2) the Date of Grant. | ||
DISTRICT OF COLUMBIA If the Participant is a “covered employee,” as defined by the District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 (as amended): (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date; and (b)During the Employment Term, Section 1(a)(ii) of Appendix A shall apply only to the extent permitted by District of Columbia law. A “covered employee” is an individual who performs work for pay in the District of Columbia for an employer and who is not a “highly compensated employee,” and (i) spends (or, for new hires, is reasonably anticipated to spend) more than 50% of his or her work time for the employer working in the District of Columbia, or (ii) whose employment for the employer is or will be based in the District of Columbia and the employee regularly spends (or, for new hires, is reasonably anticipated to spend) a substantial amount of his or her work time for the employer in the District of Columbia and no more than 50% of his or her work time for such employer in another jurisdiction. The term “covered employee” does not include partners in a partnership. A “highly compensated employee” is an employee who earns or is reasonably expected to earn from his or her employer compensation greater than or equal to $150,000 in a consecutive 12-month period (which is the threshold amount for 2023 and will be adjusted annually for inflation beginning on January 1, 2024 based on adjustments to the Consumer Price Index for All Urban Consumers, in the Washington Metropolitan Statistical Area, as published by the Bureau of Labor Statistics Urban Consumers, in the Washington Metropolitan Statistical Area, as published by the Bureau of Labor Statistics of the US Department of Labor). If the Participant is a “highly compensated employee”: (a)As applied to Section 1(a)(ii) of Appendix A, the Restricted Period shall not exceed 365 days from the Termination Date; and (b)The Participant is provided with the following notice, at least 14 days prior to the execution of the Agreement: The District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES). |
GEORGIA If the Participant is primarily a resident of, or primarily provides services in, Georgia on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant (1) customarily and regularly solicits customers or prospective customers for his or her employer; (2) customarily and regularly engages in making sales or obtaining orders or contracts for products or services to be performed by others; (3) has the authority to hire or fire other employees or particular weight is given to the Participant’s suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; or (4) performs the duties of a “key employee” or professional. A “key employee” is someone with “a high level of notoriety, fame, reputation, or public persona as the employer’s representative or spokesperson or has gained a high level of influence or credibility with the employer’s customers, vendors, or other business relationships or is intimately involved in the planning for or direction of the business of the employer or a defined unit of the business of the employer. Such term also means an employee in possession of selective or specialized skills, learning, or abilities or customer contacts or customer information who has obtained such skills, learning, abilities, contacts, or information by reason of having worked for the employer.” | ||
IDAHO If the Participant is primarily a resident of, or primarily provides services in, Idaho on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant is a “key employee” or “key independent contractor”; and (b)Section 1(a)(ii) of Appendix A shall be limited after the Termination Date to direct competition. A “key employee” and “key independent contractor” is someone who, by reason of the employer’s investment of time, money, trust, exposure to the public, or exposure to technologies, intellectual property, business plans, business processes and methods of operation, customers, vendors or other business relationships during the course of employment, have gained a high level of inside knowledge, influence, credibility, notoriety, fame, reputation or public persona as a representative or spokesperson of the employer and, as a result, have the ability to harm or threaten an employer’s legitimate business interests. | ||
ILLINOIS If the Participant is primarily a resident of, or primarily provides services in, Illinois on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(iv) of Appendix A shall not apply after the Termination Date unless the Participant’s actual or expected annual rate of “earnings” (as defined by Illinois law) exceeds $45,000 per year (which is the threshold amount through the end of 2026, after which this amount will increase in $2,500 increments in each of 2027, 2032, and 2037, with $52,500 as the minimum threshold amount in 2037); and (b)Section 1(a)(ii) of the Appendix A shall not apply after the Termination Date unless the Participant’s actual or expected annual rate of “earnings” (as defined by Illinois law) exceeds $75,000 per year (which is the threshold amount through the end of 2026, after which this amount will increase in $5,000 increments in each of 2027, 2032, and 2037, with $90,000 as the minimum threshold amount in 2037). |
LOUISIANA If the Participant is primarily a resident of, or primarily provides services in, Louisiana on (i) the Date of Grant or (ii) the Termination Date, then Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply for more than two years after the Termination Date. Within the State of Louisiana, Sections 1(a)(i) and 1(a)(ii) of Appendix A shall apply in, and the definition of “Restricted Area” shall apply to, the following parishes municipalities, or parts thereof, so long as the Company Group continues to carry on business therein, and outside of Louisiana shall not be limited except as provided in Appendix A: •Acadia Parish, Allen Parish, Ascension Parish, Assumption Parish, Avoyelles Parish, Beauregard Parish, Bienville Parish, Bossier Parish, Caddo Parish, Calcasieu Parish, Caldwell Parish, Cameron Parish, Catahoula Parish, Claiborne Parish, Concordia Parish, DeSoto Parish, East Baton Rouge Parish, East Carroll Parish, East Feliciana Parish, Evangeline Parish, Franklin Parish, Grant Parish, Iberia Parish, Iberville Parish, Jackson Parish, Jefferson Parish, Jefferson Davis Parish, Lafayette Parish, Lafourche Parish, LaSalle Parish, Lincoln Parish, Livingston Parish, Madison Parish, Morehouse Parish, Natchitoches Parish, Orleans Parish, Ouachita Parish, Plaquemines Parish, Pointe Coupee Parish, Rapides Parish, Red River Parish, Richland Parish, Sabine Parish, St. Bernard Parish, St. Charles Parish, St. Helena Parish, St. James Parish, St. John the Baptist Parish, St. Landry Parish, St. Martin Parish, St. Mary Parish, St. Tammany Parish, Tangipahoa Parish, Tensas Parish, Terrebonne Parish, Union Parish, Vermilion Parish, Vernon Parish, Washington Parish, Webster Parish, West Baton Rouge Parish, West Carroll Parish, West Feliciana Parish, and Winn Parish. |
MAINE If the Participant is primarily a resident of, or primarily provides services in, Maine on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns wages equal to, or greater than, 400% of the federal poverty level; and (b)The terms of Section 1(a)(ii) of Appendix A, with respect to the post-employment portion of the Restricted Period, shall not take effect until the later of (i) one year after the commencement of the Participant’s employment or (ii) 6 months after the Participant executes the Agreement. | ||
MARYLAND If the Participant is primarily a resident of, or primarily provides services in, Maryland on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns wages equal to, or greater than, 150% of the state minimum wage. | ||
MASSACHUSETTS If the Participant is, and has been for at least 30 days immediately preceding the Termination Date, a resident of, or primarily providing services in, the Commonwealth of Massachusetts: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date, if the Participant is Terminated without Cause (as modified by this Massachusetts supplement); (a)With respect to Section 1(a)(ii) of Appendix A, the Restricted Period shall not exceed 12 months from the Termination Date, unless the Participant has breached his or her fiduciary duty to the Company Group or the Participant has unlawfully taken, physically or electronically, property belonging to the Company Group, in which case the Restricted Period may not exceed 2 years from the Termination Date; (b)The Company Group, at its discretion, including based on a determination by the Company Group, in its discretion, that additional consideration is required by Massachusetts law to render Section 1(a)(ii) of Appendix A enforceable, may elect to enforce such covenant by making garden leave payments to the Participant during the post-termination portion of the Restricted Period (but for no more than 12 months following the Termination Date) at a rate of up to 50% of the highest annualized base salary or service fees, as applicable, paid to the Participant by the Company Group within the 2-year period preceding the Termination Date (“Garden Leave Payments”). Any Garden Leave Payments paid to the Participant pursuant to this Massachusetts supplement may be reduced based on consideration of the Fair Market Value of the incentive compensation provided pursuant to the Agreement and determined in good faith by the Company Group as of the Termination Date or by (or may reduce and not be in addition to) any severance or separation pay that the Participant is otherwise entitled to receive from any member of the Company Group pursuant to an agreement, plan, or otherwise; (c)The Company Group, in its sole discretion, may elect at any time prior to the Termination Date, or on such later date to the extent permitted by applicable law, to waive the restrictions set forth in Section 1(a)(ii) of Appendix A, upon which such waiver shall automatically terminate the Company Group’s obligations to compensate the Participant under Section (c) of this Massachusetts supplement. In such event, the Participant shall have no further obligations under Section 1(a)(ii) of Appendix A. Such waiver shall be in writing, and shall have no effect on the Participant’s obligations under the remainder of Appendix A, which shall continue in full force and effect in all respects. The Participant acknowledges and agrees that nothing in this Section (d) gives the Participant an election as to compliance with Section 1(a)(ii) of Appendix A; (d)For purposes of enforcement of Section 1(a)(ii) of Appendix A (and no other provision of the Agreement or the Plan), “Cause” shall include any good faith determination by the Company Group that the Participant has significantly underperformed in providing services to the Company Group or engaged in conduct or behavior that violates any policy of the Company Group or is detrimental to the Company or any member of the Company Group or its reputation; (e)The Participant acknowledges and agrees that the benefits provided by the Agreement and the Garden Leave Payments (where applicable) constitute sufficient mutually agreed-upon consideration for Section 1(a)(ii) of Appendix A; and (f)The Participant’s agreement to the non-competition covenant in Section 1(a)(ii) of Appendix A shall be effective upon the later of the Participant’s acceptance of the Award or the date that is 10 business days after the Participant was provided with notice of the non-competition agreement. |
MINNESOTA If the Participant is primarily a resident of, or primarily provides services in, Minnesota on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period. | ||
NEVADA If the Participant is primarily a resident of, or primarily provides services in, Nevada on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period: (i)in territories in which the Company Group has not established customer contracts or goodwill or undertaken concrete steps to establish operations; or (ii)to prevent the Participant from providing services to a former customer or client of Company Group so long as (1) the Participant did not solicit the former customer or client, (2) the customer or client voluntarily left and sought the Participant’s services and (3) the Participant has otherwise complied with the provisions of Section 1(a)(ii) of Appendix A with respect to time, geographic area and scope of restrained activity. (b)During the post-employment portion of the Restricted Period, if the Participant’s Termination was part of a reduction of force, reorganization or similar restructuring of the Company Group, Section 1(a)(ii) of Appendix A shall only apply during the period of time which the Company Group pays the Participant’s salary, benefits or equivalent compensation, including severance pay, if any. | ||
NEW HAMPSHIRE If the Participant is primarily a resident of, or primarily provides services in, New Hampshire on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period, if the Participant earns an hourly rate that is less than or equal to (i) 200% of the federal minimum wage or (ii) 200% of the tipped minimum wage pursuant to New Hampshire law. |
NORTH DAKOTA If the Participant is primarily a resident of, or primarily provides services in, North Dakota on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period; and (b)Section 1(a)(iv) of Appendix A shall only apply during the post-employment portion of the Restricted Period to the extent permitted by applicable North Dakota law. | ||
OKLAHOMA If the Participant is primarily a resident of, or primarily provides services in, on Oklahoma (i) the Date of Grant or (ii) the Termination Date: (a)During the post-employment portion of the Restricted Period, Section 1(a)(i) of Appendix A shall be limited to restricting direct solicitation of established customers or clients of the Company Group; and (b)Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period. | ||
OREGON If the Participant is primarily a resident of, or primarily provides services in, Oregon on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period, unless: (i)the Award was granted in connection with either (A) a written employment offer that provided, at least two (2) weeks’ notice before the first day of employment, that a non-competition agreement was required or (B) the Participant’s subsequent bona fide advancement; and (ii)the Participant’s total annual compensation, including commissions, as of the Termination Date, exceeds $108,576 (which is the threshold amount for 2023 and subject to annual adjustments for inflation based on adjustments to the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the US Department of Labor), unless the Company Group provides the Participant compensation during the post-employment portion of the Restricted Period, in which Section 1(a)(ii) of Appendix A applies, in an amount equal to the greater of 50% of the Participant’s annual gross base salary and commissions as of the Termination Date or 50% of $108,576 (which is the threshold amount for 2023 and subject to annual adjustments pursuant to Oregon law as described in this provision) during the post-employment portion of the Restricted Period. (b)The Company shall provide the Participant a signed copy of Appendix A within 30 days following the Termination Date. (c)Section 1(a)(ii) of Appendix A shall not apply for more than 12 months after the Termination Date. |
PUERTO RICO If the Participant is primarily a resident of, or primarily provides services in, Puerto Rico on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date. | ||
RHODE ISLAND If the Participant is primarily a resident of, or primarily provides services in, Rhode Island on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date, if the Participant’s average annual earnings (as defined by Rhode Island law) are less than, or equal to, 250% of the federal poverty level for individuals as established by the United States Department of Health and Human Services federal poverty guidelines. | ||
SOUTH DAKOTA If the Participant is primarily a resident of, or primarily provides services in, South Dakota on (i) the Date of Grant or (ii) the Termination Date, Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply for more than two years after the Termination Date. | ||
UTAH If the Participant is primarily a resident of, or primarily provides services in, Utah on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date. |
VIRGINIA If the Participant is primarily a resident of, or primarily provides services in, Virginia on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply during the post-employment period of the Restricted Period, if the Participant is considered a “low-wage employee”, which is defined as anyone earning, over a rolling 52-week period preceding the Termination Date, less than Virginia’s average weekly wage, which for the first quarter of 2023 was equivalent to approximately $77,000. A low-wage employee does not include an employee whose earnings are derived, in whole or in predominant part, from sales commissions, incentives, or bonuses; and (b)Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not prohibit the Participant from providing services to the Company Group’s customers or clients during the post-employment period of the Restricted Period, if the Participant does not initiate contact with or solicit such customer or client, to the extent required by Virginia law. | ||
WASHINGTON If the Participant is primarily a resident of, or primarily provides services in, Washington on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant’s annualized “earnings” (as defined by Washington law) from the Company Group exceed $120,560 per year (which is the threshold amount for 2024 and subject to annual adjustments pursuant to Washington law); (b)If the Participant’s Termination is a result of a layoff, should any member of the Company Group choose to enforce the provisions of Section 1(a)(ii) of Appendix A, then during the post-employment portion of the Restricted Period, the Company (or other member of the Company Group, as applicable) shall pay the Participant compensation equivalent to the Participant’s base salary as of the Termination Date, minus any severance or other compensation paid by the Company Group and any compensation the Participant earns through subsequent non-competitive employment during the post-termination portion of the Restricted Period; and (c)Section 1(a)(ii) of Appendix A shall not apply for more than eighteen months after the Termination Date. | ||
WISCONSIN If the Participant is primarily a resident of, or primarily provides services in, Wisconsin on (i) the Date of Grant or (ii) the Termination Date: (a)For the post-employment portion of the Restricted Period, Section 1(a)(i) of Appendix A shall be amended to delete the words “or prospective”; (b)Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date; and (c)Section 2(a) of Appendix A shall remain in effect until three years following the Termination Date with respect to Confidential Information that is not a trade secret, and, with respect to trade secrets, for as long as the information is a trade secret. |
Participant Name | Number of Shares Subject to Option | Exercise Price | Vesting Schedule | Date of Grant | ||||||||||
#ParticipantName# | #QuantityGranted# Shares | $#GrantPrice# | 33.33% vests on March 3 of 2025, 2026 and 2027 (each, a “vesting date”) | #GrantDate# |
CALIFORNIA If the Participant is primarily a resident of, or primarily provides services in, California on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply after the Termination Date, (b)During the portion of the Restricted Period which follows the Termination Date, Section 1(a)(iv) of Appendix A shall be amended to delete the words “or hire any employee who was employed by the Company Group as of the Termination Date”, (c)The following sentence shall be added to Section 2(d) of Appendix A: “Nothing in this agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful.” (d)The following sentence shall be added as Section 2(c)(v) of Appendix A: “Notwithstanding any other provision of Appendix A to the contrary, this Section 2(c) of Appendix A is subject to the provisions of California Labor Code Sections 2870, 2871 and 2872. In accordance with Section 2870 of the California Labor Code, the Participant’s obligation to assign to the Company Group the Participant’s right, title and interest throughout the world in and to all Works does not apply to any Works the Participant developed entirely on the Participant’s own time without using the Company Group’s equipment, supplies, facilities, or Confidential Information except for such Works that relate to either (i) the business of the Company Group at the time of conception or reduction to practice of the Works, or actual or demonstrably anticipated research or development of the Company Group or (ii) result from any work performed by the Participant for the Company Group. A copy of California Labor Code Sections 2870, 2871 and 2872 is attached to the State Restrictive Covenant Annex as Exhibit 1. The Participant agrees to disclose all Works to the Company Group, even if the Participant does not believe that the Participant is required under Section 2(c) of Appendix A, or pursuant to California Labor Code Section 2870, to assign the Participant’s interest in such Works to the Company Group or its nominee.” (e)To the extent the Participant is a party to any other agreement or arrangement with the Company Group which contains restrictive covenants still in effect which conflict with the terms of this California supplement, such restrictive covenants shall to that extent be superseded and replaced by the terms stated herein. (f)Notwithstanding anything in the Agreement to the contrary, Appendix A shall be governed by California law, without regard to principles of conflicts of law. |
COLORADO If the Participant is primarily a resident of, or primarily provides services in, Colorado on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(iv) of Appendix A shall not apply after the Termination Date unless the Participant earns, as of the Date of Grant and the date on which enforcement is sought, an amount of annualized cash compensation equivalent or greater than $74,250 (which is the threshold amount for 2024 and represents 60% of Colorado’s “threshold amount for highly compensated workers,” which is subject to annual adjustments pursuant to Colorado law); and (b)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns, as of the Date of Grant and the date on which enforcement is sought, an amount of annualized cash compensation equivalent to or greater than $123,750 (which is the threshold amount for 2024 and represents 100% of Colorado’s “threshold amount for highly compensated workers,” which is subject to annual adjustments pursuant to Colorado law). The Participant acknowledges that the Participant was provided a separate notice of the terms of the above-referenced restrictions at least 14 days before the earlier of (1) the effective date of the Restrictive Covenants or (2) the Date of Grant. | ||
DISTRICT OF COLUMBIA If the Participant is a “covered employee,” as defined by the District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 (as amended): (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date; and (b)During the Employment Term, Section 1(a)(ii) of Appendix A shall apply only to the extent permitted by District of Columbia law. A “covered employee” is an individual who performs work for pay in the District of Columbia for an employer and who is not a “highly compensated employee,” and (i) spends (or, for new hires, is reasonably anticipated to spend) more than 50% of his or her work time for the employer working in the District of Columbia, or (ii) whose employment for the employer is or will be based in the District of Columbia and the employee regularly spends (or, for new hires, is reasonably anticipated to spend) a substantial amount of his or her work time for the employer in the District of Columbia and no more than 50% of his or her work time for such employer in another jurisdiction. The term “covered employee” does not include partners in a partnership. A “highly compensated employee” is an employee who earns or is reasonably expected to earn from his or her employer compensation greater than or equal to $150,000 in a consecutive 12-month period (which is the threshold amount for 2023 and will be adjusted annually for inflation beginning on January 1, 2024 based on adjustments to the Consumer Price Index for All Urban Consumers, in the Washington Metropolitan Statistical Area, as published by the Bureau of Labor Statistics Urban Consumers, in the Washington Metropolitan Statistical Area, as published by the Bureau of Labor Statistics of the US Department of Labor). If the Participant is a “highly compensated employee”: (a)As applied to Section 1(a)(ii) of Appendix A, the Restricted Period shall not exceed 365 days from the Termination Date; and (b)The Participant is provided with the following notice, at least 14 days prior to the execution of the Agreement: The District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements. It allows employers to request non-compete agreements from highly compensated employees, as that term is defined in the Ban on Non-Compete Agreements Amendment Act of 2020, under certain conditions. The Company has determined that you are a highly compensated employee. For more information about the Ban on Non-Compete Agreements Amendment Act of 2020, contact the District of Columbia Department of Employment Services (DOES). |
GEORGIA If the Participant is primarily a resident of, or primarily provides services in, Georgia on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant (1) customarily and regularly solicits customers or prospective customers for his or her employer; (2) customarily and regularly engages in making sales or obtaining orders or contracts for products or services to be performed by others; (3) has the authority to hire or fire other employees or particular weight is given to the Participant’s suggestions and recommendations as to the hiring, firing, advancement, promotion, or any other change of status of other employees; or (4) performs the duties of a “key employee” or professional. A “key employee” is someone with “a high level of notoriety, fame, reputation, or public persona as the employer’s representative or spokesperson or has gained a high level of influence or credibility with the employer’s customers, vendors, or other business relationships or is intimately involved in the planning for or direction of the business of the employer or a defined unit of the business of the employer. Such term also means an employee in possession of selective or specialized skills, learning, or abilities or customer contacts or customer information who has obtained such skills, learning, abilities, contacts, or information by reason of having worked for the employer.” | ||
IDAHO If the Participant is primarily a resident of, or primarily provides services in, Idaho on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant is a “key employee” or “key independent contractor”; and (b)Section 1(a)(ii) of Appendix A shall be limited after the Termination Date to direct competition. A “key employee” and “key independent contractor” is someone who, by reason of the employer’s investment of time, money, trust, exposure to the public, or exposure to technologies, intellectual property, business plans, business processes and methods of operation, customers, vendors or other business relationships during the course of employment, have gained a high level of inside knowledge, influence, credibility, notoriety, fame, reputation or public persona as a representative or spokesperson of the employer and, as a result, have the ability to harm or threaten an employer’s legitimate business interests. | ||
ILLINOIS If the Participant is primarily a resident of, or primarily provides services in, Illinois on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(iv) of Appendix A shall not apply after the Termination Date unless the Participant’s actual or expected annual rate of “earnings” (as defined by Illinois law) exceeds $45,000 per year (which is the threshold amount through the end of 2026, after which this amount will increase in $2,500 increments in each of 2027, 2032, and 2037, with $52,500 as the minimum threshold amount in 2037); and (b)Section 1(a)(ii) of the Appendix A shall not apply after the Termination Date unless the Participant’s actual or expected annual rate of “earnings” (as defined by Illinois law) exceeds $75,000 per year (which is the threshold amount through the end of 2026, after which this amount will increase in $5,000 increments in each of 2027, 2032, and 2037, with $90,000 as the minimum threshold amount in 2037). |
LOUISIANA If the Participant is primarily a resident of, or primarily provides services in, Louisiana on (i) the Date of Grant or (ii) the Termination Date, then Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply for more than two years after the Termination Date. Within the State of Louisiana, Sections 1(a)(i) and 1(a)(ii) of Appendix A shall apply in, and the definition of “Restricted Area” shall apply to, the following parishes municipalities, or parts thereof, so long as the Company Group continues to carry on business therein, and outside of Louisiana shall not be limited except as provided in Appendix A: •Acadia Parish, Allen Parish, Ascension Parish, Assumption Parish, Avoyelles Parish, Beauregard Parish, Bienville Parish, Bossier Parish, Caddo Parish, Calcasieu Parish, Caldwell Parish, Cameron Parish, Catahoula Parish, Claiborne Parish, Concordia Parish, DeSoto Parish, East Baton Rouge Parish, East Carroll Parish, East Feliciana Parish, Evangeline Parish, Franklin Parish, Grant Parish, Iberia Parish, Iberville Parish, Jackson Parish, Jefferson Parish, Jefferson Davis Parish, Lafayette Parish, Lafourche Parish, LaSalle Parish, Lincoln Parish, Livingston Parish, Madison Parish, Morehouse Parish, Natchitoches Parish, Orleans Parish, Ouachita Parish, Plaquemines Parish, Pointe Coupee Parish, Rapides Parish, Red River Parish, Richland Parish, Sabine Parish, St. Bernard Parish, St. Charles Parish, St. Helena Parish, St. James Parish, St. John the Baptist Parish, St. Landry Parish, St. Martin Parish, St. Mary Parish, St. Tammany Parish, Tangipahoa Parish, Tensas Parish, Terrebonne Parish, Union Parish, Vermilion Parish, Vernon Parish, Washington Parish, Webster Parish, West Baton Rouge Parish, West Carroll Parish, West Feliciana Parish, and Winn Parish. |
MAINE If the Participant is primarily a resident of, or primarily provides services in, Maine on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns wages equal to, or greater than, 400% of the federal poverty level; and (b)The terms of Section 1(a)(ii) of Appendix A, with respect to the post-employment portion of the Restricted Period, shall not take effect until the later of (i) one year after the commencement of the Participant’s employment or (ii) 6 months after the Participant executes the Agreement. | ||
MARYLAND If the Participant is primarily a resident of, or primarily provides services in, Maryland on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant earns wages equal to, or greater than, 150% of the state minimum wage. | ||
MASSACHUSETTS If the Participant is, and has been for at least 30 days immediately preceding the Termination Date, a resident of, or primarily providing services in, the Commonwealth of Massachusetts: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date, if the Participant is Terminated without Cause (as modified by this Massachusetts supplement); (a)With respect to Section 1(a)(ii) of Appendix A, the Restricted Period shall not exceed 12 months from the Termination Date, unless the Participant has breached his or her fiduciary duty to the Company Group or the Participant has unlawfully taken, physically or electronically, property belonging to the Company Group, in which case the Restricted Period may not exceed 2 years from the Termination Date; (b)The Company Group, at its discretion, including based on a determination by the Company Group, in its discretion, that additional consideration is required by Massachusetts law to render Section 1(a)(ii) of Appendix A enforceable, may elect to enforce such covenant by making garden leave payments to the Participant during the post-termination portion of the Restricted Period (but for no more than 12 months following the Termination Date) at a rate of up to 50% of the highest annualized base salary or service fees, as applicable, paid to the Participant by the Company Group within the 2-year period preceding the Termination Date (“Garden Leave Payments”). Any Garden Leave Payments paid to the Participant pursuant to this Massachusetts supplement may be reduced based on consideration of the Fair Market Value of the incentive compensation provided pursuant to the Agreement and determined in good faith by the Company Group as of the Termination Date or by (or may reduce and not be in addition to) any severance or separation pay that the Participant is otherwise entitled to receive from any member of the Company Group pursuant to an agreement, plan, or otherwise; (c)The Company Group, in its sole discretion, may elect at any time prior to the Termination Date, or on such later date to the extent permitted by applicable law, to waive the restrictions set forth in Section 1(a)(ii) of Appendix A, upon which such waiver shall automatically terminate the Company Group’s obligations to compensate the Participant under Section (c) of this Massachusetts supplement. In such event, the Participant shall have no further obligations under Section 1(a)(ii) of Appendix A. Such waiver shall be in writing, and shall have no effect on the Participant’s obligations under the remainder of Appendix A, which shall continue in full force and effect in all respects. The Participant acknowledges and agrees that nothing in this Section (d) gives the Participant an election as to compliance with Section 1(a)(ii) of Appendix A; (d)For purposes of enforcement of Section 1(a)(ii) of Appendix A (and no other provision of the Agreement or the Plan), “Cause” shall include any good faith determination by the Company Group that the Participant has significantly underperformed in providing services to the Company Group or engaged in conduct or behavior that violates any policy of the Company Group or is detrimental to the Company or any member of the Company Group or its reputation; (e)The Participant acknowledges and agrees that the benefits provided by the Agreement and the Garden Leave Payments (where applicable) constitute sufficient mutually agreed-upon consideration for Section 1(a)(ii) of Appendix A; and (f)The Participant’s agreement to the non-competition covenant in Section 1(a)(ii) of Appendix A shall be effective upon the later of the Participant’s acceptance of the Award or the date that is 10 business days after the Participant was provided with notice of the non-competition agreement. |
MINNESOTA If the Participant is primarily a resident of, or primarily provides services in, Minnesota on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period. | ||
NEVADA If the Participant is primarily a resident of, or primarily provides services in, Nevada on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period: (i)in territories in which the Company Group has not established customer contracts or goodwill or undertaken concrete steps to establish operations; or (ii)to prevent the Participant from providing services to a former customer or client of Company Group so long as (1) the Participant did not solicit the former customer or client, (2) the customer or client voluntarily left and sought the Participant’s services and (3) the Participant has otherwise complied with the provisions of Section 1(a)(ii) of Appendix A with respect to time, geographic area and scope of restrained activity. (b)During the post-employment portion of the Restricted Period, if the Participant’s Termination was part of a reduction of force, reorganization or similar restructuring of the Company Group, Section 1(a)(ii) of Appendix A shall only apply during the period of time which the Company Group pays the Participant’s salary, benefits or equivalent compensation, including severance pay, if any. | ||
NEW HAMPSHIRE If the Participant is primarily a resident of, or primarily provides services in, New Hampshire on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period, if the Participant earns an hourly rate that is less than or equal to (i) 200% of the federal minimum wage or (ii) 200% of the tipped minimum wage pursuant to New Hampshire law. |
NORTH DAKOTA If the Participant is primarily a resident of, or primarily provides services in, North Dakota on (i) the Date of Grant or (ii) the Termination Date: (a)Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period; and (b)Section 1(a)(iv) of Appendix A shall only apply during the post-employment portion of the Restricted Period to the extent permitted by applicable North Dakota law. | ||
OKLAHOMA If the Participant is primarily a resident of, or primarily provides services in, on Oklahoma (i) the Date of Grant or (ii) the Termination Date: (a)During the post-employment portion of the Restricted Period, Section 1(a)(i) of Appendix A shall be limited to restricting direct solicitation of established customers or clients of the Company Group; and (b)Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period. | ||
OREGON If the Participant is primarily a resident of, or primarily provides services in, Oregon on (i) the Date of Grant or (ii) the Termination Date: (a) Section 1(a)(ii) of Appendix A shall not apply during the post-employment portion of the Restricted Period, unless: (i)the Award was granted in connection with either (A) a written employment offer that provided, at least two (2) weeks’ notice before the first day of employment, that a non-competition agreement was required or (B) the Participant’s subsequent bona fide advancement; and (ii)the Participant’s total annual compensation, including commissions, as of the Termination Date, exceeds $108,576 (which is the threshold amount for 2023 and subject to annual adjustments for inflation based on adjustments to the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the US Department of Labor), unless the Company Group provides the Participant compensation during the post-employment portion of the Restricted Period, in which Section 1(a)(ii) of Appendix A applies, in an amount equal to the greater of 50% of the Participant’s annual gross base salary and commissions as of the Termination Date or 50% of $108,576 (which is the threshold amount for 2023 and subject to annual adjustments pursuant to Oregon law as described in this provision) during the post-employment portion of the Restricted Period. (b)The Company shall provide the Participant a signed copy of Appendix A within 30 days following the Termination Date. (c)Section 1(a)(ii) of Appendix A shall not apply for more than 12 months after the Termination Date. |
PUERTO RICO If the Participant is primarily a resident of, or primarily provides services in, Puerto Rico on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date. | ||
RHODE ISLAND If the Participant is primarily a resident of, or primarily provides services in, Rhode Island on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply after the Termination Date, if the Participant’s average annual earnings (as defined by Rhode Island law) are less than, or equal to, 250% of the federal poverty level for individuals as established by the United States Department of Health and Human Services federal poverty guidelines. | ||
SOUTH DAKOTA If the Participant is primarily a resident of, or primarily provides services in, South Dakota on (i) the Date of Grant or (ii) the Termination Date, Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not apply for more than two years after the Termination Date. | ||
UTAH If the Participant is primarily a resident of, or primarily provides services in, Utah on (i) the Date of Grant or (ii) the Termination Date, Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date. |
VIRGINIA If the Participant is primarily a resident of, or primarily provides services in, Virginia on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply during the post-employment period of the Restricted Period, if the Participant is considered a “low-wage employee”, which is defined as anyone earning, over a rolling 52-week period preceding the Termination Date, less than Virginia’s average weekly wage, which for the first quarter of 2023 was equivalent to approximately $77,000. A low-wage employee does not include an employee whose earnings are derived, in whole or in predominant part, from sales commissions, incentives, or bonuses; and (b)Sections 1(a)(i) and 1(a)(ii) of Appendix A shall not prohibit the Participant from providing services to the Company Group’s customers or clients during the post-employment period of the Restricted Period, if the Participant does not initiate contact with or solicit such customer or client, to the extent required by Virginia law. |
WASHINGTON If the Participant is primarily a resident of, or primarily provides services in, Washington on (i) the Date of Grant or (ii) the Termination Date: (a)Section 1(a)(ii) of Appendix A shall not apply after the Termination Date unless the Participant’s annualized “earnings” (as defined by Washington law) from the Company Group exceed $120,560 per year (which is the threshold amount for 2024 and subject to annual adjustments pursuant to Washington law); (b)If the Participant’s Termination is a result of a layoff, should any member of the Company Group choose to enforce the provisions of Section 1(a)(ii) of Appendix A, then during the post-employment portion of the Restricted Period, the Company (or other member of the Company Group, as applicable) shall pay the Participant compensation equivalent to the Participant’s base salary as of the Termination Date, minus any severance or other compensation paid by the Company Group and any compensation the Participant earns through subsequent non-competitive employment during the post-termination portion of the Restricted Period; and (c)Section 1(a)(ii) of Appendix A shall not apply for more than eighteen months after the Termination Date. | ||
WISCONSIN If the Participant is primarily a resident of, or primarily provides services in, Wisconsin on (i) the Date of Grant or (ii) the Termination Date: (a)For the post-employment portion of the Restricted Period, Section 1(a)(i) of Appendix A shall be amended to delete the words “or prospective”; (b)Section 1(a)(ii) of Appendix A shall not apply for more than one year after the Termination Date; and (c)Section 2(a) of Appendix A shall remain in effect until three years following the Termination Date with respect to Confidential Information that is not a trade secret, and, with respect to trade secrets, for as long as the information is a trade secret. |
By: | /s/ Christopher J. Nassetta | ||||
Christopher J. Nassetta | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) | |||||
April 24, 2024 |
By: | /s/ Kevin J. Jacobs | ||||
Kevin J. Jacobs | |||||
Chief Financial Officer and President, Global Development | |||||
(Principal Financial Officer) | |||||
April 24, 2024 |
By: | /s/ Christopher J. Nassetta | ||||
Christopher J. Nassetta | |||||
President and Chief Executive Officer | |||||
(Principal Executive Officer) |
By: | /s/ Kevin J. Jacobs | ||||
Kevin J. Jacobs | |||||
Chief Financial Officer and President, Global Development | |||||
(Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 137 | $ 131 |
Total current assets of variable interest entities | 66 | 65 |
Total intangibles and other assets of variable interest entities | 102 | 112 |
Total current liabilities of variable interest entities | 46 | 50 |
Total liabilities of variable interest entities | $ 122 | $ 137 |
Common stock, par value (per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 10,000,000,000 | 10,000,000,000 |
Common stock, outstanding shares | 251,032,237 | 253,488,288 |
Treasury stock, shares | 84,184,078 | 80,807,049 |
Condensed Consolidated Statements of Operations - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Revenues | $ 2,573 | $ 2,293 |
Owned and leased hotels | 247 | 251 |
Depreciation and amortization | 36 | 37 |
General and administrative | 104 | 91 |
Other expenses | 30 | 21 |
Total expenses excluding reimbursable expenses | 417 | 400 |
Other expenses from managed and franchised properties | 1,630 | 1,395 |
Total expenses | 2,047 | 1,795 |
Gain (Loss) on Disposition of Assets | 7 | 0 |
Operating income (loss) | 533 | 498 |
Interest expense | (131) | (116) |
Loss on foreign currency transactions | (1) | 0 |
Loss on investments in unconsolidated affiliate | 0 | (92) |
Other non-operating income (loss), net | (36) | 12 |
Income before income taxes | 365 | 302 |
Income tax expense | (97) | (93) |
Net income | 268 | 209 |
Net loss (income) attributable to noncontrolling interests | (3) | (3) |
Net income attributable to Hilton stockholders | $ 265 | $ 206 |
Basic EPS: | ||
Earnings (loss) per share, basic (USD per share) | $ 1.05 | $ 0.77 |
Diluted EPS: | ||
Earnings (loss) per share, diluted (USD per share) | 1.04 | 0.77 |
Cash dividends declared per share | $ 0.15 | $ 0.15 |
Total revenues excluding reimbursable revenues | ||
Revenues | $ 1,052 | $ 936 |
Franchise and licensing fees | ||
Revenues | 571 | 508 |
Base and other management fees | ||
Revenues | 106 | 80 |
Incentive management fees | ||
Revenues | 70 | 65 |
Owned and leased hotels | ||
Revenues | 255 | 248 |
Other revenues | ||
Revenues | 50 | 35 |
Other revenues from managed and franchised properties | ||
Revenues | $ 1,521 | $ 1,357 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 268 | $ 209 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Currency translation adjustment, net of tax | (27) | (6) |
Pension liability adjustment, net of tax | 2 | 2 |
Cash flow hedge adjustment, net of tax | 7 | (14) |
Total other comprehensive loss | (18) | (18) |
Comprehensive income | 250 | 191 |
Comprehensive loss (income) attributable to noncontrolling interests | (3) | (3) |
Comprehensive income attributable to Hilton stockholders | $ 247 | $ 188 |
Condensed Consolidated Statement of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Currency translation adjustment, tax benefit (expense) | $ 4 | $ (3) |
Pension liability adjustment, tax expense (less than) | (1) | (1) |
Cash flow hedge adjustment, tax benefit (expense) | $ (2) | $ 4 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Operating Activities: | ||
Net income (loss) | $ 268 | $ 209 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of contract acquisition costs | 12 | 10 |
Depreciation and amortization | 36 | 37 |
Gain (Loss) on Disposition of Assets | (7) | 0 |
Loss on foreign currency transactions | 1 | 0 |
Loss on investments in unconsolidated affiliate | 0 | 92 |
Share-based compensation expense | 41 | 33 |
Deferred income taxes | (30) | (20) |
Contract acquisition costs, net of refunds | (37) | (105) |
Working capital changes and other | 62 | 74 |
Net cash provided by operating activities | 346 | 330 |
Investing Activities: | ||
Capital expenditures for property and equipment | (16) | (44) |
Issuance of financing receivables | 0 | (8) |
Proceeds from asset dispositions | 8 | 0 |
Settlements of undesignated derivative financial instruments | 0 | (12) |
Capitalized software costs | (18) | (19) |
Investments in unconsolidated affiliates | (1) | (2) |
Net cash used in investing activities | (27) | (85) |
Financing Activities: | ||
Borrowings | 1,200 | 0 |
Repayment of debt | (209) | (12) |
Debt issuance costs | (13) | (9) |
Dividends paid | (39) | (41) |
Repurchases of common stock | (666) | (450) |
Share-based compensation tax withholdings | (69) | (51) |
Proceeds from share-based compensation | 20 | 5 |
Settlements of interest rate swap with financing component | 14 | 11 |
Net cash provided by (used in) financing activities | 238 | (547) |
Effect of exchange rate changes on cash, restricted cash and cash equivalents | (12) | (6) |
Net increase (decrease) in cash, restricted cash and cash equivalents | 545 | (308) |
Cash, restricted cash and cash equivalents, beginning of period | 875 | 1,286 |
Cash, restricted cash and cash equivalents, end of period | $ 1,420 | $ 978 |
Organization and Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest global hospitality companies and is engaged in managing, franchising, owning and leasing hotels and resorts, and licensing its intellectual property ("IP"), including brand names, trademarks and service marks. Basis of Presentation The accompanying condensed consolidated financial statements for the three months ended March 31, 2024 and 2023 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain disclosures normally included in annual financial statements presented in accordance with GAAP; however, we believe the disclosures made are adequate to prevent the information presented from being misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation.
|
Acquisitions |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions In March 2024, we signed a purchase agreement to acquire the Graduate Hotels brand and enter into franchise contracts for approximately 35 existing and pipeline Graduate Hotels for $210 million in cash, which is expected to close in the second quarter of 2024. In April 2024, we agreed to and completed an all-cash acquisition of a controlling financial interest in Sydell Hotels & Resorts, LLC and Sydell Holding Company UK Ltd (collectively, the "Sydell Group"), which owns the NoMad brand.
|
Revenues from Contracts with Customers |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Revenues from Contracts with Customers | Revenues from Contracts with Customers Contract Liabilities The following table summarizes the activity of our contract liabilities, which are classified as components of current and long-term deferred revenues, during the three months ended March 31, 2024:
____________ (1)Primarily related to Hilton Honors, our guest loyalty program, including co-branded credit card arrangements. (2)Represents the changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues. Performance Obligations As of March 31, 2024, deferred revenues for unsatisfied performance obligations consisted of: (i) $800 million related to Hilton Honors that will be recognized as revenue over approximately the next two years; (ii) $744 million related to advance consideration received from hotel owners for application, initiation and other fees and system implementation fees; and (iii) $18 million related to other obligations. These performance obligations are recognized as revenue as discussed in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
|
Consolidated Variable Interest Entities |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Variable Interest Entities | Consolidated Variable Interest Entities As of March 31, 2024 and December 31, 2023, we consolidated two variable interest entities ("VIEs") that each lease one hotel property, both of which are located in Japan. We consolidated these VIEs since we are the primary beneficiary, having the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb losses and the right to receive benefits that could be significant to each of the VIEs individually. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities, and the liabilities of the consolidated VIEs are non-recourse to us. Our condensed consolidated balance sheets include the assets and liabilities of these entities, including the effect of foreign currency translation, which primarily comprised the following:
____________ (1)Includes finance lease liabilities of $78 million and $86 million as of March 31, 2024 and December 31, 2023, respectively. (2)Includes current maturities of $18 million and $19 million as of March 31, 2024 and December 31, 2023, respectively.
|
Loss on Investments in Unconsolidated Affiliate |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Loss on Investments in Unconsolidated Affiliate | Loss on Investments in Unconsolidated Affiliate We provide equity and debt financing to certain unconsolidated affiliates with an objective of supporting the growth of our network. The assets relating to these investments are classified as other current assets or other non-current assets in our condensed consolidated balance sheets based on the expected maturity of the respective investment, if applicable. In March 2023, as a result of the rise in market-based interest rates, one of our third-party unconsolidated affiliates (the "Fund"), which has underlying investments in certain hotels that we manage or franchise, failed to comply with certain requirements of its debt agreements. As a result, we determined that: (i) our investment in the Fund was fully impaired and (ii) short-term subordinated financing receivables due to us from the Fund were uncollectible. As such, we recognized an other-than-temporary impairment loss on our investment of $44 million and credit losses of $48 million to fully reserve the financing receivables, such that their net carrying values were zero. These losses were recognized in loss on investments in unconsolidated affiliate in our condensed consolidated statement of operations for the three months ended March 31, 2023.
|
Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of March 31, 2024, were as follows:
____________ (1)These notes are collectively referred to as the Senior Notes and are jointly and severally guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than Hilton Domestic Operating Company Inc. ("HOC"), an indirect wholly owned subsidiary of the Parent and the issuer of all of the series of Senior Notes. (2)Long-term debt of our consolidated VIEs is included in finance lease liabilities and other debt of consolidated VIEs, as applicable. Refer to Note 4: "Consolidated Variable Interest Entities" for additional information. (3)Represents current maturities of finance lease liabilities and borrowings of consolidated VIEs. Our senior secured credit facilities consist of a senior secured revolving credit facility (the "Revolving Credit Facility") and senior secured term loan facilities (the "Term Loans"). The obligations under our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than HOC, the named borrower of the senior secured credit facilities. During the three months ended March 31, 2024, we borrowed and subsequently repaid $200 million under the Revolving Credit Facility. No debt amounts were outstanding under the Revolving Credit Facility as of March 31, 2024, which had an available borrowing capacity of $1,913 million after considering $87 million of outstanding letters of credit. In March 2024, we issued $550 million aggregate principal amount of 5.875% Senior Notes due 2029 (the "5.875% 2029 Senior Notes") and $450 million aggregate principal amount of 6.125% Senior Notes due 2032 (the "6.125% 2032 Senior Notes") and incurred an aggregate $15 million of debt issuance costs which were recognized as a reduction to the outstanding debt balance in our condensed consolidated balance sheet and will be amortized to interest expense through the respective maturity dates of the 5.875% 2029 Senior Notes and the 6.125% 2032 Senior Notes. Interest on the 5.875% 2029 Senior Notes and the 6.125% 2032 Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2024. We used a portion of the net proceeds from the issuances to repay $200 million borrowed under our Revolving Credit Facility earlier in the period. The remaining proceeds will be used for general corporate purposes, which may include investments and acquisitions.
|
Fair Value Measurements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below:
____________ (1)The fair values of cash equivalents and restricted cash equivalents approximate their carrying values due to their short-term maturities. The fair values of all other financial instruments not included in these tables are estimated to be equal to their carrying values. (2)The carrying values and fair values exclude the deduction for unamortized deferred financing costs and any applicable discounts, as well as all finance lease liabilities and other debt of consolidated VIEs; refer to Note 6: "Debt" for additional information. We measured our interest rate swap at fair value, which was determined using a discounted cash flow analysis that reflects the contractual terms of the interest rate swap, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves, as applicable.
|
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of income (loss) before income taxes, which is subject to federal, state, local and foreign income taxes.
|
Share-Based Compensation |
3 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation Our share-based compensation primarily consists of awards that we grant to eligible employees under the Hilton 2017 Omnibus Incentive Plan (the "2017 Plan") and includes time-vesting restricted stock units ("RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares"). We recognized share-based compensation expense of $41 million and $33 million during the three months ended March 31, 2024 and 2023, respectively, which included amounts reimbursed by hotel owners. RSUs During the three months ended March 31, 2024, we granted 466,000 RSUs with a weighted average grant date fair value per share of $203.96, which vest in equal annual installments over or three years from the date of grant. Options During the three months ended March 31, 2024, we granted 262,000 options with an exercise price per share of $203.96, which vest in equal annual installments over three years from the date of grant and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances. The grant date fair value per share of the options granted during the three months ended March 31, 2024 was $71.25, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:
____________ (1)Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected term of the options. (2)Estimated based on our quarterly dividend and the three-month average stock price at the date of grant. (3)Based on the yields of U.S. Department of Treasury instruments with a similar expected term of the options at the date of grant. (4)Estimated using the midpoint of the vesting period and the contractual term of the options as we do not have sufficient historical share option exercise data to estimate the term of our option grant. Performance Shares During the three months ended March 31, 2024, we granted 183,000 performance shares with a grant date fair value per share of $203.96, which vest three years from the date of grant based on the projected achievement of various performance measures. As of March 31, 2024, we determined that all of the performance measures for all outstanding performance shares granted in 2022, 2023 and 2024 were probable of achievement, with the average of the applicable achievement factors estimated to be between the target and maximum achievement percentages for the performance shares granted in 2022 and 2023 and at the target achievement percentage for the performance shares granted in 2024.
|
Earnings (Loss) Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings Per Share The following table presents the calculation of basic and diluted earnings per share ("EPS"):
____________ (1)Certain shares related to share-based compensation were excluded from the calculations of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including less than 1 million shares for each of the three months ended March 31, 2024 and 2023.
|
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss | Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss The following tables present the changes in the components of stockholders' equity (deficit):
The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:
____________ (1)Includes net investment hedge gains and intra-entity foreign currency transactions that are of a long-term investment nature. (2)Amounts reclassified relate to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income (loss), net in our condensed consolidated statements of operations. (3)Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated in prior periods, with related amounts recognized in interest expense in our condensed consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our condensed consolidated statements of operations.
|
Business Segments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | Business Segments We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership, each of which is reported as a segment based on (a) delivering a similar set of products and services and (b) being managed separately given its distinct economic characteristics. The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels that license our IP and where we provide other contracted services, but the day-to-day services of the hotels are operated or managed by someone other than us. Revenues from this segment include: (i) management and franchise fees charged to third-party hotel owners; (ii) licensing fees from our strategic partners, including co-branded credit card providers, and Hilton Grand Vacations Inc. ("HGV"); and (iii) fees for managing the hotels in our ownership segment. The ownership segment primarily derives revenues from nightly hotel room sales, food and beverage sales and other services at our consolidated owned and leased hotels. The performance of our operating segments is evaluated primarily on operating income (loss), without allocating amortization of contract acquisition costs, other revenues and other expenses, other revenues and other expenses from managed and franchised properties, depreciation and amortization expenses or general and administrative expenses, and does not include equity in earnings (losses) from unconsolidated affiliates. Our chief operating decision maker does not use assets by operating segment when assessing performance or making operating segment resource allocations. The following table presents revenues for our reportable segments, reconciled to consolidated amounts:
____________ (1)Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations. The following table presents operating income (loss) for each of our reportable segments, reconciled to consolidated income before income taxes:
____________ (1)Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.
|
Commitments and Contingencies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We include performance clauses in certain of our management contracts, however, most of these clauses do not require us to fund shortfalls, but instead allow for termination of the contract if specified operating performance levels are not achieved. In limited cases, we are obligated to fund performance shortfalls and our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee for that particular hotel. As of March 31, 2024, we had performance guarantees with expirations ranging from 2025 to 2043 and possible cash outlays totaling $9 million. We also have extended debt guarantees and provided letters of credit to owners of certain hotels that we currently or in the future will manage or franchise. During the three months ended March 31, 2024, we recognized $47 million of losses in other non-operating loss, net in our condensed consolidated statement of operations for debt guarantees extended to certain hotels we manage that have failed or are expected to fail to comply with the requirements of their respective debt agreements. We paid $62 million during the three months ended March 31, 2024 related to debt guarantees. Our debt guarantees and letters of credit as of March 31, 2024 had expirations ranging from 2025 to 2033 and remaining possible cash outlays totaling $78 million. The performance and debt guarantees create variable interests in the ownership entities of the related hotels, of which we are not the primary beneficiary. We receive Hilton Honors and program fees from managed and franchised properties that we are contractually required to use to operate our Hilton Honors program, marketing, sales and brands programs and shared services on behalf of hotel owners. If we collect amounts in excess of amounts expended, we have a commitment to spend these amounts on the related programs. We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the ultimate resolution of all pending or threatened claims and litigation as of March 31, 2024 will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.
|
Supplemental Disclosures of Cash Flow Information |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Cash interest paid included within operating activities in our condensed consolidated statements of cash flows was $120 million and $101 million during the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024 and 2023, these amounts excluded $14 million and $11 million of cash receipts, respectively, related to settlements of our interest rate swap with a financing component, which are separately disclosed within financing activities in our condensed consolidated statements of cash flows. Income tax payments, net of refunds received, and income tax refunds, net of payments, were $18 million and $25 million, respectively, for the three months ended March 31, 2024 and 2023, respectively.
|
Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Pay vs Performance Disclosure | ||
Net income (loss) attributable to Hilton stockholders | $ 265 | $ 206 |
Insider Trading Arrangements |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Revenues from Contracts with Customers (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Contract Liabilities | The following table summarizes the activity of our contract liabilities, which are classified as components of current and long-term deferred revenues, during the three months ended March 31, 2024:
____________ (1)Primarily related to Hilton Honors, our guest loyalty program, including co-branded credit card arrangements. (2)Represents the changes in estimated transaction prices for our performance obligations related to the issuance of Hilton Honors points, which had no effect on revenues.
|
Consolidated Variable Interest Entities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | Our condensed consolidated balance sheets include the assets and liabilities of these entities, including the effect of foreign currency translation, which primarily comprised the following:
____________ (1)Includes finance lease liabilities of $78 million and $86 million as of March 31, 2024 and December 31, 2023, respectively. (2)Includes current maturities of $18 million and $19 million as of March 31, 2024 and December 31, 2023, respectively.
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of March 31, 2024, were as follows:
____________ (1)These notes are collectively referred to as the Senior Notes and are jointly and severally guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic restricted subsidiaries, other than Hilton Domestic Operating Company Inc. ("HOC"), an indirect wholly owned subsidiary of the Parent and the issuer of all of the series of Senior Notes. (2)Long-term debt of our consolidated VIEs is included in finance lease liabilities and other debt of consolidated VIEs, as applicable. Refer to Note 4: "Consolidated Variable Interest Entities" for additional information. (3)Represents current maturities of finance lease liabilities and borrowings of consolidated VIEs.
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements - Recurring and Disclosure | The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below:
____________ (1)The fair values of cash equivalents and restricted cash equivalents approximate their carrying values due to their short-term maturities. The fair values of all other financial instruments not included in these tables are estimated to be equal to their carrying values. (2)The carrying values and fair values exclude the deduction for unamortized deferred financing costs and any applicable discounts, as well as all finance lease liabilities and other debt of consolidated VIEs; refer to Note 6: "Debt" for additional information.
|
Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Stock Options Valuation Assumptions | The grant date fair value per share of the options granted during the three months ended March 31, 2024 was $71.25, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:
____________ (1)Estimated using a blended approach of historical and implied volatility. Historical volatility is based on the historical movement of Hilton's stock price for a period that corresponds to the expected term of the options. (2)Estimated based on our quarterly dividend and the three-month average stock price at the date of grant. (3)Based on the yields of U.S. Department of Treasury instruments with a similar expected term of the options at the date of grant. (4)Estimated using the midpoint of the vesting period and the contractual term of the options as we do not have sufficient historical share option exercise data to estimate the term of our option grant.
|
Earnings (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Earnings (Loss) Per Share | The following table presents the calculation of basic and diluted earnings per share ("EPS"):
____________ (1)Certain shares related to share-based compensation were excluded from the calculations of diluted EPS because their effect would have been anti-dilutive under the treasury stock method, including less than 1 million shares for each of the three months ended March 31, 2024 and 2023.
|
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stockholders' Equity (Deficit) | The following tables present the changes in the components of stockholders' equity (deficit):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:
____________ (1)Includes net investment hedge gains and intra-entity foreign currency transactions that are of a long-term investment nature. (2)Amounts reclassified relate to the amortization of prior service cost and amortization of net loss and were recognized in other non-operating income (loss), net in our condensed consolidated statements of operations. (3)Amounts reclassified were the result of hedging instruments, including: (a) interest rate swaps, inclusive of interest rate swaps that were dedesignated in prior periods, with related amounts recognized in interest expense in our condensed consolidated statements of operations and (b) forward contracts that hedge our foreign currency denominated fees, with related amounts recognized in various revenue line items, as applicable, in our condensed consolidated statements of operations.
|
Business Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segment Amounts to Consolidated Amounts | The following table presents revenues for our reportable segments, reconciled to consolidated amounts:
____________ (1)Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Segment Operating Income to Income (Loss) Before Income Taxes | The following table presents operating income (loss) for each of our reportable segments, reconciled to consolidated income before income taxes:
____________ (1)Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.
|
Acquisitions (Details) - Graduate Hotels $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
Hotel
| |
Asset Acquisition [Line Items] | |
Asset acquisition, number of hotels added to franchise portfolio | Hotel | 35 |
Consideration transferred acquisition | $ | $ 210 |
Revenues from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|||||
Revenue from Contract with Customer [Abstract] | ||||||
Contract liabilities balance | $ 1,562 | $ 1,521 | ||||
Cash received in advance not recognized as revenue | 185 | |||||
Revenue recognized | [1] | 66 | ||||
Other | [2] | $ 78 | ||||
|
Revenues from Contracts with Customers - Additional Information (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
| ||||
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized | $ 66 | [1] | ||
Guest loyalty program revenues | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 800 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Explanation | two years | |||
Application, initiation and other fees | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 744 | |||
Co-branded credit card arrangement performance obligations | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligations | $ 18 | |||
|
Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
||||||
---|---|---|---|---|---|---|---|---|
Variable Interest Entity [Line Items] | ||||||||
Cash and cash equivalents | $ 1,346 | $ 800 | ||||||
Accounts receivable, net | 1,467 | 1,487 | ||||||
Property and equipment, net | 377 | 382 | ||||||
Deferred income tax assets | 140 | 140 | ||||||
Other non-current assets | 503 | 512 | ||||||
Accounts payable, accrued expenses and other | 1,935 | 1,979 | ||||||
Current maturities of long-term debt | [1] | 38 | 39 | |||||
Variable Interest Entity, Primary Beneficiary | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Cash and cash equivalents | 48 | 46 | ||||||
Accounts receivable, net | 15 | 17 | ||||||
Property and equipment, net | 33 | 37 | ||||||
Deferred income tax assets | 28 | 32 | ||||||
Other non-current assets | 40 | 43 | ||||||
Accounts payable, accrued expenses and other | 26 | 29 | ||||||
Long-term debt | [2],[3] | 86 | 95 | |||||
Finance lease liabilities | 78 | 86 | ||||||
Current maturities of long-term debt | $ 18 | $ 19 | ||||||
|
Consolidated Variable Interest Entities - Additional Information (Details) - Hotel |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Consolidated Variable Interest Entities Disclosure [Abstract] | ||
Number of consolidated variable interest entities | 2 | 2 |
Loss on Investments in Unconsolidated Affiliate (Details) - Unconsolidated Affiliate $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2023
USD ($)
| |
Schedule of Equity Method Investments [Line Items] | |
Other-than-temporary impairment loss | $ 44 |
Credit losses | $ 48 |
Debt - Long-term Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
||||||
---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 10,256 | $ 9,267 | ||||||
Unamortized deferred financing costs and discount | (83) | (71) | ||||||
Current maturities of long-term debt | [1] | (38) | (39) | |||||
Long-term debt | 10,135 | 9,157 | ||||||
Variable Interest Entity, Primary Beneficiary | ||||||||
Debt Instrument [Line Items] | ||||||||
Current maturities of long-term debt | (18) | (19) | ||||||
Senior secured term loan facility due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 1,000 | 1,000 | ||||||
Debt instrument, interest rate, stated percentage | 7.18% | |||||||
Senior secured term loan facility due 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 2,119 | 2,119 | ||||||
Debt instrument, interest rate, stated percentage | 7.43% | |||||||
Senior notes due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 500 | 500 | |||||
Debt instrument, interest rate, stated percentage | 5.375% | |||||||
Senior notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 600 | 600 | |||||
Debt instrument, interest rate, stated percentage | 4.875% | |||||||
Senior Notes due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 500 | 500 | |||||
Debt instrument, interest rate, stated percentage | 5.75% | |||||||
5.875% Senior notes due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 550 | 0 | |||||
Debt instrument, interest rate, stated percentage | 5.875% | |||||||
3.750% Senior notes due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 800 | 800 | |||||
Debt instrument, interest rate, stated percentage | 3.75% | |||||||
Senior notes due 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 1,000 | 1,000 | |||||
Debt instrument, interest rate, stated percentage | 4.875% | |||||||
Senior Notes due 2031 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 1,100 | 1,100 | |||||
Debt instrument, interest rate, stated percentage | 4.00% | |||||||
3.625% Senior Notes due 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 1,500 | 1,500 | |||||
Debt instrument, interest rate, stated percentage | 3.625% | |||||||
6.125% Senior Notes due 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [2] | $ 450 | 0 | |||||
Debt instrument, interest rate, stated percentage | 6.125% | |||||||
Finance lease liabilities [member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [3] | $ 129 | 139 | |||||
Debt, weighted average interest rate | 6.01% | |||||||
Other debt of consolidated VIEs | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt, weighted average interest rate | 1.32% | |||||||
Other debt of consolidated VIEs | Variable Interest Entity, Primary Beneficiary | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | [3] | $ 8 | $ 9 | |||||
|
Debt - Additional Information (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
Rate
| |
Senior secured revolving credit facility | |
Debt Instrument [Line Items] | |
Proceeds from revolving credit facility | $ 200 |
Repayment of revolving credit facility | 200 |
Revolving credit facility, remaining borrowing capacity | 1,913 |
Letters of credit outstanding | 87 |
5.875% Senior notes due 2029 | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 550 |
Debt instrument, interest rate, stated percentage | Rate | 5.875% |
6.125% Senior Notes due 2032 | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 450 |
Debt instrument, interest rate, stated percentage | Rate | 6.125% |
Senior notes issued in March 2024 | |
Debt Instrument [Line Items] | |
Debt issuance costs | $ 15 |
Fair Value Measurements - Recurring & Disclosure (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Dec. 31, 2023 |
||||
---|---|---|---|---|---|---|
Carrying Value(1) | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate swaps, assets | [1] | $ 83 | $ 75 | |||
Carrying Value(1) | Long-term debt excluding finance lease liabilities and other debt | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt | [1],[2] | 10,119 | 9,119 | |||
Level 1 | Long-term debt excluding finance lease liabilities and other debt | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt | [2] | 6,568 | 5,631 | |||
Level 2 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate swaps, assets | 83 | 75 | ||||
Level 3 | Long-term debt excluding finance lease liabilities and other debt | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Long-term debt | [2] | $ 3,127 | $ 3,129 | |||
|
Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Employee stock option |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024
$ / shares
Rate
| ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options, grants in period, grant date fair value | $ / shares | $ 71.25 | |||||||||
Expected volatility | 27.95% | [1] | ||||||||
Dividend yield | 0.33% | [2] | ||||||||
Risk-free rate | 4.17% | [3] | ||||||||
Expected term (in years) | 6 years | [4] | ||||||||
|
Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense (benefit) | $ 41 | $ 33 |
Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (shares) | 466,000 | |
Weighted average grant date fair value, granted (USD per share) | $ 203.96 | |
Employee stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Options granted in period (shares) | 262,000 | |
Options granted in period, weighted average exercise price (USD per share) | $ 203.96 | |
Options, expiration period | 10 years | |
Performance shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (shares) | 183,000 | |
Weighted average grant date fair value, granted (USD per share) | $ 203.96 | |
Vesting period | 3 years | |
Minimum | Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 2 years | |
Maximum | Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years |
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|||
Basic EPS: | ||||
Net income attributable to Hilton stockholders | $ 265 | $ 206 | ||
Weighted average shares outstanding, basic (shares) | 252 | 266 | ||
Earnings (loss) per share, basic (USD per share) | $ 1.05 | $ 0.77 | ||
Diluted EPS: | ||||
Net income attributable to Hilton stockholders | $ 265 | $ 206 | ||
Weighted average shares outstanding, diluted (shares) | [1] | 255 | 269 | |
Earnings (loss) per share, diluted (USD per share) | $ 1.04 | $ 0.77 | ||
Antidilutive shares (less than) | 1 | 1 | ||
|
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Stockholders' Equity (Deficit) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Class of Stock [Line Items] | ||
Beginning balance, shares | 253,488,288 | |
Beginning balance, equity attributable to Hilton stockholders | $ (2,360) | |
Beginning balance, equity attributable to noncontrolling interest | (13) | |
Beginning balance, equity | (2,347) | $ (1,098) |
Net income (loss) attributable to Hilton stockholders | 265 | 206 |
Net loss (income) attributable to noncontrolling interests | 3 | 3 |
Net income (loss) | 268 | 209 |
Other comprehensive income (loss) | (18) | (18) |
Repurchases of common stock | (667) | (449) |
Increase (decrease) in stockholders’ equity from share-based compensation | $ (14) | (16) |
Ending balance, shares | 251,032,237 | |
Ending balance, equity attributable to Hilton stockholders | $ (2,833) | |
Ending balance, equity attributable to noncontrolling interest | (16) | |
Ending balance, equity | (2,817) | (1,413) |
Dividends | $ (39) | $ (41) |
Common Stock | ||
Class of Stock [Line Items] | ||
Beginning balance, shares | 253,500,000 | 267,900,000 |
Beginning balance, equity attributable to Hilton stockholders | $ 3 | $ 3 |
Repurchases of common stock (shares) | (3,400,000) | (3,200,000) |
Share-based compensation (shares) | 900,000 | 700,000 |
Ending balance, shares | 251,000,000.0 | 265,400,000 |
Ending balance, equity attributable to Hilton stockholders | $ 3 | $ 3 |
Treasury Stock, Common | ||
Class of Stock [Line Items] | ||
Beginning balance, equity attributable to Hilton stockholders | (8,393) | (6,040) |
Repurchases of common stock | (667) | (449) |
Increase (decrease) in stockholders’ equity from share-based compensation | 0 | 0 |
Ending balance, equity attributable to Hilton stockholders | (9,060) | (6,489) |
Additional Paid-in Capital | ||
Class of Stock [Line Items] | ||
Beginning balance, equity attributable to Hilton stockholders | 10,968 | 10,831 |
Increase (decrease) in stockholders’ equity from share-based compensation | (14) | (16) |
Ending balance, equity attributable to Hilton stockholders | 10,954 | 10,815 |
Accumulated Deficit | ||
Class of Stock [Line Items] | ||
Beginning balance, equity attributable to Hilton stockholders | (4,207) | (5,190) |
Net income (loss) attributable to Hilton stockholders | 265 | 206 |
Ending balance, equity attributable to Hilton stockholders | (3,981) | (5,025) |
Dividends | (39) | (41) |
Accumulated Other Comprehensive Loss | ||
Class of Stock [Line Items] | ||
Beginning balance, equity attributable to Hilton stockholders | (731) | (706) |
Ending balance, equity attributable to Hilton stockholders | (749) | (724) |
Other comprehensive income (loss) attributable to Hilton stockholders | (18) | (18) |
Noncontrolling Interests | ||
Class of Stock [Line Items] | ||
Beginning balance, equity attributable to noncontrolling interest | 13 | 4 |
Net loss (income) attributable to noncontrolling interests | (3) | (3) |
Other comprehensive income (loss) | 0 | |
Ending balance, equity attributable to noncontrolling interest | $ 16 | $ 7 |
Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | $ (731) | |||||||
Ending balance | (749) | |||||||
Currency translation adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | [1] | (539) | $ (548) | |||||
Other comprehensive income (loss) before reclassifications | [1] | (27) | (6) | |||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 0 | |||||
Net current period other comprehensive income (loss) | [1] | (27) | (6) | |||||
Ending balance | [1] | (566) | (554) | |||||
Pension liability adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | [2] | (262) | (259) | |||||
Other comprehensive income (loss) before reclassifications | [2] | 0 | 0 | |||||
Amounts reclassified from accumulated other comprehensive loss | [2] | 2 | 2 | |||||
Net current period other comprehensive income (loss) | [2] | 2 | 2 | |||||
Ending balance | [2] | (260) | (257) | |||||
Cash flow hedge adjustment | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | [3] | 70 | 101 | |||||
Other comprehensive income (loss) before reclassifications | [3] | 20 | (11) | |||||
Amounts reclassified from accumulated other comprehensive loss | [3] | (13) | (3) | |||||
Net current period other comprehensive income (loss) | [3] | 7 | (14) | |||||
Ending balance | [3] | 77 | 87 | |||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (731) | (706) | ||||||
Other comprehensive income (loss) before reclassifications | (7) | (17) | ||||||
Amounts reclassified from accumulated other comprehensive loss | (11) | (1) | ||||||
Net current period other comprehensive income (loss) | (18) | (18) | ||||||
Ending balance | $ (749) | $ (724) | ||||||
|
Business Segments - Reconciliation of Revenue from Segment Amounts to Consolidated Amounts (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 2,573 | $ 2,293 | ||
Amortization of contract acquisition costs | (12) | (10) | ||
Segment revenues | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,020 | 915 | ||
Segment revenues | Ownership | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 255 | 248 | ||
Segment revenues | Management and Franchise | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 765 | 667 | ||
Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Amortization of contract acquisition costs | (12) | (10) | ||
Intersegment eliminations | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | [1] | 6 | 4 | |
Franchise and licensing fees | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 571 | 508 | ||
Franchise and licensing fees | Management and Franchise | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 576 | 513 | ||
Base and other management fees | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 106 | 80 | ||
Base and other management fees | Management and Franchise | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | [1] | 119 | 89 | |
Incentive management fees | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 70 | 65 | ||
Incentive management fees | Management and Franchise | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 70 | 65 | ||
Other revenues | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 50 | 35 | ||
Other revenues | Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 50 | 35 | ||
Other revenues from managed and franchised properties | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,521 | 1,357 | ||
Other revenues from managed and franchised properties | Segment Reconciling Items | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 1,521 | $ 1,357 | ||
|
Business Segments - Reconciliation of Segment Operating Income to Loss Before Income Taxes (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
Segment
|
Mar. 31, 2023
USD ($)
|
|||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Number of operating segments | Segment | 2 | |||
Operating income (loss) | $ 533 | $ 498 | ||
Amortization of contract acquisition costs | (12) | (10) | ||
Other revenues, less other expenses | 20 | 14 | ||
Net other revenues (expenses) from managed and franchised properties | (109) | (38) | ||
Depreciation and amortization expenses | (36) | (37) | ||
General and administrative expenses | (104) | (91) | ||
Gain (Loss) on Disposition of Assets | 7 | 0 | ||
Interest expense | (131) | (116) | ||
Loss on foreign currency transactions | (1) | 0 | ||
Loss on investments in unconsolidated affiliate | 0 | (92) | ||
Other non-operating income (loss), net | (36) | 12 | ||
Income (loss) before income taxes | 365 | 302 | ||
Ownership | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | [1] | 2 | (7) | |
Management and Franchise | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | [1] | 765 | 667 | |
Segment operating income | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating income (loss) | $ 767 | $ 660 | ||
|
Commitments and Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Commitments and Contingencies [Line Items] | ||
Other non-operating income (loss), net | $ (36) | $ 12 |
Performance guarantees | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | 2025 to 2043 | |
Guarantees, possible cash outlays | $ 9 | |
Debt guarantee | ||
Commitments and Contingencies [Line Items] | ||
Guarantees, expiration | 2025 to 2033 | |
Guarantees, possible cash outlays | $ 78 | |
Other non-operating income (loss), net | 47 | |
Loss Contingency Payment | $ 62 |
Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Cash interest paid | $ 120 | $ 101 |
Settlements of interest rate swap with financing component | 14 | 11 |
Income tax payments, net of refunds received | $ 18 | $ (25) |
I:WA67YMHH9G,C-QE(J)(CI+
M$JY>+T0L5^ AF2-\S45B+%>4 [PJ*YPV#Q_ETT&1R_07C4
M$1Z]A?YO4O.?@."/'&')&,T$7"NEMTQ#U]9YRN9\%4?#TX"/;U,8^"(MI2S9T
M2
#B(.]AFT?NX0&'A^3AN)(F.(.VPKEL<()VF8RW-[T
M#AE/"28-UY$PU[6Z"UYH!C5/(Y@0&%(;NBS=O=?0&4-$X6D_B
JH3&1E NF*G.V$=0-G
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MWSLA58)+ %@4=!- N$NB-+JP//#TZ<#3_$B".]]J*S!N*0PO71#I*>:DK$7 ZR7#IW4#P1@_YA;_@=02P,$% @ 0E"86./7W!T^
M!P 2A, !D !X;"]W;W)K