v3.25.4
Leases
 12 Months Ended
Dec. 31, 2025
Lessee Disclosure [Abstract]  
Lessee Lease Disclosures Leases
We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices, with our most significant lease liabilities relating to hotel properties. As of December 31, 2025, we leased 37 hotels under operating leases and 5 hotels under finance leases, two of which were the liabilities of consolidated VIEs, which are non-recourse to us. Our hotel leases expire at various dates, with varying renewal and termination options.

Supplemental balance sheet information related to leases was as follows:

December 31,
20252024
(dollars in millions)
Operating leases:
Operating lease right-of-use assets(1)
$577 $567 
Accounts payable, accrued expenses and other121 117 
Operating lease liabilities730 735 
Finance leases:
Property and equipment, net(2)
$271 $37 
Current maturities of long-term debt25 35 
Long-term debt(2)
315 82 
Weighted average remaining lease term:
Operating leases9.4 years10.0 years
Finance leases28.7 years4.3 years
Weighted average discount rate:
Operating leases4.59 %4.49 %
Finance leases4.65 %6.03 %
____________
(1)Includes $86 million and $77 million attributable to U.S. operations as of December 31, 2025 and 2024, respectively, and $491 million and $490 million to operations outside the U.S., respectively, most significantly in the U.K. and Germany for both years.
(2)Includes finance leases of our consolidated VIEs. Refer to Note 5: "Consolidated Variable Interest Entities" for an explanation of the increases in property and equipment, net and long-term debt as of December 31, 2025, when compared to December 31, 2024.

The components of lease expense were as follows:

Year Ended December 31,
202520242023
(in millions)
Operating lease expense for fixed payments$106 $109 $118 
Finance lease expense:
Amortization of ROU assets24 22 21 
Fixed interest on lease liabilities8 8 9 
Variable lease expense(1)
191 189 179 
____________
(1)Includes amounts related to both operating leases and finance leases.
Supplemental cash flow information related to leases was as follows:

Year Ended December 31,
202520242023
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$145 $138 $137 
Financing cash flows from finance leases41 38 40 
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating leases50 44 39 
Finance leases(1)
258 24 24 
____________
(1)Includes finance leases of our consolidated VIEs. Refer to Note 5: "Consolidated Variable Interest Entities" for an explanation of the increase in the total finance lease liabilities as of December 31, 2025, when compared to December 31, 2024.

Our future minimum lease payments as of December 31, 2025 were as follows:

Operating
Leases		Finance
Leases
Year(in millions)
2026$156 $40 
2027136 33 
2028131 26 
2029125 22 
2030122 17 
Thereafter392 474 
Total minimum lease payments1,062 612 
Less: imputed interest(211)(272)
Total lease liabilities$851 $340