In January of 2026, a large European franchisee, Revo Hospitality Group (“Revo”), commenced insolvency proceedings under self-administration for most of its operating entities. The Company’s accounts receivable, loans receivable and development advance notes with this franchisee are secured by a collateral package that includes certain share pledges, bank account pledges, trademark/IP pledges, second liens on select real estate and personal guarantees from the franchisee’s principal. In the first quarter of 2026, the Company enforced its collateral package on the outstanding obligations owed to the Company by Revo, and as a result, the Company exercised its rights to foreclose on and take ownership of two hotel properties in Europe. The estimated aggregate fair value of the net assets of these hotel operating entities is $23 million which primarily consists of $27 million of buildings and $12 million of land, partially offset by $15 million of assumed mortgages on such hotel properties. In connection with the non-cash acquisition, the Company reduced the carrying amount of the related loans receivable by $13 million and development advance notes by $10 million from Revo. The judgments and assumptions used in determining the aggregate fair value of the net assets are classified as level three in the fair value hierarchy. The results of operations of these hotels have been included in the Condensed Consolidated Statements of Income since the date the Company took ownership.

As of June 30, 2026, the Company had restricted cash of approximately $20 million related to its Revo collateral package discussed above and is reported within other non-current assets and other non-current liabilities on the Condensed Consolidated Balance Sheet. The restricted cash arose as a result of the Company's collateral rights to the relevant bank accounts, thereby enabling the receipt of such funds. Nevertheless, certain court and insolvency administrator approvals are required to determine the amount to which the Company is entitled. The adjudication process is anticipated to span several months to years. The insolvency administrator and courts will issue determinations regarding the allocation of funds among creditors, including the amounts and timing of any such distributions. Upon agreement with these determinations by all relevant parties, the funds will be disbursed accordingly.