During the first quarter of 2026, the Company approved a restructuring plan that commenced in the second quarter of 2026 which focuses on transitioning certain functions to a global shared service center. As a result, during the three and six months ended June 30, 2026, the Company incurred $4 million and $6 million, respectively, of restructuring and other-related expenses relating to the 2026 plan, impacting 39 employees.

During the second quarter of 2025, the Company approved a restructuring plan focused on streamlining its organizational structure, primarily within its marketing, reservation and loyalty functions. As a result, the Company incurred $1 million and $4 million of restructuring expenses during the three and six months ended June 30, 2026, respectively, and $13 million during both the three and six months ended June 30, 2025 relating to the 2025 plan. Such charges were primarily in its Hotel Franchising segment and impacting a total of 202 employees.


			2026 Activity
	Liability as of December 31, 2025 (a)		Costs Recognized (b)		Cash Payments		Liability as of June 30, 2026 (c)
2026 Plan
Personnel-related	$	—	$	3	$	—	$	3
Other-related (d)	—		3		(2)		1
Total 2026 Plan	—		6		(2)		4
2025 Plan
Personnel-related	4		4		(5)		3
Facility-related	4		—		(1)		3
Total 2025 Plan	8		4		(6)		6
Total accrued restructuring	$	8	$	10	$	(8)	$	10

(a)Reported within accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets.

(b)Costs recognized for the six months ended June 30, 2026 were $7 million relating to Corporate and $3 million relating to Hotel Franchising segment.

(c)Reported within accrued expenses and other current liabilities of $8 million and other non-current liabilities of $2 million as of June 30, 2026 on the Condensed Consolidated Balance Sheets.

(d)Other-related expenses consist of professional fees related to restructuring activities under the 2026 plan.


			2025 Activity
	Liability as of December 31, 2024		Costs Recognized		Cash Payments		Liability as of June 30, 2025
2024 Plan
Personnel-related	$	5	$	—	$	(3)	$	2
2025 Plan
Personnel-related	—		8		(2)		6
Facility-related	—		5		—		5
Total 2025 Plan	—		13		(2)		11
Total accrued restructuring	$	5	$	13	$	(5)	$	13

Transaction-related expenses were immaterial and $3 million during the three and six months ended June 30, 2026, respectively and $1 million during both the three and six months ended June 30, 2025. The 2026 amount primarily relates to costs associated with the issuance of the 5.625% senior unsecured notes. The 2025 amounts primarily relate to stock-based compensation costs associated with the failed hostile takeover defense.

Separation-related costs associated with the Company’s spin-off from former parent were immaterial and $1 million of income during the three and six months ended June 30, 2026, respectively.