Bahia Principe—We hold a variable interest in a VIE that owns the Bahia Principe brand and manages Bahia Principe Hotels & Resorts-branded properties, and we provide certain commercial and management support services to the entity. We consolidate the operating results and financial position of the VIE as we are the primary beneficiary. The following table summarizes the VIE's assets and liabilities, including the effect of foreign currency translation, recorded on our condensed consolidated balance sheets. The assets may only be used to settle obligations of the consolidated VIE, if any. In addition, there is no recourse to us for the consolidated VIE's liabilities.


	June 30, 2026		December 31, 2025
Cash and cash equivalents	$	36	$	23
Receivables	2		7

Total current assets	38		30
Operating lease right-of-use assets	—		1
Goodwill	173		178
Intangibles, net	537		561


Other assets	60		59
Total assets	$	808	$	829

Accounts payable	$	1	$	2
Accrued expenses and other current liabilities	5		5
Accrued compensation and benefits	1		1
Total current liabilities	7		8
Long-term operating lease liabilities	—		1

Other long-term liabilities	175		180
Total liabilities	$	182	$	189

Unlimited Vacation Club—The entity that owns the Unlimited Vacation Club business is classified as a VIE in which we hold a variable interest but are not the primary beneficiary, and we account for our common ownership interest as an equity method investment. We manage the Unlimited Vacation Club business under a long-term management agreement and license and royalty agreement.

At June 30, 2026 and December 31, 2025, we had $78 million and $80 million, respectively, recorded in other long-term liabilities (see Note 11) on our condensed consolidated balance sheets related to our guaranteed obligations of this unconsolidated VIE. At June 30, 2026 and December 31, 2025, our maximum exposure to loss was $132 million and $149 million, respectively, which includes the maximum exposure of our guaranteed obligations (see Note 13).

At June 30, 2026 and December 31, 2025, we had $196 million and $186 million, respectively, of equity method investments recorded on our condensed consolidated balance sheets. One of our unconsolidated hospitality ventures has its equity shares listed on the BSE Limited and National Stock Exchange of India Limited stock exchanges. At June 30, 2026, the aggregate value of our equity shares was $177 million based on the price per share of the principal market.

During the six months ended June 30, 2026, an equity method investment, in which we hold an ownership interest, sold the underlying hotel to a third party, and we recognized an insignificant gain in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss). At the time of sale, we had $10 million of outstanding financing receivables related to the unconsolidated hospitality venture, which were repaid in conjunction with the sale. Additionally, the unconsolidated hospitality venture repaid its third-party mortgage loan on the property, and we were released from our debt repayment guarantee. Upon sale, we entered into a long-term franchise agreement for the property.

During the three and six months ended June 30, 2025, we recognized $6 million and $7 million, respectively, of impairment charges in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss). The impairment charges were related to certain investments in unconsolidated hospitality ventures in which the estimated fair values were less than the carrying values, and the impairments were deemed other than temporary. We estimated the fair values of our investments, which are classified as Level Three in the hierarchy, using pending third-party offers or internally developed cash flow models.

We hold various forms of debt and equity securities for investment purposes and to fund our loyalty program, deferred compensation plans held in rabbi trusts, and captive insurance company. We also periodically transfer available cash and cash equivalents to purchase marketable securities.

Trading Securities—Our trading securities are recorded at fair value based on listed market prices or dealer quotations, where available. At both June 30, 2026 and December 31, 2025, our interest-bearing money market funds were recorded in cash and cash equivalents and all other trading securities were recorded in other assets on our condensed consolidated balance sheets. The following table summarizes the fair values of our trading securities:


	June 30, 2026		December 31, 2025
Level One—Quoted Prices in Active Markets for Identical Assets
Interest-bearing money market funds	$	183	$	441
Exchange-traded funds	8		7
Common shares	13		13
Marketable securities held to fund rabbi trusts	648		594

Level Two—Significant Other Observable Inputs


U.S. government obligations	59		68
U.S. government agencies	6		9
Corporate debt securities	6		7
Mortgage-backed securities	5		4
Asset-backed securities	2		1
Municipal and provincial notes and bonds	1		2



Total	$	931	$	1,146

Changes in the fair value of marketable securities held to fund rabbi trusts were recognized in the following financial statement line items on our condensed consolidated statements of income (loss) and had no impact on net income (loss): revenues for reimbursed costs; general and administrative expenses; owned and leased expenses; reimbursed costs; and net gains (losses) and interest income from marketable securities held to fund rabbi trusts.

Net unrealized and realized gains recognized in revenues for reimbursed costs, net gains (losses) and interest income from marketable securities held to fund rabbi trusts, and other income (loss), net on our condensed consolidated statements of income (loss) were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net gains	$	86	$	51	$	68	$	43
Less: net gains recognized on securities during the period	(1)		(4)		(5)		(15)
Unrealized net gains recognized on securities held at period end	$	85	$	47	$	63	$	28

Available-for-Sale Debt Securities—We hold various available-for-sale ("AFS") debt investments, including fixed income instruments and time deposits with contractual maturity dates ranging from 2026 through 2071, which are recorded at fair value based on listed market prices or dealer quotations, where available. Additionally, we hold a preferred equity investment that is mandatorily redeemable at the earlier of March 31, 2033 or the occurrence of a contractual redemption event, which includes a change in control, at an amount that can vary based on the profitability of the underlying properties. The fair value of the preferred equity investment was estimated using a Monte Carlo simulation to model the probability of possible outcomes. The model included assumptions and judgments regarding discount rates, volatility, expected timing of cash flows, estimated probability of achieving the contractual objectives, and hotel operating results.

Except as noted below, our AFS debt securities were recorded in other assets on our condensed consolidated balance sheets. The following tables summarize the fair values of our AFS debt securities:


	June 30, 2026
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Level Two—Significant Other Observable Inputs
U.S. government obligations (1)	$	230	$	—	$	(4)	$	226
U.S. government agencies	28		—		—		28
Corporate debt securities (2)	326		1		(2)		325
Mortgage-backed securities	40		—		(1)		39
Asset-backed securities	34		—		—		34
Municipal and provincial notes and bonds	4		—		—		4
Time deposits (3)	24		—		—		24
Level Three—Significant Unobservable Inputs
Preferred equity	111		—		(13)		98
Total	$	797	$	1	$	(20)	$	778

(1) Includes $7 million recorded in short-term investments.
(2) Includes $52 million recorded in short-term investments.
(3) Includes $10 million recorded in both cash and cash equivalents and short-term investments.


	December 31, 2025
	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
Level Two—Significant Other Observable Inputs
U.S. government obligations	$	224	$	2	$	(2)	$	224
U.S. government agencies	23		—		—		23
Corporate debt securities (1)	262		4		(1)		265
Mortgage-backed securities	33		—		—		33
Asset-backed securities	35		—		—		35
Municipal and provincial notes and bonds	3		—		—		3
Time deposits (2)	23		—		—		23
Level Three—Significant Unobservable Inputs
Preferred equity	104		—		—		104
Total	$	707	$	6	$	(3)	$	710

(1) Includes $18 million recorded in short-term investments.
(2) Includes $12 million and $8 million recorded in cash and cash equivalents and short-term investments, respectively.

During both the three and six months ended June 30, 2026 and June 30, 2025, we recognized an insignificant amount of net realized gains in other income (loss), net on our condensed consolidated statements of income (loss). Net unrealized gains (losses) recognized on our condensed consolidated financial statements were as follows:

During the year ended December 31, 2025, a $30 million convertible debt investment associated with one of our franchised properties was extinguished in conjunction with the recapitalization of the franchisee. During the three and six months ended June 30, 2025, we recognized no amount and $12 million, respectively, of net unrealized losses in other comprehensive income (loss) and $25 million and $30 million, respectively, of credit loss provisions in other income (loss), net on our condensed consolidated financial statements related to this investment.

Held-to-Maturity Debt Securities—We hold time deposits and investments in third-party entities associated with certain of our hotels. The investments are recorded at amortized cost, net of expected credit losses and unamortized discounts, as held-to-maturity ("HTM") debt securities. Except as noted below, our HTM debt securities were recorded in other assets on our condensed consolidated balance sheets:


	June 30, 2026
	Amortized cost		Allowance for credit losses		Net carrying value		Gross carrying value on nonaccrual status		Year of contractual maturity date
Time deposits	$	175	$	—	$	175	$	—	2027
Preferred equity (1)	351		(15)		336		10		various, through 2033
Total	$	526	$	(15)	$	511	$	10

(1) Includes $27 million recorded in prepaids and other assets.


	December 31, 2025
	Amortized cost		Allowance for credit losses		Net carrying value		Gross carrying value on nonaccrual status		Year of contractual maturity date
Time deposits	$	153	$	—	$	153	$	—	2027
Preferred equity	322		(9)		313		16		various, through 2062
Total	$	475	$	(9)	$	466	$	16

At June 30, 2026 and December 31, 2025, our preferred equity included a $199 million and $196 million, respectively, investment recorded net of a $26 million and $29 million, respectively, unamortized discount. Accretion of the discount was recognized in interest income within other income (loss), net on our condensed consolidated statements of income (loss) (see Note 19) and was based on an imputed interest rate of 8.9%.


	June 30, 2026		December 31, 2025
Level Two—Significant Other Observable Inputs
Time deposits	$	175	$	153
Preferred equity	—		1

Level Three—Significant Unobservable Inputs


Preferred equity	338		314

Equity Securities Without A Readily Determinable Fair Value—At June 30, 2026 and December 31, 2025, we held $6 million and $11 million, respectively, of investments in equity securities without a readily determinable fair value, which were recorded in other assets on our condensed consolidated balance sheets and represent investments in entities where we do not have the ability to significantly influence the operations of the entity.

During the six months ended June 30, 2026 and June 30, 2025, we recognized $5 million and an insignificant amount, respectively, of impairment charges in other income (loss), net on our condensed consolidated statements of income (loss) (see Note 19) as the estimated fair values of the investments were less than the carrying values. We estimated the fair values, which are classified as Level Three in the fair value hierarchy, using internally developed cash flow models.