As part of our Long-Term Incentive Plan (as amended from time to time, "LTIP"), we award time-vested stock appreciation rights ("SARs"), RSUs, and performance-vested restricted stock units ("PSUs") to certain employees and non-employee directors. In addition, non-employee directors may elect to receive their annual fees and/or annual equity retainers in the form of shares of our Class A common stock. The Assumed Awards (see Note 7) continue to be governed by the terms of the Playa Hotels Plan.

Compensation expense and unearned compensation presented below exclude amounts related to employees of our managed hotels and other employees whose payroll is reimbursed, as these expenses have been, and will continue to be, reimbursed by our third-party owners and are recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income (loss). Stock-based compensation expense recognized in general and administrative expenses, owned and leased expenses, distribution expenses, and transaction and integration costs on our condensed consolidated statements of income (loss) related to our awards was as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
SARs	$	1	$	—	$	7	$	13
RSUs	9		9		26		26
PSUs	7		6		12		7
Total	$	17	$	15	$	45	$	46

SARs—During the six months ended June 30, 2026, we granted 152,377 SARs to employees with a weighted-average grant date fair value of $65.14. During the six months ended June 30, 2025, we granted 311,519 SARs to employees with a weighted-average grant date fair value of $53.17.

RSUs—During the six months ended June 30, 2026, we granted 378,911 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $146.79. During the six months ended June 30, 2025, we granted 565,840 RSUs to employees and non-employee directors with a weighted-average grant date fair value of $125.56.

PSUs—During the six months ended June 30, 2026, we granted 114,300 PSUs to employees with a weighted-average grant date fair value of $178.56. During the six months ended June 30, 2025, we granted 267,389 PSUs to employees with a weighted-average grant date fair value of $144.84.

Unearned Compensation—Our total unearned compensation for our stock-based compensation programs at June 30, 2026 was $4 million for SARs, $51 million for RSUs, and $22 million for PSUs, which will be recognized in general and administrative expenses, distribution expenses, and transaction and integration costs on our condensed consolidated statements of income (loss) over a weighted-average period of three years.