v3.26.1
SEGMENT INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Summarized Consolidated Financial Information by Segment
The following tables present revenues disaggregated by the nature of the product or service and by segment and a reconciliation of segment revenues to segment Adjusted EBITDA:
Three Months Ended June 30, 2026
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$131 $— $— $131 $(7)$124 
Incentive management fees66 — — 66 (2)64 
Franchise and other fees137 — — 137 (1)136 
Gross fees334 — — 334 (10)324 
Rooms and packages— 191 — 191 (5)186 
Food and beverage— 55 — 55 — 55 
Other — 33 — 33 — 33 
Owned and leased— 279 — 279 (5)274 
Distribution— — 225 225 — 225 
Segment revenues334 279 225 838 (15)823 
Contra revenue(17)— — (17)— (17)
Revenues for reimbursed costs1,023 — — 1,023 — 1,023 
Total revenues$1,340 $279 $225 $1,844 $(15)$1,829 
Intersegment revenues$10 $5 $— $15 
Six Months Ended June 30, 2026
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$264 $— $— $264 $(13)$251 
Incentive management fees153 — — 153 (3)150 
Franchise and other fees259 — — 259 (3)256 
Gross fees676 — — 676 (19)657 
Rooms and packages— 337 — 337 (9)328 
Food and beverage— 103 — 103 — 103 
Other — 62 — 62 — 62 
Owned and leased— 502 — 502 (9)493 
Distribution— — 499 499 — 499 
Segment revenues676 502 499 1,677 (28)1,649 
Contra revenue(40)— — (40)— (40)
Revenues for reimbursed costs1,968 — — 1,968 — 1,968 
Total revenues$2,604 $502 $499 $3,605 $(28)$3,577 
Intersegment revenues$19 $9 $— $28 
Three Months Ended June 30, 2026
Management and franchisingOwned and leasedDistribution
Segment revenues$334 $279 $225 
Significant segment expenses:
Adjusted general and administrative expenses(68)(3)— 
Owned and leased expenses (1)— (237)— 
Distribution expenses (2)— — (199)
Other segment items (3)— 1 1 
Segment Adjusted EBITDA$266 $40 $27 
(1) Includes intercompany management fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(3) Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts. Distribution removes stock-based compensation expense recognized in distribution expenses.
Six Months Ended June 30, 2026
Management and franchisingOwned and leasedDistribution
Segment revenues$676 $502 $499 
Significant segment expenses:
Adjusted general and administrative expenses(146)(5)— 
Owned and leased expenses (4)— (448)— 
Distribution expenses (5)— — (446)
Other segment items (6)— 1 3 
Segment Adjusted EBITDA$530 $50 $56 
(4) Includes intercompany management fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(5) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(6) Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts. Distribution removes stock-based compensation expense recognized in distribution expenses.
Three Months Ended June 30, 2025
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$120 $— $— $120 $(7)$113 
Incentive management fees64 — — 64 (2)62 
Franchise and other fees128 — — 128 (2)126 
Gross fees312 — — 312 (11)301 
Rooms and packages— 223 — 223 (5)218 
Food and beverage— 53 — 53 — 53 
Other— 33 — 33 — 33 
Owned and leased— 309 — 309 (5)304 
Distribution— — 262 262 — 262 
Other revenues11 — — 11 — 11 
Segment revenues323 309 262 894 (16)878 
Contra revenue(15)— — (15)— (15)
Revenues for reimbursed costs945 — — 945 — 945 
Total revenues$1,253 $309 $262 $1,824 $(16)$1,808 
Intersegment revenues$11 $5 $— $16 
Six Months Ended June 30, 2025
Management and franchisingOwned and leasedDistributionSegment TotalEliminationsTotal
Base management fees$240 $— $— $240 $(13)$227 
Incentive management fees141 — — 141 (3)138 
Franchise and other fees247 — — 247 (4)243 
Gross fees628 — — 628 (20)608 
Rooms and packages— 371 — 371 (9)362 
Food and beverage— 99 — 99 — 99 
Other— 62 — 62 — 62 
Owned and leased— 532 — 532 (9)523 
Distribution— — 577 577 — 577 
Other revenues22 — — 22 — 22 
Segment revenues650 532 577 1,759 (29)1,730 
Contra revenue(35)— — (35)— (35)
Revenues for reimbursed costs1,831 — — 1,831 — 1,831 
Total revenues$2,446 $532 $577 $3,555 $(29)$3,526 
Intersegment revenues$20 $9 $— $29 
Three Months Ended June 30, 2025
Management and franchisingOwned and leasedDistribution
Segment revenues$323 $309 $262 
Significant segment expenses:
Adjusted general and administrative expenses(65)(3)— 
Owned and leased expenses (1)— (261)— 
Distribution expenses (2)— — (220)
Other segment items (3)(20)2 1 
Segment Adjusted EBITDA$238 $47 $43 
(1) Includes intercompany management and franchise fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(2) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(3) Management and franchising includes direct costs associated with our co-branded credit card programs recognized in other direct costs prior to the integration into the loyalty program in the fourth quarter of 2025. Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts and stock-based compensation expense recognized in owned and leased expenses. Distribution removes stock-based compensation expense recognized in distribution expenses.
Six Months Ended June 30, 2025
Management and franchisingOwned and leasedDistribution
Segment revenues$650 $532 $577 
Significant segment expenses:
Adjusted general and administrative expenses(132)(5)— 
Owned and leased expenses (4)— (467)— 
Distribution expenses (5)— — (488)
Other segment items (6)(44)2 3 
Segment Adjusted EBITDA$474 $62 $92 
(4) Includes intercompany management and franchise fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(5) Includes intercompany commission fee expenses paid to our management and franchising segment, which were eliminated in consolidation.
(6) Management and franchising includes direct costs associated with our co-branded credit card programs recognized in other direct costs prior to the integration into the loyalty program in the fourth quarter of 2025. Owned and leased removes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts and stock-based compensation expense recognized in owned and leased expenses. Distribution removes stock-based compensation expense recognized in distribution expenses.
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Management and franchising$266 $238 $530 $474 
Owned and leased40 47 50 62 
Distribution27 43 56 92 
Segment Adjusted EBITDA333 328 636 628 
Unallocated overhead expenses(36)(42)(73)(82)
Eliminations— — — 1 
Contra revenue(17)(15)(40)(35)
Revenues for reimbursed costs1,023 945 1,968 1,831 
Reimbursed costs(1,020)(949)(1,983)(1,851)
Stock-based compensation expense (1)(17)(14)(44)(45)
Transaction and integration costs(8)(82)(24)(105)
Depreciation and amortization(73)(82)(149)(162)
Equity earnings (losses) from unconsolidated hospitality ventures11 6 (2)(6)
Interest expense(64)(74)(129)(140)
Gains (losses) on sales of real estate and other2 (2)2 (2)
Asset impairments(5)(10)(26)(14)
Other income (loss), net53 29 103 72 
Income before income taxes$182 $38 $239 $90 
(1) Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs (see Note 15).