v3.26.1
Debt
6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
Debt balances and associated interest rates as of June 30, 2026 were:
Principal balance as of
Interest Rate
at June 30, 2026
Maturity Date
Extended Maturity Date(1)
June 30, 2026December 31, 2025
(in millions)
HHV Mortgage Loan(2)
4.20%November 2026None$1,275 $1,275 
Other mortgage loans(3)
Average rate of 4.48%
2026 to 2027(4)
None231 355 
Bonnet Creek Mortgage Loan
SOFR + 2.25%
April 2029
April 2031
— — 
2024 Term Loan
SOFR + 2.20%(5)
May 2027None200 200 
Revolver(6)
SOFR + 2.25%
September 2029
September 2030
— — 
2025 Delayed Draw Term Loan(3)
SOFR + 2.20%(3)
January 2030
January 2031
200 — 
2028 Senior Notes(7)
5.88%October 2028None725 725 
2029 Senior Notes(7)
4.88%May 2029None750 750 
2030 Senior Notes(7)
7.00%February 2030None550 550 
Finance lease obligations
6.88%2027 to 2030None
3,932 3,856 
Less: unamortized deferred financing costs and discount(17)(18)
$3,915 $3,838 
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(1)The extension options are exercisable subject to compliance with certain covenants.
(2)In October 2016, we entered into a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV Mortgage Loan”).
(3)Our $800 million senior unsecured delayed draw term loan facility (“2025 Delayed Draw Term Loan”) was incurred in September 2025. In June 2026, we drew $200 million from our 2025 Delayed Draw Term Loan to fully repay the $120 million mortgage loan secured by the Hyatt Regency Boston, which was scheduled to mature on July 1, 2026, with the remaining proceeds to be used for general corporate purposes. As of June 30, 2026, our all-in interest rate on the 2025 Delayed Draw Term Loan was 5.85%.
(4)The mortgage loan for Hilton Denver City Center matures in 2042 but became callable by the lender in August 2022 with six months notice. As of June 30, 2026, we had not received notice from the lender.
(5)Our $200 million senior unsecured term loan (“2024 Term Loan”) was incurred in May 2024. As of June 30, 2026, our all-in interest rate was 5.85%.
(6)Our senior unsecured revolving credit facility (“Revolver”) permits one or more standby letters of credit, up to a maximum aggregate outstanding balance of $50 million, to be issued on behalf of us. As of June 30, 2026, we had $1 billion of available capacity under our Revolver and no outstanding letters of credit.
(7)Our Operating Company, PK Domestic Property LLC, an indirect subsidiary of the Company, and PK Finance Co-Issuer Inc. issued an aggregate of $725 million of senior notes due 2028 (“2028 Senior Notes”) in September 2020, an aggregate of $750 million of senior notes due 2029 (“2029 Senior Notes”) in May 2021 and an aggregate of $550 million of senior notes due 2030 (“2030 Senior Notes”) in May 2024.
Mortgage Loans
Bonnet Creek Mortgage Loan
In April 2026, G/B/H Four Star, LLC, G/B/H Condo Owner, LLC, G/B/H Golf Course, LLC and Bonnet Creek Hilton Lessee LLC, each indirect subsidiaries of the Company, entered into a loan agreement, which provides for the ability to draw between $650 million and $700 million in a single disbursement no later than September 30, 2026 and matures on April 30, 2029, with an option to extend for two consecutive one-year periods (“Bonnet Creek Mortgage Loan”). When drawn upon, the Bonnet Creek Mortgage Loan will be secured by the 1,009-room Signia by Hilton Orlando Bonnet Creek and the 502-room Waldorf Astoria Orlando and associated golf course.
The outstanding principal balance of the Bonnet Creek Mortgage Loan will bear interest based upon the forward-looking term rate based on the one-month term secured overnight financing rate (“SOFR”) plus 2.25%. We are also subject to a 0.25% ticking fee on the full loan commitment amount of $700 million until the Bonnet Creek Mortgage Loan is drawn upon. We may voluntarily repay any portion of the outstanding principal balance of the Bonnet Creek Mortgage Loan at any time, subject to certain minimum amounts and prepayment or other fees.
Our Operating Company has guaranteed the payment of certain losses of the administrative agent and the lenders resulting from certain specified bad acts by the Company’s indirect subsidiaries and/or their affiliates; however, the Operating Company has not otherwise guaranteed the repayment of the Bonnet Creek Mortgage Loan. The loan agreement also contains certain customary covenants, such as covenants, among other things, that require the Operating Company to maintain a minimum net worth and liquid assets.
During the three and six months ended June 30, 2026, we capitalized $7 million of financing fees related to the Bonnet Creek Mortgage Loan, which we will begin amortizing when drawn upon.
Debt Maturities
The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of June 30, 2026 were:
Year(in millions)
2026
$1,477 
2027230 
2028725 
2029750 
2030550 
Thereafter200 
$3,932