v3.26.3
Business Segments - Reconciliation of Adjusted EBITDA from Segments to Consolidated Income Before Income Taxes (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2026
USD ($)
Sep. 30, 2025
USD ($)
Sep. 30, 2026
USD ($)
segment
Sep. 30, 2025
USD ($)
Reconciliation of Adjusted EBITDA from Segments to Consolidated Income [Line Items]        
Number of operating segments | segment     2  
Segment Adjusted EBITDA $ 1,053 $ 979 $ 3,015 $ 2,789
Corporate and other adjusted earnings before interest tax depreciation and amortization [1] 5 (3) (2) (10)
Interest expense (184) (159) (529) (455)
Depreciation and amortization expenses (52) (46) (151) (130)
Loss on foreign currency transactions (7) (9) (19) (8)
FF&E replacement reserves (17) (18) (40) (50)
Share-based compensation expense (59) (44) (165) (135)
Amortization of contract acquisition costs (16) (15) (48) (42)
Cost reimbursement revenues [2] 1,967 1,837 5,704 5,278
Reimbursed expenses [2] (1,951) (1,902) (5,808) (5,556)
Other adjustment items [3] (17) (16) (37) (38)
Income before income taxes 722 604 1,920 1,643
Management and Franchise        
Reconciliation of Adjusted EBITDA from Segments to Consolidated Income [Line Items]        
Segment Adjusted EBITDA [4],[5] 1,012 928 2,914 2,673
Ownership        
Reconciliation of Adjusted EBITDA from Segments to Consolidated Income [Line Items]        
Segment Adjusted EBITDA [4],[5] 41 51 101 116
Operating lease, expense 52 55 145 157
Other cost and expense, operating $ 215 $ 220 $ 626 $ 623
[1] Amounts primarily include general and administrative expenses, excluding share-based compensation expense, and activity related to our purchasing operations.
[2] Amounts include results from the operation of programs conducted for the benefit of property owners and exclude cash receipts recorded as deferred revenues on our condensed consolidated balance sheets related to these programs. Under the terms of the related contracts, we do not operate these programs to generate a profit and have contractual rights to adjust future collections to recover prior period expenditures.
[3] Amounts for the three and nine months ended September 30, 2026 include a loss related to the deconsolidation of a subsidiary which previously leased a hotel. Amount for the nine months ended September 30, 2025 includes expected credit losses on financing receivables and restructuring costs related to one of our leased hotels. Amounts for all periods include gains (losses) related to severance and other items, including non-cash charges, such as net gains (losses) related to certain of our investments in unconsolidated affiliates.
[4] Includes management, royalty and IP fees charged to consolidated hotels in our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.
[5] No expenses are allocated to the management and franchise segment. For the ownership segment, rent expense is the significant expense regularly provided to the CODM; rent expense was $52 million and $55 million for the three months ended September 30, 2026 and 2025, respectively, and $145 million and $157 million for the nine months ended September 30, 2026 and 2025, respectively. Total other ownership expenses were $215 million and $220 million for the three months ended September 30, 2026 and 2025, respectively, and $626 million and $623 million for the nine months ended September 30, 2026 and 2025, respectively, comprising (i) room expenses; (ii) food and beverage costs; (iii) property expenses; and (iv) other support costs. Ownership segment Adjusted EBITDA also includes income (loss) from hotels owned or leased by entities in which we own a noncontrolling financial interest.