10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-36243

Hilton Worldwide Holdings Inc.

(Exact name of registrant as specified in its charter)

Delaware	27-4384691
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
7930 Jones Branch Drive, Suite 1100, McLean, VA	22102
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (703) 883-1000

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	HLT	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant's common stock, par value $0.01 per share, as of October 17, 2019 was 282,162,971.

HILTON WORLDWIDE HOLDINGS INC.

FORM 10-Q TABLE OF CONTENTS

		Page No.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	2
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42
Item 3.	Defaults Upon Senior Securities	42
Item 4.	Mine Safety Disclosures	42
Item 5.	Other Information	43
Item 6.	Exhibits	43
	Signatures	44

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

	September 30,		December 31,
	2019		2018
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	719	$	403
Restricted cash and cash equivalents	90		81
Accounts receivable, net of allowance for doubtful accounts of $45 and $42	1,193		1,150
Prepaid expenses	115		160
Other	138		189
Total current assets (variable interest entities – $103 and $90)	2,255		1,983
Intangibles and Other Assets:
Goodwill	5,137		5,160
Brands	4,864		4,869
Management and franchise contracts, net	794		872
Other intangible assets, net	404		415
Operating lease right-of-use assets	839		—
Property and equipment, net	380		367
Deferred income tax assets	146		90
Other	248		239
Total intangibles and other assets (variable interest entities – $182 and $178)	12,812		12,012
TOTAL ASSETS	$	15,067	$	13,995
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts payable, accrued expenses and other	$	1,784	$	1,549
Current maturities of long-term debt	38		16
Current portion of deferred revenues	290		350
Current portion of liability for guest loyalty program	788		700
Total current liabilities (variable interest entities – $74 and $56)	2,900		2,615
Long-term debt	7,767		7,266
Operating lease liabilities	1,004		—
Deferred revenues	834		826
Deferred income tax liabilities	873		898
Liability for guest loyalty program	1,004		969
Other	884		863
Total liabilities (variable interest entities – $275 and $263)	15,266		13,437
Commitments and contingencies - see Note 15
Equity (Deficit):
Preferred stock, $0.01 par value; 3,000,000,000 authorized shares, none issued or outstanding as of September 30, 2019 and December 31, 2018	—		—
Common stock, $0.01 par value; 10,000,000,000 authorized shares, 333,095,427 issued and 283,310,197 outstanding as of September 30, 2019 and 332,105,163 issued and 294,815,890 outstanding as of December 31, 2018	3		3
Treasury stock, at cost; 49,785,230 shares as of September 30, 2019 and 37,289,273 shares as of December 31, 2018	(3,726)		(2,625)
Additional paid-in capital	10,460		10,372
Accumulated deficit	(6,097)		(6,417)
Accumulated other comprehensive loss	(848)		(782)
Total Hilton stockholders' equity (deficit)	(208)		551
Noncontrolling interests	9		7
Total equity (deficit)	(199)		558
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	15,067	$	13,995

See notes to condensed consolidated financial statements.

2

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Revenues
Franchise and licensing fees	$	443	$	407	$	1,269	$	1,142
Base and other management fees	80		80		249		241
Incentive management fees	54		57		167		171
Owned and leased hotels	361		373		1,060		1,099
Other revenues	23		27		75		72
	961		944		2,820		2,725
Other revenues from managed and franchised properties	1,434		1,309		4,263		3,893
Total revenues	2,395		2,253		7,083		6,618
Expenses
Owned and leased hotels	310		331		942		1,003
Depreciation and amortization	86		81		256		242
General and administrative	107		109		327		328
Other expenses	11		10		46		36
	514		531		1,571		1,609
Other expenses from managed and franchised properties	1,443		1,337		4,284		3,939
Total expenses	1,957		1,868		5,855		5,548
Gain on sale of assets, net	81		—		81		—
Operating income	519		385		1,309		1,070
Interest expense	(105)		(99)		(304)		(277)
Gain (loss) on foreign currency transactions	7		(6)		4		(7)
Other non-operating income (loss), net	—		13		(8)		26
Income before income taxes	421		293		1,001		812
Income tax expense	(131)		(129)		(291)		(268)
Net income	290		164		710		544
Net income attributable to noncontrolling interests	(2)		(2)		(4)		(4)
Net income attributable to Hilton stockholders	$	288	$	162	$	706	$	540
Earnings per share:
Basic	$	1.01	$	0.55	$	2.44	$	1.77
Diluted	$	1.00	$	0.54	$	2.42	$	1.76
Cash dividends declared per share	$	0.15	$	0.15	$	0.45	$	0.45

See notes to condensed consolidated financial statements.

3

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Net income	$	290	$	164	$	710	$	544
Other comprehensive income (loss), net of tax benefit (expense):
Currency translation adjustment, net of tax of $7, $(1), $8 and $—	(35)		(11)		(23)		(56)
Pension liability adjustment, net of tax of $—, $—, $(1) and $(1)	1		1		5		4
Cash flow hedge adjustment, net of tax of $3, $(2), $16 and $(16)	(8)		6		(48)		47
Total other comprehensive loss	(42)		(4)		(66)		(5)
Comprehensive income	248		160		644		539
Comprehensive income attributable to noncontrolling interests	(2)		(2)		(4)		(4)
Comprehensive income attributable to Hilton stockholders	$	246	$	158	$	640	$	535

See notes to condensed consolidated financial statements.

4

HILTON WORLDWIDE HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

	Nine Months Ended
	September 30,
	2019		2018
Operating Activities:
Net income	$	710	$	544
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of contract acquisition costs	21		20
Depreciation and amortization	256		242
Gain on sale of assets, net	(81)		—
Loss (gain) on foreign currency transactions	(4)		7
Share-based compensation	123		103
Deferred income taxes	22		29
Contract acquisition costs	(49)		(82)
Working capital changes and other	184		51
Net cash provided by operating activities	1,182		914
Investing Activities:
Capital expenditures for property and equipment	(66)		(51)
Payments received on other financing receivables	—		49
Proceeds from asset disposition	120		—
Capitalized software costs	(79)		(62)
Other	(22)		(16)
Net cash used in investing activities	(47)		(80)
Financing Activities:
Borrowings	1,795		1,676
Repayment of debt	(1,327)		(701)
Debt issuance costs	(29)		(21)
Dividends paid	(130)		(137)
Repurchases of common stock	(1,086)		(1,561)
Share-based compensation tax withholdings and other	(31)		(42)
Other	—		(4)
Net cash used in financing activities	(808)		(790)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	(2)		(14)
Net increase in cash, restricted cash and cash equivalents	325		30
Cash, restricted cash and cash equivalents, beginning of period	484		670
Cash, restricted cash and cash equivalents, end of period	$	809	$	700
Supplemental Disclosures:
Cash paid during the year:
Interest	$	248	$	208
Income taxes, net of refunds	238		230

See notes to condensed consolidated financial statements.

5

HILTON WORLDWIDE HOLDINGS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1: Organization

Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts and licensing its brands and intellectual property ("IP"). As of September 30, 2019, we managed, franchised, owned or leased 5,980 hotels and resorts, including timeshare properties, totaling 954,855 rooms in 117 countries and territories.

Note 2: Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Certain prior year amounts in our condensed consolidated balance sheets have been reclassified to conform to current year presentation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

Our significant accounting policies are detailed in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. On January 1, 2019, we adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02 ("ASU 2016-02"), Leases (Topic 842), and the significant accounting policies that changed as a result of the adoption are set forth below.

Leases

We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are a lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted.

At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a right-of-use ("ROU") asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is estimated on a portfolio basis and incorporates lease term, currency risk, credit risk and an adjustment for collateral. Upon adoption of ASU 2016-02, we elected to use the remaining lease term as of January 1, 2019 in our estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, we use the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, we elected not to recognize leases with lease terms of 12 months or less at the commencement date in our consolidated balance sheets. Current maturities and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current

6

maturities and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets.

The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us and lease incentives. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. ROU assets of operating leases are classified as operating lease right-of-use assets and ROU assets of finance leases are classified as property and equipment, net in our consolidated balance sheets.

Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations.

Recently Issued Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15 ("ASU 2018-15"), Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns guidance for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with guidance for capitalizing implementation costs to develop or obtain internal-use software. Capitalized implementation costs will be amortized over the term of the arrangement and presented in the same line item in the statement of operations as the fees associated with the service contract. We elected, as permitted by the standard, to early adopt ASU 2018-15 on a prospective basis as of January 1, 2019. The adoption did not have a material effect on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position of lessees as ROU assets and lease liabilities, with certain practical expedients available. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, which provides for another transition method in addition to the modified retrospective approach required by ASU 2016-02. This option allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative adjustment to the opening balance of retained earnings in the period of adoption.

As described above, we adopted ASU 2016-02 on January 1, 2019 and applied the package of practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 remain unchanged and in accordance with Leases (Topic 840). On January 1, 2019, we recognized a $256 million cumulative adjustment to accumulated deficit, net of taxes of $81 million related to a decrease to our deferred tax liability, as a result of the impairment of ROU assets that occurred in periods prior to the adoption date.

Note 3: Disposal

In September 2019, we completed the sale of the Hilton Odawara Resort & Spa ("Hilton Odawara") for a price of 13 billion Japanese yen (equivalent to $122 million as of the closing date) and subsequently entered into a 30-year management contract with the purchaser of the hotel. As a result of the sale, we recognized a pre-tax gain of $81 million included in gain on sale of assets, net in our condensed consolidated statements of operations for the three and nine months ended September 30, 2019.

7

Note 4: Revenues from Contracts with Customers

Contract Liabilities

The following table summarizes the activity of our contract liabilities, which are classified as a component of current and long-term deferred revenues, during the nine months ended September 30, 2019:

	(in millions)
Balance as of December 31, 2018	$	1,060
Cash received in advance and not recognized as revenue(1)	329
Revenue recognized(1)	(197)
Other(2)	(125)
Balance as of September 30, 2019	$	1,067

____________

⁽¹⁾Primarily related to Hilton Honors, our guest loyalty program.

⁽²⁾Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues.

We recognized revenues that were previously deferred as contract liabilities of $62 million and $33 million during the three months ended September 30, 2019 and 2018, respectively, and $149 million during the nine months ended September 30, 2018.

Performance Obligations

As of September 30, 2019, we had $442 million of deferred revenues related to unsatisfied performance obligations related to Hilton Honors that will be recognized as revenues when the points are redeemed, which we estimate will occur over the next two years. Additionally, we had $625 million of deferred revenues related to application, initiation and licensing fees, which are expected to be recognized as revenues in future periods over the terms of the related contracts.

Note 5: Consolidated Variable Interest Entities

As of September 30, 2019 and December 31, 2018, we consolidated two variable interest entities ("VIEs") that lease hotel properties and, as of December 31, 2018, we also consolidated one VIE that is a management company. We consolidated these VIEs since we are the primary beneficiary, having the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities.

In June 2019, the VIE that is a management company, which we had previously consolidated, sold its assets. As a result of the sale, we deconsolidated $7 million of total assets and $3 million of total liabilities, as we no longer had the power to direct the activities that most significantly affect the VIE's economic performance. See Note 13: "Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss" for additional information.

Our condensed consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following:

	September 30,		December 31,
	2019		2018
	(in millions)
Cash and cash equivalents	$	81	$	71
Property and equipment, net	71		68
Deferred income tax assets	50		53
Other non-current assets	61		58
Accounts payable, accrued expenses and other	59		41
Long-term debt(1)	200		205
Other long-term liabilities	15		15

____________

⁽¹⁾Includes finance lease liabilities of $182 million and $187 million as of September 30, 2019 and December 31, 2018, respectively.

8

We did not provide any financial or other support to any consolidated VIEs that we were not previously contractually required to provide during the nine months ended September 30, 2019 and 2018.

Note 6: Amortizing Intangible Assets

Amortizing intangible assets were as follows:

	September 30, 2019
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(in millions)
Management and franchise contracts:
Management and franchise contracts recorded at Merger(1)	$	2,226	$	(1,997)	$	229
Contract acquisition costs	573		(114)		459
Development commissions and other	124		(18)		106
	$	2,923	$	(2,129)	$	794
Other intangible assets:
Leases(1)	$	279	$	(166)	$	113
Capitalized software costs	583		(377)		206
Hilton Honors(1)	336		(251)		85
Other(1)	34		(34)		—
	$	1,232	$	(828)	$	404

	December 31, 2018
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(in millions)
Management and franchise contracts:
Management and franchise contracts recorded at Merger(1)	$	2,228	$	(1,873)	$	355
Contract acquisition costs	525		(101)		424
Development commissions and other	108		(15)		93
	$	2,861	$	(1,989)	$	872
Other intangible assets:
Leases(1)	$	288	$	(161)	$	127
Capitalized software costs	503		(321)		182
Hilton Honors(1)	338		(236)		102
Other(1)	38		(34)		4
	$	1,167	$	(752)	$	415

____________

⁽¹⁾Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) (the "Merger").

9

Amortization of our amortizing intangible assets was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Recognized in depreciation and amortization expense(1)	$	71	$	67	$	212	$	202
Recognized as a reduction of franchise and licensing fees and base and other management fees	7		6		21		20

____________

⁽¹⁾Includes amortization expense of $50 million for the three months ended September 30, 2019 and 2018, and $152 million and $153 million for the nine months ended September 30, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger.

We estimate future amortization of our amortizing intangible assets as of September 30, 2019 to be as follows:

	Recognized in Depreciation and Amortization Expense		Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees
Year	(in millions)
2019 (remaining)	$	73	$	7
2020	264		27
2021	115		26
2022	93		24
2023	50		23
Thereafter	144		352
	$	739	$	459

Note 7: Debt

Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of September 30, 2019, were as follows:

	September 30,		December 31,
	2019		2018
	(in millions)
Senior secured term loan facility with a rate of 3.77%, due 2026	$	2,619	$	3,119
Senior notes with a rate of 4.250%, due 2024	1,000		1,000
Senior notes with a rate of 4.625%, due 2025	900		900
Senior notes with a rate of 5.125%, due 2026	1,500		1,500
Senior notes with a rate of 4.875%, due 2027	600		600
Senior notes with a rate of 4.875%, due 2030	1,000		—
Finance lease liabilities with a weighted average rate of 5.77%, due 2019 to 2030	255		225
Other debt with a rate of 3.08% due 2026	17		17
	7,891		7,361
Less: unamortized deferred financing costs and discount	(86)		(79)
Less: current maturities of long-term debt(1)	(38)		(16)
	$	7,767	$	7,266

____________

⁽¹⁾Represents current maturities of finance lease liabilities.

Our senior secured credit facilities consist of a senior secured revolving credit facility (the "Revolving Credit Facility") and a senior secured term loan facility (the "Term Loans"). The obligations of our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries.

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In June 2019, we amended the Term Loans to extend the maturity date to June 2026 with a discount of 0.25 percent. In June 2019, we also amended the Revolving Credit Facility to increase the borrowing capacity to $1.75 billion, $250 million of which is available in the form of letters of credit, and extended the maturity date to June 2024. In connection with this amendment, we incurred $7 million of debt issuance costs, which were included in other non-current assets in our condensed consolidated balance sheet as of September 30, 2019. As of September 30, 2019, we had $59 million of outstanding letters of credit, resulting in an available borrowing capacity under the Revolving Credit Facility of $1.69 billion. We are required to pay a commitment fee of 0.125 percent per annum under the Revolving Credit Facility in respect of the unused commitments thereunder.

In June 2019, we issued $1.0 billion aggregate principal amount of 4.875% Senior Notes due 2030 (the "2030 Senior Notes") and incurred $15 million of debt issuance costs. Interest on the 2030 Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning January 2020. We used a portion of the net proceeds from the issuance of the 2030 Senior Notes to repay $500 million outstanding on our Term Loans and to repay $225 million outstanding under our Revolving Credit Facility. In connection with the amendment and the repayment of the Term Loans, we recognized $10 million of fees and unamortized deferred financing costs and discount, which were included in other non-operating income, net in our condensed consolidated statement of operations for the nine months ended September 30, 2019.

The 4.250% Senior Notes due 2024 (the "2024 Senior Notes"), the 4.625% Senior Notes due 2025 (the "2025 Senior Notes"), the 5.125% Senior Notes due 2026 (the "2026 Senior Notes"), the 4.875% Senior Notes due 2027 (the "2027 Senior Notes") and the 2030 Senior Notes are guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries that are themselves not issuers of the applicable series of senior notes. See Note 16: "Condensed Consolidating Guarantor Financial Information" for additional information.

The contractual maturities of our long-term debt as of September 30, 2019 were as follows:

Year	(in millions)
2019 (remaining)	$	10
2020	37
2021	30
2022	21
2023	20
Thereafter	7,773
	$	7,891

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Note 8: Fair Value Measurements

We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below; the fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of September 30, 2019 and December 31, 2018:

	September 30, 2019
			Hierarchy Level
	Carrying Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	174	$	—	$	174	$	—
Restricted cash equivalents	33		—		33		—
Liabilities:
Long-term debt(1)	7,533		5,217		—		2,639
Interest rate swaps	45		—		45		—

	December 31, 2018
			Hierarchy Level
	Carrying Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	87	$	—	$	87	$	—
Restricted cash equivalents	18		—		18		—
Interest rate swaps	16		—		16		—
Liabilities:
Long-term debt(1)	7,040		3,809		—		3,039

____________

⁽¹⁾The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt.

We measure our interest rate swaps at fair value, which were estimated using a discounted cash flow analysis that reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves, as applicable. Our interest rate swaps are included in other non-current assets or other long-term liabilities in our condensed consolidated balance sheets depending on their fair value as of the balance sheet date.

Note 9: Leases

We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices, with our most significant lease liabilities related to hotel properties. As of September 30, 2019, we leased 52 hotels under operating leases and six hotels under finance leases, two of which were the liabilities of consolidated VIEs and were non-recourse to us. Our hotel leases expire at various dates, with varying renewal and termination options.

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Supplemental balance sheet information related to leases as of September 30, 2019 was as follows:

	(dollars in millions)
Operating leases:
Operating lease right-of-use assets	$	839
Accounts payable, accrued expenses and other	128
Operating lease liabilities	1,004
Finance leases:
Property and equipment, net	$	57
Current maturities of long-term debt	38
Long-term debt	217
Weighted average remaining lease term:
Operating leases	12.9 years
Finance leases	8.7 years
Weighted average discount rate:
Operating leases	3.75		%
Finance leases	5.77		%

The components of lease expense were as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
	(in millions)
Operating lease expense for fixed payments	$	35	$	108
Finance lease expense:
Amortization of ROU assets	7		23
Interest on lease liabilities	3		10
Variable lease expense(1)	41		123

____________

⁽¹⁾Includes amounts related to operating leases and interest payments on finance leases.

Lease expense for our operating leases for the year ended December 31, 2018 included $225 million of fixed lease expense and $142 million of variable lease expense.

Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows:

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	130
Financing cash flows from finance leases	32
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating leases	21
Finance leases	59

13

Our future minimum lease payments as of September 30, 2019 were as follows:

	Operating Leases		Finance Leases
Year	(in millions)
2019 (remaining)	$	43	$	14
2020	170		51
2021	160		42
2022	133		32
2023	118		30
Thereafter	846		164
Total minimum lease payments	1,470		333
Less: imputed interest	(338)		(78)
Total lease liabilities	$	1,132	$	255

Note 10: Income Taxes

At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of income (loss) before income taxes, which is subject to federal, state, local and foreign income taxes.

We file income tax returns, including returns for our subsidiaries, with federal, state, local and foreign tax jurisdictions. We are under regular and recurring audit by the Internal Revenue Service ("IRS") and other taxing authorities on open tax positions. The timing of the resolution of tax audits is highly uncertain, as are the amounts, if any, that may ultimately be paid upon such resolution. Changes may result from the conclusion of ongoing audits, appeals or litigation in federal, state, local and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. As of September 30, 2019, we remain subject to federal and state examinations of our income tax returns for tax years from 2005 through 2018 and foreign examinations of our income tax returns for tax years from 1996 through 2018.

Our total unrecognized tax benefits as of September 30, 2019 and December 31, 2018 were $330 million and $318 million, respectively. As of September 30, 2019 and December 31, 2018, we had accrued approximately $46 million and $40 million, respectively, for interest and penalties related to our unrecognized tax benefits in our condensed consolidated balance sheets. Included in the balances of unrecognized tax benefits as of September 30, 2019 and December 31, 2018 was $318 million and $310 million, respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate.

In April 2014, we received 30-day Letters from the IRS and the Revenue Agents Report ("RAR") for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR, filed a formal appeals protest with the IRS and did not make any tax payments related to this audit. The issues being protested in appeals relate to assertions by the IRS that: (i) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (ii) in calculating the amount of U.S. taxable income resulting from Hilton Honors, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (iii) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is the U.S. dollar ("USD"), should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro ("EUR"), and thus foreign currency gains and losses with respect to such loans should have been measured in EUR, instead of USD. In January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years, which included proposed adjustments that reflect the carryover effect of the three protested issues from the 2006 through October 2007 tax years. These proposed adjustments are also being protested in appeals and formal appeals protests have been submitted. In April 2016, we requested a Technical Advice Memorandum ("TAM") from the IRS with respect to the treatment of the gains and losses recognized as a result of changes in foreign currency exchange rates on loans issued by our Luxembourg subsidiary. We received a taxpayer favorable TAM in October 2018 and this issue is no longer being pursued by the IRS for any of the open tax years. In September 2018, we received a 30-day Letter from the IRS and the RAR for the 2011 through 2013 tax years, which reflects proposed adjustments for the carryover effect of the two remaining protested issues from the 2006 through October 2007 tax years. The adjustments for the 2011 through 2013 tax years will also be protested in appeals and formal protests have been submitted. After receipt of the TAM relating to the Luxembourg subsidiary, the two remaining proposed adjustments sought by the IRS would result in additional U.S. federal tax owed of approximately $817 million, excluding interest and penalties and potential state income

14

taxes. The portion of this amount related to Hilton Honors would result in a decrease to our future tax liability when the points are redeemed. We disagree with the IRS's position on each of these assertions and intend to vigorously contest them. However, based on continuing appeals process discussions with the IRS, we believe that it is more likely than not that we will not recognize the full benefit related to certain of the issues being appealed. Accordingly, as of September 30, 2019, we had recorded $56 million of unrecognized tax benefits related to these issues.

Note 11: Share-Based Compensation

We grant time-vesting restricted stock units and restricted stock (collectively, "RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares") to our employees and deferred share units ("DSUs") to members of our board of directors. We recognized share-based compensation expense of $42 million and $35 million during the three months ended September 30, 2019 and 2018, respectively, and $123 million and $103 million during the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, unrecognized compensation costs for unvested awards was approximately $153 million, which are expected to be recognized over a weighted-average period of 1.8 years on a straight-line basis. As of September 30, 2019, there were 14.2 million shares of common stock available for future issuance under the Hilton 2017 Omnibus Incentive Plan, plus any shares subject to awards outstanding under our 2013 Omnibus Incentive Plan, which will become available for issuance under the Hilton 2017 Omnibus Incentive Plan if such outstanding awards expire or are terminated or are canceled or forfeited.

RSUs

During the nine months ended September 30, 2019, we granted 1.0 million RSUs with a weighted average grant date fair value per share of $83.41, which generally vest in equal annual installments over two or three years from the date of grant.

Options

During the nine months ended September 30, 2019, we granted 0.8 million options with a weighted average exercise price per share of $83.11, which vest over three years from the date of grant in equal annual installments and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances.

The weighted average grant date fair value per share of the options granted during the nine months ended September 30, 2019 was $21.08, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility(1)	23.51	%
Dividend yield(2)	0.81	%
Risk-free rate(3)	2.47	%
Expected term (in years)(4)	6.0

____________

⁽¹⁾Estimated using historical movement of Hilton's stock price.

⁽²⁾Estimated based on the quarterly dividend and the three-month average stock price at the date of grant.

⁽³⁾Based on the yields of U.S. Department of Treasury instruments with similar expected lives.

⁽⁴⁾Estimated using the average of the vesting periods and the contractual term of the options.

As of September 30, 2019, 1.5 million options were exercisable.

Performance Shares

During the nine months ended September 30, 2019, we granted 0.4 million performance shares with a weighted average grant date fair value per share of $83.11. The performance shares are settled at the end of the three-year performance period with: (i) 50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA"), referred to as EBITDA CAGR and (ii) 50 percent of the awards subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR, referred to as FCF CAGR. The total number of performance shares that vest related to each performance measure is based on an achievement factor that ranges from a zero percent to 200 percent payout, with 100 percent being the target. As of September 30, 2019, we determined that the performance conditions for the performance shares are probable of achievement, and we recognized compensation expense, for both our outstanding EBITDA CAGR and FCF CAGR performance shares, at the maximum achievement percentage for the 2017 and 2018 performance shares and at target for the 2019 performance shares.

15

Note 12: Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share ("EPS"):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions, except per share amounts)
Basic EPS:
Numerator:
Net income attributable to Hilton stockholders	$	288	$	162	$	706	$	540
Denominator:
Weighted average shares outstanding	285		297		289		305
Basic EPS	$	1.01	$	0.55	$	2.44	$	1.77
Diluted EPS:
Numerator:
Net income attributable to Hilton stockholders	$	288	$	162	$	706	$	540
Denominator:
Weighted average shares outstanding	288		300		292		307
Diluted EPS	$	1.00	$	0.54	$	2.42	$	1.76

Approximately 1 million share-based compensation awards were excluded from the computation of diluted EPS for the three and nine months ended September 30, 2019 and 2018 because their effect would have been anti-dilutive under the treasury stock method.

Note 13: Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss

The following tables present the changes in the components of stockholders' equity (deficit) for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30, 2019
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of June 30, 2019	288	$	3	$	(3,304)	$	10,419	$	(6,342)	$	(806)	$	7	$	(23)
Net income	—	—		—		—		288		—		2		290
Other comprehensive loss	—	—		—		—		—		(42)		—		(42)
Dividends	—	—		—		—		(43)		—		—		(43)
Repurchases of common stock	(5)	—		(422)		—		—		—		—		(422)
Share-based compensation	—	—		—		41		—		—		—		41
Balance as of September 30, 2019	283	$	3	$	(3,726)	$	10,460	$	(6,097)	$	(848)	$	9	$	(199)

16

	Three Months Ended September 30, 2018
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of June 30, 2018	298	$	3	$	(2,330)	$	10,321	$	(6,697)	$	(742)	$	5	$	560
Net income	—	—		—		—		162		—		2		164
Other comprehensive loss	—	—		—		—		—		(4)		—		(4)
Dividends	—	—		—		—		(45)		—		—		(45)
Repurchases of common stock	(1)	—		(122)		—		—		—		—		(122)
Share-based compensation	—	—		—		31		—		—		—		31
Acquisition of noncontrolling interest	—	—		—		(3)		—		—		—		(3)
Distributions	—	—		—		—		—		—		(1)		(1)
Balance as of September 30, 2018	297	$	3	$	(2,452)	$	10,349	$	(6,580)	$	(746)	$	6	$	580

	Nine Months Ended September 30, 2019
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of December 31, 2018	295	$	3	$	(2,625)	$	10,372	$	(6,417)	$	(782)	$	7	$	558
Net income	—	—		—		—		706		—		4		710
Other comprehensive loss	—	—		—		—		—		(66)		—		(66)
Dividends	—	—		—		—		(130)		—		—		(130)
Repurchases of common stock	(13)	—		(1,101)		—		—		—		—		(1,101)
Share-based compensation	1	—		—		88		—		—		—		88
Cumulative effect of the adoption of ASU 2016-02	—	—		—		—		(256)		—		—		(256)
Deconsolidation of a VIE	—	—		—		—		—		—		(2)		(2)
Balance as of September 30, 2019	283	$	3	$	(3,726)	$	10,460	$	(6,097)	$	(848)	$	9	$	(199)

	Nine Months Ended September 30, 2018
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of December 31, 2017	317	$	3	$	(891)	$	10,298	$	(6,981)	$	(741)	$	3	$	1,691
Net income	—	—		—		—		540		—		4		544
Other comprehensive loss	—	—		—		—		—		(5)		—		(5)
Dividends	—	—		—		—		(139)		—		—		(139)
Repurchases of common stock	(21)	—		(1,561)		—		—		—		—		(1,561)
Share-based compensation	1	—		—		54		—		—		—		54
Acquisition of noncontrolling interest	—	—		—		(3)		—		—		—		(3)
Distributions	—	—		—		—		—		—		(1)		(1)
Balance as of September 30, 2018	297	$	3	$	(2,452)	$	10,349	$	(6,580)	$	(746)	$	6	$	580

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The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:

	Currency Translation Adjustment(1)		Pension Liability Adjustment		Cash Flow Hedge Adjustment		Total
	(in millions)
Balance as of December 31, 2018	$	(545)	$	(260)	$	23	$	(782)
Other comprehensive loss before reclassifications	(24)		(1)		(40)		(65)
Amounts reclassified from accumulated other comprehensive loss	1		6		(8)		(1)
Net current period other comprehensive income (loss)	(23)		5		(48)		(66)
Balance as of September 30, 2019	$	(568)	$	(255)	$	(25)	$	(848)

	Currency Translation Adjustment(1)		Pension Liability Adjustment		Cash Flow Hedge Adjustment		Total
	(in millions)
Balance as of December 31, 2017	$	(513)	$	(229)	$	1	$	(741)
Other comprehensive income (loss) before reclassifications	(56)		(2)		41		(17)
Amounts reclassified from accumulated other comprehensive loss	—		6		6		12
Net current period other comprehensive income (loss)	(56)		4		47		(5)
Balance as of September 30, 2018	$	(569)	$	(225)	$	48	$	(746)

____________

⁽¹⁾Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature.

18

The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate losses in our condensed consolidated statements of operations:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
	(in millions)
Currency translation adjustment:
Liquidation of investments in foreign entities(1)	$	—	$	(1)
Total currency translation adjustment reclassifications for the period, net of taxes	—		(1)
Pension liability adjustment:
Amortization of prior service cost(2)	(1)		(3)
Amortization of net loss(2)	(2)		(5)
Tax benefit(3)	1		2
Total pension liability adjustment reclassifications for the period, net of taxes	(2)		(6)
Cash flow hedge adjustment:
Interest rate swaps(4)	2		8
Forward contracts(5)	2		2
Tax expense(3)	(1)		(2)
Total cash flow hedge adjustment reclassifications for the period, net of taxes	3		8
Total reclassifications for the period, net of taxes	$	1	$	1

____________

⁽¹⁾Includes a gain on the related net investment hedge for one of the foreign entities. Reclassified to gain (loss) on foreign currency transactions in our condensed consolidated statements of operations. The related tax benefit reclassified to income tax expense in our condensed consolidated statements of operations was less than $1 million.

⁽²⁾Reclassified to other non-operating income (loss), net in our condensed consolidated statements of operations.

⁽³⁾Reclassified to income tax expense in our condensed consolidated statements of operations.

⁽⁴⁾Reclassified to interest expense in our condensed consolidated statements of operations.

⁽⁵⁾Reclassified to franchise and licensing fees and base and other management fees in our condensed consolidated statements of operations.

As of September 30, 2019, approximately $959 million remained available for share repurchases under our $3.5 billion stock repurchase program.

Note 14: Business Segments

We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics.

The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of September 30, 2019, this segment included 706 managed hotels and 5,154 franchised hotels consisting of 925,458 total rooms. This segment also earns licensing fees from Hilton Grand Vacations and co-brand credit card arrangements for the exclusive right to use certain Hilton marks and IP, as well as fees for managing properties in our ownership segment.

As of September 30, 2019, the ownership segment included 65 properties totaling 20,481 rooms, comprising 57 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and five hotels owned or leased by unconsolidated affiliates.

The performance of our operating segments is evaluated primarily on operating income, without allocating other revenues and expenses or general and administrative expenses.

19

The following table presents revenues for our reportable segments, reconciled to consolidated amounts:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Franchise and licensing fees	$	447	$	409	$	1,277	$	1,147
Base and other management fees(1)	95		95		293		286
Incentive management fees	54		57		167		171
Management and franchise	596		561		1,737		1,604
Ownership	361		373		1,060		1,099
Segment revenues	957		934		2,797		2,703
Amortization of contract acquisition costs	(7)		(6)		(21)		(20)
Other revenues	23		27		75		72
Direct reimbursements from managed and franchised properties(2)	770		710		2,334		2,139
Indirect reimbursements from managed and franchised properties(2)	664		599		1,929		1,754
Intersegment fees elimination(1)	(12)		(11)		(31)		(30)
Total revenues	$	2,395	$	2,253	$	7,083	$	6,618

____________

⁽¹⁾Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

⁽²⁾Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations.

The following table presents operating income for our reportable segments, reconciled to consolidated income before income taxes:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Management and franchise(1)	$	596	$	561	$	1,737	$	1,604
Ownership(1)	39		31		87		66
Segment operating income	635		592		1,824		1,670
Amortization of contract acquisition costs	(7)		(6)		(21)		(20)
Other revenues, less other expenses	12		17		29		36
Net other expenses from managed and franchised properties	(9)		(28)		(21)		(46)
Depreciation and amortization	(86)		(81)		(256)		(242)
General and administrative	(107)		(109)		(327)		(328)
Gain on sale of assets, net	81		—		81		—
Operating income	519		385		1,309		1,070
Interest expense	(105)		(99)		(304)		(277)
Gain (loss) on foreign currency transactions	7		(6)		4		(7)
Other non-operating income (loss), net	—		13		(8)		26
Income before income taxes	$	421	$	293	$	1,001	$	812

____________

⁽¹⁾Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

20

The following table presents total assets for our reportable segments, reconciled to consolidated amounts:

	September 30,		December 31,
	2019		2018
	(in millions)
Management and franchise	$	11,345	$	11,362
Ownership	1,627		927
Corporate and other	2,095		1,706
	$	15,067	$	13,995

The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts:

	Nine Months Ended
	September 30,
	2019		2018
	(in millions)
Ownership	$	31	$	34
Corporate and other	35		17
	$	66	$	51

Note 15: Commitments and Contingencies

We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of September 30, 2019, we had six performance guarantees, with expirations ranging from December 2019 to 2039, and possible cash outlays totaling approximately $38 million. Our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee. As of September 30, 2019 and December 31, 2018, we accrued current liabilities of $3 million and $12 million, respectively, for one performance guarantee related to a hotel owned by a VIE for which we were not the primary beneficiary. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. We do not have any letters of credit pledged as collateral against our performance guarantees.

As of September 30, 2019, we guaranteed two loans for three hotels that we franchise or will franchise for a total of $30 million. One of the loans has an initial maturity date in 2022 with two one-year extension options and the other loan will mature in 2023. Although we believe it is unlikely that material payments will be required under these guarantees, there can be no assurance that this will be the case. We do not have any letters of credit pledged as collateral against these guarantees.

We hold interests in VIEs, for which we are not the primary beneficiary, that have entered into loan agreements with third parties. Under the terms of our contractual arrangements with certain of these VIEs, we may provide financial support to such entities under specified circumstances, including default of such a VIE under a third-party loan agreement, and may have the option to acquire a controlling financial interest in such an entity at a predetermined amount. In a circumstance that we provide financial support or exercise our option to acquire an additional interest in a VIE, we may be required to reassess whether we are the primary beneficiary of the VIE. If we determine that we are the primary beneficiary of the VIE, we would be required to consolidate the total assets, liabilities and results of operations of the VIE, which may be material upon consolidation.

We have entered into agreements with owners of certain hotels that we currently manage or will franchise to finance capital expenditures at the hotels. As of September 30, 2019, we had remaining possible cash outlays of approximately $25 million, of which we expect to fund $15 million in the remainder of 2019 and $10 million in 2020.

We receive fees from managed and franchised properties to operate our marketing, sales and brand programs on behalf of hotel owners. As of September 30, 2019 and December 31, 2018, we had collected an aggregate of $397 million and $375 million in excess of amounts expended, respectively, across all programs.

We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the

21

ultimate resolution of all pending or threatened claims and litigation as of September 30, 2019 will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

Note 16: Condensed Consolidating Guarantor Financial Information

Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (together, the "HWF Issuers"), which are 100 percent owned by Hilton Worldwide Parent LLC ("HWP"), which is 100 percent owned by the Parent, issued the 2025 Senior Notes and the 2027 Senior Notes. Hilton Domestic Operating Company Inc. ("HOC"), which is 100 percent owned by Hilton Worldwide Finance LLC, assumed the 2024 Senior Notes, issued the 2026 Senior Notes and, in June 2019, issued the 2030 Senior Notes. The 2024 Senior Notes, 2025 Senior Notes, 2026 Senior Notes, 2027 Senior Notes and 2030 Senior Notes are collectively referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers.

The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by HWP, the Parent and certain of the Parent's wholly owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the "Guarantors''). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of our senior secured credit facilities will guarantee the Senior Notes. Additionally, the HWF Issuers are guarantors of the 2024 Senior Notes, the 2026 Senior Notes and the 2030 Senior Notes, and HOC is a guarantor of the 2025 Senior Notes and the 2027 Senior Notes. As of September 30, 2019, none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guaranteed the Senior Notes (collectively, the "Non-Guarantors").

The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under our senior secured credit facilities; (iii) the subsidiary is declared "unrestricted" for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures.

The following tables present the condensed consolidating financial information as of September 30, 2019 and December 31, 2018, and for the three and nine months ended September 30, 2019 and 2018, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. The condensed consolidating financial information presents the financial information for all periods based on the composition of the Guarantors and Non-Guarantors as of September 30, 2019.

22

	September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	—	$	17	$	26	$	676	$	—	$	719
Restricted cash and cash equivalents	—		—		34		23		33		—		90
Accounts receivable, net	—		—		13		850		332		(2)		1,193
Intercompany receivables	—		—		—		—		39		(39)		—
Prepaid expenses	—		—		26		37		57		(5)		115
Other	—		3		1		56		102		(24)		138
Total current assets	—		3		91		992		1,239		(70)		2,255
Intangibles and Other Assets:
Investments in subsidiaries	(187)		3,948		7,709		(187)		—		(11,283)		—
Goodwill	—		—		—		3,824		1,313		—		5,137
Brands	—		—		—		4,404		460		—		4,864
Management and franchise contracts, net	—		—		1		464		329		—		794
Other intangible assets, net	—		—		—		290		114		—		404
Operating lease right-of-use assets	—		—		34		9		796		—		839
Property and equipment, net	—		—		60		68		252		—		380
Deferred income tax assets	3		11		85		—		146		(99)		146
Other	—		11		31		37		169		—		248
Total intangibles and other assets	(184)		3,970		7,920		8,909		3,579		(11,382)		12,812
TOTAL ASSETS	$	(184)	$	3,973	$	8,011	$	9,901	$	4,818	$	(11,452)	$	15,067
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts payable, accrued expenses and other	$	24	$	37	$	264	$	711	$	770	$	(22)	$	1,784
Current maturities of long-term debt	—		—		20		—		18		—		38
Current portion of deferred revenues	—		—		38		241		20		(9)		290
Intercompany payables	—		—		39		—		—		(39)		—
Current portion of liability for guest loyalty program	—		—		—		788		—		—		788
Total current liabilities	24		37		361		1,740		808		(70)		2,900
Long-term debt	—		4,078		3,474		—		215		—		7,767
Operating lease liabilities	—		—		39		7		958		—		1,004
Deferred revenues	—		—		—		764		70		—		834
Deferred income tax liabilities	—		—		—		957		15		(99)		873
Liability for guest loyalty program	—		—		—		1,004		—		—		1,004
Other	—		45		189		96		554		—		884
Total liabilities	24		4,160		4,063		4,568		2,620		(169)		15,266
Equity (Deficit):
Total Hilton stockholders' equity (deficit)	(208)		(187)		3,948		5,333		2,189		(11,283)		(208)
Noncontrolling interests	—		—		—		—		9		—		9
Total equity (deficit)	(208)		(187)		3,948		5,333		2,198		(11,283)		(199)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	(184)	$	3,973	$	8,011	$	9,901	$	4,818	$	(11,452)	$	15,067

23

	December 31, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	—	$	3	$	17	$	383	$	—	$	403
Restricted cash and cash equivalents	—		—		34		15		32		—		81
Accounts receivable, net	—		—		10		735		405		—		1,150
Intercompany receivables	—		—		—		—		40		(40)		—
Prepaid expenses	—		—		52		37		80		(9)		160
Other	—		1		1		36		154		(3)		189
Total current assets	—		1		100		840		1,094		(52)		1,983
Intangibles and Other Assets:
Investments in subsidiaries	557		5,131		7,930		557		—		(14,175)		—
Goodwill	—		—		—		3,824		1,336		—		5,160
Brands	—		—		—		4,404		465		—		4,869
Management and franchise contracts, net	—		—		—		556		316		—		872
Other intangible assets, net	—		—		—		287		128		—		415
Property and equipment, net	—		—		27		65		275		—		367
Deferred income tax assets	4		—		94		—		90		(98)		90
Other	—		23		33		22		161		—		239
Total intangibles and other assets	561		5,154		8,084		9,715		2,771		(14,273)		12,012
TOTAL ASSETS	$	561	$	5,155	$	8,184	$	10,555	$	3,865	$	(14,325)	$	13,995
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other	$	10	$	19	$	229	$	529	$	765	$	(3)	$	1,549
Current maturities of long-term debt	—		—		—		—		16		—		16
Current portion of deferred revenues	—		—		106		239		14		(9)		350
Intercompany payables	—		—		40		—		—		(40)		—
Current portion of liability for guest loyalty program	—		—		—		700		—		—		700
Total current liabilities	10		19		375		1,468		795		(52)		2,615
Long-term debt	—		4,573		2,467		—		226		—		7,266
Deferred revenues	—		—		—		762		64		—		826
Deferred income tax liabilities	—		6		—		962		28		(98)		898
Liability for guest loyalty program	—		—		—		969		—		—		969
Other	—		—		211		93		559		—		863
Total liabilities	10		4,598		3,053		4,254		1,672		(150)		13,437
Equity:
Total Hilton stockholders' equity	551		557		5,131		6,301		2,186		(14,175)		551
Noncontrolling interests	—		—		—		—		7		—		7
Total equity	551		557		5,131		6,301		2,193		(14,175)		558
TOTAL LIABILITIES AND EQUITY	$	561	$	5,155	$	8,184	$	10,555	$	3,865	$	(14,325)	$	13,995

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	Three Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	68	$	338	$	41	$	(4)	$	443
Base and other management fees	—		—		1		48		31		—		80
Incentive management fees	—		—		—		16		38		—		54
Owned and leased hotels	—		—		—		—		361		—		361
Other revenues	—		—		—		20		3		—		23
	—		—		69		422		474		(4)		961
Other revenues from managed and franchised properties	—		—		79		1,195		160		—		1,434
Total revenues	—		—		148		1,617		634		(4)		2,395
Expenses
Owned and leased hotels	—		—		—		—		310		—		310
Depreciation and amortization	—		—		2		63		21		—		86
General and administrative	—		—		88		—		28		(9)		107
Other expenses	—		—		1		—		5		5		11
	—		—		91		63		364		(4)		514
Other expenses from managed and franchised properties	—		—		85		1,200		158		—		1,443
Total expenses	—		—		176		1,263		522		(4)		1,957
Gain on sale of assets, net	—		—		—		—		81		—		81
Operating income (loss)	—		—		(28)		354		193		—		519
Interest expense	—		(45)		(49)		—		(11)		—		(105)
Gain (loss) on foreign currency transactions	—		—		4		(43)		46		—		7
Other non-operating income (loss), net	—		(2)		—		(3)		5		—		—
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(47)		(73)		308		233		—		421
Income tax benefit (expense)	—		11		15		(79)		(78)		—		(131)
Income (loss) before equity in earnings from subsidiaries	—		(36)		(58)		229		155		—		290
Equity in earnings from subsidiaries	288		324		382		288		—		(1,282)		—
Net income	288		288		324		517		155		(1,282)		290
Net income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Net income attributable to Hilton stockholders	$	288	$	288	$	324	$	517	$	153	$	(1,282)	$	288
Comprehensive income	$	246	$	279	$	324	$	516	$	123	$	(1,240)	$	248
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Comprehensive income attributable to Hilton stockholders	$	246	$	279	$	324	$	516	$	121	$	(1,240)	$	246

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	Three Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	57	$	316	$	39	$	(5)	$	407
Base and other management fees	—		—		—		49		31		—		80
Incentive management fees	—		—		—		15		42		—		57
Owned and leased hotels	—		—		—		—		373		—		373
Other revenues	—		—		1		19		3		4		27
	—		—		58		399		488		(1)		944
Other revenues from managed and franchised properties	—		—		70		1,076		163		—		1,309
Total revenues	—		—		128		1,475		651		(1)		2,253
Expenses
Owned and leased hotels	—		—		—		—		331		—		331
Depreciation and amortization	—		—		2		58		21		—		81
General and administrative	—		—		81		—		30		(2)		109
Other expenses	—		—		1		2		6		1		10
	—		—		84		60		388		(1)		531
Other expenses from managed and franchised properties	—		—		70		1,106		161		—		1,337
Total expenses	—		—		154		1,166		549		(1)		1,868
Operating income (loss)	—		—		(26)		309		102		—		385
Interest expense	—		(54)		(34)		—		(8)		(3)		(99)
Gain (loss) on foreign currency transactions	—		—		—		1		(7)		—		(6)
Other non-operating income, net	—		—		1		4		5		3		13
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(54)		(59)		314		92		—		293
Income tax benefit (expense)	—		13		8		(70)		(80)		—		(129)
Income (loss) before equity in earnings from subsidiaries	—		(41)		(51)		244		12		—		164
Equity in earnings from subsidiaries	162		203		254		162		—		(781)		—
Net income	162		162		203		406		12		(781)		164
Net income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Net income attributable to Hilton stockholders	$	162	$	162	$	203	$	406	$	10	$	(781)	$	162
Comprehensive income	$	158	$	168	$	204	$	405	$	2	$	(777)	$	160
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Comprehensive income attributable to Hilton stockholders	$	158	$	168	$	204	$	405	$	—	$	(777)	$	158

26

	Nine Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	198	$	970	$	114	$	(13)	$	1,269
Base and other management fees	—		—		1		157		91		—		249
Incentive management fees	—		—		—		60		107		—		167
Owned and leased hotels	—		—		—		—		1,060		—		1,060
Other revenues	—		—		1		63		11		—		75
	—		—		200		1,250		1,383		(13)		2,820
Other revenues from managed and franchised properties	—		—		235		3,581		447		—		4,263
Total revenues	—		—		435		4,831		1,830		(13)		7,083
Expenses
Owned and leased hotels	—		—		—		—		942		—		942
Depreciation and amortization	—		—		5		188		63		—		256
General and administrative	—		—		259		—		90		(22)		327
Other expenses	—		—		5		10		22		9		46
	—		—		269		198		1,117		(13)		1,571
Other expenses from managed and franchised properties	—		—		244		3,602		438		—		4,284
Total expenses	—		—		513		3,800		1,555		(13)		5,855
Gain on sale of assets, net	—		—		—		—		81		—		81
Operating income (loss)	—		—		(78)		1,031		356		—		1,309
Interest expense	—		(148)		(117)		—		(39)		—		(304)
Gain (loss) on foreign currency transactions	—		—		5		(70)		69		—		4
Other non-operating income (loss), net	—		(11)		—		(8)		11		—		(8)
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(159)		(190)		953		397		—		1,001
Income tax benefit (expense)	—		38		42		(238)		(133)		—		(291)
Income (loss) before equity in earnings from subsidiaries	—		(121)		(148)		715		264		—		710
Equity in earnings from subsidiaries	706		827		975		706		—		(3,214)		—
Net income	706		706		827		1,421		264		(3,214)		710
Net income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Net income attributable to Hilton stockholders	$	706	$	706	$	827	$	1,421	$	260	$	(3,214)	$	706
Comprehensive income	$	640	$	657	$	830	$	1,420	$	245	$	(3,148)	$	644
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Comprehensive income attributable to Hilton stockholders	$	640	$	657	$	830	$	1,420	$	241	$	(3,148)	$	640

27

	Nine Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	151	$	900	$	104	$	(13)	$	1,142
Base and other management fees	—		—		1		155		85		—		241
Incentive management fees	—		—		—		58		113		—		171
Owned and leased hotels	—		—		—		—		1,099		—		1,099
Other revenues	—		—		4		60		8		—		72
	—		—		156		1,173		1,409		(13)		2,725
Other revenues from managed and franchised properties	—		—		176		3,256		461		—		3,893
Total revenues	—		—		332		4,429		1,870		(13)		6,618
Expenses
Owned and leased hotels	—		—		—		—		1,003		—		1,003
Depreciation and amortization	—		—		5		176		61		—		242
General and administrative	—		—		237		—		97		(6)		328
Other expenses	—		—		5		17		21		(7)		36
	—		—		247		193		1,182		(13)		1,609
Other expenses from managed and franchised properties	—		—		178		3,304		457		—		3,939
Total expenses	—		—		425		3,497		1,639		(13)		5,548
Operating income (loss)	—		—		(93)		932		231		—		1,070
Interest expense	—		(172)		(78)		—		(27)		—		(277)
Gain (loss) on foreign currency transactions	—		—		3		(80)		70		—		(7)
Other non-operating income (loss), net	—		(7)		5		16		12		—		26
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(179)		(163)		868		286		—		812
Income tax benefit (expense)	—		44		35		(204)		(143)		—		(268)
Income (loss) before equity in earnings from subsidiaries	—		(135)		(128)		664		143		—		544
Equity in earnings from subsidiaries	540		675		803		540		—		(2,558)		—
Net income	540		540		675		1,204		143		(2,558)		544
Net income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Net income attributable to Hilton stockholders	$	540	$	540	$	675	$	1,204	$	139	$	(2,558)	$	540
Comprehensive income	$	535	$	585	$	677	$	1,203	$	92	$	(2,553)	$	539
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Comprehensive income attributable to Hilton stockholders	$	535	$	585	$	677	$	1,203	$	88	$	(2,553)	$	535

28

	Nine Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Operating Activities:
Net cash provided by (used in) operating activities	$	—	$	(122)	$	(17)	$	1,157	$	229	$	(65)	$	1,182
Investing Activities:
Capital expenditures for property and equipment	—		—		(6)		(5)		(55)		—		(66)
Proceeds from asset disposition	—		—		—		—		120		—		120
Capitalized software costs	—		—		—		(79)		—		—		(79)
Other	—		—		—		(18)		(4)		—		(22)
Net cash provided by (used in) investing activities	—		—		(6)		(102)		61		—		(47)
Financing Activities:
Borrowings	—		795		1,000		—		—		—		1,795
Repayment of debt	—		(1,295)		(20)		—		(12)		—		(1,327)
Debt issuance costs	—		(13)		(16)		—		—		—		(29)
Intercompany transfers	1,216		635		(896)		(1,038)		83		—		—
Dividends paid	(130)		—		—		—		—		—		(130)
Repurchases of common stock	(1,086)		—		—		—		—		—		(1,086)
Intercompany dividends	—		—		—		—		(65)		65		—
Share-based compensation tax withholdings and other	—		—		(31)		—		—		—		(31)
Net cash provided by (used in) financing activities	—		122		37		(1,038)		6		65		(808)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	—		—		—		—		(2)		—		(2)
Net increase in cash, restricted cash and cash equivalents	—		—		14		17		294		—		325
Cash, restricted cash and cash equivalents, beginning of period	—		—		37		32		415		—		484
Cash, restricted cash and cash equivalents, end of period	$	—	$	—	$	51	$	49	$	709	$	—	$	809

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	Nine Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Operating Activities:
Net cash provided by (used in) operating activities	$	—	$	(143)	$	(7)	$	808	$	256	$	—	$	914
Investing Activities:
Capital expenditures for property and equipment	—		—		(5)		(4)		(42)		—		(51)
Payments received on other financing receivables	—		—		—		49		—		—		49
Capitalized software costs	—		—		—		(62)		—		—		(62)
Other	—		—		—		(6)		(10)		—		(16)
Net cash used in investing activities	—		—		(5)		(23)		(52)		—		(80)
Financing Activities:
Borrowings	—		175		1,500		—		1		—		1,676
Repayment of debt	—		(685)		—		—		(16)		—		(701)
Debt issuance costs	—		—		(21)		—		—		—		(21)
Intercompany transfers	1,698		653		(1,451)		(739)		(161)		—		—
Dividends paid	(137)		—		—		—		—		—		(137)
Repurchases of common stock	(1,561)		—		—		—		—		—		(1,561)
Share-based compensation tax withholdings and other	—		—		(42)		—		—		—		(42)
Other	—		—		—		(3)		(1)		—		(4)
Net cash provided by (used in) financing activities	—		143		(14)		(742)		(177)		—		(790)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	—		—		—		—		(14)		—		(14)
Net increase (decrease) in cash, restricted cash and cash equivalents	—		—		(26)		43		13		—		30
Cash, restricted cash and cash equivalents, beginning of period	—		—		63		28		579		—		670
Cash, restricted cash and cash equivalents, end of period	$	—	$	—	$	37	$	71	$	592	$	—	$	700

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and with our Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties including, among others, risks inherent to the hospitality industry, macroeconomic factors beyond our control, competition for hotel guests and management and franchise contracts, risks related to doing business with third-party hotel owners, performance of our information technology systems, growth of reservation channels outside of our system, risks of doing business outside of the U.S. and our indebtedness. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under "Part I—Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included elsewhere in this Quarterly Report on Form 10-Q. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Overview

Our Business

Hilton is one of the largest and fastest growing hospitality companies in the world, with 5,980 properties comprising 954,855 rooms in 117 countries and territories as of September 30, 2019. Our premier brand portfolio includes: our luxury and lifestyle hotel brands, Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, Conrad Hotels & Resorts and Canopy by Hilton; our full service hotel brands, Signia Hilton, Hilton Hotels & Resorts, Curio Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton and Embassy Suites by Hilton; our focused service hotel brands, Motto by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton and Home2 Suites by Hilton; and our timeshare brand, Hilton Grand Vacations. As of September 30, 2019, we had nearly 99 million members in our award-winning guest loyalty program, Hilton Honors, a 21 percent increase from September 30, 2018.

Segments and Regions

We analyze our operations and business by both operating segments and geographic regions. Our operations consist of two reportable segments that are based on similar products or services: (i) management and franchise and (ii) ownership. The management and franchise segment provides services, including hotel management and licensing of our brands. This segment generates its revenue from: (i) management and franchise fees charged to third-party hotel owners; (ii) licensing fees for the exclusive right to use certain Hilton marks and IP; and (iii) fees for managing our owned and leased hotels. As a manager of hotels, we typically are responsible for supervising or operating the property in exchange for management fees. As a franchisor of hotels, we charge franchise fees in exchange for the use of one of our brand names and related commercial services, such as our reservation system, marketing and information technology services. The ownership segment primarily derives earnings from providing hotel room sales, food and beverage sales and other services at our owned and leased hotels.

Geographically, we conduct business through three distinct geographic regions: (i) the Americas; (ii) Europe, Middle East and Africa ("EMEA"); and (iii) Asia Pacific. The Americas region includes North America, South America and Central America, including all Caribbean nations. Although the U.S. is included in the Americas, it represented 72 percent of our system-wide hotel rooms as of September 30, 2019; therefore, the U.S. is often analyzed separately and apart from the Americas geographic region and, as such, it is presented separately within the analysis herein. The EMEA region includes Europe, which represents the western-most peninsula of Eurasia stretching from Iceland in the west to Russia in the east, and the Middle East and Africa ("MEA"), which represents the Middle East region and all African nations, including the Indian

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Ocean island nations. Europe and MEA are often analyzed separately and, as such, are presented separately within the analysis herein. The Asia Pacific region includes the eastern and southeastern nations of Asia, as well as India, Australia, New Zealand and the Pacific Island nations.

System Growth and Development Pipeline

Our strategic objectives include the continued expansion of our global footprint and fee-based business. As we enter into new management and franchise contracts, we expand our business with minimal or no capital investment by us as the manager or franchisor, since the capital required to build and maintain hotels is typically provided by the third-party owner of the hotel with whom we contract to provide management services or license our brand names. Prior to approving the addition of new properties to our management and franchise development pipeline, we evaluate the economic viability of the property based on its geographic location, the credit quality of the third-party owner and other factors. By increasing the number of management and franchise contracts with third-party owners, we expect to increase overall return on invested capital and cash available for return to stockholders.

As of September 30, 2019, we had more than 2,530 hotels in our development pipeline that we expect to add as open hotels in our system, representing nearly 379,000 rooms under construction or approved for development throughout 111 countries and territories, including 35 countries and territories where we do not currently have any open hotels. All of the rooms in the development pipeline are within our management and franchise segment. Additionally, of the rooms in the development pipeline, 205,000 rooms were located outside the U.S., and 198,000 rooms, or more than half, were under construction. We do not consider any individual development project to be material to us.

Brexit

In June 2016, the United Kingdom ("U.K.") held a referendum in which voters approved an exit from the European Union ("E.U.") (commonly referred to as "Brexit"), currently with a deadline of October 31, 2019. The effects of Brexit will depend on the final terms on which the U.K. will leave the E.U., including the terms of any trade agreements that will dictate the U.K.’s access to E.U. markets either during any transitional period or more permanently. While our results for the nine months ended September 30, 2019 were not materially affected by Brexit, the final outcomes are not yet certain. Brexit measures could potentially disrupt the markets we serve and cause tax and foreign currency volatility, which could have adverse effects on our business. We will continue to monitor the potential impact of Brexit on our business as the deadline approaches.

Key Business and Financial Metrics Used by Management

Comparable Hotels

We define our comparable hotels as those that: (i) were active and operating in our system for at least one full calendar year as of the end of the current period, and open January 1st of the previous year; (ii) have not undergone a change in brand or ownership type during the current or comparable periods reported; and (iii) have not sustained substantial property damage, business interruption, undergone large-scale capital projects or for which comparable results are not available. Of the 5,925 hotels in our system as of September 30, 2019, 4,633 hotels have been classified as comparable hotels. Our 1,292 non-comparable hotels included 236 hotels, or approximately four percent of the total hotels in our system, that were removed from the comparable group during the last twelve months because they sustained substantial property damage, business interruption, underwent large-scale capital projects or comparable results were not available.

Occupancy

Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels for a given period. Occupancy measures the utilization of our hotels' available capacity. Management uses occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help us determine achievable average daily rate pricing levels as demand for hotel rooms increases or decreases.

Average Daily Rate ("ADR")

ADR represents hotel room revenue divided by the total number of room nights sold for a given period. ADR measures average room price attained by a hotel, and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the industry, and

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we use ADR to assess pricing levels that we are able to generate by type of customer, as changes in rates charged to customers have a different effect on overall revenues and incremental profitability than changes in occupancy, as described above.

Revenue per Available Room ("RevPAR")

RevPAR is calculated by dividing hotel room revenue by the total number of room nights available to guests for a given period. We consider RevPAR to be a meaningful indicator of our performance as it provides a metric correlated to two primary and key drivers of operations at a hotel or group of hotels, as previously described: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods for comparable hotels.

References to RevPAR, ADR and occupancy are presented on a comparable basis, and references to RevPAR and ADR are presented on a currency neutral basis, unless otherwise noted. As such, comparisons of these hotel operating statistics for the three and nine months ended September 30, 2019 and 2018 use the exchange rates for the three and nine months ended September 30, 2019, respectively.

EBITDA and Adjusted EBITDA

EBITDA reflects net income (loss), excluding interest expense, a provision for income taxes and depreciation and amortization.

Adjusted EBITDA is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including gains, losses, revenues and expenses in connection with: (i) asset dispositions for both consolidated and unconsolidated equity investments; (ii) foreign currency transactions; (iii) debt restructurings and retirements; (iv) furniture, fixtures and equipment ("FF&E") replacement reserves required under certain lease agreements; (v) reorganization costs; (vi) share-based compensation expense; (vii) non-cash impairment losses; (viii) severance, relocation and other expenses; (ix) amortization of contract acquisition costs; (x) the net effect of reimbursable costs included in other revenues and expenses from managed and franchised properties; and (xi) other items.

We believe that EBITDA and Adjusted EBITDA provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) these measures are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions and (ii) these measures are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry. Additionally, these measures exclude certain items that can vary widely across different industries and among competitors within our industry. For instance, interest expense and the provision for income taxes are dependent on company specifics, including, among other things, capital structure and operating jurisdictions, respectively, and, therefore could vary significantly across companies. Depreciation and amortization, as well as amortization of contract acquisition costs, are dependent upon company policies, including the method of acquiring and depreciating assets and the useful lives that are used. For Adjusted EBITDA, we also exclude items such as: (i) FF&E replacement reserves to be consistent with the treatment of FF&E for owned hotels where it is capitalized and depreciated over the life of the FF&E; (ii) share-based compensation expense, as this could vary widely among companies due to the different plans in place and the usage of them; (iii) the net effect of our cost reimbursement revenues and reimbursed expenses, as we contractually do not operate the related programs to generate a profit over the terms of the respective contracts; and (iv) other items that are not core to our operations and are not reflective of our performance.

EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered as alternatives, either in isolation or as a substitute, for net income (loss), cash flow or other methods of analyzing our results as reported under GAAP. Some of these limitations are:

•EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, our working capital needs;

•EBITDA and Adjusted EBITDA do not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;

•EBITDA and Adjusted EBITDA do not reflect a provision for income taxes or the cash requirements to pay our taxes;

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•EBITDA and Adjusted EBITDA do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;

•EBITDA and Adjusted EBITDA do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations;

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements; and

•other companies in our industry may calculate EBITDA and Adjusted EBITDA differently, limiting their usefulness as comparative measures.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations.

Results of Operations

The hotel operating statistics by region for our system-wide comparable hotels were as follows:

	Three Months Ended			Variance			Nine Months Ended			Variance
	September 30, 2019			2019 vs. 2018			September 30, 2019			2019 vs. 2018
U.S.
Occupancy	79.4		%	0.3	%	pts.	77.6		%	0.4	%	pts.
ADR	$	149.12		—	%		$	149.84		0.6	%
RevPAR	$	118.37		0.4	%		$	116.27		1.1	%
Americas (excluding U.S.)
Occupancy	74.8		%	(0.1)	%	pts.	71.3		%	0.6	%	pts.
ADR	$	122.65		(0.2)	%		$	123.12		1.4	%
RevPAR	$	91.77		(0.4)	%		$	87.74		2.3	%
Europe
Occupancy	84.0		%	1.6	%	pts.	78.0		%	1.2	%	pts.
ADR	$	143.12		0.5	%		$	140.42		2.0	%
RevPAR	$	120.27		2.4	%		$	109.50		3.5	%
MEA
Occupancy	71.6		%	1.5	%	pts.	72.5		%	2.2	%	pts.
ADR	$	141.95		(2.3)	%		$	145.34		(5.0)	%
RevPAR	$	101.57		(0.2)	%		$	105.38		(2.0)	%
Asia Pacific
Occupancy	75.4		%	(0.2)	%	pts.	72.2		%	0.8	%	pts.
ADR	$	120.55		(2.4)	%		$	123.85		(1.0)	%
RevPAR	$	90.92		(2.7)	%		$	89.47		0.1	%
System-wide
Occupancy	79.1		%	0.4	%	pts.	76.8		%	0.6	%	pts.
ADR	$	145.11		(0.1)	%		$	145.81		0.5	%
RevPAR	$	114.78		0.4	%		$	111.98		1.2	%

During the three and nine months ended September 30, 2019, we experienced modest system-wide RevPAR growth. There was continued strength in Europe resulting primarily from ADR and occupancy growth in southern Europe, particularly Italy and Turkey, which, during the three months ended September 30, 2019, was partially offset by a decrease in RevPAR in Germany. In the Americas (excluding U.S.), results were attributable to demand growth in Colombia and Brazil, offset by decreases in RevPAR in Canada and Mexico. RevPAR growth in the U.S. was primarily a result of strong group performance and continued transient demand at our luxury properties. Asia Pacific results were primarily driven by declining RevPAR in

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China resulting from the continued economic slowdown, ongoing trade wars and the protests in Hong Kong, which, for the nine months ended September 30, 2019, was offset by growth in Japan. MEA experienced declines in RevPAR resulting from decreased demand in United Arab Emirates, partially offset by improved results in Egypt and Saudi Arabia.

The table below provides a reconciliation of net income to EBITDA and Adjusted EBITDA:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Net income	$	290	$	164	$	710	$	544
Interest expense	105		99		304		277
Income tax expense	131		129		291		268
Depreciation and amortization	86		81		256		242
EBITDA	612		473		1,561		1,331
Gain on sale of assets, net	(81)		—		(81)		—
Loss (gain) on foreign currency transactions	(7)		6		(4)		7
FF&E replacement reserves	13		12		42		39
Share-based compensation expense	42		35		123		103
Amortization of contract acquisition costs	7		6		21		20
Net other expenses from managed and franchised properties	9		28		21		46
Other adjustment items(1)	10		(3)		39		11
Adjusted EBITDA	$	605	$	557	$	1,722	$	1,557

____________

⁽¹⁾Includes adjustments for expenses recognized in connection with the refinancings and repayments of our senior secured credit facilities for the three and nine months ended September 30, 2019 and the nine months ended September 30, 2018; and severance and other items for all periods.

Revenues

	Three Months Ended				Percent	Nine Months Ended				Percent
	September 30,				Change	September 30,				Change
	2019		2018		2019 vs. 2018	2019		2018		2019 vs. 2018
	(in millions)					(in millions)
Franchise and licensing fees	$	443	$	407	8.8	$	1,269	$	1,142	11.1
Base and other management fees	$	80	$	80	—	$	249	$	241	3.3
Incentive management fees	54		57		(5.3)	167		171		(2.3)
Total management fees	$	134	$	137	(2.2)	$	416	$	412	1.0

Our franchise and licensing fees increased during the three and nine months ended September 30, 2019, and our management fees increased during the nine months ended September 30, 2019, primarily as a result of the addition of new properties to our management and franchise segment. Including new development and ownership type transfers, from January 1, 2018 to September 30, 2019, we added 697 managed and franchised properties on a net basis, providing an additional 99,650 rooms to our management and franchise segment. As new hotels stabilize in our system, we expect the fees received from such hotels to increase as they are part of our system for full periods.

Franchise fees from our comparable franchised properties increased for the three and nine months ended September 30, 2019, as a result of increased RevPAR of 0.3 percent and 1.1 percent, respectively, driven by increased occupancy, which was partially offset by unfavorable foreign currency exchange rates. Additionally, licensing and other fees during the three and nine months ended September 30, 2019 increased $13 million and $62 million, respectively, which for the nine months ended September 30, 2019, included an increase in termination fees of $13 million, primarily related to the redevelopment of a franchised hotel.

For the three and nine months ended September 30, 2019, management fees from our comparable managed properties increased due to increases in RevPAR of 0.4 percent and 1.2 percent, respectively, which were offset by unfavorable foreign currency exchange rates and decreased incentive management fees that were largely due to challenges in certain markets, particularly Hong Kong.

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	Three Months Ended				Percent	Nine Months Ended				Percent
	September 30,				Change	September 30,				Change
	2019		2018		2019 vs. 2018	2019		2018		2019 vs. 2018
	(in millions)					(in millions)
Owned and leased hotels	$	361	$	373	(3.2)	$	1,060	$	1,099	(3.5)

Owned and leased hotel revenues decreased during the three and nine months ended September 30, 2019 primarily as a result of unfavorable fluctuations in foreign currency exchange rates, which decreased revenues by $10 million and $52 million, respectively.

On a currency neutral basis, revenues at our comparable owned and leased hotels increased $12 million and $28 million during the three and nine months ended September 30, 2019, respectively, due to increases in RevPAR of 4.1 percent and 4.2 percent, respectively, driven by increases in both ADR and occupancy. On a currency neutral basis, revenues at our non-comparable owned and leased hotels decreased primarily due to hotel lease terminations, disposals and hotels that were under renovation during the nine months ended September 30, 2019, partially offset by increases in revenues from hotels that were under renovation in 2018.

	Three Months Ended				Percent	Nine Months Ended				Percent
	September 30,				Change	September 30,				Change
	2019		2018		2019 vs. 2018	2019		2018		2019 vs. 2018
	(in millions)					(in millions)
Other revenues	$	23	$	27	(14.8)	$	75	$	72	4.2

The changes in other revenues during the three and nine months ended September 30, 2019 were primarily due to revenues from our purchasing operations.

Operating Expenses

	Three Months Ended				Percent	Nine Months Ended				Percent
	September 30,				Change	September 30,				Change
	2019		2018		2019 vs. 2018	2019		2018		2019 vs. 2018
	(in millions)					(in millions)
Owned and leased hotels	$	310	$	331	(6.3)	$	942	$	1,003	(6.1)

Owned and leased hotel expenses decreased during the three and nine months ended September 30, 2019 primarily as a result of fluctuations in foreign currency exchange rates, which decreased expenses by $10 million and $51 million, respectively.

On a currency neutral basis, owned and leased hotel expenses decreased $11 million and $10 million, respectively, for the three and nine months ended September 30, 2019, primarily due to decreases in expenses at our non-comparable hotels resulting from lease terminations, disposals and hotels that were under renovation during the nine months ended September 30, 2019, partially offset by increases in expenses from hotels that were under renovation in 2018. The decreases in expenses at our non-comparable hotels were partially offset by slight increases in expenses at our comparable hotels due to increases in occupancy.

	Three Months Ended				Percent	Nine Months Ended				Percent
	September 30,				Change	September 30,				Change
	2019		2018		2019 vs. 2018	2019		2018		2019 vs. 2018
	(in millions)					(in millions)
Depreciation and amortization	$	86	$	81	6.2	$	256	$	242	5.8
General and administrative	107		109		(1.8)	327		328		(0.3)
Other expenses	11		10		10.0	46		36		27.8

The increases in depreciation and amortization expense during the three and nine months ended September 30, 2019 were primarily due to additions to capitalized software costs that were placed into service from January 1, 2018 to September 30, 2019.

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General and administrative expenses remained flat during the three and nine months ended September 30, 2019 primarily as a result of increases in share-based compensation costs driven by Company performance offset by decreases in general corporate expenses.

Other expenses increased during the three and nine months ended September 30, 2019 primarily as a result of increases in expenses from our purchasing operations.

Gain on sale of assets, net

	Three Months Ended		Percent	Nine Months Ended		Percent
	September 30,		Change	September 30,		Change
	2019	2018	2019 vs. 2018	2019	2018	2019 vs. 2018
	(in millions)			(in millions)
Gain on sale of assets, net	81	—	NM(1)	81	—	NM(1)

____________

⁽¹⁾Fluctuation in terms of percentage change is not meaningful.

In September 2019, we recognized a gain upon completion of the sale of the Hilton Odawara. See Note 3: "Disposal" in our unaudited condensed consolidated financial statements for additional information.

Non-operating Income and Expenses

	Three Months Ended				Percent	Nine Months Ended				Percent
	September 30,				Change	September 30,				Change
	2019		2018		2019 vs. 2018	2019		2018		2019 vs. 2018
	(in millions)					(in millions)
Interest expense	$	(105)	$	(99)	6.1	$	(304)	$	(277)	9.7
Gain (loss) on foreign currency transactions	7		(6)		NM(1)	4		(7)		NM(1)
Other non-operating income (loss), net	—		13		(100.0)	(8)		26		NM(1)
Income tax expense	(131)		(129)		1.6	(291)		(268)		8.6

____________

⁽¹⁾Fluctuation in terms of percentage change is not meaningful.

The increases in interest expense during the three and nine months ended September 30, 2019 were primarily due to the issuance of the 2030 Senior Notes in June 2019 and, for the nine months ended September 30, 2019, the issuance of the 2026 Senior Notes in April 2018 and draws on the Revolving Credit Facility during 2019. The increases were partially offset by decreases in interest expense related to our Term Loans, which were due to the reduction of the interest rate in April 2018 and principal repayments of $500 million and $800 million during 2019 and 2018, respectively, as well as net gains reclassified from accumulated other comprehensive loss resulting from settlements of interest rate swaps in 2018 and 2017.

The gains and losses on foreign currency transactions primarily related to changes in foreign currency exchange rates on certain intercompany financing arrangements, including short-term cross-currency intercompany loans. For the three and nine months ended September 30, 2019, the changes were predominantly related to EUR and the Australian dollar ("AUD"). For the three and nine months ended September 30, 2018, the changes were predominantly related to EUR and the British pound and, for the three months ended September 30, 2018, also AUD.

The decrease in other non-operating income, net for the three months ended September 30, 2019 and the increase in other non-operating loss, net for the nine months ended September 30, 2019 were primarily due to a loss on the disposal of an unconsolidated real estate investment in 2019 and increased expenses recognized in connection with the refinancings and repayments of our senior secured credit facilities. Additionally, other non-operating income, net for the three and nine months ended September 30, 2018 included a gain on the refinancing of a loan we issued to finance the construction of a hotel that we manage.

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The increases in income tax expense during the three and nine months ended September 30, 2019 were primarily attributable to increases in income before income taxes and the sale of Hilton Odawara, which were partially offset by: (i) adjustments to provisional amounts related to the Tax Cuts and Jobs Act of 2017 and (ii) the tax effect of a stock distribution, which were recognized during the three months ended September 30, 2018.

Segment Results

We evaluate our business segment operating performance using operating income. Refer to Note 14: "Business Segments" in our unaudited condensed consolidated financial statements for a reconciliation of segment operating income to income before income taxes and additional information on the evaluation of the performance of our segments using operating income. The following table sets forth revenues and operating income by segment:

	Three Months Ended				Percent	Nine Months Ended				Percent
	September 30,				Change	September 30,				Change
	2019		2018		2019 vs. 2018	2019		2018		2019 vs. 2018
	(in millions)					(in millions)
Revenues:
Management and franchise(1)	$	596	$	561	6.2	$	1,737	$	1,604	8.3
Ownership	361		373		(3.2)	1,060		1,099		(3.5)
Segment revenues	957		934		2.5	2,797		2,703		3.5
Amortization of contract acquisition costs	(7)		(6)		16.7	(21)		(20)		5.0
Other revenues	23		27		(14.8)	75		72		4.2
Other revenues from managed and franchised properties	1,434		1,309		9.5	4,263		3,893		9.5
Intersegment fees elimination(1)	(12)		(11)		9.1	(31)		(30)		3.3
Total revenues	$	2,395	$	2,253	6.3	$	7,083	$	6,618	7.0
Operating Income(1):
Management and franchise	$	596	$	561	6.2	$	1,737	$	1,604	8.3
Ownership	39		31		25.8	87		66		31.8
Segment operating income	$	635	$	592	7.3	$	1,824	$	1,670	9.2

____________

⁽¹⁾Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our unaudited condensed consolidated statements of operations.

Management and franchise segment revenues and operating income increased $35 million and $133 million during the three and nine months ended September 30, 2019, respectively, primarily as a result of the net addition of managed and franchised properties to our system and increases in licensing and other fees. Refer to "—Revenues" for further discussion of the increases in revenues from our managed and franchised properties.

Ownership segment revenues decreased $12 million and $39 million during the three and nine months ended September 30, 2019, respectively, primarily as a result of fluctuations in foreign currency exchange rates. Ownership operating income increased $8 million and $21 million during the three and nine months ended September 30, 2019, respectively, as a result of decreases in owned and leased hotel expenses, which were primarily a result of fluctuations in foreign currency exchange rates, only partially offset by the decreases in segment revenues due to foreign currency exchange rates. Refer to "—Revenues" and "—Operating Expenses" for further discussion of the changes in revenues and operating expenses at our owned and leased hotels.

Liquidity and Capital Resources

Overview

As of September 30, 2019, we had total cash and cash equivalents of $809 million, including $90 million of restricted cash and cash equivalents. The majority of our restricted cash and cash equivalents balance related to cash collateral on our self-insurance programs and cash held for FF&E reserves.

38

Our known short-term liquidity requirements primarily consist of funds necessary to pay for operating and other expenditures, including costs associated with the management and franchising of hotels, corporate expenses, payroll and compensation costs, taxes and compliance costs, interest payments on our outstanding indebtedness, contract acquisition costs and capital expenditures for renovations and maintenance at the hotels within our ownership segment. Our long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities, capital improvements to the hotels within our ownership segment, commitments to owners in our management and franchise segment, dividends as declared, share repurchases and corporate capital and information technology expenditures.

We finance our business activities primarily with existing cash and cash generated from our operations. We believe that this cash and, from time-to-time, the use of our Revolving Credit Facility, will be adequate to meet anticipated requirements for operating and other expenditures, including corporate expenses, payroll and related benefits, taxes and compliance costs and other commitments for the foreseeable future. The objectives of our cash management policy are to maintain existing leverage levels and the availability of liquidity, while minimizing operational costs. Further, we have an investment policy that is focused on the preservation of capital and maximizing the return on new and existing investments and returning available capital to stockholders through dividends and share repurchases.

We may from time to time issue or incur or increase our capacity to incur new debt and/or purchase our outstanding debt through underwritten offerings, open market transactions, privately negotiated transactions or otherwise. Issuances or incurrence of new debt (or an increase in our capacity to incur new debt) and/or purchases or retirement of outstanding debt, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

During the nine months ended September 30, 2019, we repurchased 13 million shares of our common stock under our stock repurchase program for $1,101 million, which we funded principally with borrowings and available cash. As of September 30, 2019, approximately $959 million remained available for share repurchases under our $3.5 billion stock repurchase program.

Sources and Uses of Our Cash and Cash Equivalents

The following table summarizes our net cash flows:

	Nine Months Ended				Percent
	September 30,				Change
	2019		2018		2019 vs. 2018
	(in millions)
Net cash provided by operating activities	$	1,182	$	914	29.3
Net cash used in investing activities	(47)		(80)		(41.3)
Net cash used in financing activities	(808)		(790)		2.3

Operating Activities

Cash flows from operating activities were primarily generated from management and franchise fee revenue and operating income from our owned and leased hotels.

The $268 million increase in net cash provided by operating activities was primarily the result of improved operating results from our management and franchise business, including net property additions and an increase in licensing and other fees. The increase was partially offset by increases in cash paid for interest and income taxes.

Investing Activities

For the nine months ended September 30, 2019 and 2018, net cash used in investing activities consisted primarily of capital expenditures for property and equipment and capitalized software costs. Our capital expenditures for property and equipment primarily consisted of expenditures related to the renovation of hotels in our ownership segment and our corporate facilities. Our capitalized software costs related to various systems initiatives, for the benefit of both our hotel owners and our overall corporate operations. Additionally, cash used for investing activities during the nine months ended September 30, 2019 was offset by the proceeds from the sale of the Hilton Odawara, and, during the nine months ended September 30, 2018, by the repayment of a loan we issued that financed the construction of a hotel we manage.

39

Financing Activities

The increase in net cash used in financing activities during the nine months ended September 30, 2019 was primarily attributable to a decrease in net proceeds from borrowings and repayments attributable to a $500 million decrease in proceeds received from the June 2019 and April 2018 issuances of senior notes, which were both used to repay $500 million outstanding on the Term Loans in each respective period. The decrease in proceeds was largely offset by a decrease in repurchases of common stock due to the 2018 repurchases of shares from HNA Tourism Group Co., Ltd and certain affiliates of The Blackstone Group Inc. as part of the full divestiture of their respective investments in Hilton.

Debt and Borrowing Capacity

As of September 30, 2019, our total indebtedness, excluding unamortized deferred financing costs and discount, was approximately $7.9 billion. For additional information on our total indebtedness, including our recent financing transactions, availability under our Revolving Credit Facility and guarantees on our debt, refer to Note 7: "Debt" and Note 16: "Condensed Consolidating Guarantor Financial Information" in our unaudited condensed consolidated financial statements.

If we are unable to generate sufficient cash flow from operations in the future to service our debt, we may be required to reduce capital expenditures, issue additional equity securities or make draws on our Revolving Credit Facility. Our ability to make scheduled principal payments and to pay interest on our debt depends on our future operating performance, which is subject to general conditions in or affecting the hospitality industry that may be beyond our control.

Contractual Obligations

Other than the issuance of the 2030 Senior Notes and the repayment of a portion of the Term Loans as described above, there were no material changes to our contractual obligations from what we previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Off-Balance Sheet Arrangements

See Note 15: "Commitments and Contingencies" in our unaudited condensed consolidated financial statements for a discussion of our off-balance sheet arrangements.

Critical Accounting Policies and Estimates

The preparation of our unaudited condensed consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. We have discussed the policies and estimates that we believe are critical and require the use of complex judgment in their application in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Since the date of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, we adopted ASU 2016-02, which has changed our critical accounting policies and estimates related to leases. See Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" in our unaudited condensed consolidated financial statements and the discussion below for additional information.

Leases

We record lease liabilities as the present value of the future minimum lease payments using a discount rate that is either the rate implicit in the lease, if available, or our incremental borrowing rate, adjusted for collateral. The collateralized incremental borrowing rate is estimated on a portfolio basis and reflects factors such as the term of the lease and the currency in which the lease payments will be made. Our estimation utilizes various assumptions that require judgment, including our adjustment for collateral, economic factors, including currency data, and our credit risk.

The ROU asset is measured at the amount of the lease liability, with applicable adjustments. We evaluate the carrying value of our ROU assets for impairment in a method consistent with our evaluation of property and equipment, including the determination of impairment indicators, projecting the undiscounted future cash flows and determining an asset's fair value. Refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 for additional information.

As of September 30, 2019, we had $0.9 billion and $1.4 billion of ROU assets and lease liabilities, respectively. Changes in the estimates used in determining the collateralized incremental borrowing rate could result in material changes to our lease liabilities and, accordingly, our ROU assets.

40

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk primarily from changes in interest rates and foreign currency exchange rates, which may affect future income, cash flows and the fair value of the Company, depending on changes to interest rates or foreign currency exchange rates. In certain situations, we may seek to reduce cash flow volatility associated with changes in interest rates and foreign currency exchange rates by entering into derivative financial instruments intended to provide a hedge against a portion of the risks associated with such volatility. We continue to have exposure to such risks to the extent they are not hedged. We enter into derivative financial instruments to the extent they meet the objectives described above, and we do not use derivatives for trading or speculative purposes. Our exposure to market risk has not materially changed from what we previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company maintains a set of disclosure controls and procedures as that term is defined in Rules 13a-15(e) and

15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission ("SEC") rules and forms, and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. The design of any disclosure controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. In accordance with Rule 13a-15(b) of the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures, as of the end of the period covered by this Quarterly Report on Form 10-Q, were effective to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There has been no change in the Company’s internal control over financial reporting during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

41

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums, including proceedings involving tort and other general liability claims, employee claims, consumer protection claims and claims related to our management of certain hotel properties. We recognize a liability when we believe the loss is probable and can be reasonably estimated. Most occurrences involving liability, claims of negligence and employees are covered by insurance with solvent insurance carriers. The ultimate results of claims and litigation cannot be predicted with certainty. We believe we have adequate reserves against such matters. We currently believe that the ultimate outcome of such lawsuits and proceedings will not, individually or in the aggregate, have a material adverse effect on our consolidated financial position, results of operations or cash flows. However, depending on the amount and timing, an unfavorable resolution of some or all of these matters could materially affect our future results of operations in a particular period.

Item 1A. Risk Factors

As of September 30, 2019, there have been no material changes from the risk factors previously disclosed in response to "Part I —Item 1A. Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sales of Securities

None.

(b) Use of Proceeds

None.

(c) Issuer Purchases of Equity Securities

The following table sets forth information regarding our purchases of shares of our common stock during the three months ended September 30, 2019:

	Total Number of Shares Purchased	Average Price Paid per Share(1)		Total Number of Shares Purchased as Part of Publicly Announced Program(2)	Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(2) (in millions)
July 1, 2019 to July 31, 2019	1,334,507	$	98.19	1,334,507	$	1,250
August 1, 2019 to August 31, 2019	1,627,790	92.98		1,627,790	1,099
September 1, 2019 to September 30, 2019	1,496,704	93.52		1,496,704	959
Total	4,459,001	94.72		4,459,001

____________

⁽¹⁾This price includes per share commissions paid.

⁽²⁾In February 2019, our board of directors authorized the repurchase of an additional $1.5 billion of our common stock under our existing stock repurchase program, which was initially announced in February 2017 and increased in November 2017. Under this publicly announced program, we are authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with applicable federal securities laws, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Exchange Act. The repurchase program does not have an expiration date and may be suspended or discontinued at any time.

Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not applicable.

42

Item 5.  Other Information

None.

Item 6.  Exhibits

Exhibit Number	Exhibit Description
3.1	Certificate of Incorporation of Hilton Worldwide Holdings Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on December 17, 2013).
3.2	Certificate of Amendment to Certificate of Incorporation of Hilton Worldwide Holdings Inc. effective as of January 3, 2017 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on January 4, 2017).
3.3	Amended and Restated By-Laws of Hilton Worldwide Holdings Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on August 2, 2019).
4.1	First Supplemental Indenture with respect to the 4.875% Senior Notes due 2030, dated as of September 12, 2019, among the subsidiary guarantors listed therein and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.20 to the Company's Registration Statement on Form S-4 filed on September 20, 2019).
31.1	Certificate of Christopher J. Nassetta, President and Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certificate of Kevin J. Jacobs, Executive Vice President and Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certificate of Christopher J. Nassetta, President and Chief Executive Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
32.2	Certificate of Kevin J. Jacobs, Executive Vice President and Chief Financial Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS	Inline XBRL Instance Document - this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HILTON WORLDWIDE HOLDINGS INC.
By:	/s/ Christopher J. Nassetta
Name:	Christopher J. Nassetta
	President and Chief Executive Officer
By:	/s/ Kevin J. Jacobs
Name:	Kevin J. Jacobs
	Executive Vice President and Chief Financial Officer

Date: October 23, 2019

44

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Christopher J. Nassetta, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 of Hilton Worldwide Holdings Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ Christopher J. Nassetta
	Christopher J. Nassetta
	President and Chief Executive Officer
	(Principal Executive Officer)
	October 23, 2019

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Kevin J. Jacobs, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 of Hilton Worldwide Holdings Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

By:	/s/ Kevin J. Jacobs
	Kevin J. Jacobs
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)
	October 23, 2019

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY

ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Hilton Worldwide Holdings Inc. (the "Company") for the fiscal quarter ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Christopher J. Nassetta, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Christopher J. Nassetta
	Christopher J. Nassetta
	President and Chief Executive Officer
	(Principal Executive Officer)

October 23, 2019

A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY

ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Hilton Worldwide Holdings Inc. (the "Company") for the fiscal quarter ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kevin J. Jacobs, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ Kevin J. Jacobs
	Kevin J. Jacobs
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

October 23, 2019

A signed original of this certification required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Amortizing Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Amortizing Intangible Assets

Amortizing Intangible Assets

Amortizing intangible assets were as follows:

	September 30, 2019
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(in millions)
Management and franchise contracts:
Management and franchise contracts recorded at Merger(1)	$	2,226	$	(1,997)	$	229
Contract acquisition costs	573		(114)		459
Development commissions and other	124		(18)		106
	$	2,923	$	(2,129)	$	794
Other intangible assets:
Leases(1)	$	279	$	(166)	$	113
Capitalized software costs	583		(377)		206
Hilton Honors(1)	336		(251)		85
Other(1)	34		(34)		—
	$	1,232	$	(828)	$	404

	December 31, 2018
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(in millions)
Management and franchise contracts:
Management and franchise contracts recorded at Merger(1)	$	2,228	$	(1,873)	$	355
Contract acquisition costs	525		(101)		424
Development commissions and other	108		(15)		93
	$	2,861	$	(1,989)	$	872
Other intangible assets:
Leases(1)	$	288	$	(161)	$	127
Capitalized software costs	503		(321)		182
Hilton Honors(1)	338		(236)		102
Other(1)	38		(34)		4
	$	1,167	$	(752)	$	415

____________

⁽¹⁾Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) (the "Merger").

Amortization of our amortizing intangible assets was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Recognized in depreciation and amortization expense(1)	$	71	$	67	$	212	$	202
Recognized as a reduction of franchise and licensing fees and base and other management fees	7		6		21		20

____________

⁽¹⁾Includes amortization expense of $50 million for the three months ended September 30, 2019 and 2018, and $152 million and $153 million for the nine months ended September 30, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger.

We estimate future amortization of our amortizing intangible assets as of September 30, 2019 to be as follows:

	Recognized in Depreciation and Amortization Expense		Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees
Year	(in millions)
2019 (remaining)	$	73	$	7
2020	264		27
2021	115		26
2022	93		24
2023	50		23
Thereafter	144		352
	$	739	$	459

XML

Income Taxes

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

At the end of each quarter, we estimate the effective income tax rate expected to be applied for the full year. The effective income tax rate is determined by the level and composition of income (loss) before income taxes, which is subject to federal, state, local and foreign income taxes.

We file income tax returns, including returns for our subsidiaries, with federal, state, local and foreign tax jurisdictions. We are under regular and recurring audit by the Internal Revenue Service ("IRS") and other taxing authorities on open tax positions. The timing of the resolution of tax audits is highly uncertain, as are the amounts, if any, that may ultimately be paid upon such resolution. Changes may result from the conclusion of ongoing audits, appeals or litigation in federal, state, local and foreign tax jurisdictions or from the resolution of various proceedings between the U.S. and foreign tax authorities. As of September 30, 2019, we remain subject to federal and state examinations of our income tax returns for tax years from 2005 through 2018 and foreign examinations of our income tax returns for tax years from 1996 through 2018.

Our total unrecognized tax benefits as of September 30, 2019 and December 31, 2018 were $330 million and $318 million, respectively. As of September 30, 2019 and December 31, 2018, we had accrued approximately $46 million and $40 million, respectively, for interest and penalties related to our unrecognized tax benefits in our condensed consolidated balance sheets. Included in the balances of unrecognized tax benefits as of September 30, 2019 and December 31, 2018 was $318 million and $310 million, respectively, associated with positions that, if favorably resolved, would provide a benefit to our effective income tax rate.

In April 2014, we received 30-day Letters from the IRS and the Revenue Agents Report ("RAR") for the 2006 and October 2007 tax years. We disagreed with several of the proposed adjustments in the RAR, filed a formal appeals protest with the IRS and did not make any tax payments related to this audit. The issues being protested in appeals relate to assertions by the IRS that: (i) certain foreign currency denominated intercompany loans from our foreign subsidiaries to certain U.S. subsidiaries should be recharacterized as equity for U.S. federal income tax purposes and constitute deemed dividends from such foreign subsidiaries to our U.S. subsidiaries; (ii) in calculating the amount of U.S. taxable income resulting from Hilton Honors, we should not reduce gross income by the estimated costs of future redemptions, but rather such costs would be deductible at the time the points are redeemed; and (iii) certain foreign currency denominated loans issued by one of our Luxembourg subsidiaries whose functional currency is the U.S. dollar ("USD"), should instead be treated as issued by one of our Belgian subsidiaries whose functional currency is the euro ("EUR"), and thus foreign currency gains and losses with respect to such loans should have been measured in EUR, instead of USD. In January 2016, we received a 30-day Letter from the IRS and the RAR for the December 2007 through 2010 tax years, which included proposed adjustments that reflect the carryover effect of the three protested issues from the 2006 through October 2007 tax years. These proposed adjustments are also being protested in appeals and formal appeals protests have been submitted. In April 2016, we requested a Technical Advice Memorandum ("TAM") from the IRS with respect to the treatment of the gains and losses recognized as a result of changes in foreign currency exchange rates on loans issued by our Luxembourg subsidiary. We received a taxpayer favorable TAM in October 2018 and this issue is no longer being pursued by the IRS for any of the open tax years. In September 2018, we received a 30-day Letter from the IRS and the RAR for the 2011 through 2013 tax years, which reflects proposed adjustments for the carryover effect of the two remaining protested issues from the 2006 through October 2007 tax years. The adjustments for the 2011 through 2013 tax years will also be protested in appeals and formal protests have been submitted. After receipt of the TAM relating to the Luxembourg subsidiary, the two remaining proposed adjustments sought by the IRS would result in additional U.S. federal tax owed of approximately $817 million, excluding interest and penalties and potential state income

taxes. The portion of this amount related to Hilton Honors would result in a decrease to our future tax liability when the points are redeemed. We disagree with the IRS's position on each of these assertions and intend to vigorously contest them. However, based on continuing appeals process discussions with the IRS, we believe that it is more likely than not that we will not recognize the full benefit related to certain of the issues being appealed. Accordingly, as of September 30, 2019, we had recorded $56 million of unrecognized tax benefits related to these issues.

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Disposal (Details) ¥ in Millions, $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 JPY (¥)	Sep. 30, 2018 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Sales price of an asset	$ 122	¥ 13,000
Gain on sale of assets, net	$ 81		$ 0	$ 81	$ 0

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Business Segments (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Reconciliation of Revenue from Segment Amounts to Consolidated Amounts

The following table presents revenues for our reportable segments, reconciled to consolidated amounts:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Franchise and licensing fees	$	447	$	409	$	1,277	$	1,147
Base and other management fees(1)	95		95		293		286
Incentive management fees	54		57		167		171
Management and franchise	596		561		1,737		1,604
Ownership	361		373		1,060		1,099
Segment revenues	957		934		2,797		2,703
Amortization of contract acquisition costs	(7)		(6)		(21)		(20)
Other revenues	23		27		75		72
Direct reimbursements from managed and franchised properties(2)	770		710		2,334		2,139
Indirect reimbursements from managed and franchised properties(2)	664		599		1,929		1,754
Intersegment fees elimination(1)	(12)		(11)		(31)		(30)
Total revenues	$	2,395	$	2,253	$	7,083	$	6,618

____________

⁽¹⁾Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

⁽²⁾Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations.

Reconciliation of Segment Operating Income to Income Before Income Taxes

The following table presents operating income for our reportable segments, reconciled to consolidated income before income taxes:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Management and franchise(1)	$	596	$	561	$	1,737	$	1,604
Ownership(1)	39		31		87		66
Segment operating income	635		592		1,824		1,670
Amortization of contract acquisition costs	(7)		(6)		(21)		(20)
Other revenues, less other expenses	12		17		29		36
Net other expenses from managed and franchised properties	(9)		(28)		(21)		(46)
Depreciation and amortization	(86)		(81)		(256)		(242)
General and administrative	(107)		(109)		(327)		(328)
Gain on sale of assets, net	81		—		81		—
Operating income	519		385		1,309		1,070
Interest expense	(105)		(99)		(304)		(277)
Gain (loss) on foreign currency transactions	7		(6)		4		(7)
Other non-operating income (loss), net	—		13		(8)		26
Income before income taxes	$	421	$	293	$	1,001	$	812

____________

⁽¹⁾Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

Schedule of Assets by Segment

The following table presents total assets for our reportable segments, reconciled to consolidated amounts:

	September 30,		December 31,
	2019		2018
	(in millions)
Management and franchise	$	11,345	$	11,362
Ownership	1,627		927
Corporate and other	2,095		1,706
	$	15,067	$	13,995

Schedule of Capital Expenditures by Segment

The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts:

	Nine Months Ended
	September 30,
	2019		2018
	(in millions)
Ownership	$	31	$	34
Corporate and other	35		17
	$	66	$	51

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Leases (Tables)

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to leases as of September 30, 2019 was as follows:

	(dollars in millions)
Operating leases:
Operating lease right-of-use assets	$	839
Accounts payable, accrued expenses and other	128
Operating lease liabilities	1,004
Finance leases:
Property and equipment, net	$	57
Current maturities of long-term debt	38
Long-term debt	217
Weighted average remaining lease term:
Operating leases	12.9 years
Finance leases	8.7 years
Weighted average discount rate:
Operating leases	3.75		%
Finance leases	5.77		%

Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
	(in millions)
Operating lease expense for fixed payments	$	35	$	108
Finance lease expense:
Amortization of ROU assets	7		23
Interest on lease liabilities	3		10
Variable lease expense(1)	41		123

____________

⁽¹⁾Includes amounts related to operating leases and interest payments on finance leases.

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows:

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	130
Financing cash flows from finance leases	32
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating leases	21
Finance leases	59

Schedule of Future Minimum Lease Payments

Our future minimum lease payments as of September 30, 2019 were as follows:

	Operating Leases		Finance Leases
Year	(in millions)
2019 (remaining)	$	43	$	14
2020	170		51
2021	160		42
2022	133		32
2023	118		30
Thereafter	846		164
Total minimum lease payments	1,470		333
Less: imputed interest	(338)		(78)
Total lease liabilities	$	1,132	$	255

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Leases Components of Lease Expense (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended
		Sep. 30, 2019	Sep. 30, 2019
Lessee Disclosure [Abstract]
Operating lease expense for fixed payments		$ 35	$ 108
Finance lease expense, amortization of ROU assets		7	23
Finance lease expense, interest on lease liabilities		3	10
Variable lease expense	[1]	$ 41	$ 123

[1] Includes amounts related to operating leases and interest payments on finance leases.

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Leases Additional Information (Details)	Sep. 30, 2019 Hotel
Lessee Disclosure [Abstract]
Hotels under operating leases	52
Hotels under finance leases	6
Number of finance leases that were the liabilities of VIEs	2

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic EPS:
Net income attributable to Hilton stockholders	$ 288	$ 162	$ 706	$ 540
Weighted average shares outstanding	285	297	289	305
Basic EPS	$ 1.01	$ 0.55	$ 2.44	$ 1.77
Diluted EPS:
Net income attributable to Hilton stockholders	$ 288	$ 162	$ 706	$ 540
Weighted average shares outstanding	288	300	292	307
Diluted EPS	$ 1.00	$ 0.54	$ 2.42	$ 1.76
Antidilutive securities excluded from the computation of EPS	Approximately 1 million	Approximately 1 million	Approximately 1 million	Approximately 1 million

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Condensed Consolidating Guarantor Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Activities:
Net cash provided by (used in) operating activities	$ 1,182	$ 914
Investing Activities:
Capital expenditures for property and equipment	(66)	(51)
Payments received on other financing receivables	0	49
Proceeds from asset disposition	120	0
Capitalized software costs	(79)	(62)
Other	(22)	(16)
Net cash used in investing activities	(47)	(80)
Financing Activities:
Borrowings	1,795	1,676
Repayment of debt	(1,327)	(701)
Debt issuance costs	(29)	(21)
Intercompany transfers	0	0
Dividends paid	(130)	(137)
Repurchases of common stock	(1,086)	(1,561)
Intercompany dividends	0
Share-based compensation tax withholdings and other	(31)	(42)
Other	0	(4)
Net cash used in financing activities	(808)	(790)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	(2)	(14)
Net increase in cash, restricted cash and cash equivalents	325	30
Cash, restricted cash and cash equivalents, beginning of period	484	670
Cash, restricted cash and cash equivalents, end of period	809	700
Eliminations [member]
Operating Activities:
Net cash provided by (used in) operating activities	(65)	0
Investing Activities:
Capital expenditures for property and equipment	0	0
Payments received on other financing receivables		0
Proceeds from asset disposition	0
Capitalized software costs	0	0
Other	0	0
Net cash used in investing activities	0	0
Financing Activities:
Borrowings	0	0
Repayment of debt	0	0
Debt issuance costs	0	0
Intercompany transfers	0	0
Dividends paid	0	0
Repurchases of common stock	0	0
Intercompany dividends	65
Share-based compensation tax withholdings and other	0	0
Other		0
Net cash used in financing activities	65	0
Effect of exchange rate changes on cash, restricted cash and cash equivalents	0	0
Net increase in cash, restricted cash and cash equivalents	0	0
Cash, restricted cash and cash equivalents, beginning of period	0	0
Cash, restricted cash and cash equivalents, end of period	0	0
HWF Issuers [Member]
Operating Activities:
Net cash provided by (used in) operating activities	(122)	(143)
Investing Activities:
Capital expenditures for property and equipment	0	0
Payments received on other financing receivables		0
Proceeds from asset disposition	0
Capitalized software costs	0	0
Other	0	0
Net cash used in investing activities	0	0
Financing Activities:
Borrowings	795	175
Repayment of debt	(1,295)	(685)
Debt issuance costs	(13)	0
Intercompany transfers	635	653
Dividends paid	0	0
Repurchases of common stock	0	0
Intercompany dividends	0
Share-based compensation tax withholdings and other	0	0
Other		0
Net cash used in financing activities	122	143
Effect of exchange rate changes on cash, restricted cash and cash equivalents	0	0
Net increase in cash, restricted cash and cash equivalents	0	0
Cash, restricted cash and cash equivalents, beginning of period	0	0
Cash, restricted cash and cash equivalents, end of period	0	0
HOC [Member]
Operating Activities:
Net cash provided by (used in) operating activities	(17)	(7)
Investing Activities:
Capital expenditures for property and equipment	(6)	(5)
Payments received on other financing receivables		0
Proceeds from asset disposition	0
Capitalized software costs	0	0
Other	0	0
Net cash used in investing activities	(6)	(5)
Financing Activities:
Borrowings	1,000	1,500
Repayment of debt	(20)	0
Debt issuance costs	(16)	(21)
Intercompany transfers	(896)	(1,451)
Dividends paid	0	0
Repurchases of common stock	0	0
Intercompany dividends	0
Share-based compensation tax withholdings and other	(31)	(42)
Other		0
Net cash used in financing activities	37	(14)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	0	0
Net increase in cash, restricted cash and cash equivalents	14	(26)
Cash, restricted cash and cash equivalents, beginning of period	37	63
Cash, restricted cash and cash equivalents, end of period	51	37
Parent [Member]
Operating Activities:
Net cash provided by (used in) operating activities	0	0
Investing Activities:
Capital expenditures for property and equipment	0	0
Payments received on other financing receivables		0
Proceeds from asset disposition	0
Capitalized software costs	0	0
Other	0	0
Net cash used in investing activities	0	0
Financing Activities:
Borrowings	0	0
Repayment of debt	0	0
Debt issuance costs	0	0
Intercompany transfers	1,216	1,698
Dividends paid	(130)	(137)
Repurchases of common stock	(1,086)	(1,561)
Intercompany dividends	0
Share-based compensation tax withholdings and other	0	0
Other		0
Net cash used in financing activities	0	0
Effect of exchange rate changes on cash, restricted cash and cash equivalents	0	0
Net increase in cash, restricted cash and cash equivalents	0	0
Cash, restricted cash and cash equivalents, beginning of period	0	0
Cash, restricted cash and cash equivalents, end of period	0	0
Guarantor Subsidiaries [Member]
Operating Activities:
Net cash provided by (used in) operating activities	1,157	808
Investing Activities:
Capital expenditures for property and equipment	(5)	(4)
Payments received on other financing receivables		49
Proceeds from asset disposition	0
Capitalized software costs	(79)	(62)
Other	(18)	(6)
Net cash used in investing activities	(102)	(23)
Financing Activities:
Borrowings	0	0
Repayment of debt	0	0
Debt issuance costs	0	0
Intercompany transfers	(1,038)	(739)
Dividends paid	0	0
Repurchases of common stock	0	0
Intercompany dividends	0
Share-based compensation tax withholdings and other	0	0
Other		(3)
Net cash used in financing activities	(1,038)	(742)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	0	0
Net increase in cash, restricted cash and cash equivalents	17	43
Cash, restricted cash and cash equivalents, beginning of period	32	28
Cash, restricted cash and cash equivalents, end of period	49	71
Non-Guarantor Subsidiaries [Member]
Operating Activities:
Net cash provided by (used in) operating activities	229	256
Investing Activities:
Capital expenditures for property and equipment	(55)	(42)
Payments received on other financing receivables		0
Proceeds from asset disposition	120
Capitalized software costs	0	0
Other	(4)	(10)
Net cash used in investing activities	61	(52)
Financing Activities:
Borrowings	0	1
Repayment of debt	(12)	(16)
Debt issuance costs	0	0
Intercompany transfers	83	(161)
Dividends paid	0	0
Repurchases of common stock	0	0
Intercompany dividends	(65)
Share-based compensation tax withholdings and other	0	0
Other		(1)
Net cash used in financing activities	6	(177)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	(2)	(14)
Net increase in cash, restricted cash and cash equivalents	294	13
Cash, restricted cash and cash equivalents, beginning of period	415	579
Cash, restricted cash and cash equivalents, end of period	$ 709	$ 592

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Debt - Debt Maturities (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
2019 (remaining)	$ 10
2020	37
2021	30
2022	21
2023	20
Thereafter	7,773
Long-term debt, gross	$ 7,891	$ 7,361

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Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Other Comprehensive Income [Abstract]
Currency translation adjustment, tax benefit (expense)	$ 7	$ (1)	$ 8	$ 0
Pension liability adjustment, tax benefit	0	0	(1)	(1)
Cash flow hedge adjustment, tax benefit (expense)	$ 3	$ (2)	$ 16	$ (16)

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents		$ 719	$ 403
Restricted cash and cash equivalents		90	81
Accounts receivable, net of allowance for doubtful accounts		1,193	1,150
Prepaid expenses		115	160
Other		138	189
Total current assets		2,255	1,983
Intangibles and Other Assets:
Goodwill		5,137	5,160
Brands		4,864	4,869
Management and franchise contracts, net		794	872
Other intangible assets, net		404	415
Operating lease right-of-use assets		839	0
Property and equipment, net		380	367
Deferred income tax assets		146	90
Other		248	239
Total intangibles and other assets		12,812	12,012
Total assets		15,067	13,995
Current Liabilities:
Accounts payable, accrued expenses and other		1,784	1,549
Current maturities of long-term debt	[1]	38	16
Current portion of deferred revenues		290	350
Total current liabilities		2,900	2,615
Long-term debt		7,767	7,266
Operating lease liabilities		1,004	0
Deferred revenues		834	826
Deferred income tax liabilities		873	898
Other		884	863
Total liabilities		15,266	13,437
Commitments and contingencies
Equity (Deficit):
Preferred stock		0	0
Common stock		3	3
Treasury stock, at cost		(3,726)	(2,625)
Additional paid-in capital		10,460	10,372
Accumulated deficit		(6,097)	(6,417)
Accumulated other comprehensive loss		(848)	(782)
Total Hilton stockholders' equity (deficit)		(208)	551
Noncontrolling interests		9	7
Total equity (deficit)		(199)	558
Total liabilities and equity (deficit)		15,067	13,995
Guest Loyalty Program [Member]
Current Liabilities:
Current portion of liability for guest loyalty program		788	700
Liability for guest loyalty program		$ 1,004	$ 969

[1] Represents current maturities of finance lease liabilities.

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Amortizing Intangible Assets - Amortization of Amortizing Intangible Assets (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Depreciation and amortization [member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	[1]	$ 71	$ 67	$ 212	$ 202
Depreciation and amortization [member] | Intangible assets recorded at fair value at the time of the Merger [member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets		50	50	152	153
Franchise and licensing fees and base and other management fee revenues [member]
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets		$ 7	$ 6	$ 21	$ 20

[1] Includes amortization expense of $50 million for the three months ended September 30, 2019 and 2018, and $152 million and $153 million for the nine months ended September 30, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger.

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Revenues from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019		Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 62	$ 33	$ 197	[1]	$ 149
Loyalty Program Revenues [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 442		$ 442
Expected timing of satisfaction of remaining performance obligations	2 years		2 years
Application, initiation and licensing fees [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 625		$ 625

[1] Primarily related to Hilton Honors, our guest loyalty program.

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Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Additional Information (Details) $ in Millions	Sep. 30, 2019 USD ($)
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, remaining authorized repurchase amount	$ 959
Amount authorized for stock repurchase program	$ 3,500

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Business Segments - Schedule of Assets by Segment (Detail) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 15,067	$ 13,995
Management and franchise [member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	11,345	11,362
Ownership [member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	1,627	927
Corporate and other [member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 2,095	$ 1,706

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Business Segments

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Business Segments

Business Segments

We are a hospitality company with operations organized in two distinct operating segments: (i) management and franchise and (ii) ownership. These segments are managed and reported separately because of their distinct economic characteristics.

The management and franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels operated or managed by someone other than us. As of September 30, 2019, this segment included 706 managed hotels and 5,154 franchised hotels consisting of 925,458 total rooms. This segment also earns licensing fees from Hilton Grand Vacations and co-brand credit card arrangements for the exclusive right to use certain Hilton marks and IP, as well as fees for managing properties in our ownership segment.

As of September 30, 2019, the ownership segment included 65 properties totaling 20,481 rooms, comprising 57 hotels that we wholly owned or leased, one hotel owned by a consolidated non-wholly owned entity, two hotels leased by consolidated VIEs and five hotels owned or leased by unconsolidated affiliates.

The performance of our operating segments is evaluated primarily on operating income, without allocating other revenues and expenses or general and administrative expenses.

The following table presents revenues for our reportable segments, reconciled to consolidated amounts:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Franchise and licensing fees	$	447	$	409	$	1,277	$	1,147
Base and other management fees(1)	95		95		293		286
Incentive management fees	54		57		167		171
Management and franchise	596		561		1,737		1,604
Ownership	361		373		1,060		1,099
Segment revenues	957		934		2,797		2,703
Amortization of contract acquisition costs	(7)		(6)		(21)		(20)
Other revenues	23		27		75		72
Direct reimbursements from managed and franchised properties(2)	770		710		2,334		2,139
Indirect reimbursements from managed and franchised properties(2)	664		599		1,929		1,754
Intersegment fees elimination(1)	(12)		(11)		(31)		(30)
Total revenues	$	2,395	$	2,253	$	7,083	$	6,618

____________

⁽¹⁾Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

⁽²⁾Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations.

The following table presents operating income for our reportable segments, reconciled to consolidated income before income taxes:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Management and franchise(1)	$	596	$	561	$	1,737	$	1,604
Ownership(1)	39		31		87		66
Segment operating income	635		592		1,824		1,670
Amortization of contract acquisition costs	(7)		(6)		(21)		(20)
Other revenues, less other expenses	12		17		29		36
Net other expenses from managed and franchised properties	(9)		(28)		(21)		(46)
Depreciation and amortization	(86)		(81)		(256)		(242)
General and administrative	(107)		(109)		(327)		(328)
Gain on sale of assets, net	81		—		81		—
Operating income	519		385		1,309		1,070
Interest expense	(105)		(99)		(304)		(277)
Gain (loss) on foreign currency transactions	7		(6)		4		(7)
Other non-operating income (loss), net	—		13		(8)		26
Income before income taxes	$	421	$	293	$	1,001	$	812

____________

⁽¹⁾Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

The following table presents total assets for our reportable segments, reconciled to consolidated amounts:

	September 30,		December 31,
	2019		2018
	(in millions)
Management and franchise	$	11,345	$	11,362
Ownership	1,627		927
Corporate and other	2,095		1,706
	$	15,067	$	13,995

The following table presents capital expenditures for property and equipment for our reportable segments, reconciled to consolidated amounts:

	Nine Months Ended
	September 30,
	2019		2018
	(in millions)
Ownership	$	31	$	34
Corporate and other	35		17
	$	66	$	51

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Revenues from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Contract Liabilities

The following table summarizes the activity of our contract liabilities, which are classified as a component of current and long-term deferred revenues, during the nine months ended September 30, 2019:

	(in millions)
Balance as of December 31, 2018	$	1,060
Cash received in advance and not recognized as revenue(1)	329
Revenue recognized(1)	(197)
Other(2)	(125)
Balance as of September 30, 2019	$	1,067

____________

⁽¹⁾Primarily related to Hilton Honors, our guest loyalty program.

⁽²⁾Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues.

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below; the fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of September 30, 2019 and December 31, 2018:

	September 30, 2019
			Hierarchy Level
	Carrying Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	174	$	—	$	174	$	—
Restricted cash equivalents	33		—		33		—
Liabilities:
Long-term debt(1)	7,533		5,217		—		2,639
Interest rate swaps	45		—		45		—

	December 31, 2018
			Hierarchy Level
	Carrying Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	87	$	—	$	87	$	—
Restricted cash equivalents	18		—		18		—
Interest rate swaps	16		—		16		—
Liabilities:
Long-term debt(1)	7,040		3,809		—		3,039

____________

⁽¹⁾The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt.

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Amortizing Intangible Assets - Schedule of Future Amortization (Details) $ in Millions	Sep. 30, 2019 USD ($)
Depreciation and amortization [member]
Finite-Lived Intangible Assets [Line Items]
2019 (remaining)	$ 73
2020	264
2021	115
2022	93
2023	50
Thereafter	144
Amortizing intangible assets, net	739
Franchise and licensing fees and base and other management fee revenues [member]
Finite-Lived Intangible Assets [Line Items]
2019 (remaining)	7
2020	27
2021	26
2022	24
2023	23
Thereafter	352
Amortizing intangible assets, net	$ 459

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Consolidated Variable Interest Entities - Schedule of Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Cash and cash equivalents		$ 719	$ 403
Property and equipment, net		380	367
Deferred income tax assets		146	90
Other non-current assets		248	239
Accounts payable, accrued expenses and other		1,784	1,549
Other long-term liabilities		884	863
Finance lease liabilities		255
Consolidated VIEs [member]
Variable Interest Entity [Line Items]
Cash and cash equivalents		81	71
Property and equipment, net		71	68
Deferred income tax assets		50	53
Other non-current assets		61	58
Accounts payable, accrued expenses and other		59	41
Long-term debt	[1]	200	205
Other long-term liabilities		15	15
Finance lease liabilities		$ 182	$ 187

[1] Includes finance lease liabilities of $182 million and $187 million as of September 30, 2019 and December 31, 2018, respectively.

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Fair Value Measurements (Details) - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Level 1 [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	[1]	$ 5,217	$ 3,809
Level 2 [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		174	87
Restricted cash equivalents		33	18
Interest rate swaps, assets			16
Interest rate swaps, liabilities		45
Level 3 [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	[1]	2,639	3,039
Carrying value [member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents		174	87
Restricted cash equivalents		33	18
Interest rate swaps, assets			16
Long-term debt	[1]	7,533	$ 7,040
Interest rate swaps, liabilities		$ 45

[1] The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt.

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Activities:
Net income	$ 710	$ 544
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of contract acquisition costs	21	20
Depreciation and amortization	256	242
Gain on sale of assets, net	(81)	0
Loss (gain) on foreign currency transactions	(4)	7
Share-based compensation	123	103
Deferred income taxes	22	29
Contract acquisition costs	(49)	(82)
Working capital changes and other	184	51
Net cash provided by operating activities	1,182	914
Investing Activities:
Capital expenditures for property and equipment	(66)	(51)
Payments received on other financing receivables	0	49
Proceeds from asset disposition	120	0
Capitalized software costs	(79)	(62)
Other	(22)	(16)
Net cash used in investing activities	(47)	(80)
Financing Activities:
Borrowings	1,795	1,676
Repayment of debt	(1,327)	(701)
Debt issuance costs	(29)	(21)
Dividends paid	(130)	(137)
Repurchases of common stock	(1,086)	(1,561)
Share-based compensation tax withholdings and other	(31)	(42)
Other	0	(4)
Net cash used in financing activities	(808)	(790)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	(2)	(14)
Net increase in cash, restricted cash and cash equivalents	325	30
Cash, restricted cash and cash equivalents, beginning of period	484	670
Cash, restricted cash and cash equivalents, end of period	809	700
Supplemental Disclosures:
Interest	248	208
Income taxes, net of refunds	$ 238	$ 230

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Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Allowance for doubtful accounts	$ 45	$ 42
Variable interest entities - current assets	103	90
Variable interest entities - non-current assets	182	178
Variable interest entities - current liabilities	74	56
Variable interest entities - total liabilities	$ 275	$ 263
Preferred stock, par value (per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	3,000,000,000	3,000,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (per share)	$ 0.01	$ 0.01
Common stock, authorized shares	10,000,000,000	10,000,000,000
Common stock, issued shares	333,095,427	332,105,163
Common stock, outstanding shares	283,310,197	294,815,890
Treasury stock, shares	49,785,230	37,289,273

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Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Reclassifications out of accumulated other comprehensive income (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Tax benefit		$ 0	$ 0	$ (1)	$ (1)	$ (1)
Tax expense		3	$ (2)	16	(16)
Total reclassifications for the period, net of taxes		1		1
Currency translation adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Liquidation of investments in foreign entities	[1]	$ 0		$ (1)
Tax benefit		less than $1 million		less than $1 million
Total currency translation adjustment reclassifications for the period, net of taxes		$ 0		$ (1)
Total reclassifications for the period, net of taxes	[2]			(1)	0
Pension liability adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Amortization of prior service cost	[3]	(1)		(3)
Amortization of net loss	[3]	(2)		(5)
Tax benefit	[4]	1		2
Total pension liability adjustment reclassifications for the period, net of taxes		(2)		(6)
Total reclassifications for the period, net of taxes				(6)	(6)
Cash flow hedge adjustment
Reclassification Adjustment out of Accumulated Other Comprehensive Income
Interest rate swaps	[5]	2		8
Forward contracts	[6]	2		2
Tax expense	[4]	(1)		(2)
Total cash flow hedge adjustment reclassifications for the period, net of taxes		$ 3		8
Total reclassifications for the period, net of taxes				$ 8	$ (6)

[1] Includes a gain on the related net investment hedge for one of the foreign entities. Reclassified to gain (loss) on foreign currency transactions in our condensed consolidated statements of operations. The related tax benefit reclassified to income tax expense in our condensed consolidated statements of operations was less than $1 million.

[2] Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature.

[3] Reclassified to other non-operating income (loss), net in our condensed consolidated statements of operations.

[4] Reclassified to income tax expense in our condensed consolidated statements of operations.

[5] Reclassified to interest expense in our condensed consolidated statements of operations.

[6] Reclassified to franchise and licensing fees and base and other management fees in our condensed consolidated statements of operations.

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Business Segments - Reconciliation of Segment Operating Income to Income Before Income Taxes (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Amortization of contract acquisition costs		$ (7)	$ (6)	$ (21)	$ (20)
Other revenues, less other expenses		12	17	29	36
Net other expenses from managed and franchised properties		(9)	(28)	(21)	(46)
Depreciation and amortization		(86)	(81)	(256)	(242)
General and administrative		(107)	(109)	(327)	(328)
Gain on sale of assets, net		81	0	81	0
Operating income		519	385	1,309	1,070
Interest expense		(105)	(99)	(304)	(277)
Gain (loss) on foreign currency transactions		7	(6)	4	(7)
Other non-operating income (loss), net		0	13	(8)	26
Income before income taxes		421	293	1,001	812
Management and franchise [member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	[1]	596	561	1,737	1,604
Ownership [member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income	[1]	39	31	87	66
Segment operating income [member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Operating income		$ 635	$ 592	$ 1,824	$ 1,670

[1] Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

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Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Long-term Debt

Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of September 30, 2019, were as follows:

	September 30,		December 31,
	2019		2018
	(in millions)
Senior secured term loan facility with a rate of 3.77%, due 2026	$	2,619	$	3,119
Senior notes with a rate of 4.250%, due 2024	1,000		1,000
Senior notes with a rate of 4.625%, due 2025	900		900
Senior notes with a rate of 5.125%, due 2026	1,500		1,500
Senior notes with a rate of 4.875%, due 2027	600		600
Senior notes with a rate of 4.875%, due 2030	1,000		—
Finance lease liabilities with a weighted average rate of 5.77%, due 2019 to 2030	255		225
Other debt with a rate of 3.08% due 2026	17		17
	7,891		7,361
Less: unamortized deferred financing costs and discount	(86)		(79)
Less: current maturities of long-term debt(1)	(38)		(16)
	$	7,767	$	7,266

____________

⁽¹⁾Represents current maturities of finance lease liabilities.

Debt Maturities

The contractual maturities of our long-term debt as of September 30, 2019 were as follows:

Year	(in millions)
2019 (remaining)	$	10
2020	37
2021	30
2022	21
2023	20
Thereafter	7,773
	$	7,891

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Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss

Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss

The following tables present the changes in the components of stockholders' equity (deficit) for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30, 2019
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of June 30, 2019	288	$	3	$	(3,304)	$	10,419	$	(6,342)	$	(806)	$	7	$	(23)
Net income	—	—		—		—		288		—		2		290
Other comprehensive loss	—	—		—		—		—		(42)		—		(42)
Dividends	—	—		—		—		(43)		—		—		(43)
Repurchases of common stock	(5)	—		(422)		—		—		—		—		(422)
Share-based compensation	—	—		—		41		—		—		—		41
Balance as of September 30, 2019	283	$	3	$	(3,726)	$	10,460	$	(6,097)	$	(848)	$	9	$	(199)

	Three Months Ended September 30, 2018
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of June 30, 2018	298	$	3	$	(2,330)	$	10,321	$	(6,697)	$	(742)	$	5	$	560
Net income	—	—		—		—		162		—		2		164
Other comprehensive loss	—	—		—		—		—		(4)		—		(4)
Dividends	—	—		—		—		(45)		—		—		(45)
Repurchases of common stock	(1)	—		(122)		—		—		—		—		(122)
Share-based compensation	—	—		—		31		—		—		—		31
Acquisition of noncontrolling interest	—	—		—		(3)		—		—		—		(3)
Distributions	—	—		—		—		—		—		(1)		(1)
Balance as of September 30, 2018	297	$	3	$	(2,452)	$	10,349	$	(6,580)	$	(746)	$	6	$	580

	Nine Months Ended September 30, 2019
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of December 31, 2018	295	$	3	$	(2,625)	$	10,372	$	(6,417)	$	(782)	$	7	$	558
Net income	—	—		—		—		706		—		4		710
Other comprehensive loss	—	—		—		—		—		(66)		—		(66)
Dividends	—	—		—		—		(130)		—		—		(130)
Repurchases of common stock	(13)	—		(1,101)		—		—		—		—		(1,101)
Share-based compensation	1	—		—		88		—		—		—		88
Cumulative effect of the adoption of ASU 2016-02	—	—		—		—		(256)		—		—		(256)
Deconsolidation of a VIE	—	—		—		—		—		—		(2)		(2)
Balance as of September 30, 2019	283	$	3	$	(3,726)	$	10,460	$	(6,097)	$	(848)	$	9	$	(199)

	Nine Months Ended September 30, 2018
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of December 31, 2017	317	$	3	$	(891)	$	10,298	$	(6,981)	$	(741)	$	3	$	1,691
Net income	—	—		—		—		540		—		4		544
Other comprehensive loss	—	—		—		—		—		(5)		—		(5)
Dividends	—	—		—		—		(139)		—		—		(139)
Repurchases of common stock	(21)	—		(1,561)		—		—		—		—		(1,561)
Share-based compensation	1	—		—		54		—		—		—		54
Acquisition of noncontrolling interest	—	—		—		(3)		—		—		—		(3)
Distributions	—	—		—		—		—		—		(1)		(1)
Balance as of September 30, 2018	297	$	3	$	(2,452)	$	10,349	$	(6,580)	$	(746)	$	6	$	580

The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:

	Currency Translation Adjustment(1)		Pension Liability Adjustment		Cash Flow Hedge Adjustment		Total
	(in millions)
Balance as of December 31, 2018	$	(545)	$	(260)	$	23	$	(782)
Other comprehensive loss before reclassifications	(24)		(1)		(40)		(65)
Amounts reclassified from accumulated other comprehensive loss	1		6		(8)		(1)
Net current period other comprehensive income (loss)	(23)		5		(48)		(66)
Balance as of September 30, 2019	$	(568)	$	(255)	$	(25)	$	(848)

	Currency Translation Adjustment(1)		Pension Liability Adjustment		Cash Flow Hedge Adjustment		Total
	(in millions)
Balance as of December 31, 2017	$	(513)	$	(229)	$	1	$	(741)
Other comprehensive income (loss) before reclassifications	(56)		(2)		41		(17)
Amounts reclassified from accumulated other comprehensive loss	—		6		6		12
Net current period other comprehensive income (loss)	(56)		4		47		(5)
Balance as of September 30, 2018	$	(569)	$	(225)	$	48	$	(746)

____________

⁽¹⁾Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature.

The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate losses in our condensed consolidated statements of operations:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
	(in millions)
Currency translation adjustment:
Liquidation of investments in foreign entities(1)	$	—	$	(1)
Total currency translation adjustment reclassifications for the period, net of taxes	—		(1)
Pension liability adjustment:
Amortization of prior service cost(2)	(1)		(3)
Amortization of net loss(2)	(2)		(5)
Tax benefit(3)	1		2
Total pension liability adjustment reclassifications for the period, net of taxes	(2)		(6)
Cash flow hedge adjustment:
Interest rate swaps(4)	2		8
Forward contracts(5)	2		2
Tax expense(3)	(1)		(2)
Total cash flow hedge adjustment reclassifications for the period, net of taxes	3		8
Total reclassifications for the period, net of taxes	$	1	$	1

____________

⁽¹⁾Includes a gain on the related net investment hedge for one of the foreign entities. Reclassified to gain (loss) on foreign currency transactions in our condensed consolidated statements of operations. The related tax benefit reclassified to income tax expense in our condensed consolidated statements of operations was less than $1 million.

⁽²⁾Reclassified to other non-operating income (loss), net in our condensed consolidated statements of operations.

⁽³⁾Reclassified to income tax expense in our condensed consolidated statements of operations.

⁽⁴⁾Reclassified to interest expense in our condensed consolidated statements of operations.

⁽⁵⁾Reclassified to franchise and licensing fees and base and other management fees in our condensed consolidated statements of operations.

As of September 30, 2019, approximately $959 million remained available for share repurchases under our $3.5 billion stock repurchase program.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Leases

Leases

We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are a lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted.

At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a right-of-use ("ROU") asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is estimated on a portfolio basis and incorporates lease term, currency risk, credit risk and an adjustment for collateral. Upon adoption of ASU 2016-02, we elected to use the remaining lease term as of January 1, 2019 in our estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, we use the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, we elected not to recognize leases with lease terms of 12 months or less at the commencement date in our consolidated balance sheets. Current maturities and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current

maturities and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets.

The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us and lease incentives. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. ROU assets of operating leases are classified as operating lease right-of-use assets and ROU assets of finance leases are classified as property and equipment, net in our consolidated balance sheets.

Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations.

New Accounting Pronouncements

Recently Issued Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15 ("ASU 2018-15"), Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns guidance for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with guidance for capitalizing implementation costs to develop or obtain internal-use software. Capitalized implementation costs will be amortized over the term of the arrangement and presented in the same line item in the statement of operations as the fees associated with the service contract. We elected, as permitted by the standard, to early adopt ASU 2018-15 on a prospective basis as of January 1, 2019. The adoption did not have a material effect on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position of lessees as ROU assets and lease liabilities, with certain practical expedients available. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, which provides for another transition method in addition to the modified retrospective approach required by ASU 2016-02. This option allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative adjustment to the opening balance of retained earnings in the period of adoption.

As described above, we adopted ASU 2016-02 on January 1, 2019 and applied the package of practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 remain unchanged and in accordance with Leases (Topic 840). On January 1, 2019, we recognized a $256 million cumulative adjustment to accumulated deficit, net of taxes of $81 million related to a decrease to our deferred tax liability, as a result of the impairment of ROU assets that occurred in periods prior to the adoption date.

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Consolidated Variable Interest Entities

9 Months Ended

Sep. 30, 2019

Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]

Consolidated Variable Interest Entities

Consolidated Variable Interest Entities

As of September 30, 2019 and December 31, 2018, we consolidated two variable interest entities ("VIEs") that lease hotel properties and, as of December 31, 2018, we also consolidated one VIE that is a management company. We consolidated these VIEs since we are the primary beneficiary, having the power to direct the activities that most significantly affect their economic performance. Additionally, we have the obligation to absorb their losses and the right to receive benefits that could be significant to them. The assets of our consolidated VIEs are only available to settle the obligations of the respective entities.

In June 2019, the VIE that is a management company, which we had previously consolidated, sold its assets. As a result of the sale, we deconsolidated $7 million of total assets and $3 million of total liabilities, as we no longer had the power to direct the activities that most significantly affect the VIE's economic performance. See Note 13: "Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss" for additional information.

Our condensed consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following:

	September 30,		December 31,
	2019		2018
	(in millions)
Cash and cash equivalents	$	81	$	71
Property and equipment, net	71		68
Deferred income tax assets	50		53
Other non-current assets	61		58
Accounts payable, accrued expenses and other	59		41
Long-term debt(1)	200		205
Other long-term liabilities	15		15

____________

⁽¹⁾Includes finance lease liabilities of $182 million and $187 million as of September 30, 2019 and December 31, 2018, respectively.

We did not provide any financial or other support to any consolidated VIEs that we were not previously contractually required to provide during the nine months ended September 30, 2019 and 2018.

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Leases

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Leases

Leases

We lease hotel properties, land, corporate office space and equipment used at hotels and corporate offices, with our most significant lease liabilities related to hotel properties. As of September 30, 2019, we leased 52 hotels under operating leases and six hotels under finance leases, two of which were the liabilities of consolidated VIEs and were non-recourse to us. Our hotel leases expire at various dates, with varying renewal and termination options.

Supplemental balance sheet information related to leases as of September 30, 2019 was as follows:

	(dollars in millions)
Operating leases:
Operating lease right-of-use assets	$	839
Accounts payable, accrued expenses and other	128
Operating lease liabilities	1,004
Finance leases:
Property and equipment, net	$	57
Current maturities of long-term debt	38
Long-term debt	217
Weighted average remaining lease term:
Operating leases	12.9 years
Finance leases	8.7 years
Weighted average discount rate:
Operating leases	3.75		%
Finance leases	5.77		%

The components of lease expense were as follows:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
	(in millions)
Operating lease expense for fixed payments	$	35	$	108
Finance lease expense:
Amortization of ROU assets	7		23
Interest on lease liabilities	3		10
Variable lease expense(1)	41		123

____________

⁽¹⁾Includes amounts related to operating leases and interest payments on finance leases.

Lease expense for our operating leases for the year ended December 31, 2018 included $225 million of fixed lease expense and $142 million of variable lease expense.

Supplemental cash flow information related to leases for the nine months ended September 30, 2019 was as follows:

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	130
Financing cash flows from finance leases	32
ROU assets obtained in exchange for lease liabilities in non-cash transactions:
Operating leases	21
Finance leases	59

Our future minimum lease payments as of September 30, 2019 were as follows:

	Operating Leases		Finance Leases
Year	(in millions)
2019 (remaining)	$	43	$	14
2020	170		51
2021	160		42
2022	133		32
2023	118		30
Thereafter	846		164
Total minimum lease payments	1,470		333
Less: imputed interest	(338)		(78)
Total lease liabilities	$	1,132	$	255

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Condensed Consolidating Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2019

Condensed Consolidating Guarantor Financial Information [Abstract]

Condensed Balance Sheet

	September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	—	$	17	$	26	$	676	$	—	$	719
Restricted cash and cash equivalents	—		—		34		23		33		—		90
Accounts receivable, net	—		—		13		850		332		(2)		1,193
Intercompany receivables	—		—		—		—		39		(39)		—
Prepaid expenses	—		—		26		37		57		(5)		115
Other	—		3		1		56		102		(24)		138
Total current assets	—		3		91		992		1,239		(70)		2,255
Intangibles and Other Assets:
Investments in subsidiaries	(187)		3,948		7,709		(187)		—		(11,283)		—
Goodwill	—		—		—		3,824		1,313		—		5,137
Brands	—		—		—		4,404		460		—		4,864
Management and franchise contracts, net	—		—		1		464		329		—		794
Other intangible assets, net	—		—		—		290		114		—		404
Operating lease right-of-use assets	—		—		34		9		796		—		839
Property and equipment, net	—		—		60		68		252		—		380
Deferred income tax assets	3		11		85		—		146		(99)		146
Other	—		11		31		37		169		—		248
Total intangibles and other assets	(184)		3,970		7,920		8,909		3,579		(11,382)		12,812
TOTAL ASSETS	$	(184)	$	3,973	$	8,011	$	9,901	$	4,818	$	(11,452)	$	15,067
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts payable, accrued expenses and other	$	24	$	37	$	264	$	711	$	770	$	(22)	$	1,784
Current maturities of long-term debt	—		—		20		—		18		—		38
Current portion of deferred revenues	—		—		38		241		20		(9)		290
Intercompany payables	—		—		39		—		—		(39)		—
Current portion of liability for guest loyalty program	—		—		—		788		—		—		788
Total current liabilities	24		37		361		1,740		808		(70)		2,900
Long-term debt	—		4,078		3,474		—		215		—		7,767
Operating lease liabilities	—		—		39		7		958		—		1,004
Deferred revenues	—		—		—		764		70		—		834
Deferred income tax liabilities	—		—		—		957		15		(99)		873
Liability for guest loyalty program	—		—		—		1,004		—		—		1,004
Other	—		45		189		96		554		—		884
Total liabilities	24		4,160		4,063		4,568		2,620		(169)		15,266
Equity (Deficit):
Total Hilton stockholders' equity (deficit)	(208)		(187)		3,948		5,333		2,189		(11,283)		(208)
Noncontrolling interests	—		—		—		—		9		—		9
Total equity (deficit)	(208)		(187)		3,948		5,333		2,198		(11,283)		(199)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	(184)	$	3,973	$	8,011	$	9,901	$	4,818	$	(11,452)	$	15,067

	December 31, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	—	$	3	$	17	$	383	$	—	$	403
Restricted cash and cash equivalents	—		—		34		15		32		—		81
Accounts receivable, net	—		—		10		735		405		—		1,150
Intercompany receivables	—		—		—		—		40		(40)		—
Prepaid expenses	—		—		52		37		80		(9)		160
Other	—		1		1		36		154		(3)		189
Total current assets	—		1		100		840		1,094		(52)		1,983
Intangibles and Other Assets:
Investments in subsidiaries	557		5,131		7,930		557		—		(14,175)		—
Goodwill	—		—		—		3,824		1,336		—		5,160
Brands	—		—		—		4,404		465		—		4,869
Management and franchise contracts, net	—		—		—		556		316		—		872
Other intangible assets, net	—		—		—		287		128		—		415
Property and equipment, net	—		—		27		65		275		—		367
Deferred income tax assets	4		—		94		—		90		(98)		90
Other	—		23		33		22		161		—		239
Total intangibles and other assets	561		5,154		8,084		9,715		2,771		(14,273)		12,012
TOTAL ASSETS	$	561	$	5,155	$	8,184	$	10,555	$	3,865	$	(14,325)	$	13,995
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other	$	10	$	19	$	229	$	529	$	765	$	(3)	$	1,549
Current maturities of long-term debt	—		—		—		—		16		—		16
Current portion of deferred revenues	—		—		106		239		14		(9)		350
Intercompany payables	—		—		40		—		—		(40)		—
Current portion of liability for guest loyalty program	—		—		—		700		—		—		700
Total current liabilities	10		19		375		1,468		795		(52)		2,615
Long-term debt	—		4,573		2,467		—		226		—		7,266
Deferred revenues	—		—		—		762		64		—		826
Deferred income tax liabilities	—		6		—		962		28		(98)		898
Liability for guest loyalty program	—		—		—		969		—		—		969
Other	—		—		211		93		559		—		863
Total liabilities	10		4,598		3,053		4,254		1,672		(150)		13,437
Equity:
Total Hilton stockholders' equity	551		557		5,131		6,301		2,186		(14,175)		551
Noncontrolling interests	—		—		—		—		7		—		7
Total equity	551		557		5,131		6,301		2,193		(14,175)		558
TOTAL LIABILITIES AND EQUITY	$	561	$	5,155	$	8,184	$	10,555	$	3,865	$	(14,325)	$	13,995

Condensed Statement of Income and Comprehensive Income

	Three Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	68	$	338	$	41	$	(4)	$	443
Base and other management fees	—		—		1		48		31		—		80
Incentive management fees	—		—		—		16		38		—		54
Owned and leased hotels	—		—		—		—		361		—		361
Other revenues	—		—		—		20		3		—		23
	—		—		69		422		474		(4)		961
Other revenues from managed and franchised properties	—		—		79		1,195		160		—		1,434
Total revenues	—		—		148		1,617		634		(4)		2,395
Expenses
Owned and leased hotels	—		—		—		—		310		—		310
Depreciation and amortization	—		—		2		63		21		—		86
General and administrative	—		—		88		—		28		(9)		107
Other expenses	—		—		1		—		5		5		11
	—		—		91		63		364		(4)		514
Other expenses from managed and franchised properties	—		—		85		1,200		158		—		1,443
Total expenses	—		—		176		1,263		522		(4)		1,957
Gain on sale of assets, net	—		—		—		—		81		—		81
Operating income (loss)	—		—		(28)		354		193		—		519
Interest expense	—		(45)		(49)		—		(11)		—		(105)
Gain (loss) on foreign currency transactions	—		—		4		(43)		46		—		7
Other non-operating income (loss), net	—		(2)		—		(3)		5		—		—
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(47)		(73)		308		233		—		421
Income tax benefit (expense)	—		11		15		(79)		(78)		—		(131)
Income (loss) before equity in earnings from subsidiaries	—		(36)		(58)		229		155		—		290
Equity in earnings from subsidiaries	288		324		382		288		—		(1,282)		—
Net income	288		288		324		517		155		(1,282)		290
Net income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Net income attributable to Hilton stockholders	$	288	$	288	$	324	$	517	$	153	$	(1,282)	$	288
Comprehensive income	$	246	$	279	$	324	$	516	$	123	$	(1,240)	$	248
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Comprehensive income attributable to Hilton stockholders	$	246	$	279	$	324	$	516	$	121	$	(1,240)	$	246

	Three Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	57	$	316	$	39	$	(5)	$	407
Base and other management fees	—		—		—		49		31		—		80
Incentive management fees	—		—		—		15		42		—		57
Owned and leased hotels	—		—		—		—		373		—		373
Other revenues	—		—		1		19		3		4		27
	—		—		58		399		488		(1)		944
Other revenues from managed and franchised properties	—		—		70		1,076		163		—		1,309
Total revenues	—		—		128		1,475		651		(1)		2,253
Expenses
Owned and leased hotels	—		—		—		—		331		—		331
Depreciation and amortization	—		—		2		58		21		—		81
General and administrative	—		—		81		—		30		(2)		109
Other expenses	—		—		1		2		6		1		10
	—		—		84		60		388		(1)		531
Other expenses from managed and franchised properties	—		—		70		1,106		161		—		1,337
Total expenses	—		—		154		1,166		549		(1)		1,868
Operating income (loss)	—		—		(26)		309		102		—		385
Interest expense	—		(54)		(34)		—		(8)		(3)		(99)
Gain (loss) on foreign currency transactions	—		—		—		1		(7)		—		(6)
Other non-operating income, net	—		—		1		4		5		3		13
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(54)		(59)		314		92		—		293
Income tax benefit (expense)	—		13		8		(70)		(80)		—		(129)
Income (loss) before equity in earnings from subsidiaries	—		(41)		(51)		244		12		—		164
Equity in earnings from subsidiaries	162		203		254		162		—		(781)		—
Net income	162		162		203		406		12		(781)		164
Net income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Net income attributable to Hilton stockholders	$	162	$	162	$	203	$	406	$	10	$	(781)	$	162
Comprehensive income	$	158	$	168	$	204	$	405	$	2	$	(777)	$	160
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Comprehensive income attributable to Hilton stockholders	$	158	$	168	$	204	$	405	$	—	$	(777)	$	158

	Nine Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	198	$	970	$	114	$	(13)	$	1,269
Base and other management fees	—		—		1		157		91		—		249
Incentive management fees	—		—		—		60		107		—		167
Owned and leased hotels	—		—		—		—		1,060		—		1,060
Other revenues	—		—		1		63		11		—		75
	—		—		200		1,250		1,383		(13)		2,820
Other revenues from managed and franchised properties	—		—		235		3,581		447		—		4,263
Total revenues	—		—		435		4,831		1,830		(13)		7,083
Expenses
Owned and leased hotels	—		—		—		—		942		—		942
Depreciation and amortization	—		—		5		188		63		—		256
General and administrative	—		—		259		—		90		(22)		327
Other expenses	—		—		5		10		22		9		46
	—		—		269		198		1,117		(13)		1,571
Other expenses from managed and franchised properties	—		—		244		3,602		438		—		4,284
Total expenses	—		—		513		3,800		1,555		(13)		5,855
Gain on sale of assets, net	—		—		—		—		81		—		81
Operating income (loss)	—		—		(78)		1,031		356		—		1,309
Interest expense	—		(148)		(117)		—		(39)		—		(304)
Gain (loss) on foreign currency transactions	—		—		5		(70)		69		—		4
Other non-operating income (loss), net	—		(11)		—		(8)		11		—		(8)
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(159)		(190)		953		397		—		1,001
Income tax benefit (expense)	—		38		42		(238)		(133)		—		(291)
Income (loss) before equity in earnings from subsidiaries	—		(121)		(148)		715		264		—		710
Equity in earnings from subsidiaries	706		827		975		706		—		(3,214)		—
Net income	706		706		827		1,421		264		(3,214)		710
Net income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Net income attributable to Hilton stockholders	$	706	$	706	$	827	$	1,421	$	260	$	(3,214)	$	706
Comprehensive income	$	640	$	657	$	830	$	1,420	$	245	$	(3,148)	$	644
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Comprehensive income attributable to Hilton stockholders	$	640	$	657	$	830	$	1,420	$	241	$	(3,148)	$	640

	Nine Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	151	$	900	$	104	$	(13)	$	1,142
Base and other management fees	—		—		1		155		85		—		241
Incentive management fees	—		—		—		58		113		—		171
Owned and leased hotels	—		—		—		—		1,099		—		1,099
Other revenues	—		—		4		60		8		—		72
	—		—		156		1,173		1,409		(13)		2,725
Other revenues from managed and franchised properties	—		—		176		3,256		461		—		3,893
Total revenues	—		—		332		4,429		1,870		(13)		6,618
Expenses
Owned and leased hotels	—		—		—		—		1,003		—		1,003
Depreciation and amortization	—		—		5		176		61		—		242
General and administrative	—		—		237		—		97		(6)		328
Other expenses	—		—		5		17		21		(7)		36
	—		—		247		193		1,182		(13)		1,609
Other expenses from managed and franchised properties	—		—		178		3,304		457		—		3,939
Total expenses	—		—		425		3,497		1,639		(13)		5,548
Operating income (loss)	—		—		(93)		932		231		—		1,070
Interest expense	—		(172)		(78)		—		(27)		—		(277)
Gain (loss) on foreign currency transactions	—		—		3		(80)		70		—		(7)
Other non-operating income (loss), net	—		(7)		5		16		12		—		26
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(179)		(163)		868		286		—		812
Income tax benefit (expense)	—		44		35		(204)		(143)		—		(268)
Income (loss) before equity in earnings from subsidiaries	—		(135)		(128)		664		143		—		544
Equity in earnings from subsidiaries	540		675		803		540		—		(2,558)		—
Net income	540		540		675		1,204		143		(2,558)		544
Net income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Net income attributable to Hilton stockholders	$	540	$	540	$	675	$	1,204	$	139	$	(2,558)	$	540
Comprehensive income	$	535	$	585	$	677	$	1,203	$	92	$	(2,553)	$	539
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Comprehensive income attributable to Hilton stockholders	$	535	$	585	$	677	$	1,203	$	88	$	(2,553)	$	535

Condensed Statement of Cash Flows

	Nine Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Operating Activities:
Net cash provided by (used in) operating activities	$	—	$	(122)	$	(17)	$	1,157	$	229	$	(65)	$	1,182
Investing Activities:
Capital expenditures for property and equipment	—		—		(6)		(5)		(55)		—		(66)
Proceeds from asset disposition	—		—		—		—		120		—		120
Capitalized software costs	—		—		—		(79)		—		—		(79)
Other	—		—		—		(18)		(4)		—		(22)
Net cash provided by (used in) investing activities	—		—		(6)		(102)		61		—		(47)
Financing Activities:
Borrowings	—		795		1,000		—		—		—		1,795
Repayment of debt	—		(1,295)		(20)		—		(12)		—		(1,327)
Debt issuance costs	—		(13)		(16)		—		—		—		(29)
Intercompany transfers	1,216		635		(896)		(1,038)		83		—		—
Dividends paid	(130)		—		—		—		—		—		(130)
Repurchases of common stock	(1,086)		—		—		—		—		—		(1,086)
Intercompany dividends	—		—		—		—		(65)		65		—
Share-based compensation tax withholdings and other	—		—		(31)		—		—		—		(31)
Net cash provided by (used in) financing activities	—		122		37		(1,038)		6		65		(808)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	—		—		—		—		(2)		—		(2)
Net increase in cash, restricted cash and cash equivalents	—		—		14		17		294		—		325
Cash, restricted cash and cash equivalents, beginning of period	—		—		37		32		415		—		484
Cash, restricted cash and cash equivalents, end of period	$	—	$	—	$	51	$	49	$	709	$	—	$	809

	Nine Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Operating Activities:
Net cash provided by (used in) operating activities	$	—	$	(143)	$	(7)	$	808	$	256	$	—	$	914
Investing Activities:
Capital expenditures for property and equipment	—		—		(5)		(4)		(42)		—		(51)
Payments received on other financing receivables	—		—		—		49		—		—		49
Capitalized software costs	—		—		—		(62)		—		—		(62)
Other	—		—		—		(6)		(10)		—		(16)
Net cash used in investing activities	—		—		(5)		(23)		(52)		—		(80)
Financing Activities:
Borrowings	—		175		1,500		—		1		—		1,676
Repayment of debt	—		(685)		—		—		(16)		—		(701)
Debt issuance costs	—		—		(21)		—		—		—		(21)
Intercompany transfers	1,698		653		(1,451)		(739)		(161)		—		—
Dividends paid	(137)		—		—		—		—		—		(137)
Repurchases of common stock	(1,561)		—		—		—		—		—		(1,561)
Share-based compensation tax withholdings and other	—		—		(42)		—		—		—		(42)
Other	—		—		—		(3)		(1)		—		(4)
Net cash provided by (used in) financing activities	—		143		(14)		(742)		(177)		—		(790)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	—		—		—		—		(14)		—		(14)
Net increase (decrease) in cash, restricted cash and cash equivalents	—		—		(26)		43		13		—		30
Cash, restricted cash and cash equivalents, beginning of period	—		—		63		28		579		—		670
Cash, restricted cash and cash equivalents, end of period	$	—	$	—	$	37	$	71	$	592	$	—	$	700

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Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock Options Valuation Assumptions

The weighted average grant date fair value per share of the options granted during the nine months ended September 30, 2019 was $21.08, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility(1)	23.51	%
Dividend yield(2)	0.81	%
Risk-free rate(3)	2.47	%
Expected term (in years)(4)	6.0

____________

⁽¹⁾Estimated using historical movement of Hilton's stock price.

⁽²⁾Estimated based on the quarterly dividend and the three-month average stock price at the date of grant.

⁽³⁾Based on the yields of U.S. Department of Treasury instruments with similar expected lives.

⁽⁴⁾Estimated using the average of the vesting periods and the contractual term of the options.

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Revenues from Contracts with Customers - Contract Liabilities (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019		Sep. 30, 2018	Dec. 31, 2018
Contract with Customer, Liability [Line Items]
Contract liabilities balance		$ 1,067		$ 1,067			$ 1,060
Cash received in advance and not recognized as revenue	[1]			329
Revenue recognized		$ (62)	$ (33)	(197)	[1]	$ (149)
Other	[2]			$ (125)

[1] Primarily related to Hilton Honors, our guest loyalty program.

[2] Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues.

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Share-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 42	$ 35	$ 123	$ 103
Unrecognized compensation costs related to unvested awards	$ 153		$ 153
Unrecognized compensation costs related to unvested awards, weighted-average period			1 year 9 months 18 days
Shares of common stock reserved for future issuance, in millions	14.2		14.2
Restricted stock units (RSUs) [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, in millions			1.0
Weighted average grant date fair value, granted			$ 83.41
Employee stock option [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Options granted in period, in millions			0.8
Options granted in period, weighted average exercise price			$ 83.11
Options, expiration period			10 years
Options, grants in period, grant date fair value			$ 21.08
Exercisable, in millions	1.5		1.5
Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, in millions			0.4
Weighted average grant date fair value, granted			$ 83.11
EBITDA CAGR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Terms of performance shares			50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA")
Free cash flow CAGR [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Terms of performance shares			50 percent of the awards subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR
Minimum [Member] | Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage			0.00%
Vesting rights, percentage			0.00%
Maximum [Member] | Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage			200.00%
Vesting rights, percentage			200.00%
Target [Member] | Performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights, percentage			100.00%
Vesting rights, percentage			100.00%
Minimum [Member] | Restricted stock units (RSUs) [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
Maximum [Member] | Restricted stock units (RSUs) [member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years

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Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Lessee Disclosure [Abstract]
Property and equipment, net	$ 57
Current maturities of long-term debt	38
Long-term debt	$ 217
Weighted average remaining lease term, finance leases	8 years 8 months 12 days
Weighted average discount rate, finance leases	5.77%
Operating lease right-of-use assets	$ 839	$ 0
Accounts payable, accrued expenses and other	128
Operating lease liabilities	$ 1,004	$ 0
Weighted average remaining lease term, operating leases	12 years 10 months 24 days
Weighted average discount rate, operating leases	3.75%

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Leases Future Minimum Lease Payments (Details) $ in Millions	Sep. 30, 2019 USD ($)
Lessee Disclosure [Abstract]
Finance leases, 2019 (remaining)	$ 14
Finance leases, 2020	51
Finance leases, 2021	42
Finance leases, 2022	32
Finance leases, 2023	30
Finance leases, thereafter	164
Finance leases, total minimum lease payments	333
Less: amount representing interest, finance leases	(78)
Finance lease liabilities	255
Operating leases, 2019 (remaining)	43
Operating leases, 2020	170
Operating leases, 2021	160
Operating leases, 2022	133
Operating leases, 2023	118
Operating leases, thereafter	846
Operating leases, total minimum lease payments	1,470
Less: amount representing interest, operating leases	(338)
Operating lease liabilities	$ 1,132

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Condensed Consolidating Guarantor Financial Information - Additional Information (Details)	Sep. 30, 2019 Rate
Hilton Worldwide Parent [Member]
Condensed Financial Statements, Captions [Line Items]
Ownership percentage of equity interest	100.00%
HOC [Member]
Condensed Financial Statements, Captions [Line Items]
Ownership percentage of equity interest	100.00%
HWF Issuers [Member]
Condensed Financial Statements, Captions [Line Items]
Ownership percentage of equity interest	100.00%

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Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Stockholders' Equity (Deficit) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Jan. 01, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Beginning Balance, shares			294,815,890
Beginning Balance	$ (23)	$ 560	$ 558	$ 1,691
Equity (deficit) attributable to Hilton stockholders	(208)		(208)				$ 551
Equity attributable to noncontrolling interests	(9)		(9)				(7)
Net income attributable to Hilton stockholders	288	162	706	540
Net income attributable to noncontrolling interests	2	2	4	4
Net income	290	164	710	544
Other comprehensive loss	(42)	(4)	(66)	(5)
Dividends	(43)	(45)	(130)	(139)
Repurchases of common stock	(422)	(122)	(1,101)	(1,561)
Share-based compensation	$ 41	31	88	54
Deconsolidation of a VIE			$ (2)
Ending Balance, shares	283,310,197		283,310,197
Ending Balance	$ (199)	$ 580	$ (199)	$ 580
Accounting Standards Update 2016-02 [Member]
Class of Stock [Line Items]
Cumulative effect of the adoption of an ASU	$ (256)		$ (256)			$ 256
Common stock [member]
Class of Stock [Line Items]
Beginning Balance, shares	288,000,000	298,000,000	295,000,000	317,000,000
Equity (deficit) attributable to Hilton stockholders	$ 3	$ 3	$ 3	$ 3	$ 3		3	$ 3	$ 3
Repurchases of common stock, shares	(5,000,000)	(1,000,000)	(13,000,000)	(21,000,000)
Share-based compensation, shares			1,000,000	1,000,000
Ending Balance, shares	283,000,000	297,000,000	283,000,000	297,000,000
Treasury stock [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders	$ (3,726)	$ (2,452)	$ (3,726)	$ (2,452)	(3,304)		(2,625)	(2,330)	(891)
Repurchases of common stock	(422)	(122)		(1,561)
Additional paid-in capital [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders	10,460	10,349	10,460	10,349	10,419		10,372	10,321	10,298
Share-based compensation	41	31	88	54
Accumulated deficit [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders	(6,097)	(6,580)	(6,097)	(6,580)	(6,342)		(6,417)	(6,697)	(6,981)
Net income attributable to Hilton stockholders	288	162	706	540
Dividends	(43)	(45)	(130)	(139)
Accumulated deficit [member] | Accounting Standards Update 2016-02 [Member]
Class of Stock [Line Items]
Cumulative effect of the adoption of an ASU	(256)		(256)
Accumulated other comprehensive loss [member]
Class of Stock [Line Items]
Equity (deficit) attributable to Hilton stockholders	(848)	(746)	(848)	(746)	(806)		(782)	(742)	(741)
Other comprehensive loss attributable to Hilton stockholders	(42)	(4)	(66)	(5)
Noncontrolling interest [member]
Class of Stock [Line Items]
Equity attributable to noncontrolling interests	9	$ 6	9	6	$ 7		$ 7	$ 5	$ 3
Net income attributable to noncontrolling interests	$ 2		4	$ 4
Deconsolidation of a VIE			$ (2)

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Business Segments - Hotel Properties by Segment (Detail)	3 Months Ended
	Sep. 30, 2019 Hotel Room Segment
Segment Reporting Information [Line Items]
Number of operating segments | Segment	2
Management and franchise [member]
Segment Reporting Information [Line Items]
Number of managed hotels	706
Number of franchised hotels	5,154
Number of managed and franchised hotel rooms | Room	925,458
Ownership [member]
Segment Reporting Information [Line Items]
Number of owned and leased hotel properties	65
Number of owned and leased hotel rooms | Room	20,481
Number of wholly owned and leased hotels	57
Number of non-wholly owned hotels	1
Number of hotels leased by consolidated VIEs	2
Number of hotels owned or leased by unconsolidated affiliates	5

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Business Segments - Schedule of Capital Expenditures by Segment (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting, Capital Expenditure Reconciling Item [Line Items]
Capital expenditures for property and equipment	$ 66	$ 51
Ownership [member]
Segment Reporting, Capital Expenditure Reconciling Item [Line Items]
Capital expenditures for property and equipment	31	34
Corporate and other [member]
Segment Reporting, Capital Expenditure Reconciling Item [Line Items]
Capital expenditures for property and equipment	$ 35	$ 17

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Debt - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt, gross	$ 7,891	$ 7,361
Revolving credit facility [member]
Debt Instrument [Line Items]
Debt issuance costs	7
Revolving credit facility, maximum borrowing capacity	1,750
Revolving credit facility, remaining borrowing capacity	$ 1,690
Line of credit facility, unused capacity, commitment fee percentage	0.125%
Repayments of debt	$ 225
Senior secured term loan facility due 2026 [member]
Debt Instrument [Line Items]
Debt discount	0.25%
Debt instrument, interest rate, stated percentage	3.77%
Long-term debt, gross	$ 2,619	3,119
Repayments of debt	500
Fees and unamortized deferred financing costs and discount	$ 10
Senior notes due 2024 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.25%
Long-term debt, gross	$ 1,000	1,000
Senior notes due 2025 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.625%
Long-term debt, gross	$ 900	900
Senior notes due 2026 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	5.125%
Long-term debt, gross	$ 1,500	1,500
Senior notes due 2027 [member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.875%
Long-term debt, gross	$ 600	600
Senior notes due 2030 [member]
Debt Instrument [Line Items]
Debt issuance costs	$ 15
Debt instrument, interest rate, stated percentage	4.875%
Long-term debt, gross	$ 1,000	$ 0
Letter of Credit [Member] | Revolving credit facility [member]
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity	250
Letters of credit outstanding	$ 59

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2019 and 2018 have been prepared in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP") and are unaudited. We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with GAAP. Although we believe the disclosures made are adequate to prevent the information presented from being misleading, these financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Certain prior year amounts in our condensed consolidated balance sheets have been reclassified to conform to current year presentation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and, accordingly, ultimate results could differ from those estimates. Additionally, interim results are not necessarily indicative of full year performance. In our opinion, the accompanying condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All material intercompany transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

Our significant accounting policies are detailed in Note 2: "Basis of Presentation and Summary of Significant Accounting Policies" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. On January 1, 2019, we adopted the requirements of Accounting Standards Update ("ASU") No. 2016-02 ("ASU 2016-02"), Leases (Topic 842), and the significant accounting policies that changed as a result of the adoption are set forth below.

Leases

We determine if a contract is or contains a lease at the inception of the contract, and we classify that lease as a finance lease if it meets certain criteria or as an operating lease when it does not. We reassess if a contract is or contains a leasing arrangement upon modification of the contract. For a contract, in which we are a lessee, that contains fixed payments for both lease and non-lease components, we have elected to account for the components as a single lease component, as permitted.

At the commencement date of a lease, we recognize a lease liability for future fixed lease payments and a right-of-use ("ROU") asset representing our right to use the underlying asset during the lease term. The lease liability is initially measured as the present value of the future fixed lease payments that will be made over the lease term. The lease term includes lessee options to extend the lease and periods occurring after a lessee early termination option, only to the extent it is reasonably certain that we will exercise such extension options and not exercise such early termination options, respectively. The future fixed lease payments are discounted using the rate implicit in the lease, if available, or our incremental borrowing rate. Our incremental borrowing rate is estimated on a portfolio basis and incorporates lease term, currency risk, credit risk and an adjustment for collateral. Upon adoption of ASU 2016-02, we elected to use the remaining lease term as of January 1, 2019 in our estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, we use the discount rate as of the commencement date of the lease, incorporating the entire lease term. Additionally, we elected not to recognize leases with lease terms of 12 months or less at the commencement date in our consolidated balance sheets. Current maturities and long-term portions of operating lease liabilities are classified as accounts payable, accrued expenses and other and operating lease liabilities, respectively, and current

maturities and long-term portions of finance lease liabilities are classified as current maturities of long-term debt and long-term debt, respectively, in our consolidated balance sheets.

The ROU asset is measured at the amount of the lease liability with adjustments, if applicable, for lease prepayments made prior to or at lease commencement, initial direct costs incurred by us and lease incentives. We evaluate the carrying value of ROU assets if there are indicators of impairment and review the recoverability of the related asset group. If the carrying value of the asset group is determined to not be recoverable and is in excess of the estimated fair value, we record an impairment loss in our consolidated statements of operations. ROU assets of operating leases are classified as operating lease right-of-use assets and ROU assets of finance leases are classified as property and equipment, net in our consolidated balance sheets.

Our operating leases require: (i) fixed lease payments, or minimum payments, as contractually stated in the lease agreement; (ii) variable lease payments, which, for our hotels, are generally based on a percentage of the underlying asset's revenues or profits, or are dependent on changes in an index; or (iii) lease payments equal to the greater of the fixed or variable lease payments. In addition, during the term of our hotel leases, we may be required to pay some, or all, of the capital costs for furniture, equipment and leasehold improvements in the hotel property. For operating leases, lease expense relating to fixed payments is recognized on a straight-line basis over the lease term, and lease expense related to variable payments is expensed as incurred, with amounts recognized in owned and leased hotel expenses, general and administrative expenses and other expenses from managed and franchised properties in our consolidated statements of operations. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in our consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in our consolidated statements of operations.

Recently Issued Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-15 ("ASU 2018-15"), Intangibles – Goodwill and Other – Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU aligns guidance for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with guidance for capitalizing implementation costs to develop or obtain internal-use software. Capitalized implementation costs will be amortized over the term of the arrangement and presented in the same line item in the statement of operations as the fees associated with the service contract. We elected, as permitted by the standard, to early adopt ASU 2018-15 on a prospective basis as of January 1, 2019. The adoption did not have a material effect on our condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, which supersedes existing guidance on accounting for leases in Leases (Topic 840) and generally requires all leases, including operating leases, to be recognized in the statement of financial position of lessees as ROU assets and lease liabilities, with certain practical expedients available. Subsequent to ASU 2016-02, the FASB issued related ASUs, including ASU No. 2018-11 ("ASU 2018-11"), Leases (Topic 842): Targeted Improvements, which provides for another transition method in addition to the modified retrospective approach required by ASU 2016-02. This option allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative adjustment to the opening balance of retained earnings in the period of adoption.

As described above, we adopted ASU 2016-02 on January 1, 2019 and applied the package of practical expedients included therein, as well as utilized the transition method included in ASU 2018-11. By applying ASU 2016-02 at the adoption date, as opposed to at the beginning of the earliest period presented, the presentation of financial information for periods prior to January 1, 2019 remain unchanged and in accordance with Leases (Topic 840). On January 1, 2019, we recognized a $256 million cumulative adjustment to accumulated deficit, net of taxes of $81 million related to a decrease to our deferred tax liability, as a result of the impairment of ROU assets that occurred in periods prior to the adoption date.

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Amortizing Intangible Assets - Schedule of Finite Lived Intangible Assets (Details) - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross		$ 2,923	$ 2,861
Other intangible assets, gross		1,232	1,167
Management and franchise contracts, accumulated amortization		(2,129)	(1,989)
Other intangible assets, accumulated amortization		(828)	(752)
Management and franchise contracts, net		794	872
Other intangible assets, net		404	415
Management and franchise contracts recorded at merger [member]
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross	[1]	2,226	2,228
Management and franchise contracts, accumulated amortization	[1]	(1,997)	(1,873)
Management and franchise contracts, net	[1]	229	355
Contract acquisition costs [member]
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross		573	525
Management and franchise contracts, accumulated amortization		(114)	(101)
Management and franchise contracts, net		459	424
Development commissions and other [member]
Finite-Lived Intangible Assets [Line Items]
Management and franchise contracts, gross		124	108
Management and franchise contracts, accumulated amortization		(18)	(15)
Management and franchise contracts, net		106	93
Leases [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross	[1]	279	288
Other intangible assets, accumulated amortization	[1]	(166)	(161)
Other intangible assets, net	[1]	113	127
Capitalized software costs [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross		583	503
Other intangible assets, accumulated amortization		(377)	(321)
Other intangible assets, net		206	182
Hilton Honors [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross	[1]	336	338
Other intangible assets, accumulated amortization	[1]	(251)	(236)
Other intangible assets, net	[1]	85	102
Other [member]
Finite-Lived Intangible Assets [Line Items]
Other intangible assets, gross	[1]	34	38
Other intangible assets, accumulated amortization	[1]	(34)	(34)
Other intangible assets, net	[1]	$ 0	$ 4

[1] Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) (the "Merger").

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 290	$ 164	$ 710	$ 544
Other comprehensive income (loss), net of tax
Currency translation adjustment	(35)	(11)	(23)	(56)
Pension liability adjustment	(1)	(1)	(5)	(4)
Cash flow hedge adjustment	(8)	6	(48)	47
Total other comprehensive loss	(42)	(4)	(66)	(5)
Comprehensive income	248	160	644	539
Comprehensive income attributable to noncontrolling interests	(2)	(2)	(4)	(4)
Comprehensive income attributable to Hilton stockholders	$ 246	$ 158	$ 640	$ 535

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Document and Entity Information Document - shares	9 Months Ended
	Sep. 30, 2019	Oct. 17, 2019
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2019
Entity File Number	001-36243
Entity Registrant Name	Hilton Worldwide Holdings Inc.
Entity incorporation, sate or country code	DE
Entity Tax Identification Number	27-4384691
Entity Address, Address Line One	7930 Jones Branch Drive
Entity Address, Address Line Two	Suite 1100
Entity Address, City or Town	McLean
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22102
City Area Code	703
Local Phone Number	883-1000
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	HLT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity common stock shares outstanding		282,162,971
Entity Central Index Key	0001585689
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Shell Company	false

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

We provide performance guarantees to certain owners of hotels that we operate under management contracts. Most of these guarantees allow us to terminate the contract, rather than fund shortfalls, if specified operating performance levels are not achieved. However, in limited cases, we are obligated to fund performance shortfalls. As of September 30, 2019, we had six performance guarantees, with expirations ranging from December 2019 to 2039, and possible cash outlays totaling approximately $38 million. Our obligations under these guarantees in future periods are dependent on the operating performance level of the related hotel over the remaining term of the performance guarantee. As of September 30, 2019 and December 31, 2018, we accrued current liabilities of $3 million and $12 million, respectively, for one performance guarantee related to a hotel owned by a VIE for which we were not the primary beneficiary. We may enter into new contracts containing performance guarantees in the future, which could increase our possible cash outlays. We do not have any letters of credit pledged as collateral against our performance guarantees.

As of September 30, 2019, we guaranteed two loans for three hotels that we franchise or will franchise for a total of $30 million. One of the loans has an initial maturity date in 2022 with two one-year extension options and the other loan will mature in 2023. Although we believe it is unlikely that material payments will be required under these guarantees, there can be no assurance that this will be the case. We do not have any letters of credit pledged as collateral against these guarantees.

We hold interests in VIEs, for which we are not the primary beneficiary, that have entered into loan agreements with third parties. Under the terms of our contractual arrangements with certain of these VIEs, we may provide financial support to such entities under specified circumstances, including default of such a VIE under a third-party loan agreement, and may have the option to acquire a controlling financial interest in such an entity at a predetermined amount. In a circumstance that we provide financial support or exercise our option to acquire an additional interest in a VIE, we may be required to reassess whether we are the primary beneficiary of the VIE. If we determine that we are the primary beneficiary of the VIE, we would be required to consolidate the total assets, liabilities and results of operations of the VIE, which may be material upon consolidation.

We have entered into agreements with owners of certain hotels that we currently manage or will franchise to finance capital expenditures at the hotels. As of September 30, 2019, we had remaining possible cash outlays of approximately $25 million, of which we expect to fund $15 million in the remainder of 2019 and $10 million in 2020.

We receive fees from managed and franchised properties to operate our marketing, sales and brand programs on behalf of hotel owners. As of September 30, 2019 and December 31, 2018, we had collected an aggregate of $397 million and $375 million in excess of amounts expended, respectively, across all programs.

We are involved in various claims and lawsuits arising in the ordinary course of business, some of which include claims for substantial sums. While the ultimate results of claims and litigation cannot be predicted with certainty, we expect that the

ultimate resolution of all pending or threatened claims and litigation as of September 30, 2019 will not have a material adverse effect on our consolidated financial position, results of operations or cash flows.

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Consolidated Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2019

Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract]

Schedule of Variable Interest Entities

Our condensed consolidated balance sheets included the assets and liabilities of the VIEs that we consolidated as of the respective periods, which primarily comprised the following:

	September 30,		December 31,
	2019		2018
	(in millions)
Cash and cash equivalents	$	81	$	71
Property and equipment, net	71		68
Deferred income tax assets	50		53
Other non-current assets	61		58
Accounts payable, accrued expenses and other	59		41
Long-term debt(1)	200		205
Other long-term liabilities	15		15

____________

⁽¹⁾Includes finance lease liabilities of $182 million and $187 million as of September 30, 2019 and December 31, 2018, respectively.

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Basis of Presentation and Summary of Significant Accounting Policies Additional Information (Details) - Accounting Standards Update 2016-02 [Member] - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of the adoption of an ASU	$ (256)	$ 256
Tax effect related to the cumulative effect of the adoption of an ASU	$ 81

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Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Schedule of Stockholders' Equity (Deficit)

The following tables present the changes in the components of stockholders' equity (deficit) for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30, 2019
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of June 30, 2019	288	$	3	$	(3,304)	$	10,419	$	(6,342)	$	(806)	$	7	$	(23)
Net income	—	—		—		—		288		—		2		290
Other comprehensive loss	—	—		—		—		—		(42)		—		(42)
Dividends	—	—		—		—		(43)		—		—		(43)
Repurchases of common stock	(5)	—		(422)		—		—		—		—		(422)
Share-based compensation	—	—		—		41		—		—		—		41
Balance as of September 30, 2019	283	$	3	$	(3,726)	$	10,460	$	(6,097)	$	(848)	$	9	$	(199)

	Three Months Ended September 30, 2018
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of June 30, 2018	298	$	3	$	(2,330)	$	10,321	$	(6,697)	$	(742)	$	5	$	560
Net income	—	—		—		—		162		—		2		164
Other comprehensive loss	—	—		—		—		—		(4)		—		(4)
Dividends	—	—		—		—		(45)		—		—		(45)
Repurchases of common stock	(1)	—		(122)		—		—		—		—		(122)
Share-based compensation	—	—		—		31		—		—		—		31
Acquisition of noncontrolling interest	—	—		—		(3)		—		—		—		(3)
Distributions	—	—		—		—		—		—		(1)		(1)
Balance as of September 30, 2018	297	$	3	$	(2,452)	$	10,349	$	(6,580)	$	(746)	$	6	$	580

	Nine Months Ended September 30, 2019
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of December 31, 2018	295	$	3	$	(2,625)	$	10,372	$	(6,417)	$	(782)	$	7	$	558
Net income	—	—		—		—		706		—		4		710
Other comprehensive loss	—	—		—		—		—		(66)		—		(66)
Dividends	—	—		—		—		(130)		—		—		(130)
Repurchases of common stock	(13)	—		(1,101)		—		—		—		—		(1,101)
Share-based compensation	1	—		—		88		—		—		—		88
Cumulative effect of the adoption of ASU 2016-02	—	—		—		—		(256)		—		—		(256)
Deconsolidation of a VIE	—	—		—		—		—		—		(2)		(2)
Balance as of September 30, 2019	283	$	3	$	(3,726)	$	10,460	$	(6,097)	$	(848)	$	9	$	(199)

	Nine Months Ended September 30, 2018
	Equity (Deficit) Attributable to Hilton Stockholders
				Treasury Stock		Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss
	Common Stock											Noncontrolling Interests
	Shares	Amount												Total
	(in millions)
Balance as of December 31, 2017	317	$	3	$	(891)	$	10,298	$	(6,981)	$	(741)	$	3	$	1,691
Net income	—	—		—		—		540		—		4		544
Other comprehensive loss	—	—		—		—		—		(5)		—		(5)
Dividends	—	—		—		—		(139)		—		—		(139)
Repurchases of common stock	(21)	—		(1,561)		—		—		—		—		(1,561)
Share-based compensation	1	—		—		54		—		—		—		54
Acquisition of noncontrolling interest	—	—		—		(3)		—		—		—		(3)
Distributions	—	—		—		—		—		—		(1)		(1)
Balance as of September 30, 2018	297	$	3	$	(2,452)	$	10,349	$	(6,580)	$	(746)	$	6	$	580

Schedule of Accumulated Other Comprehensive Loss

The changes in the components of accumulated other comprehensive loss, net of taxes, were as follows:

	Currency Translation Adjustment(1)		Pension Liability Adjustment		Cash Flow Hedge Adjustment		Total
	(in millions)
Balance as of December 31, 2018	$	(545)	$	(260)	$	23	$	(782)
Other comprehensive loss before reclassifications	(24)		(1)		(40)		(65)
Amounts reclassified from accumulated other comprehensive loss	1		6		(8)		(1)
Net current period other comprehensive income (loss)	(23)		5		(48)		(66)
Balance as of September 30, 2019	$	(568)	$	(255)	$	(25)	$	(848)

	Currency Translation Adjustment(1)		Pension Liability Adjustment		Cash Flow Hedge Adjustment		Total
	(in millions)
Balance as of December 31, 2017	$	(513)	$	(229)	$	1	$	(741)
Other comprehensive income (loss) before reclassifications	(56)		(2)		41		(17)
Amounts reclassified from accumulated other comprehensive loss	—		6		6		12
Net current period other comprehensive income (loss)	(56)		4		47		(5)
Balance as of September 30, 2018	$	(569)	$	(225)	$	48	$	(746)

____________

⁽¹⁾Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature.

Reclassification out of Accumulated Other Comprehensive Loss

The following table presents additional information about reclassifications out of accumulated other comprehensive loss; amounts in parentheses indicate losses in our condensed consolidated statements of operations:

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
	(in millions)
Currency translation adjustment:
Liquidation of investments in foreign entities(1)	$	—	$	(1)
Total currency translation adjustment reclassifications for the period, net of taxes	—		(1)
Pension liability adjustment:
Amortization of prior service cost(2)	(1)		(3)
Amortization of net loss(2)	(2)		(5)
Tax benefit(3)	1		2
Total pension liability adjustment reclassifications for the period, net of taxes	(2)		(6)
Cash flow hedge adjustment:
Interest rate swaps(4)	2		8
Forward contracts(5)	2		2
Tax expense(3)	(1)		(2)
Total cash flow hedge adjustment reclassifications for the period, net of taxes	3		8
Total reclassifications for the period, net of taxes	$	1	$	1

____________

⁽¹⁾Includes a gain on the related net investment hedge for one of the foreign entities. Reclassified to gain (loss) on foreign currency transactions in our condensed consolidated statements of operations. The related tax benefit reclassified to income tax expense in our condensed consolidated statements of operations was less than $1 million.

⁽²⁾Reclassified to other non-operating income (loss), net in our condensed consolidated statements of operations.

⁽³⁾Reclassified to income tax expense in our condensed consolidated statements of operations.

⁽⁴⁾Reclassified to interest expense in our condensed consolidated statements of operations.

⁽⁵⁾Reclassified to franchise and licensing fees and base and other management fees in our condensed consolidated statements of operations.

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Disposal	9 Months Ended
	Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Disposal	Disposal In September 2019, we completed the sale of the Hilton Odawara Resort & Spa ("Hilton Odawara") for a price of 13 billion Japanese yen (equivalent to $122 million as of the closing date) and subsequently entered into a 30-year management contract with the purchaser of the hotel. As a result of the sale, we recognized a pre-tax gain of $81 million included in gain on sale of assets, net in our condensed consolidated statements of operations for the three and nine months ended September 30, 2019.

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Debt

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Debt

Debt

Long-term debt balances, including obligations for finance leases, and associated interest rates and maturities as of September 30, 2019, were as follows:

	September 30,		December 31,
	2019		2018
	(in millions)
Senior secured term loan facility with a rate of 3.77%, due 2026	$	2,619	$	3,119
Senior notes with a rate of 4.250%, due 2024	1,000		1,000
Senior notes with a rate of 4.625%, due 2025	900		900
Senior notes with a rate of 5.125%, due 2026	1,500		1,500
Senior notes with a rate of 4.875%, due 2027	600		600
Senior notes with a rate of 4.875%, due 2030	1,000		—
Finance lease liabilities with a weighted average rate of 5.77%, due 2019 to 2030	255		225
Other debt with a rate of 3.08% due 2026	17		17
	7,891		7,361
Less: unamortized deferred financing costs and discount	(86)		(79)
Less: current maturities of long-term debt(1)	(38)		(16)
	$	7,767	$	7,266

____________

⁽¹⁾Represents current maturities of finance lease liabilities.

Our senior secured credit facilities consist of a senior secured revolving credit facility (the "Revolving Credit Facility") and a senior secured term loan facility (the "Term Loans"). The obligations of our senior secured credit facilities are unconditionally and irrevocably guaranteed by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries.

In June 2019, we amended the Term Loans to extend the maturity date to June 2026 with a discount of 0.25 percent. In June 2019, we also amended the Revolving Credit Facility to increase the borrowing capacity to $1.75 billion, $250 million of which is available in the form of letters of credit, and extended the maturity date to June 2024. In connection with this amendment, we incurred $7 million of debt issuance costs, which were included in other non-current assets in our condensed consolidated balance sheet as of September 30, 2019. As of September 30, 2019, we had $59 million of outstanding letters of credit, resulting in an available borrowing capacity under the Revolving Credit Facility of $1.69 billion. We are required to pay a commitment fee of 0.125 percent per annum under the Revolving Credit Facility in respect of the unused commitments thereunder.

In June 2019, we issued $1.0 billion aggregate principal amount of 4.875% Senior Notes due 2030 (the "2030 Senior Notes") and incurred $15 million of debt issuance costs. Interest on the 2030 Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning January 2020. We used a portion of the net proceeds from the issuance of the 2030 Senior Notes to repay $500 million outstanding on our Term Loans and to repay $225 million outstanding under our Revolving Credit Facility. In connection with the amendment and the repayment of the Term Loans, we recognized $10 million of fees and unamortized deferred financing costs and discount, which were included in other non-operating income, net in our condensed consolidated statement of operations for the nine months ended September 30, 2019.

The 4.250% Senior Notes due 2024 (the "2024 Senior Notes"), the 4.625% Senior Notes due 2025 (the "2025 Senior Notes"), the 5.125% Senior Notes due 2026 (the "2026 Senior Notes"), the 4.875% Senior Notes due 2027 (the "2027 Senior Notes") and the 2030 Senior Notes are guaranteed on a senior unsecured basis by the Parent and substantially all of its direct and indirect wholly owned domestic subsidiaries that are themselves not issuers of the applicable series of senior notes. See Note 16: "Condensed Consolidating Guarantor Financial Information" for additional information.

The contractual maturities of our long-term debt as of September 30, 2019 were as follows:

Year	(in millions)
2019 (remaining)	$	10
2020	37
2021	30
2022	21
2023	20
Thereafter	7,773
	$	7,891

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Share-Based Compensation

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

Share-Based Compensation

We grant time-vesting restricted stock units and restricted stock (collectively, "RSUs"), nonqualified stock options ("options") and performance-vesting RSUs ("performance shares") to our employees and deferred share units ("DSUs") to members of our board of directors. We recognized share-based compensation expense of $42 million and $35 million during the three months ended September 30, 2019 and 2018, respectively, and $123 million and $103 million during the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, unrecognized compensation costs for unvested awards was approximately $153 million, which are expected to be recognized over a weighted-average period of 1.8 years on a straight-line basis. As of September 30, 2019, there were 14.2 million shares of common stock available for future issuance under the Hilton 2017 Omnibus Incentive Plan, plus any shares subject to awards outstanding under our 2013 Omnibus Incentive Plan, which will become available for issuance under the Hilton 2017 Omnibus Incentive Plan if such outstanding awards expire or are terminated or are canceled or forfeited.

RSUs

During the nine months ended September 30, 2019, we granted 1.0 million RSUs with a weighted average grant date fair value per share of $83.41, which generally vest in equal annual installments over two or three years from the date of grant.

Options

During the nine months ended September 30, 2019, we granted 0.8 million options with a weighted average exercise price per share of $83.11, which vest over three years from the date of grant in equal annual installments and terminate 10 years from the date of grant or earlier if the individual’s service terminates under certain circumstances.

The weighted average grant date fair value per share of the options granted during the nine months ended September 30, 2019 was $21.08, which was determined using the Black-Scholes-Merton option-pricing model with the following assumptions:

Expected volatility(1)	23.51	%
Dividend yield(2)	0.81	%
Risk-free rate(3)	2.47	%
Expected term (in years)(4)	6.0

____________

⁽¹⁾Estimated using historical movement of Hilton's stock price.

⁽²⁾Estimated based on the quarterly dividend and the three-month average stock price at the date of grant.

⁽³⁾Based on the yields of U.S. Department of Treasury instruments with similar expected lives.

⁽⁴⁾Estimated using the average of the vesting periods and the contractual term of the options.

As of September 30, 2019, 1.5 million options were exercisable.

Performance Shares

During the nine months ended September 30, 2019, we granted 0.4 million performance shares with a weighted average grant date fair value per share of $83.11. The performance shares are settled at the end of the three-year performance period with: (i) 50 percent of the awards subject to achievement based on the compound annual growth rate ("CAGR") of the Company's earnings before interest expense, a provision for income taxes and depreciation and amortization ("EBITDA"), adjusted to exclude certain items ("Adjusted EBITDA"), referred to as EBITDA CAGR and (ii) 50 percent of the awards subject to achievement based on the Company’s free cash flow ("FCF") per share CAGR, referred to as FCF CAGR. The total number of performance shares that vest related to each performance measure is based on an achievement factor that ranges from a zero percent to 200 percent payout, with 100 percent being the target. As of September 30, 2019, we determined that the performance conditions for the performance shares are probable of achievement, and we recognized compensation expense, for both our outstanding EBITDA CAGR and FCF CAGR performance shares, at the maximum achievement percentage for the 2017 and 2018 performance shares and at target for the 2019 performance shares.

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Condensed Consolidating Guarantor Financial Information - Condensed Income Statement (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Condensed Income Statements, Captions [Line Items]
Revenues	$ 2,395	$ 2,253	$ 7,083	$ 6,618
Depreciation and amortization	86	81	256	242
General and administrative	107	109	327	328
Other expenses	11	10	46	36
Total expenses excluding reimbursable expenses	514	531	1,571	1,609
Total expenses	1,957	1,868	5,855	5,548
Gain on sale of assets, net	81	0	81	0
Operating income (loss)	519	385	1,309	1,070
Interest expense	(105)	(99)	(304)	(277)
Foreign Currency Transaction Gain (Loss), before Tax	7	(6)	4	(7)
Other non-operating income (loss), net	0	13	(8)	26
Income (loss) before income taxes and equity in earnings from subsidiaries	421	293	1,001	812
Income Tax Expense (Benefit)	(131)	(129)	(291)	(268)
Income (loss) before equity in earnings from subsidiaries	290	164	710	544
Equity in earnings from subsidiaries	0	0	0	0
Net income	290	164	710	544
Net income attributable to noncontrolling interests	(2)	(2)	(4)	(4)
Net income attributable to Hilton stockholders	288	162	706	540
Comprehensive income	248	160	644	539
Comprehensive income attributable to noncontrolling interests	(2)	(2)	(4)	(4)
Comprehensive income attributable to Hilton stockholders	246	158	640	535
Franchise and licensing fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	443	407	1,269	1,142
Base and other management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	80	80	249	241
Incentive management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	54	57	167	171
Owned and leased hotels [member]
Condensed Income Statements, Captions [Line Items]
Revenues	361	373	1,060	1,099
Expenses	310	331	942	1,003
Other revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	23	27	75	72
Total revenues excluding reimbursable revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	961	944	2,820	2,725
Other revenues from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Revenues	1,434	1,309	4,263	3,893
Other expenses from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Expenses	1,443	1,337	4,284	3,939
Eliminations [member]
Condensed Income Statements, Captions [Line Items]
Revenues	(4)	(1)	(13)	(13)
Depreciation and amortization	0	0	0	0
General and administrative	(9)	(2)	(22)	(6)
Other expenses	5	1	9	(7)
Total expenses excluding reimbursable expenses	(4)	(1)	(13)	(13)
Total expenses	(4)	(1)	(13)	(13)
Gain on sale of assets, net	0		0
Operating income (loss)	0	0	0	0
Interest expense	0	(3)	0	0
Foreign Currency Transaction Gain (Loss), before Tax	0	0	0	0
Other non-operating income (loss), net	0	3	0	0
Income (loss) before income taxes and equity in earnings from subsidiaries	0	0	0	0
Income Tax Expense (Benefit)	0	0	0	0
Income (loss) before equity in earnings from subsidiaries	0	0	0	0
Equity in earnings from subsidiaries	(1,282)	(781)	(3,214)	(2,558)
Net income	(1,282)	(781)	(3,214)	(2,558)
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to Hilton stockholders	(1,282)	(781)	(3,214)	(2,558)
Comprehensive income	(1,240)	(777)	(3,148)	(2,553)
Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to Hilton stockholders	(1,240)	(777)	(3,148)	(2,553)
Eliminations [member] | Franchise and licensing fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	(4)	(5)	(13)	(13)
Eliminations [member] | Base and other management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Eliminations [member] | Incentive management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Eliminations [member] | Owned and leased hotels [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	0	0	0	0
Eliminations [member] | Other revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	4	0	0
Eliminations [member] | Total revenues excluding reimbursable revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	(4)	(1)	(13)	(13)
Eliminations [member] | Other revenues from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Eliminations [member] | Other expenses from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Expenses	0	0	0	0
HOC [Member]
Condensed Income Statements, Captions [Line Items]
Revenues	148	128	435	332
Depreciation and amortization	2	2	5	5
General and administrative	88	81	259	237
Other expenses	1	1	5	5
Total expenses excluding reimbursable expenses	91	84	269	247
Total expenses	176	154	513	425
Gain on sale of assets, net	0		0
Operating income (loss)	(28)	(26)	(78)	(93)
Interest expense	(49)	(34)	(117)	(78)
Foreign Currency Transaction Gain (Loss), before Tax	4	0	5	3
Other non-operating income (loss), net	0	1	0	5
Income (loss) before income taxes and equity in earnings from subsidiaries	(73)	(59)	(190)	(163)
Income Tax Expense (Benefit)	15	8	42	35
Income (loss) before equity in earnings from subsidiaries	(58)	(51)	(148)	(128)
Equity in earnings from subsidiaries	382	254	975	803
Net income	324	203	827	675
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to Hilton stockholders	324	203	827	675
Comprehensive income	324	204	830	677
Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to Hilton stockholders	324	204	830	677
HOC [Member] | Franchise and licensing fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	68	57	198	151
HOC [Member] | Base and other management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	1	0	1	1
HOC [Member] | Incentive management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
HOC [Member] | Owned and leased hotels [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	0	0	0	0
HOC [Member] | Other revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	1	1	4
HOC [Member] | Total revenues excluding reimbursable revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	69	58	200	156
HOC [Member] | Other revenues from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Revenues	79	70	235	176
HOC [Member] | Other expenses from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Expenses	85	70	244	178
HWF Issuers [Member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Depreciation and amortization	0	0	0	0
General and administrative	0	0	0	0
Other expenses	0	0	0	0
Total expenses excluding reimbursable expenses	0	0	0	0
Total expenses	0	0	0	0
Gain on sale of assets, net	0		0
Operating income (loss)	0	0	0	0
Interest expense	(45)	(54)	(148)	(172)
Foreign Currency Transaction Gain (Loss), before Tax	0	0	0	0
Other non-operating income (loss), net	(2)	0	(11)	(7)
Income (loss) before income taxes and equity in earnings from subsidiaries	(47)	(54)	(159)	(179)
Income Tax Expense (Benefit)	11	13	38	44
Income (loss) before equity in earnings from subsidiaries	(36)	(41)	(121)	(135)
Equity in earnings from subsidiaries	324	203	827	675
Net income	288	162	706	540
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to Hilton stockholders	288	162	706	540
Comprehensive income	279	168	657	585
Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to Hilton stockholders	279	168	657	585
HWF Issuers [Member] | Franchise and licensing fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
HWF Issuers [Member] | Base and other management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
HWF Issuers [Member] | Incentive management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
HWF Issuers [Member] | Owned and leased hotels [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	0	0	0	0
HWF Issuers [Member] | Other revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
HWF Issuers [Member] | Total revenues excluding reimbursable revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
HWF Issuers [Member] | Other revenues from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
HWF Issuers [Member] | Other expenses from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Expenses	0	0	0	0
Guarantor Subsidiaries [Member]
Condensed Income Statements, Captions [Line Items]
Revenues	1,617	1,475	4,831	4,429
Depreciation and amortization	63	58	188	176
General and administrative	0	0	0	0
Other expenses	0	2	10	17
Total expenses excluding reimbursable expenses	63	60	198	193
Total expenses	1,263	1,166	3,800	3,497
Gain on sale of assets, net	0		0
Operating income (loss)	354	309	1,031	932
Interest expense	0	0	0	0
Foreign Currency Transaction Gain (Loss), before Tax	(43)	1	(70)	(80)
Other non-operating income (loss), net	(3)	4	(8)	16
Income (loss) before income taxes and equity in earnings from subsidiaries	308	314	953	868
Income Tax Expense (Benefit)	(79)	(70)	(238)	(204)
Income (loss) before equity in earnings from subsidiaries	229	244	715	664
Equity in earnings from subsidiaries	288	162	706	540
Net income	517	406	1,421	1,204
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to Hilton stockholders	517	406	1,421	1,204
Comprehensive income	516	405	1,420	1,203
Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to Hilton stockholders	516	405	1,420	1,203
Guarantor Subsidiaries [Member] | Franchise and licensing fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	338	316	970	900
Guarantor Subsidiaries [Member] | Base and other management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	48	49	157	155
Guarantor Subsidiaries [Member] | Incentive management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	16	15	60	58
Guarantor Subsidiaries [Member] | Owned and leased hotels [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	0	0	0	0
Guarantor Subsidiaries [Member] | Other revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	20	19	63	60
Guarantor Subsidiaries [Member] | Total revenues excluding reimbursable revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	422	399	1,250	1,173
Guarantor Subsidiaries [Member] | Other revenues from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Revenues	1,195	1,076	3,581	3,256
Guarantor Subsidiaries [Member] | Other expenses from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Expenses	1,200	1,106	3,602	3,304
Non-Guarantor Subsidiaries [Member]
Condensed Income Statements, Captions [Line Items]
Revenues	634	651	1,830	1,870
Depreciation and amortization	21	21	63	61
General and administrative	28	30	90	97
Other expenses	5	6	22	21
Total expenses excluding reimbursable expenses	364	388	1,117	1,182
Total expenses	522	549	1,555	1,639
Gain on sale of assets, net	81		81
Operating income (loss)	193	102	356	231
Interest expense	(11)	(8)	(39)	(27)
Foreign Currency Transaction Gain (Loss), before Tax	46	(7)	69	70
Other non-operating income (loss), net	5	5	11	12
Income (loss) before income taxes and equity in earnings from subsidiaries	233	92	397	286
Income Tax Expense (Benefit)	(78)	(80)	(133)	(143)
Income (loss) before equity in earnings from subsidiaries	155	12	264	143
Equity in earnings from subsidiaries	0	0	0	0
Net income	155	12	264	143
Net income attributable to noncontrolling interests	(2)	(2)	(4)	(4)
Net income attributable to Hilton stockholders	153	10	260	139
Comprehensive income	123	2	245	92
Comprehensive income attributable to noncontrolling interests	(2)	(2)	(4)	(4)
Comprehensive income attributable to Hilton stockholders	121	0	241	88
Non-Guarantor Subsidiaries [Member] | Franchise and licensing fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	41	39	114	104
Non-Guarantor Subsidiaries [Member] | Base and other management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	31	31	91	85
Non-Guarantor Subsidiaries [Member] | Incentive management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	38	42	107	113
Non-Guarantor Subsidiaries [Member] | Owned and leased hotels [member]
Condensed Income Statements, Captions [Line Items]
Revenues	361	373	1,060	1,099
Expenses	310	331	942	1,003
Non-Guarantor Subsidiaries [Member] | Other revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	3	3	11	8
Non-Guarantor Subsidiaries [Member] | Total revenues excluding reimbursable revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	474	488	1,383	1,409
Non-Guarantor Subsidiaries [Member] | Other revenues from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Revenues	160	163	447	461
Non-Guarantor Subsidiaries [Member] | Other expenses from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Expenses	158	161	438	457
Parent [Member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Depreciation and amortization	0	0	0	0
General and administrative	0	0	0	0
Other expenses	0	0	0	0
Total expenses excluding reimbursable expenses	0	0	0	0
Total expenses	0	0	0	0
Gain on sale of assets, net	0		0
Operating income (loss)	0	0	0	0
Interest expense	0	0	0	0
Foreign Currency Transaction Gain (Loss), before Tax	0	0	0	0
Other non-operating income (loss), net	0	0	0	0
Income (loss) before income taxes and equity in earnings from subsidiaries	0	0	0	0
Income Tax Expense (Benefit)	0	0	0	0
Income (loss) before equity in earnings from subsidiaries	0	0	0	0
Equity in earnings from subsidiaries	288	162	706	540
Net income	288	162	706	540
Net income attributable to noncontrolling interests	0	0	0	0
Net income attributable to Hilton stockholders	288	162	706	540
Comprehensive income	246	158	640	535
Comprehensive income attributable to noncontrolling interests	0	0	0	0
Comprehensive income attributable to Hilton stockholders	246	158	640	535
Parent [Member] | Franchise and licensing fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Parent [Member] | Base and other management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Parent [Member] | Incentive management fees [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Parent [Member] | Owned and leased hotels [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Expenses	0	0	0	0
Parent [Member] | Other revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Parent [Member] | Total revenues excluding reimbursable revenues [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Parent [Member] | Other revenues from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Revenues	0	0	0	0
Parent [Member] | Other expenses from managed and franchised properties [member]
Condensed Income Statements, Captions [Line Items]
Expenses	$ 0	$ 0	$ 0	$ 0

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Leases Components of Lease Expense 2018 (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Lessee Disclosure [Abstract]
Operating lease, fixed lease expense	$ 225
Operating lease, variable lease expense	$ 142

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Income Taxes - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 330	$ 318
Accrual for interest and penalties	46	40
Unrecognized tax benefits that would impact effective tax rate	318	$ 310
Income tax examination, estimate of possible loss	817
Accrual related to IRS proposed additional tax owed	$ 56

XML

Organization (Details)	Sep. 30, 2019 Country Hotel Room
Organization and Basis of Presentation [Line Items]
Number of hotel and resort properties | Hotel	5,980
Number of hotel and resort rooms | Room	954,855
Number of countries and territories | Country	117

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share ("EPS"):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions, except per share amounts)
Basic EPS:
Numerator:
Net income attributable to Hilton stockholders	$	288	$	162	$	706	$	540
Denominator:
Weighted average shares outstanding	285		297		289		305
Basic EPS	$	1.01	$	0.55	$	2.44	$	1.77
Diluted EPS:
Numerator:
Net income attributable to Hilton stockholders	$	288	$	162	$	706	$	540
Denominator:
Weighted average shares outstanding	288		300		292		307
Diluted EPS	$	1.00	$	0.54	$	2.42	$	1.76

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Earnings Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following table presents the calculation of basic and diluted earnings per share ("EPS"):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions, except per share amounts)
Basic EPS:
Numerator:
Net income attributable to Hilton stockholders	$	288	$	162	$	706	$	540
Denominator:
Weighted average shares outstanding	285		297		289		305
Basic EPS	$	1.01	$	0.55	$	2.44	$	1.77
Diluted EPS:
Numerator:
Net income attributable to Hilton stockholders	$	288	$	162	$	706	$	540
Denominator:
Weighted average shares outstanding	288		300		292		307
Diluted EPS	$	1.00	$	0.54	$	2.42	$	1.76

Approximately 1 million share-based compensation awards were excluded from the computation of diluted EPS for the three and nine months ended September 30, 2019 and 2018 because their effect would have been anti-dilutive under the treasury stock method.

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Revenues from Contracts with Customers

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

Revenues from Contracts with Customers

Contract Liabilities

The following table summarizes the activity of our contract liabilities, which are classified as a component of current and long-term deferred revenues, during the nine months ended September 30, 2019:

	(in millions)
Balance as of December 31, 2018	$	1,060
Cash received in advance and not recognized as revenue(1)	329
Revenue recognized(1)	(197)
Other(2)	(125)
Balance as of September 30, 2019	$	1,067

____________

⁽¹⁾Primarily related to Hilton Honors, our guest loyalty program.

⁽²⁾Primarily the result of changes in estimated transaction prices for our performance obligations related to points issued under Hilton Honors, which had no effect on revenues.

We recognized revenues that were previously deferred as contract liabilities of $62 million and $33 million during the three months ended September 30, 2019 and 2018, respectively, and $149 million during the nine months ended September 30, 2018.

Performance Obligations

As of September 30, 2019, we had $442 million of deferred revenues related to unsatisfied performance obligations related to Hilton Honors that will be recognized as revenues when the points are redeemed, which we estimate will occur over the next two years. Additionally, we had $625 million of deferred revenues related to application, initiation and licensing fees, which are expected to be recognized as revenues in future periods over the terms of the related contracts.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We did not elect the fair value measurement option for any of our financial assets or liabilities. The fair values of certain financial instruments and the hierarchy level we used to estimate the fair values are shown below; the fair values of financial instruments not included in these tables are estimated to be equal to their carrying values as of September 30, 2019 and December 31, 2018:

	September 30, 2019
			Hierarchy Level
	Carrying Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	174	$	—	$	174	$	—
Restricted cash equivalents	33		—		33		—
Liabilities:
Long-term debt(1)	7,533		5,217		—		2,639
Interest rate swaps	45		—		45		—

	December 31, 2018
			Hierarchy Level
	Carrying Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Cash equivalents	$	87	$	—	$	87	$	—
Restricted cash equivalents	18		—		18		—
Interest rate swaps	16		—		16		—
Liabilities:
Long-term debt(1)	7,040		3,809		—		3,039

____________

⁽¹⁾The carrying values include unamortized deferred financing costs and discount. The carrying values and fair values exclude finance lease liabilities and other debt.

We measure our interest rate swaps at fair value, which were estimated using a discounted cash flow analysis that reflects the contractual terms of the interest rate swaps, including the period to maturity, and uses observable market-based inputs of similar instruments, including interest rate curves, as applicable. Our interest rate swaps are included in other non-current assets or other long-term liabilities in our condensed consolidated balance sheets depending on their fair value as of the balance sheet date.

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Condensed Consolidating Guarantor Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Millions		Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents		$ 719		$ 403
Restricted cash and cash equivalents		90		81
Accounts receivable, net		1,193		1,150
Intercompany receivables		0		0
Prepaid expenses		115		160
Other		138		189
Total current assets		2,255		1,983
Intangibles and Other Assets:
Investments in subsidiaries		0		0
Goodwill		5,137		5,160
Brands		4,864		4,869
Management and franchise contracts, net		794		872
Other intangible assets, net		404		415
Operating lease right-of-use assets		839		0
Property and equipment, net		380		367
Deferred income tax assets		146		90
Other		248		239
Total intangibles and other assets		12,812		12,012
Total assets		15,067		13,995
Current Liabilities:
Accounts payable, accrued expenses and other		1,784		1,549
Current maturities of long-term debt	[1]	38		16
Current portion of deferred revenues		290		350
Intercompany payables		0		0
Total current liabilities		2,900		2,615
Long-term debt		7,767		7,266
Operating lease liabilities		1,004		0
Deferred revenues		834		826
Deferred income tax liabilities		873		898
Other		884		863
Total liabilities		15,266		13,437
Equity (Deficit):
Total Hilton stockholders' equity (deficit)		(208)		551
Noncontrolling interests		9		7
Total equity (deficit)		(199)	$ (23)	558	$ 580	$ 560	$ 1,691
Total liabilities and equity (deficit)		15,067		13,995
Eliminations [member]
Current Assets:
Cash and cash equivalents		0		0
Restricted cash and cash equivalents		0		0
Accounts receivable, net		(2)		0
Intercompany receivables		(39)		(40)
Prepaid expenses		(5)		(9)
Other		(24)		(3)
Total current assets		(70)		(52)
Intangibles and Other Assets:
Investments in subsidiaries		(11,283)		(14,175)
Goodwill		0		0
Brands		0		0
Management and franchise contracts, net		0		0
Other intangible assets, net		0		0
Operating lease right-of-use assets		0
Property and equipment, net		0		0
Deferred income tax assets		(99)		(98)
Other		0		0
Total intangibles and other assets		(11,382)		(14,273)
Total assets		(11,452)		(14,325)
Current Liabilities:
Accounts payable, accrued expenses and other		(22)		(3)
Current maturities of long-term debt		0		0
Current portion of deferred revenues		(9)		(9)
Intercompany payables		(39)		(40)
Total current liabilities		(70)		(52)
Long-term debt		0		0
Operating lease liabilities		0
Deferred revenues		0		0
Deferred income tax liabilities		(99)		(98)
Other		0		0
Total liabilities		(169)		(150)
Equity (Deficit):
Total Hilton stockholders' equity (deficit)		(11,283)		(14,175)
Noncontrolling interests		0		0
Total equity (deficit)		(11,283)		(14,175)
Total liabilities and equity (deficit)		(11,452)		(14,325)
HOC [Member]
Current Assets:
Cash and cash equivalents		17		3
Restricted cash and cash equivalents		34		34
Accounts receivable, net		13		10
Intercompany receivables		0		0
Prepaid expenses		26		52
Other		1		1
Total current assets		91		100
Intangibles and Other Assets:
Investments in subsidiaries		7,709		7,930
Goodwill		0		0
Brands		0		0
Management and franchise contracts, net		1		0
Other intangible assets, net		0		0
Operating lease right-of-use assets		34
Property and equipment, net		60		27
Deferred income tax assets		85		94
Other		31		33
Total intangibles and other assets		7,920		8,084
Total assets		8,011		8,184
Current Liabilities:
Accounts payable, accrued expenses and other		264		229
Current maturities of long-term debt		20		0
Current portion of deferred revenues		38		106
Intercompany payables		39		40
Total current liabilities		361		375
Long-term debt		3,474		2,467
Operating lease liabilities		39
Deferred revenues		0		0
Deferred income tax liabilities		0		0
Other		189		211
Total liabilities		4,063		3,053
Equity (Deficit):
Total Hilton stockholders' equity (deficit)		3,948		5,131
Noncontrolling interests		0		0
Total equity (deficit)		3,948		5,131
Total liabilities and equity (deficit)		8,011		8,184
HWF Issuers [Member]
Current Assets:
Cash and cash equivalents		0		0
Restricted cash and cash equivalents		0		0
Accounts receivable, net		0		0
Intercompany receivables		0		0
Prepaid expenses		0		0
Other		3		1
Total current assets		3		1
Intangibles and Other Assets:
Investments in subsidiaries		3,948		5,131
Goodwill		0		0
Brands		0		0
Management and franchise contracts, net		0		0
Other intangible assets, net		0		0
Operating lease right-of-use assets		0
Property and equipment, net		0		0
Deferred income tax assets		11		0
Other		11		23
Total intangibles and other assets		3,970		5,154
Total assets		3,973		5,155
Current Liabilities:
Accounts payable, accrued expenses and other		37		19
Current maturities of long-term debt		0		0
Current portion of deferred revenues		0		0
Intercompany payables		0		0
Total current liabilities		37		19
Long-term debt		4,078		4,573
Operating lease liabilities		0
Deferred revenues		0		0
Deferred income tax liabilities		0		6
Other		45		0
Total liabilities		4,160		4,598
Equity (Deficit):
Total Hilton stockholders' equity (deficit)		(187)		557
Noncontrolling interests		0		0
Total equity (deficit)		(187)		557
Total liabilities and equity (deficit)		3,973		5,155
Parent [Member]
Current Assets:
Cash and cash equivalents		0		0
Restricted cash and cash equivalents		0		0
Accounts receivable, net		0		0
Intercompany receivables		0		0
Prepaid expenses		0		0
Other		0		0
Total current assets		0		0
Intangibles and Other Assets:
Investments in subsidiaries		(187)		557
Goodwill		0		0
Brands		0		0
Management and franchise contracts, net		0		0
Other intangible assets, net		0		0
Operating lease right-of-use assets		0
Property and equipment, net		0		0
Deferred income tax assets		3		4
Other		0		0
Total intangibles and other assets		(184)		561
Total assets		(184)		561
Current Liabilities:
Accounts payable, accrued expenses and other		24		10
Current maturities of long-term debt		0		0
Current portion of deferred revenues		0		0
Intercompany payables		0		0
Total current liabilities		24		10
Long-term debt		0		0
Operating lease liabilities		0
Deferred revenues		0		0
Deferred income tax liabilities		0		0
Other		0		0
Total liabilities		24		10
Equity (Deficit):
Total Hilton stockholders' equity (deficit)		(208)		551
Noncontrolling interests		0		0
Total equity (deficit)		(208)		551
Total liabilities and equity (deficit)		(184)		561
Guarantor Subsidiaries [Member]
Current Assets:
Cash and cash equivalents		26		17
Restricted cash and cash equivalents		23		15
Accounts receivable, net		850		735
Intercompany receivables		0		0
Prepaid expenses		37		37
Other		56		36
Total current assets		992		840
Intangibles and Other Assets:
Investments in subsidiaries		(187)		557
Goodwill		3,824		3,824
Brands		4,404		4,404
Management and franchise contracts, net		464		556
Other intangible assets, net		290		287
Operating lease right-of-use assets		9
Property and equipment, net		68		65
Deferred income tax assets		0		0
Other		37		22
Total intangibles and other assets		8,909		9,715
Total assets		9,901		10,555
Current Liabilities:
Accounts payable, accrued expenses and other		711		529
Current maturities of long-term debt		0		0
Current portion of deferred revenues		241		239
Intercompany payables		0		0
Total current liabilities		1,740		1,468
Long-term debt		0		0
Operating lease liabilities		7
Deferred revenues		764		762
Deferred income tax liabilities		957		962
Other		96		93
Total liabilities		4,568		4,254
Equity (Deficit):
Total Hilton stockholders' equity (deficit)		5,333		6,301
Noncontrolling interests		0		0
Total equity (deficit)		5,333		6,301
Total liabilities and equity (deficit)		9,901		10,555
Non-Guarantor Subsidiaries [Member]
Current Assets:
Cash and cash equivalents		676		383
Restricted cash and cash equivalents		33		32
Accounts receivable, net		332		405
Intercompany receivables		39		40
Prepaid expenses		57		80
Other		102		154
Total current assets		1,239		1,094
Intangibles and Other Assets:
Investments in subsidiaries		0		0
Goodwill		1,313		1,336
Brands		460		465
Management and franchise contracts, net		329		316
Other intangible assets, net		114		128
Operating lease right-of-use assets		796
Property and equipment, net		252		275
Deferred income tax assets		146		90
Other		169		161
Total intangibles and other assets		3,579		2,771
Total assets		4,818		3,865
Current Liabilities:
Accounts payable, accrued expenses and other		770		765
Current maturities of long-term debt		18		16
Current portion of deferred revenues		20		14
Intercompany payables		0		0
Total current liabilities		808		795
Long-term debt		215		226
Operating lease liabilities		958
Deferred revenues		70		64
Deferred income tax liabilities		15		28
Other		554		559
Total liabilities		2,620		1,672
Equity (Deficit):
Total Hilton stockholders' equity (deficit)		2,189		2,186
Noncontrolling interests		9		7
Total equity (deficit)		2,198		2,193
Total liabilities and equity (deficit)		4,818		3,865
Guest Loyalty Program [Member]
Current Liabilities:
Current portion of liability for guest loyalty program		788		700
Liability for guest loyalty program		1,004		969
Guest Loyalty Program [Member] | Eliminations [member]
Current Liabilities:
Current portion of liability for guest loyalty program		0		0
Liability for guest loyalty program		0		0
Guest Loyalty Program [Member] | HOC [Member]
Current Liabilities:
Current portion of liability for guest loyalty program		0		0
Liability for guest loyalty program		0		0
Guest Loyalty Program [Member] | HWF Issuers [Member]
Current Liabilities:
Current portion of liability for guest loyalty program		0		0
Liability for guest loyalty program		0		0
Guest Loyalty Program [Member] | Parent [Member]
Current Liabilities:
Current portion of liability for guest loyalty program		0		0
Liability for guest loyalty program		0		0
Guest Loyalty Program [Member] | Guarantor Subsidiaries [Member]
Current Liabilities:
Current portion of liability for guest loyalty program		788		700
Liability for guest loyalty program		1,004		969
Guest Loyalty Program [Member] | Non-Guarantor Subsidiaries [Member]
Current Liabilities:
Current portion of liability for guest loyalty program		0		0
Liability for guest loyalty program		$ 0		$ 0

[1] Represents current maturities of finance lease liabilities.

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Leases Supplemental Cash Flow Information Related to Leases (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Lessee Disclosure [Abstract]
Cash paid for amounts included in the measurement of lease liabilities: operating cash flows from operating leases	$ 130
Cash paid for amounts included in the measurement of lease liabilities: financing cash flows from finance leases	32
ROU assets obtained in exchange for lease liabilities in non-cash transactions: operating leases	21
ROU assets obtained in exchange for lease liabilities in non-cash transactions: finance leases	$ 59

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Share-Based Compensation - Schedule of Stock Options Valuation Assumptions (Details) - Employee stock option [member]	9 Months Ended
	Sep. 30, 2019 Rate
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	23.51%	[1]
Dividend yield	0.81%	[2]
Risk-free rate	2.47%	[3]
Expected term (in years)	6 years	[4]

[1] Estimated using historical movement of Hilton's stock price.

[2] Estimated based on the quarterly dividend and the three-month average stock price at the date of grant.

[3] Based on the yields of U.S. Department of Treasury instruments with similar expected lives.

[4] Estimated using the average of the vesting periods and the contractual term of the options.

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Commitments and Contingencies (Details) $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) Contract	Dec. 31, 2018 USD ($) Contract
Commitments and Contingencies [Line Items]
Current liabilities	$ 2,900	$ 2,615
Marketing, sales, and brand program commitments	397	375
Commitments to fund loans
Commitments and Contingencies [Line Items]
Commitment to fund loans	25
Commitment to fund loans, 2019	15
Commitment to fund loans, 2020	$ 10
Performance guarantees
Commitments and Contingencies [Line Items]
Number of contracts with guarantees | Contract	6
Guarantees, expiration	December 2019 to 2039
Guarantees, possible cash outlays	$ 38
Current liabilities	$ 3	$ 12
Number of hotels with performance guarantees with recorded liabilities | Contract	1	1
Debt guarantee
Commitments and Contingencies [Line Items]
Guarantees, expiration	One of the loans has an initial maturity date in 2022 with two one-year extension options and the other loan will mature in 2023
Guarantees, possible cash outlays	$ 30
Number of debt guarantees | Contract	2
Number of hotels with debt guarantees | Contract	3

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Stockholders' Equity (Deficit) and Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance				$ (782)
Amounts reclassified from accumulated other comprehensive loss		$ (1)		(1)
Ending balance		(848)		(848)
Currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	[1]			(545)	$ (513)
Other comprehensive income (loss) before reclassifications	[1]			(24)	(56)
Amounts reclassified from accumulated other comprehensive loss	[1]			1	0
Net current period other comprehensive income (loss)	[1]			(23)	(56)
Ending balance	[1]	(568)	$ (569)	(568)	(569)
Pension liability adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance				(260)	(229)
Other comprehensive income (loss) before reclassifications				(1)	(2)
Amounts reclassified from accumulated other comprehensive loss				6	6
Net current period other comprehensive income (loss)				5	4
Ending balance		(255)	(225)	(255)	(225)
Cash flow hedge adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance				23	1
Other comprehensive income (loss) before reclassifications				(40)	41
Amounts reclassified from accumulated other comprehensive loss				(8)	6
Net current period other comprehensive income (loss)				(48)	47
Ending balance		(25)	48	(25)	48
Accumulated other comprehensive loss [member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance				(782)	(741)
Other comprehensive income (loss) before reclassifications				(65)	(17)
Amounts reclassified from accumulated other comprehensive loss				(1)	12
Net current period other comprehensive income (loss)		(42)	(4)	(66)	(5)
Ending balance		$ (848)	$ (746)	$ (848)	$ (746)

[1] Includes net investment hedges and intra-entity foreign currency transactions that are of a long-term investment nature.

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Business Segments - Reconciliation of Revenue from Segment Amounts to Consolidated Amounts (Detail) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues		$ 2,395	$ 2,253	$ 7,083	$ 6,618
Amortization of contract acquisition costs		(7)	(6)	(21)	(20)
Franchise and licensing fees in segment revenues [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues		447	409	1,277	1,147
Base and other management fees in segment revenues [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	[1]	95	95	293	286
Incentive management fees in segment revenues [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues		54	57	167	171
Management and franchise [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues		596	561	1,737	1,604
Ownership [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues		361	373	1,060	1,099
Segment operating income [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues		957	934	2,797	2,703
Intersegment eliminations [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	[1]	(12)	(11)	(31)	(30)
Other revenues [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues		23	27	75	72
Direct reimbursements from managed and franchised properties [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	[2]	770	710	2,334	2,139
Indirect reimbursements from managed and franchised properties [member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	[2]	$ 664	$ 599	$ 1,929	$ 1,754

[1] Includes management, royalty and IP fees charged to our ownership segment by our management and franchise segment, which were eliminated in our condensed consolidated statements of operations.

[2] Included in other revenues from managed and franchised properties in our condensed consolidated statements of operations.

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Condensed Consolidated Statement of Operations Statement - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues	$ 2,395	$ 2,253	$ 7,083	$ 6,618
Depreciation and amortization	86	81	256	242
General and administrative	107	109	327	328
Other expenses	11	10	46	36
Total expenses excluding reimbursable expenses	514	531	1,571	1,609
Total expenses	1,957	1,868	5,855	5,548
Gain on sale of assets, net	81	0	81	0
Operating income	519	385	1,309	1,070
Interest expense	(105)	(99)	(304)	(277)
Gain (loss) on foreign currency transactions	7	(6)	4	(7)
Other non-operating income (loss), net	0	13	(8)	26
Income before income taxes	421	293	1,001	812
Income tax expense	(131)	(129)	(291)	(268)
Net income	290	164	710	544
Net income attributable to noncontrolling interests	(2)	(2)	(4)	(4)
Net income attributable to Hilton stockholders	$ 288	$ 162	$ 706	$ 540
Earnings Per Share, Basic [Abstract]
Basic EPS	$ 1.01	$ 0.55	$ 2.44	$ 1.77
Earnings Per Share, Diluted [Abstract]
Diluted EPS	1.00	0.54	2.42	1.76
Cash dividends declared per share	$ 0.15	$ 0.15	$ 0.45	$ 0.45
Franchise and licensing fees [Member]
Revenues	$ 443	$ 407	$ 1,269	$ 1,142
Base and other management fees [member]
Revenues	80	80	249	241
Incentive management fees [member]
Revenues	54	57	167	171
Owned and leased hotels [member]
Revenues	361	373	1,060	1,099
Expenses	310	331	942	1,003
Other revenues [member]
Revenues	23	27	75	72
Total revenues excluding reimbursable revenues [member]
Revenues	961	944	2,820	2,725
Other revenues from managed and franchised properties [member]
Revenues	1,434	1,309	4,263	3,893
Other expenses from managed and franchised properties [member]
Expenses	$ 1,443	$ 1,337	$ 4,284	$ 3,939

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Debt - Long-term Debt (Details) - USD ($) $ in Millions		Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term debt, gross		$ 7,891	$ 7,361
Unamortized deferred financing costs and discount		(86)	(79)
Current maturities of long-term debt	[1]	(38)	(16)
Long-term debt		7,767	7,266
Senior secured term loan facility due 2026 [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 2,619	3,119
Debt instrument, interest rate, stated percentage		3.77%
Senior notes due 2024 [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,000	1,000
Debt instrument, interest rate, stated percentage		4.25%
Senior notes due 2025 [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 900	900
Debt instrument, interest rate, stated percentage		4.625%
Senior notes due 2026 [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,500	1,500
Debt instrument, interest rate, stated percentage		5.125%
Senior notes due 2027 [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 600	600
Debt instrument, interest rate, stated percentage		4.875%
Senior notes due 2030 [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 1,000	0
Debt instrument, face amount		$ 1,000
Debt instrument, interest rate, stated percentage		4.875%
Finance lease liabilities [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 255	225
Debt instrument, weighted average interest rate		5.77%
Other debt [member]
Debt Instrument [Line Items]
Long-term debt, gross		$ 17	$ 17
Debt instrument, weighted average interest rate		3.08%

[1] Represents current maturities of finance lease liabilities.

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Organization	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Hilton Worldwide Holdings Inc. (the "Parent," or together with its subsidiaries, "Hilton," "we," "us," "our" or the "Company"), a Delaware corporation, is one of the largest hospitality companies in the world and is engaged in managing, franchising, owning and leasing hotels and resorts and licensing its brands and intellectual property ("IP"). As of September 30, 2019, we managed, franchised, owned or leased 5,980 hotels and resorts, including timeshare properties, totaling 954,855 rooms in 117 countries and territories.

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Consolidated Variable Interest Entities - Additional Information (Details) $ in Millions	Sep. 30, 2019 USD ($) Hotel	Jun. 01, 2019 USD ($)	Dec. 31, 2018 USD ($) Hotel
Variable Interest Entity [Line Items]
Deconsolidated assets of a subsidiary	$ 15,067		$ 13,995
Deconsolidated liabilities of a subsidiary	$ 15,266		$ 13,437
Leased hotel VIEs [Member]
Variable Interest Entity [Line Items]
Number of consolidated variable interest entities | Hotel	2		2
Management company [member]
Variable Interest Entity [Line Items]
Number of consolidated variable interest entities | Hotel			1
Deconsolidated assets of a subsidiary		$ 7
Deconsolidated liabilities of a subsidiary		$ 3

XML

Condensed Consolidating Guarantor Financial Information

9 Months Ended

Sep. 30, 2019

Condensed Consolidating Guarantor Financial Information [Abstract]

Condensed Consolidating Guarantor Financial Information

Condensed Consolidating Guarantor Financial Information

Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. (together, the "HWF Issuers"), which are 100 percent owned by Hilton Worldwide Parent LLC ("HWP"), which is 100 percent owned by the Parent, issued the 2025 Senior Notes and the 2027 Senior Notes. Hilton Domestic Operating Company Inc. ("HOC"), which is 100 percent owned by Hilton Worldwide Finance LLC, assumed the 2024 Senior Notes, issued the 2026 Senior Notes and, in June 2019, issued the 2030 Senior Notes. The 2024 Senior Notes, 2025 Senior Notes, 2026 Senior Notes, 2027 Senior Notes and 2030 Senior Notes are collectively referred to as the Senior Notes. The HWF Issuers and HOC are collectively referred to as the Subsidiary Issuers.

The Senior Notes are guaranteed jointly and severally on a senior unsecured basis by HWP, the Parent and certain of the Parent's wholly owned domestic restricted subsidiaries that are themselves not issuers of the applicable series of Senior Notes (together, the "Guarantors''). The indentures that govern the Senior Notes provide that any subsidiary of the Company that provides a guarantee of our senior secured credit facilities will guarantee the Senior Notes. Additionally, the HWF Issuers are guarantors of the 2024 Senior Notes, the 2026 Senior Notes and the 2030 Senior Notes, and HOC is a guarantor of the 2025 Senior Notes and the 2027 Senior Notes. As of September 30, 2019, none of our foreign subsidiaries or U.S. subsidiaries owned by foreign subsidiaries or conducting foreign operations or our non-wholly owned subsidiaries guaranteed the Senior Notes (collectively, the "Non-Guarantors").

The guarantees are full and unconditional, subject to certain customary release provisions. The indentures that govern the Senior Notes provide that any Guarantor may be released from its guarantee so long as: (i) the subsidiary is sold or sells all of its assets; (ii) the subsidiary is released from its guaranty under our senior secured credit facilities; (iii) the subsidiary is declared "unrestricted" for covenant purposes; (iv) the subsidiary is merged with or into the applicable Subsidiary Issuers or another Guarantor or the Guarantor liquidates after transferring all of its assets to the applicable Subsidiary Issuers or another Guarantor; or (v) the requirements for legal defeasance or covenant defeasance or to discharge the indenture have been satisfied, in each case in compliance with applicable provisions of the indentures.

The following tables present the condensed consolidating financial information as of September 30, 2019 and December 31, 2018, and for the three and nine months ended September 30, 2019 and 2018, for the Parent, HWF Issuers, HOC, Guarantors and Non-Guarantors. The condensed consolidating financial information presents the financial information for all periods based on the composition of the Guarantors and Non-Guarantors as of September 30, 2019.

	September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	—	$	17	$	26	$	676	$	—	$	719
Restricted cash and cash equivalents	—		—		34		23		33		—		90
Accounts receivable, net	—		—		13		850		332		(2)		1,193
Intercompany receivables	—		—		—		—		39		(39)		—
Prepaid expenses	—		—		26		37		57		(5)		115
Other	—		3		1		56		102		(24)		138
Total current assets	—		3		91		992		1,239		(70)		2,255
Intangibles and Other Assets:
Investments in subsidiaries	(187)		3,948		7,709		(187)		—		(11,283)		—
Goodwill	—		—		—		3,824		1,313		—		5,137
Brands	—		—		—		4,404		460		—		4,864
Management and franchise contracts, net	—		—		1		464		329		—		794
Other intangible assets, net	—		—		—		290		114		—		404
Operating lease right-of-use assets	—		—		34		9		796		—		839
Property and equipment, net	—		—		60		68		252		—		380
Deferred income tax assets	3		11		85		—		146		(99)		146
Other	—		11		31		37		169		—		248
Total intangibles and other assets	(184)		3,970		7,920		8,909		3,579		(11,382)		12,812
TOTAL ASSETS	$	(184)	$	3,973	$	8,011	$	9,901	$	4,818	$	(11,452)	$	15,067
LIABILITIES AND EQUITY (DEFICIT)
Current Liabilities:
Accounts payable, accrued expenses and other	$	24	$	37	$	264	$	711	$	770	$	(22)	$	1,784
Current maturities of long-term debt	—		—		20		—		18		—		38
Current portion of deferred revenues	—		—		38		241		20		(9)		290
Intercompany payables	—		—		39		—		—		(39)		—
Current portion of liability for guest loyalty program	—		—		—		788		—		—		788
Total current liabilities	24		37		361		1,740		808		(70)		2,900
Long-term debt	—		4,078		3,474		—		215		—		7,767
Operating lease liabilities	—		—		39		7		958		—		1,004
Deferred revenues	—		—		—		764		70		—		834
Deferred income tax liabilities	—		—		—		957		15		(99)		873
Liability for guest loyalty program	—		—		—		1,004		—		—		1,004
Other	—		45		189		96		554		—		884
Total liabilities	24		4,160		4,063		4,568		2,620		(169)		15,266
Equity (Deficit):
Total Hilton stockholders' equity (deficit)	(208)		(187)		3,948		5,333		2,189		(11,283)		(208)
Noncontrolling interests	—		—		—		—		9		—		9
Total equity (deficit)	(208)		(187)		3,948		5,333		2,198		(11,283)		(199)
TOTAL LIABILITIES AND EQUITY (DEFICIT)	$	(184)	$	3,973	$	8,011	$	9,901	$	4,818	$	(11,452)	$	15,067

	December 31, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	—	$	3	$	17	$	383	$	—	$	403
Restricted cash and cash equivalents	—		—		34		15		32		—		81
Accounts receivable, net	—		—		10		735		405		—		1,150
Intercompany receivables	—		—		—		—		40		(40)		—
Prepaid expenses	—		—		52		37		80		(9)		160
Other	—		1		1		36		154		(3)		189
Total current assets	—		1		100		840		1,094		(52)		1,983
Intangibles and Other Assets:
Investments in subsidiaries	557		5,131		7,930		557		—		(14,175)		—
Goodwill	—		—		—		3,824		1,336		—		5,160
Brands	—		—		—		4,404		465		—		4,869
Management and franchise contracts, net	—		—		—		556		316		—		872
Other intangible assets, net	—		—		—		287		128		—		415
Property and equipment, net	—		—		27		65		275		—		367
Deferred income tax assets	4		—		94		—		90		(98)		90
Other	—		23		33		22		161		—		239
Total intangibles and other assets	561		5,154		8,084		9,715		2,771		(14,273)		12,012
TOTAL ASSETS	$	561	$	5,155	$	8,184	$	10,555	$	3,865	$	(14,325)	$	13,995
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable, accrued expenses and other	$	10	$	19	$	229	$	529	$	765	$	(3)	$	1,549
Current maturities of long-term debt	—		—		—		—		16		—		16
Current portion of deferred revenues	—		—		106		239		14		(9)		350
Intercompany payables	—		—		40		—		—		(40)		—
Current portion of liability for guest loyalty program	—		—		—		700		—		—		700
Total current liabilities	10		19		375		1,468		795		(52)		2,615
Long-term debt	—		4,573		2,467		—		226		—		7,266
Deferred revenues	—		—		—		762		64		—		826
Deferred income tax liabilities	—		6		—		962		28		(98)		898
Liability for guest loyalty program	—		—		—		969		—		—		969
Other	—		—		211		93		559		—		863
Total liabilities	10		4,598		3,053		4,254		1,672		(150)		13,437
Equity:
Total Hilton stockholders' equity	551		557		5,131		6,301		2,186		(14,175)		551
Noncontrolling interests	—		—		—		—		7		—		7
Total equity	551		557		5,131		6,301		2,193		(14,175)		558
TOTAL LIABILITIES AND EQUITY	$	561	$	5,155	$	8,184	$	10,555	$	3,865	$	(14,325)	$	13,995

	Three Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	68	$	338	$	41	$	(4)	$	443
Base and other management fees	—		—		1		48		31		—		80
Incentive management fees	—		—		—		16		38		—		54
Owned and leased hotels	—		—		—		—		361		—		361
Other revenues	—		—		—		20		3		—		23
	—		—		69		422		474		(4)		961
Other revenues from managed and franchised properties	—		—		79		1,195		160		—		1,434
Total revenues	—		—		148		1,617		634		(4)		2,395
Expenses
Owned and leased hotels	—		—		—		—		310		—		310
Depreciation and amortization	—		—		2		63		21		—		86
General and administrative	—		—		88		—		28		(9)		107
Other expenses	—		—		1		—		5		5		11
	—		—		91		63		364		(4)		514
Other expenses from managed and franchised properties	—		—		85		1,200		158		—		1,443
Total expenses	—		—		176		1,263		522		(4)		1,957
Gain on sale of assets, net	—		—		—		—		81		—		81
Operating income (loss)	—		—		(28)		354		193		—		519
Interest expense	—		(45)		(49)		—		(11)		—		(105)
Gain (loss) on foreign currency transactions	—		—		4		(43)		46		—		7
Other non-operating income (loss), net	—		(2)		—		(3)		5		—		—
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(47)		(73)		308		233		—		421
Income tax benefit (expense)	—		11		15		(79)		(78)		—		(131)
Income (loss) before equity in earnings from subsidiaries	—		(36)		(58)		229		155		—		290
Equity in earnings from subsidiaries	288		324		382		288		—		(1,282)		—
Net income	288		288		324		517		155		(1,282)		290
Net income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Net income attributable to Hilton stockholders	$	288	$	288	$	324	$	517	$	153	$	(1,282)	$	288
Comprehensive income	$	246	$	279	$	324	$	516	$	123	$	(1,240)	$	248
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Comprehensive income attributable to Hilton stockholders	$	246	$	279	$	324	$	516	$	121	$	(1,240)	$	246

	Three Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	57	$	316	$	39	$	(5)	$	407
Base and other management fees	—		—		—		49		31		—		80
Incentive management fees	—		—		—		15		42		—		57
Owned and leased hotels	—		—		—		—		373		—		373
Other revenues	—		—		1		19		3		4		27
	—		—		58		399		488		(1)		944
Other revenues from managed and franchised properties	—		—		70		1,076		163		—		1,309
Total revenues	—		—		128		1,475		651		(1)		2,253
Expenses
Owned and leased hotels	—		—		—		—		331		—		331
Depreciation and amortization	—		—		2		58		21		—		81
General and administrative	—		—		81		—		30		(2)		109
Other expenses	—		—		1		2		6		1		10
	—		—		84		60		388		(1)		531
Other expenses from managed and franchised properties	—		—		70		1,106		161		—		1,337
Total expenses	—		—		154		1,166		549		(1)		1,868
Operating income (loss)	—		—		(26)		309		102		—		385
Interest expense	—		(54)		(34)		—		(8)		(3)		(99)
Gain (loss) on foreign currency transactions	—		—		—		1		(7)		—		(6)
Other non-operating income, net	—		—		1		4		5		3		13
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(54)		(59)		314		92		—		293
Income tax benefit (expense)	—		13		8		(70)		(80)		—		(129)
Income (loss) before equity in earnings from subsidiaries	—		(41)		(51)		244		12		—		164
Equity in earnings from subsidiaries	162		203		254		162		—		(781)		—
Net income	162		162		203		406		12		(781)		164
Net income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Net income attributable to Hilton stockholders	$	162	$	162	$	203	$	406	$	10	$	(781)	$	162
Comprehensive income	$	158	$	168	$	204	$	405	$	2	$	(777)	$	160
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(2)		—		(2)
Comprehensive income attributable to Hilton stockholders	$	158	$	168	$	204	$	405	$	—	$	(777)	$	158

	Nine Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	198	$	970	$	114	$	(13)	$	1,269
Base and other management fees	—		—		1		157		91		—		249
Incentive management fees	—		—		—		60		107		—		167
Owned and leased hotels	—		—		—		—		1,060		—		1,060
Other revenues	—		—		1		63		11		—		75
	—		—		200		1,250		1,383		(13)		2,820
Other revenues from managed and franchised properties	—		—		235		3,581		447		—		4,263
Total revenues	—		—		435		4,831		1,830		(13)		7,083
Expenses
Owned and leased hotels	—		—		—		—		942		—		942
Depreciation and amortization	—		—		5		188		63		—		256
General and administrative	—		—		259		—		90		(22)		327
Other expenses	—		—		5		10		22		9		46
	—		—		269		198		1,117		(13)		1,571
Other expenses from managed and franchised properties	—		—		244		3,602		438		—		4,284
Total expenses	—		—		513		3,800		1,555		(13)		5,855
Gain on sale of assets, net	—		—		—		—		81		—		81
Operating income (loss)	—		—		(78)		1,031		356		—		1,309
Interest expense	—		(148)		(117)		—		(39)		—		(304)
Gain (loss) on foreign currency transactions	—		—		5		(70)		69		—		4
Other non-operating income (loss), net	—		(11)		—		(8)		11		—		(8)
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(159)		(190)		953		397		—		1,001
Income tax benefit (expense)	—		38		42		(238)		(133)		—		(291)
Income (loss) before equity in earnings from subsidiaries	—		(121)		(148)		715		264		—		710
Equity in earnings from subsidiaries	706		827		975		706		—		(3,214)		—
Net income	706		706		827		1,421		264		(3,214)		710
Net income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Net income attributable to Hilton stockholders	$	706	$	706	$	827	$	1,421	$	260	$	(3,214)	$	706
Comprehensive income	$	640	$	657	$	830	$	1,420	$	245	$	(3,148)	$	644
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Comprehensive income attributable to Hilton stockholders	$	640	$	657	$	830	$	1,420	$	241	$	(3,148)	$	640

	Nine Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Revenues
Franchise and licensing fees	$	—	$	—	$	151	$	900	$	104	$	(13)	$	1,142
Base and other management fees	—		—		1		155		85		—		241
Incentive management fees	—		—		—		58		113		—		171
Owned and leased hotels	—		—		—		—		1,099		—		1,099
Other revenues	—		—		4		60		8		—		72
	—		—		156		1,173		1,409		(13)		2,725
Other revenues from managed and franchised properties	—		—		176		3,256		461		—		3,893
Total revenues	—		—		332		4,429		1,870		(13)		6,618
Expenses
Owned and leased hotels	—		—		—		—		1,003		—		1,003
Depreciation and amortization	—		—		5		176		61		—		242
General and administrative	—		—		237		—		97		(6)		328
Other expenses	—		—		5		17		21		(7)		36
	—		—		247		193		1,182		(13)		1,609
Other expenses from managed and franchised properties	—		—		178		3,304		457		—		3,939
Total expenses	—		—		425		3,497		1,639		(13)		5,548
Operating income (loss)	—		—		(93)		932		231		—		1,070
Interest expense	—		(172)		(78)		—		(27)		—		(277)
Gain (loss) on foreign currency transactions	—		—		3		(80)		70		—		(7)
Other non-operating income (loss), net	—		(7)		5		16		12		—		26
Income (loss) before income taxes and equity in earnings from subsidiaries	—		(179)		(163)		868		286		—		812
Income tax benefit (expense)	—		44		35		(204)		(143)		—		(268)
Income (loss) before equity in earnings from subsidiaries	—		(135)		(128)		664		143		—		544
Equity in earnings from subsidiaries	540		675		803		540		—		(2,558)		—
Net income	540		540		675		1,204		143		(2,558)		544
Net income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Net income attributable to Hilton stockholders	$	540	$	540	$	675	$	1,204	$	139	$	(2,558)	$	540
Comprehensive income	$	535	$	585	$	677	$	1,203	$	92	$	(2,553)	$	539
Comprehensive income attributable to noncontrolling interests	—		—		—		—		(4)		—		(4)
Comprehensive income attributable to Hilton stockholders	$	535	$	585	$	677	$	1,203	$	88	$	(2,553)	$	535

	Nine Months Ended September 30, 2019
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Operating Activities:
Net cash provided by (used in) operating activities	$	—	$	(122)	$	(17)	$	1,157	$	229	$	(65)	$	1,182
Investing Activities:
Capital expenditures for property and equipment	—		—		(6)		(5)		(55)		—		(66)
Proceeds from asset disposition	—		—		—		—		120		—		120
Capitalized software costs	—		—		—		(79)		—		—		(79)
Other	—		—		—		(18)		(4)		—		(22)
Net cash provided by (used in) investing activities	—		—		(6)		(102)		61		—		(47)
Financing Activities:
Borrowings	—		795		1,000		—		—		—		1,795
Repayment of debt	—		(1,295)		(20)		—		(12)		—		(1,327)
Debt issuance costs	—		(13)		(16)		—		—		—		(29)
Intercompany transfers	1,216		635		(896)		(1,038)		83		—		—
Dividends paid	(130)		—		—		—		—		—		(130)
Repurchases of common stock	(1,086)		—		—		—		—		—		(1,086)
Intercompany dividends	—		—		—		—		(65)		65		—
Share-based compensation tax withholdings and other	—		—		(31)		—		—		—		(31)
Net cash provided by (used in) financing activities	—		122		37		(1,038)		6		65		(808)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	—		—		—		—		(2)		—		(2)
Net increase in cash, restricted cash and cash equivalents	—		—		14		17		294		—		325
Cash, restricted cash and cash equivalents, beginning of period	—		—		37		32		415		—		484
Cash, restricted cash and cash equivalents, end of period	$	—	$	—	$	51	$	49	$	709	$	—	$	809

	Nine Months Ended September 30, 2018
	Parent		HWF Issuers		HOC		Guarantors		Non-Guarantors		Eliminations		Total
	(in millions)
Operating Activities:
Net cash provided by (used in) operating activities	$	—	$	(143)	$	(7)	$	808	$	256	$	—	$	914
Investing Activities:
Capital expenditures for property and equipment	—		—		(5)		(4)		(42)		—		(51)
Payments received on other financing receivables	—		—		—		49		—		—		49
Capitalized software costs	—		—		—		(62)		—		—		(62)
Other	—		—		—		(6)		(10)		—		(16)
Net cash used in investing activities	—		—		(5)		(23)		(52)		—		(80)
Financing Activities:
Borrowings	—		175		1,500		—		1		—		1,676
Repayment of debt	—		(685)		—		—		(16)		—		(701)
Debt issuance costs	—		—		(21)		—		—		—		(21)
Intercompany transfers	1,698		653		(1,451)		(739)		(161)		—		—
Dividends paid	(137)		—		—		—		—		—		(137)
Repurchases of common stock	(1,561)		—		—		—		—		—		(1,561)
Share-based compensation tax withholdings and other	—		—		(42)		—		—		—		(42)
Other	—		—		—		(3)		(1)		—		(4)
Net cash provided by (used in) financing activities	—		143		(14)		(742)		(177)		—		(790)
Effect of exchange rate changes on cash, restricted cash and cash equivalents	—		—		—		—		(14)		—		(14)
Net increase (decrease) in cash, restricted cash and cash equivalents	—		—		(26)		43		13		—		30
Cash, restricted cash and cash equivalents, beginning of period	—		—		63		28		579		—		670
Cash, restricted cash and cash equivalents, end of period	$	—	$	—	$	37	$	71	$	592	$	—	$	700

XML

Amortizing Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortizing Intangible Assets

Amortizing intangible assets were as follows:

	September 30, 2019
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(in millions)
Management and franchise contracts:
Management and franchise contracts recorded at Merger(1)	$	2,226	$	(1,997)	$	229
Contract acquisition costs	573		(114)		459
Development commissions and other	124		(18)		106
	$	2,923	$	(2,129)	$	794
Other intangible assets:
Leases(1)	$	279	$	(166)	$	113
Capitalized software costs	583		(377)		206
Hilton Honors(1)	336		(251)		85
Other(1)	34		(34)		—
	$	1,232	$	(828)	$	404

	December 31, 2018
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(in millions)
Management and franchise contracts:
Management and franchise contracts recorded at Merger(1)	$	2,228	$	(1,873)	$	355
Contract acquisition costs	525		(101)		424
Development commissions and other	108		(15)		93
	$	2,861	$	(1,989)	$	872
Other intangible assets:
Leases(1)	$	288	$	(161)	$	127
Capitalized software costs	503		(321)		182
Hilton Honors(1)	338		(236)		102
Other(1)	38		(34)		4
	$	1,167	$	(752)	$	415

____________

⁽¹⁾Represents intangible assets that were initially recorded at their fair value as part of the October 24, 2007 transaction whereby we became a wholly owned subsidiary of affiliates of The Blackstone Group Inc. (formerly known as The Blackstone Group L.P.) (the "Merger").

Amortization of Amortizing Intangible Assets

Amortization of our amortizing intangible assets was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
	(in millions)
Recognized in depreciation and amortization expense(1)	$	71	$	67	$	212	$	202
Recognized as a reduction of franchise and licensing fees and base and other management fees	7		6		21		20

____________

⁽¹⁾Includes amortization expense of $50 million for the three months ended September 30, 2019 and 2018, and $152 million and $153 million for the nine months ended September 30, 2019 and 2018, respectively, associated with assets that were initially recorded at their fair value at the time of the Merger.

Schedule of Future Amortization Expense of Intangible Assets

We estimate future amortization of our amortizing intangible assets as of September 30, 2019 to be as follows:

	Recognized in Depreciation and Amortization Expense		Recognized as a Reduction of Franchise and Licensing Fees and Base and Other Management Fees
Year	(in millions)
2019 (remaining)	$	73	$	7
2020	264		27
2021	115		26
2022	93		24
2023	50		23
Thereafter	144		352
	$	739	$	459