Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Note 8: Fair Value Measurements

We did not elect the fair value measurement option for our financial assets or liabilities. The fair values of our other financial instruments not included in the table below are estimated to be equal to their carrying amounts.

The fair value of our debt and the hierarchy level we used to estimate fair values are shown below:


			June 30, 2021				December 31, 2020
	Hierarchy Level		Carrying Amount		Fair Value		Carrying Amount		Fair Value
			(in millions)
Liabilities:
SF CMBS Loan		3	$	725	$	735	$	725	$	708
HHV CMBS Loan		3		1,275		1,282		1,275		1,195
2019 Term Facility		3		497		493		670		661
Revolver		3		13		12		601		596
2025 Senior Secured Notes		1		650		705		650		705
2028 Senior Secured Notes		1		725		773		725		774
2029 Senior Secured Notes		1		750		776		—		—
Mortgage loans		3		508		502		509		480

During the six months ended June 30, 2021, we recognized an impairment loss from the classification of the Hotel Adagio, Autograph Collection, as held for sale as the estimated selling costs are expected to reduce the gross proceeds below the net book value of the property. Refer to Note 3: “Dispositions and Assets Held for Sale” for additional information. The estimated fair value of the asset that was measured on a nonrecurring basis was:



	June 30, 2021
	Fair Value		Impairment Loss
	(in millions)
Property and equipment(1)	$	77	$	5
Total	$	77	$	5

(1) Fair value as of June 30, 2021 is based upon the contracted sales price for a property, less costs to sell, as applicable (Level 2).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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