Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt

Debt balances and associated interest rates as of June 30, 2021 were:

			Principal balance as of
	Interest Rate at June 30, 2021	Maturity Date	June 30, 2021			December 31, 2020
			(in millions)
SF CMBS Loan(1)	4.11%	November 2023	$	725		$	725
HHV CMBS Loan(1)	4.20%	November 2026		1,275			1,275
Mortgage loans	Average rate of 4.81%	2022 to 2026(2)(3)		508			509
2019 Term Facility(4)	L + 2.65%	August 2024		497			670
Revolver(4)	L + 3.00%	2021 to 2023(5)		13			601
2025 Senior Secured Notes(6)	7.50%	June 2025		650			650
2028 Senior Secured Notes(6)	5.88%	October 2028		725			725
2029 Senior Secured Notes	4.88%	May 2029		750			—
Finance lease obligations	3.07%	2021 to 2022		1			1
				5,144			5,156
Add: unamortized premium				3			3
Less: unamortized deferred financing costs and    discount				(47	)		(38	)
			$	5,100		$	5,121

(1)        In October 2016, we entered into a $725 million CMBS loan secured by the Hilton San Francisco Union Square and the Parc 55 Hotel San Francisco (“SF CMBS Loan”) and a $1.275 billion CMBS loan secured by the Hilton Hawaiian Village Waikiki Beach Resort (“HHV CMBS Loan”).

(2)        Assumes the exercise of all extensions that are exercisable solely at our option. The mortgage loan for Hilton Denver City Center matures in 2042 but is callable by the lender beginning August 2022.

(3)        In June 2021, our joint venture repaid the $12 million loan secured by the Doubletree Spokane with proceeds from a $14 million loan with a maturity date of July 1, 2026. Additionally, in January 2021, we ceased making debt service payments toward the $75 million mortgage loan secured by the W Chicago City Center, and we have received a notice of an event of default. The default interest rate on the loan is 8.25% and the stated rate is 4.25%. While we hope to negotiate an amendment with the lender, there can be no assurances that an agreement will be reached.

(4)        In May 2020, we amended our credit and term loan facilities to add a LIBOR floor of 25 basis points. Net proceeds from asset sales during the six months ended June 30, 2021 and the 2029 Senior Secured Notes were used to repay the outstanding balance under the Revolver and a portion of the 2019 Term Facility. Refer to Note 3: “Dispositions and Assets Held for Sale” for additional information.

(5)        In September 2020, we increased our aggregate commitments under the Revolver by $75 million to $1.075 billion and extended the maturity date with respect to $901 million of the aggregate commitments for two years to December 2023, including all $75 million of the increased Revolver commitments. The maturity date for the remaining $174 million of commitments under the Revolver is December 2021.

(6)        In May and September 2020, our Operating Company, PK Domestic and PK Finance issued an aggregate of $650 million of senior secured notes due 2025 (“2025 Senior Secured Notes”) and an aggregate of $725 million of senior secured notes due 2028 (“2028 Senior Secured Notes”), respectively (collectively with the 2029 Senior Secured Notes, the “Senior Secured Notes”).

Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option

The contractual maturities of our debt, assuming the exercise of all extensions that are exercisable solely at our option, as of June 30, 2021 were:

Year	(in millions)
2021(1)	$	7
2022		98
2023		839
2024		504
2025		657
Thereafter(2)		3,039
	$	5,144

(1)       Includes $2 million of the then current outstanding balance under the Revolver; however, we have sufficient capacity with extended undrawn commitments under the Revolver to effectively extend for two years.

(2)       Assumes the exercise of all extensions that are exercisable solely at our option.