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, 2021

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 001-37795

Park Hotels & Resorts Inc.

(Exact name of Registrant as specified in its Charter)

Delaware	36-2058176
(State or other jurisdiction of incorporation or organization)	(I.R.S Employer Identification No.)
1775 Tysons Boulevard., 7th Floor, Tysons, VA	22102
(Address of principal executive offices)	(Zip Code)

(Registrant’s telephone number, including area code): (571) 302-5757

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

Title of each class	Trading Symbol	Name of exchange on which registered
Common Stock, $0.01 par value per share	PK	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 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 (§232.405 of this chapter) 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 company	☐
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 of common stock outstanding on October 29, 2021 was 236,479,179.

.

Table of Contents

PART I. FINANCIAL INFORMATION		Page
Item 1.	Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	3
	Condensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30, 2021 and 2020	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020	5
	Condensed Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2021 and 2020	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
	Signatures	31

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share and per share data)

	September 30, 2021			December 31, 2020
	(unaudited)
ASSETS
Property and equipment, net	$	8,549			9,193
Investments in affiliates		14			14
Intangibles, net		44			45
Cash and cash equivalents		772			951
Restricted cash		70			30
Accounts receivable, net of allowance for doubtful accounts of $2 and $3		62			26
Prepaid expenses		34			39
Other assets		34			60
Operating lease right-of-use assets		215			229
TOTAL ASSETS (variable interest entities - $239 and $229)	$	9,794		$	10,587
LIABILITIES AND EQUITY
Liabilities
Debt	$	4,670			5,121
Accounts payable and accrued expenses		204			147
Due to hotel managers		96			88
Deferred income tax liabilities		9			10
Other liabilities		115			134
Operating lease liabilities		232			244
Total liabilities (variable interest entities - $218 and $213)		5,326			5,744
Commitments and contingencies - refer to Note 13
Stockholders' Equity
Common stock, par value $0.01 per share, 6,000,000,000 shares    authorized, 236,884,447 shares issued and 236,479,696 shares outstanding    as of September 30, 2021 and 236,217,344 shares issued and 235,915,749    shares outstanding as of December 31, 2020		2			2
Additional paid-in capital		4,529			4,519
(Accumulated deficit) retained earnings		(16	)		376
Accumulated other comprehensive loss		—			(4	)
Total stockholders' equity		4,515			4,893
Noncontrolling interests		(47	)		(50	)
Total equity		4,468			4,843
TOTAL LIABILITIES AND EQUITY	$	9,794		$	10,587

Refer to the notes to the unaudited condensed consolidated financial statements.

3

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(unaudited, in millions, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Revenues
Rooms	$	274		$	70		$	587		$	453
Food and beverage		76			10			152			174
Ancillary hotel		58			15			137			87
Other		15			3			35			25
Total revenues		423			98			911			739
Operating expenses
Rooms		76			30			170			162
Food and beverage		63			18			126			155
Other departmental and support		119			64			298			296
Other property-level		51			84			151			200
Management fees		19			2			40			27
Impairment and casualty loss, net		2			2			7			696
Depreciation and amortization		68			75			213			225
Corporate general and administrative		14			13			48			42
Acquisition costs		—			9			—			10
Other		14			6			34			31
Total expenses		426			303			1,087			1,844
(Loss) gain on sales of assets, net		(11	)		(1	)		(5	)		62
Operating loss		(14	)		(206	)		(181	)		(1,043	)
Interest income		—		—				—			2
Interest expense		(66	)		(59	)		(195	)		(149	)
Equity in losses from investments in affiliates		—			(7	)		(6	)		(16	)
Other loss, net		(5	)		(3	)		(7	)		(6	)
Loss before income taxes		(85	)		(275	)		(389	)		(1,212	)
Income tax benefit (expense)		3			(1	)		2			(14	)
Net loss		(82	)		(276	)		(387	)		(1,226	)
Net (income) loss attributable to noncontrolling interests		(4	)	—				(5	)		3
Net loss attributable to stockholders	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Other comprehensive income (loss), net of tax expense:
Currency translation adjustment, net of tax expense of $0		—			1			—			4
Change in fair value of interest rate swap, net of tax expense     of $0		1			—			2			(6	)
Loss from interest rate swap reclassified into earnings		2			—			2			—
Total other comprehensive income (loss)		3			1			4			(2	)
Comprehensive loss		(79	)		(275	)		(383	)		(1,228	)
Comprehensive (loss) income attributable to noncontrolling    interests		(4	)	—				(5	)		3
Comprehensive loss attributable to stockholders	$	(83	)	$	(275	)	$	(388	)	$	(1,225	)
Loss per share:
Loss per share – Basic	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)
Loss per share – Diluted	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)
Weighted average shares outstanding – Basic		236			235			236			236
Weighted average shares outstanding – Diluted		236			235			236			236

Refer to the notes to the unaudited condensed consolidated financial statements.

4

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

	Nine Months Ended
	September 30,
	2021			2020
Operating Activities:
Net loss	$	(387	)	$	(1,226	)
Adjustments to reconcile net loss to net cash used in operating    activities:
Depreciation and amortization		213			225
Loss (gain) on sales of assets, net		5			(62	)
Impairment and casualty loss, net		7			696
Equity in losses from investments in affiliates		6			16
Other loss, net		7			6
Share-based compensation expense		15			10
Amortization of deferred financing costs		9			6
Distributions from unconsolidated affiliates		—			5
Deferred income taxes		(1	)		2
Changes in operating assets and liabilities		31			48
Net cash used in operating activities		(95	)		(274	)
Investing Activities:
Capital expenditures for property and equipment		(28	)		(70	)
Proceeds from asset dispositions, net		454			207
Contributions to unconsolidated affiliates		(5	)		(2	)
Insurance proceeds for property damage claims		4			1
Net cash provided by investing activities		425			136
Financing Activities:
Borrowings from credit facilities		—			1,000
Repayments of credit facilities		(1,193	)		(1,099	)
Proceeds from issuance of Senior Secured Notes		750			1,376
Proceeds from issuance of mortgage debt		14			—
Repayments of mortgage debt		(18	)		(4	)
Debt issuance costs		(15	)		(39	)
Dividends paid		—			(241	)
Distributions to noncontrolling interests, net		(2	)		(1	)
Tax withholdings on share-based compensation		(5	)		(5	)
Repurchase of common stock		—			(66	)
Net cash (used in) provided by financing activities		(469	)		921
Net (decrease) increase in cash and cash equivalents and restricted cash		(139	)		783
Cash and cash equivalents and restricted cash, beginning of period		981			386
Cash and cash equivalents and restricted cash, end of period	$	842		$	1,169

Refer to the notes to the unaudited condensed consolidated financial statements.

5

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(unaudited, in millions)

												Accumulated
						Additional			Retained Earnings			Other			Non-
	Common Stock					Paid-in			(Accumulated			Comprehensive			controlling
	Shares			Amount		Capital			Deficit)			(Loss) Income			Interests			Total
Balance as of December 31, 2020		236		$	2	$	4,519		$	376		$	(4	)	$	(50	)	$	4,843
Share-based compensation, net		—			—		1			(1	)		—			—			—
Net loss		—			—		—			(190	)		—			(1	)		(191	)
Other comprehensive income		—			—		—			—			1			—			1
Balance as of March 31, 2021		236		$	2	$	4,520		$	185		$	(3	)	$	(51	)	$	4,653
Share-based compensation, net		—			—		5			1			—			—			6
Net loss		—			—		—			(116	)		—			2			(114	)
Balance as of June 30, 2021		236			2		4,525			70			(3	)		(49	)		4,545
Share-based compensation, net		—			—		4			—			—			—			4
Net loss		—			—		—			(86	)		—			4			(82	)
Other comprehensive income		—			—		—			—			3			—			3
Distributions to noncontrolling     interests		—			—		—			—			—			(2	)		(2	)
Balance as of September 30, 2021		236		$	2	$	4,529		$	(16	)	$	—		$	(47	)	$	4,468
												Accumulated
						Additional						Other			Non-
	Common Stock					Paid-in			Retained			Comprehensive			controlling
	Shares			Amount		Capital			Earnings			(Loss) Income			Interests			Total
Balance as of December 31, 2019		239		$	2	$	4,575		$	1,922		$	(3	)	$	(45	)	$	6,451
Share-based compensation, net		—			—		(5	)		1			—			—			(4	)
Net loss		—			—		—			(688	)		—			(1	)		(689	)
Other comprehensive loss		—			—		—			—			(2	)					(2	)
Dividends and dividend equivalents(1)		—			—		—			(106	)		—			—			(106	)
Distributions to noncontrolling     interests		—			—		—			—			—			(1	)		(1	)
Repurchase of common stock		(4	)		—		(66	)		—			—			—			(66	)
Balance as of March 31, 2020		235		$	2	$	4,504		$	1,129		$	(5	)	$	(47	)	$	5,583
Share-based compensation, net		1			—		4			1			—			—			5
Net loss		—			—		—			(259	)		—			(2	)		(261	)
Other comprehensive loss		—			—		—			—			(1	)		—			(1	)
Balance as of June 30, 2020		236			2		4,508			871			(6	)		(49	)		5,326
Share-based compensation, net		—			—		4			—			—			—			4
Net loss		—			—		—			(276	)		—			—			(276	)
Other comprehensive income		—			—		—			—			1			—			1
Balance as of September 30, 2020		236		$	2	$	4,512		$	595		$	(5	)	$	(49	)	$	5,055

(1) Dividends declared per common share were $0.45 for the three months ended March 31, 2020.

Refer to the notes to the unaudited condensed consolidated financial statements.

6

PARK HOTELS & RESORTS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1: Organization and Recent Events

Organization

Park Hotels & Resorts Inc. (“we,” “us,” “our” or the “Company”) is a Delaware corporation that owns a portfolio of premium-branded hotels and resorts primarily located in prime city center and resort locations. On January 3, 2017, Hilton Worldwide Holdings Inc. (“Hilton”) completed the spin-off of a portfolio of hotels and resorts that established Park Hotels & Resorts Inc. as an independent, publicly traded company.

On May 5, 2019, the Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”), and PK Domestic Sub LLC, a wholly-owned subsidiary of PK Domestic (“Merger Sub”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Chesapeake Lodging Trust (“Chesapeake”). On September 18, 2019, pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Chesapeake merged with and into Merger Sub (the “Merger”) and each of Chesapeake’s common shares of beneficial interest, $0.01 par value per share, was converted into $11.00 in cash and 0.628 of a share of our common stock. No fractional shares of our common stock were issued in the Merger. The value of any fractional interests to which a Chesapeake shareholder would otherwise have been entitled was paid in cash.

We are a real estate investment trust (“REIT”) for United States (“U.S.”) federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate, in a manner to qualify as a REIT. From the date of our spin-off from Hilton, Park Intermediate Holdings LLC (our “Operating Company”), directly or indirectly, has held all our assets and has conducted all of our operations. We own 100% of the interests in our Operating Company.

COVID-19 Update

The novel strain of coronavirus and the disease it causes (“COVID-19”) have had and continue to have a significant effect on the hospitality industry and our business. The effects of COVID-19, including government restrictions such as mandated closings of non-essential businesses and travel restrictions, have severely reduced overall lodging demand. Since the beginning of March 2020, we have experienced a significant decline in occupancy and Revenue per Available Room (“RevPAR”) associated with COVID-19 throughout our portfolio, which resulted in a decline in our operating cash flow. The increase in vaccination rates across the country and the easing or removal of government restrictions, quarantining and “social distancing” mandates have resulted in increased travel and hospitality spending during the second and third quarters of 2021. However, the seasonal decline in leisure travel and the delay in return of business travel, coupled with concerns over the spread of the Delta variant, have reduced near-term demand.

We and our hotel managers have taken various actions to mitigate the effects of COVID-19, including temporarily suspending operations at certain of our hotels beginning in March 2020, limiting capacity at our open hotels, deferring approximately $150 million of capital expenditures planned for 2020, reducing forecasted capital expenditures for maintenance projects to approximately $56 million for 2021, suspending our dividend after the first quarter of 2020, and, as a precautionary measure to increase liquidity and preserve financial flexibility, drawing on our revolving credit facility (“Revolver”) and completing three corporate bond offerings totaling $2.1 billion in 2020 and 2021. We have since commenced a phased reopening of all except two of our hotels as restrictions are removed and demand returns. The timing of fully reopening our remaining suspended hotels will depend primarily on government restrictions imposed or re-imposed, recommendations of health officials and market demand.

We are committed to using our liquidity to support our hotels’ operations during the COVID-19 pandemic and subsequent recovery, while being focused on continuing to maintain and enhance our stockholders’ value.

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

Basis of Presentation

Principles of Consolidation

The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021.

7

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance.

Summary of Significant Accounting Policies

Our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021, contains a discussion of the significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2020.

Note 3: Dispositions and Acquisitions

Dispositions

During the nine months ended September 30, 2021, we sold the five consolidated hotels listed in the table below, received total gross proceeds of approximately $477 million and recognized a net $5 million loss due to selling costs, which is included in (loss) gain on sales of assets, net in our condensed consolidated statements of comprehensive loss. In addition, we recognized a $5 million impairment loss from the classification of the Hotel Adagio, Autograph Collection, as held for sale at June 30, 2021, as the selling costs reduced the gross proceeds to less than the net book value of the property, which is included in impairment and casualty loss, net in our condensed consolidated statements of comprehensive loss.

Hotel	Location	Month Sold
W New Orleans – French Quarter	New Orleans, Louisiana	April 2021
Hotel Indigo San Diego Gaslamp Quarter(1)	San Diego, California	June 2021
Courtyard Washington Capitol Hill Navy Yard(1)	Washington, D.C.	June 2021
Hotel Adagio, Autograph Collection	San Francisco, California	July 2021
Le Meridien San Francisco	San Francisco, California	August 2021

(1) Sold as a portfolio in the same transaction.

Net proceeds from the sales of these hotels were used to repay $37 million under the Revolver, which currently has no remaining balance outstanding, and partially repay $419 million of our term loan facility due in 2024 (“2019 Term Facility”).

In February 2020, we sold the Embassy Suites Washington DC Georgetown and our interests in the entity that owns the Hilton São Paulo Morumbi for total gross proceeds of $208 million and recognized a gain, net of selling costs, of $64 million on these hotels, which is included in (loss) gain on sales of assets, net in our condensed consolidated statements of comprehensive loss. Additionally, the net gain includes the reclassification of a currency translation adjustment of $7 million from accumulated other comprehensive loss into earnings concurrent with the sale of the Hilton São Paulo Morumbi.

Acquisitions

For the three months ended September 30, 2020, we incurred an additional $9 million in acquisition costs in connection with the September 2019 Merger Agreement with Chesapeake, primarily related to transfer taxes based on new information received during the period, which is included in acquisition costs in our condensed consolidated statements of comprehensive loss.

8

Note 4: Property and Equipment

Property and equipment were:

	September 30, 2021			December 31, 2020
	(in millions)
Land	$	3,333		$	3,429
Buildings and leasehold improvements		6,600			6,951
Furniture and equipment		1,000			1,042
Construction-in-progress		63			52
		10,996			11,474
Accumulated depreciation and amortization		(2,447	)		(2,281	)
	$	8,549		$	9,193

Depreciation of property and equipment was $68 million and $75 million during the three months ended September 30, 2021 and 2020, respectively, and $212 million and $224 million during the nine months ended September 30, 2021 and 2020, respectively.

For the nine months ended September 30, 2021, we recognized $5 million of impairment losses related to one of our hotels, which was classified as held for sale as of June 30, 2021, and subsequently sold in July 2021, as the estimated selling costs were expected to reduce the gross proceeds below the net book value of the property.

For the nine months ended September 30, 2020, we recognized $90 million of impairment losses, primarily related to one of our hotels, and our inability to recover the carrying value of the asset because of COVID-19.

Note 5: Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates

Consolidated VIEs

We consolidate VIEs that own three hotels in the U.S. We are the primary beneficiary of these VIEs as we have 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 VIEs are only available to settle the obligations of these entities. Our condensed consolidated balance sheets include the following assets and liabilities of these entities:

	September 30, 2021		December 31, 2020
	(in millions)
Property and equipment, net	$	211	$	216
Cash and cash equivalents		19		8
Restricted cash		4		2
Accounts receivable, net		4		1
Prepaid expenses		1		1
Other assets		—		1
Debt		208		207
Accounts payable and accrued expenses		7		5
Other liabilities		3		1

Unconsolidated Entities

Investments in affiliates were:

	Ownership %	September 30, 2021		December 31, 2020
		(in millions)
Hilton San Diego Bayfront	25%	$	11	$	11
All others (6 hotels)(1)	20% - 50%		3		3
		$	14	$	14

(1) The ground lease for the Embassy Suites Secaucus Meadowlands expired on October 31, 2021 and the property was turned over to the ground lessor on that date.

The affiliates in which we own investments accounted for under the equity method had total debt of approximately $943 million as of September 30, 2021 and December 31, 2020, respectively. Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us.

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Note 6: Goodwill

Due to the effects of COVID-19, we assessed goodwill for impairment during the first quarter of 2020 and determined that the carrying value of our consolidated and unconsolidated hotel reporting units exceeded their respective estimated fair value. As a result, we fully impaired our remaining goodwill balance, recognizing an impairment loss of $607 million in the first quarter of 2020.

Note 7: Debt

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

			Principal balance as of
	Interest Rate at September 30, 2021	Maturity Date	September 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)		505			509
2019 Term Facility(4)	L + 2.65%	August 2024		78			670
Revolver(4)	L + 3.00%	2021 to 2023(5)		—			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
				4,708			5,156
Add: unamortized premium				3			3
Less: unamortized deferred financing costs and    discount				(41	)		(38	)
			$	4,670		$	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 nine months ended September 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 Acquisitions” 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”).

We are required to deposit with lenders certain cash reserves for restricted uses. As of September 30, 2021 and December 31, 2020, our condensed consolidated balance sheets included $56 million and $10 million of restricted cash, respectively, related to our CMBS and mortgage loans.

2029 Senior Secured Notes

In May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $750 million of 2029 Senior Secured Notes. Net proceeds were used to repay $564 million of our outstanding balance under the Revolver, which may be redrawn, and $173 million of the 2019 Term Facility. The 2029 Senior Secured Notes bear interest at a rate of 4.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning November 15, 2021. The 2029 Senior Secured Notes will mature on May 15, 2029. We capitalized $13 million of issuance costs during the nine months ended September 30, 2021.

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We may redeem the 2029 Senior Secured Notes at any time prior to May 15, 2024, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date plus a make-whole premium. On or after May 15, 2024, we may redeem the 2029 Senior Secured Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after May 15, 2026, we may redeem the 2029 Senior Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, before May 15, 2024, we may redeem up to 40% of the 2029 Senior Secured Notes with the net cash proceeds from certain equity offerings at a redemption price of 104.875% of the principal amount redeemed.

Indentures

The 2029 Senior Secured Notes are guaranteed by us and by the subsidiaries of our Operating Company that also guarantee indebtedness under our credit facilities, which guarantors also guarantee the obligations under the Company’s Senior Secured Notes on a first priority basis. The guarantees are full and unconditional and joint and several. The 2029 Senior Secured Notes are secured, subject to permitted liens, by a first priority security interest in all of the capital stock of certain wholly-owned subsidiaries of certain of the guarantors and PK Domestic, which collateral also secures the obligations under our credit and term loan facilities on a first priority basis. The indenture governing the 2029 Senior Secured Notes contains customary covenants that limit the issuers’ ability and, in certain instances, the ability of the issuers’ subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, sell stock in certain subsidiaries, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of indebtedness, and sell assets or merge with other companies. These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to us to the extent necessary for us to fund a dividend or distribution by us that we believe is necessary to maintain our status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed $100 million, plus 95% of our cumulative Funds From Operations (as defined in the indenture), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) certain convertible indebtedness of the Operating Company. In addition, the indenture requires our Operating Company to maintain total unencumbered assets as of each fiscal quarter of at least 150% of total unsecured indebtedness, in each case calculated on a consolidated basis.

Debt Maturities

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

Year	(in millions)
2021	$	2
2022		98
2023		829
2024		85
2025		657
Thereafter(1)		3,037
	$	4,708

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

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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:

			September 30, 2021				December 31, 2020
	Hierarchy Level		Carrying Amount		Fair Value		Carrying Amount		Fair Value
			(in millions)
Liabilities:
SF CMBS Loan		3	$	725	$	734	$	725	$	708
HHV CMBS Loan		3		1,275		1,282		1,275		1,195
2019 Term Facility		3		78		75		670		661
Revolver		3		—		—		601		596
2025 Senior Secured Notes		1		650		693		650		705
2028 Senior Secured Notes		1		725		769		725		774
2029 Senior Secured Notes		1		750		771		—		—
Mortgage loans		3		505		496		509		480

Note 9: Income Taxes

We are a REIT for U.S. federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate in a manner to qualify as a REIT. To qualify as a REIT, we must satisfy requirements related to, among other things, the real estate qualification of sources of our income, the real estate composition and values of our assets, the amounts we distribute to our stockholders annually and the diversity of ownership of our stock. To the extent we continue to remain qualified as a REIT, we generally will not be subject to U.S. federal income tax on taxable income generated by our REIT activities that we distribute annually to our stockholders. Accordingly, no provision for U.S. federal income taxes has been included in our accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2021 related to our REIT activities, other than taxes related to our built-in gain property (representing property held by us with an excess of fair value over tax basis on January 4, 2017).

We will be subject to U.S. federal income tax on taxable sales of built-in gain property through January 3, 2022. In addition, we are subject to non-U.S. income tax on foreign held REIT activities and certain sales of foreign investments. Further, our taxable REIT subsidiaries (“TRSs”) are generally subject to U.S. federal, state and local, and foreign income taxes (as applicable).

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020 and included several tax provisions that may impact us and our subsidiaries, including:

the ability for our TRSs to carry back net operating losses (“NOLs”) arising in 2020 to all post spin-off taxable years preceding the taxable year of the loss;

an increase of the business interest limitation under Internal Revenue Code (“Code”) section 163(j) from 30 percent to 50 percent of adjusted taxable income for taxable years beginning in 2019 and 2020 and the addition of an election by taxpayers to use their 2019 adjusted taxable income as their adjusted taxable income in 2020 for purposes of applying the limitation; and

a “technical correction” amending Code section 168(e)(3)(E) to add “qualified improvement property” to “15-year property” and assigning a class life of 20-years under section 168(g)(3)(B) to qualified improvement property under section 168(e)(3)(E)(vii).

During the nine months ended September 30, 2021, we recognized a $2 million income tax benefit, comprising a $3 million state tax benefit from utilizing state NOLs, a $1 million benefit from the derecognition of deferred tax liabilities and $2 million of tax expense, primarily from adjustments to the benefit recognized in 2020 from utilizing the NOL carryback provisions of the CARES Act.

During the nine months ended September 30, 2020, we recognized $14 million of income tax expense, which was comprised of $14 million of built-in gains tax expense from assets sold during the period and $16 million of non-U.S. income tax expense on the

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gain from the entity sold during the period, partially offset by a TRS income tax benefit of $20 million from utilizing the NOL carryback provisions of the CARES Act.

Note 10: Share-Based Compensation

We issue equity-based awards to our employees pursuant to the 2017 Omnibus Incentive Plan (“2017 Employee Plan”) and our non-employee directors pursuant to the 2017 Stock Plan for Non-Employee Directors (as amended and restated from time to time, the “2017 Director Plan”). The 2017 Employee Plan provides that a maximum of 8,000,000 shares of our common stock may be issued, and as of September 30, 2021, 2,915,404 shares of common stock remain available for future issuance. As amended and approved by our stockholders in April 2021, the 2017 Director Plan provides that a maximum of 950,000 shares of our common stock may be issued, and as of September 30, 2021, 498,153 shares of common stock remain available for future issuance. For the three months ended September 30, 2021 and 2020, we recognized $5 million and $4 million of share-based compensation expense, respectively, and $15 million and $10 million, respectively, for the nine months ended September 30, 2021 and 2020. As of September 30, 2021, unrecognized compensation expense was $22 million, which is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of shares vested (calculated as the number of shares multiplied by the vesting date share price) during the nine months ended September 30, 2021 and 2020 was $18 million and $17 million, respectively.

Restricted Stock Awards

Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the nine months ended September 30, 2021:

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021		834,258		$	21.68
Granted		426,629			20.54
Vested		(449,406	)		19.07
Forfeited		(19,565	)		22.50
Unvested at September 30, 2021		791,916		$	22.53

Performance Stock Units

Performance Stock Units (“PSUs”) generally vest at the end of a three-year performance period and are subject to the achievement of a market condition based on a measure of our total shareholder return relative to the total shareholder return of the companies that comprise the FTSE Nareit Lodging Resorts Index (that have a market capitalization in excess of $1 billion as of the first day of the applicable performance period). The number of PSUs that may become vested ranges from zero to 200% of the number of PSUs granted to an employee, based on the level of achievement of the foregoing performance measure.

Additionally, in November 2020, we granted special awards with vesting of these awards subject to the achievement of eight increasing levels of our average closing sales price per share, from $11.00 to $25.00, over a consecutive 20 trading day period (“Share Price Target”). One-eighth of PSUs will vest at each date a Share Price Target is achieved and any PSUs remaining after a four-year performance period will be forfeited. As of September 30, 2021, six of the eight Share Price Targets were achieved and thus 75% of the awards granted were vested.

The following table provides a summary of PSUs for the nine months ended September 30, 2021:

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021		1,078,555		$	18.70
Granted		327,110			27.17
Vested		(428,255	)		16.33
Forfeited		(5,642	)		20.29
Unvested at September 30, 2021		971,768		$	22.59

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The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions:

Expected volatility(1)		60.0	%
Dividend yield(2)		—
Risk-free rate		0.2	%
Expected term	3 years

(1) The weighted average expected volatility was 60.0%.

(2) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest.

Note 11: Earnings Per Share

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions, except per share amounts)
Numerator:
Net loss attributable to stockholders	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Earnings attributable to participating securities		—			—			—			—
Net loss attributable to stockholders, net of earnings    allocated to participating securities	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Denominator:
Weighted average shares outstanding – basic		236			235			236			236
Unvested restricted shares		—			—			—			—
Weighted average shares outstanding – diluted		236			235			236			236
Loss per share - Basic(1)	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)
Loss per share - Diluted(1)	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)

(1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented.

Certain of our outstanding equity awards were excluded from the above calculation of EPS for the three and nine months ended September 30, 2021 and 2020 because their effect would have been anti-dilutive.

Note 12: Business Segment Information

As of September 30, 2021, we have two operating segments, our consolidated hotels and unconsolidated hotels. Our unconsolidated hotels operating segment does not meet the definition of a reportable segment, thus our consolidated hotels is our only reportable segment. We evaluate our consolidated hotels primarily based on hotel adjusted earnings (loss) before interest expense, taxes and depreciation and amortization (“EBITDA”). Hotel Adjusted EBITDA is calculated as EBITDA from hotel operations, adjusted to exclude:

Gains or losses on sales of assets for both consolidated and unconsolidated investments;

Costs associated with hotel acquisitions or dispositions expensed during the period;

Severance expense;

Share-based compensation expense;

Impairment losses and casualty gains or losses; and

Other items that we believe are not representative of our current or future operating performance.

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The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and net loss to Hotel Adjusted EBITDA:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions)
Revenues:
Total consolidated hotel revenue	$	408		$	95		$	876		$	714
Other revenues		15			3			35			25
Total revenues	$	423		$	98		$	911		$	739
Net loss	$	(82	)	$	(276	)	$	(387	)	$	(1,226	)
Other revenues		(15	)		(3	)		(35	)		(25	)
Depreciation and amortization expense		68			75			213			225
Corporate general and administrative expense(1)		14			13			48			40
Impairment and casualty loss, net		2			2			7			696
Acquisition costs		—			9			—			10
Other operating expenses		14			6			34			31
Loss (gain) on sales of assets, net		11			1			5			(62	)
Interest income		—			—			—			(2	)
Interest expense		66			59			195			149
Equity in losses from investments in affiliates		—			7			6			16
Income tax (benefit) expense		(3	)		1			(2	)		14
Severance expense		—			24			—			26
Other loss, net		5			3			7			6
Other items		4			3			(1	)		9
Hotel Adjusted EBITDA	$	84		$	(76	)	$	90		$	(93	)

(1) Excludes severance expense.

The following table presents total assets for our consolidated hotels, reconciled to total assets:

	September 30, 2021		December 31, 2020
	(in millions)
Consolidated hotels	$	9,775	$	10,568
All other		19		19
Total assets	$	9,794	$	10,587

Note 13: Commitments and Contingencies

As of September 30, 2021, we had outstanding commitments under third-party contracts of approximately $116 million for capital expenditures at our properties, of which $78 million relates to the expansion project at the Bonnet Creek complex. The Bonnet Creek expansion project includes additional meeting space for the Signia by Hilton Orlando Bonnet Creek and the Waldorf Astoria Orlando. Our contracts contain clauses that allow us to cancel all or some portion of the work. If cancellation of a contract occurred, our commitment would be any costs incurred up to the cancellation date, in addition to any costs associated with the discharge of the contract.

We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums, and may make certain indemnifications or guarantees to select buyers of our hotels as part of a sale process. We are also involved in claims and litigation that is not in the ordinary course of business in connection with the spin-off from Hilton. The spin-off agreements indemnify us from certain of these claims as well as require us to indemnify Hilton for other claims. In addition, losses related to certain contingent liabilities could be apportioned to us under the spin-off agreements. In connection with our obligation to indemnify Hilton under the spin-off agreements, we have reserved approximately $8 million as of September 30, 2021 related to litigation with respect to an audit by the Australian Tax Office (“ATO”) of Hilton related to the sale of the Hilton Sydney in June 2015. In February 2021, we were required to make a payment to Hilton of approximately $11 million representing our share of the deposit required by the ATO of Hilton to further defend against the claim and for certain out-of-pocket expenses incurred by Hilton. This amount could change as the litigation of the ATO’s claim progresses.

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

The following discussion and analysis of the financial condition and results of operations of Park Hotels & Resorts Inc. (“we,” “us,” “our” or the “Company”) should be read in conjunction with the accompanying unaudited condensed consolidated financial statements, related notes included elsewhere in this Quarterly Report on Form 10-Q, and with our Annual Report on Form 10-K for the year ended December 31, 2020.

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 (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Forward-looking 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, including the expected reopening dates for our hotels and dates that our hotels will break even or achieve positive Hotel Adjusted EBITDA, the impact to our business and financial condition and that of our hotel management companies, measures being taken in response to COVID-19, the effects of competition, the effects of future legislation or regulations, the expected completion of anticipated dispositions, the declaration and payment of future dividends and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “hopes” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect our results of operations, financial condition, cash flows, performance or future achievements or events. Currently, one of the most significant factors is the adverse effect of COVID-19, including resurgences, on our financial condition, results of operations, cash flows and performance, our hotel management companies and our hotels’ tenants, and the global economy and financial markets. COVID-19 has significantly affected our business, and the extent to which COVID-19 impacts us, our hotel managers, tenants and guests at our hotels will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its effect, the emergence of virus variants, the efficacy, availability and deployment of vaccinations and other treatments to combat COVID-19, including public adoption rates of COVID-19 vaccines, additional closures that may be mandated or advisable even after the reopening of certain of our hotels on a limited basis, whether due to an increased number of COVID-19 cases or otherwise, and the direct and indirect economic effects of the pandemic and containment measures, among others. Moreover, investors are cautioned to interpret many of the risks identified in the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of COVID-19.

All such forward-looking statements are based on current expectations of management and therefore involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. You should not put undue reliance on any forward-looking statements and we urge investors to carefully review the disclosures we make concerning risks and uncertainties in Item 1A: “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov, as well as risks, uncertainties and other factors discussed in this Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

We have a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. We currently hold investments in entities that have ownership or leasehold interests in 54 hotels, consisting of premium-branded hotels and resorts with approximately 32,000 rooms, of which over 86% are luxury and upper upscale (as defined by Smith Travel Research) and are located in prime U.S. markets and its territories. Our high-quality portfolio includes hotels in major urban and convention areas, such as New York City, Washington, D.C., Chicago, San Francisco, Boston, New Orleans and Denver; premier resorts in key leisure destinations, including Hawaii, Orlando, Key West and Miami Beach; and hotels adjacent to major gateway airports, such as Los Angeles International, Boston Logan International and Miami International, as well as hotels in select suburban locations.

Our objective is to be the preeminent lodging real estate investment trust (“REIT”), focused on consistently delivering superior, risk-adjusted returns to stockholders through active asset management and a thoughtful external growth strategy while maintaining a strong and flexible balance sheet. As a pure-play real estate company with direct access to capital and independent financial resources, we believe our enhanced ability to implement compelling return on investment initiatives within our portfolio represents a significant embedded growth opportunity. Finally, given our scale and investment expertise, we believe we will be able to successfully execute single-asset and portfolio acquisitions and dispositions to further enhance the value and diversification of our assets throughout the lodging cycle, including potentially taking advantage of the economies of scale that could come from consolidation in the lodging REIT industry.

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We operate our business through two operating segments, our consolidated hotels and unconsolidated hotels. Our consolidated hotels operating segment is our only reportable segment. Refer to Note 12: “Business Segment Information” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information regarding our operating segments.

Recent Events

During the third quarter of 2021, we sold two consolidated hotels, the Hotel Adagio, Autograph Collection, and the Le Meridien San Francisco. Net proceeds from those sales, along with the sale of two hotels on June 30, 2021 were used to repay $419 million of our term loan facility due in 2024 (“2019 Term Facility”) and to repay $13 million under our revolving credit facility (“Revolver”), which currently has no remaining balance outstanding.

COVID-19 Operational Update

The global outbreak of a novel strain of coronavirus and the disease it causes (“COVID-19”) have had and continue to have a significant effect on the lodging industry and our business. We cannot presently determine the extent or duration of the overall operational and financial effects that COVID-19 will have on our business. In March and April 2020, travel restrictions and mandated closings of non-essential businesses were imposed, which resulted in temporary suspensions of operations at a majority of our hotels, all except two of which have now reopened. Temporary closings of restaurants and hotels as well as travel restrictions across entire regions also contributed to severely reduced overall lodging demand. The effects of COVID-19 continue to have a significant adverse effect on the hospitality industry, including our business; however, the increase in vaccination rates across the country and the easing or removal of restrictions, quarantining, and “social distancing” mandates have resulted in increased travel and hospitality spending during the second and third quarters of 2021 as compared to the same periods in 2020. Despite the near-term reduction in demand due to the seasonal decline in leisure travel and the delay in return of business travel, coupled with concerns over the spread of the Delta variant, we expect a broader based recovery to resume during the latter half of the fourth quarter of 2021 and into 2022 as leisure demand trends and group booking activity continue to improve.

Beginning in March 2020, we experienced a significant decline in occupancy, Average Daily Rate (“ADR”) and Revenue per Available Room (“RevPAR”) associated with the COVID-19 pandemic throughout our consolidated portfolio, which has resulted in a decline in our operating cash flow. As distribution of the COVID-19 vaccine continues, we have seen improvement in traveler sentiment, and as a result, an improvement in occupancy, ADR and RevPAR during 2021. Changes in our 2021 pro-forma metrics, which exclude results from properties disposed of and include results from properties acquired as of November 4, 2021, as compared to the same periods in 2019 and 2020, respectively, and pro-forma occupancy are as follows:

	Change in Pro-forma ADR						Change in Pro-forma Occupancy								Change in Pro-forma RevPAR
	2021 vs. 2020			2021 vs. 2019			2021 vs. 2020				2021 vs. 2019				2021 vs. 2020			2021 vs. 2019			2021 Pro-forma Occupancy
Q1 2021		(28.9	)%		(30.6	)%		(35.0	)%	pts		(50.7	)%	pts		(69.3	)%		(76.2	)%		26.6	%
Q2 2021		44.8			(16.7	)		36.1				(43.4	)			897.0			(58.9	)		42.2
July 2021		45.3			—			42.1				(29.0	)			462.2			(33.7	)		56.8
August 2021		52.0			(5.7	)		29.3				(35.8	)			269.4			(45.1	)		49.7
September 2021		45.6			(16.6	)		24.8				(34.4	)			206.6			(51.8	)		47.2
Q3 2021		50.0			(7.0	)		32.2				(33.0	)			301.6			(43.4	)		51.3

We believe demand will remain significantly reduced as long as mandatory travel restrictions, “social distancing” and cost-saving measures, such as the postponing or cancelling of non-essential business travel, remain in place or if these restrictions tighten due to virus variants. Although we were able to recommence operations at most of our previously suspended hotels, there remains considerable uncertainty as to both the time it will take to see travel and demand for lodging and travel-related experiences to fully recover. Further, uncertainty as to the timing of when remaining restrictions will be removed generally will make it more difficult to execute on our external growth strategy. The uncertainties surrounding the COVID-19 pandemic recovery, including the Delta variant, make it difficult to predict operating results for our hotels for the remainder of 2021, thus there can be no assurances that we will not experience further declines in hotel revenues or earnings at our hotels.

We and our hotel managers have taken various actions to mitigate the effects of the COVID-19 pandemic, including temporarily suspending operations at a majority of our hotels beginning in March 2020, limiting capacity at our open hotels, deferring approximately $150 million of capital expenditures planned for 2020, reducing forecasted capital expenditures for maintenance projects to approximately $56 million for 2021 and suspending our dividend after the first quarter of 2020. Additionally, as a precautionary measure to increase liquidity and preserve financial flexibility, we fully drew on our Revolver in 2020 and completed three corporate bond offerings totaling $2.1 billion in 2020 and 2021 and five asset sales in 2021, the proceeds of which were used to fully repay the Revolver and our term loan due December 2021 ("2016 Term Loan"), as well as a majority of the 2019 Term Facility.

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Since originally suspending operations, we have commenced the phased reopening of all except two of our hotels and the timing of reopening our remaining suspended hotels will depend primarily on government restrictions imposed or re-imposed, recommendations of health officials and recovery in demand. The status of our hotels as of November 4, 2021 is as follows:

Status	Number of Hotels		Total Rooms
Consolidated Open		46		26,551
Consolidated Suspended		2		1,338
Total Consolidated		48		27,889
Unconsolidated Open(1)		6		4,036
Total Hotels		54		31,925

(1) The ground lease for the Embassy Suites Secaucus Meadowlands expired on October 31, 2021 and the property was turned over to the ground lessor on that date.

In addition, the operating environment for us and our hotel managers has improved as government restrictions are lifted and demand for travel returns. Economic indicators such as GDP growth, corporate earnings, consumer confidence and employment are highly correlated with lodging demand and have generally returned to pre-pandemic levels. We expect the significance of the COVID-19 pandemic, including the extent of its effect on our financial and operational results, to be dictated by, among other things, its duration, the success of efforts to contain it, the emergence of virus variants, efficacy, availability and deployment of vaccinations and other treatments to combat COVID-19, including public adoption rates of COVID-19 vaccines, and the effect of actions taken in response (such as travel advisories and restrictions and social distancing), including the extent and duration of such actions.

The extent and duration of the effects of COVID-19 are not yet clear. Despite cost reduction initiatives, we do not expect to be able to fully, or even materially, offset revenue losses from the COVID-19 pandemic. In addition, as states and cities have begun to lift quarantines and other similar restrictions, the timing and approach differs in different locations and we cannot predict whether our reopened hotels will be forced to suspend operations again in the future or be subjected to operating restrictions following further outbreaks or variants of COVID-19.

Key Business Metrics Used by Management

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. Room nights available to guests have not been adjusted for suspended or reduced operations at certain of our hotels as a result of COVID-19. 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 ADR levels as demand for rooms increases or decreases.

Average Daily Rate

ADR represents rooms revenue divided by total number of room nights sold in 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 hotel industry, and we use ADR to assess pricing levels that we are able to generate by type of customer, as changes in rates have a more pronounced effect on overall revenues and incremental profitability than changes in occupancy, as described above.

Revenue per Available Room

RevPAR represents rooms revenue divided by the total number of room nights available to guests for a given period. Room nights available to guests have not been adjusted for suspended or reduced operations at certain of our hotels as a result of COVID-19. We consider RevPAR to be a meaningful indicator of our performance as it provides a metric correlated to two primary and key factors of operations at a hotel or group of hotels: occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods.

Non-GAAP Financial Measures

We also evaluate the performance of our business through certain other financial measures that are not recognized under U.S. GAAP. Each of these non-GAAP financial measures should be considered by investors as supplemental measures to GAAP performance measures such as total revenues, operating profit and net income.

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EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA

EBITDA, presented herein, reflects net income (loss) excluding depreciation and amortization, interest income, interest expense, income taxes and also interest expense, income tax and depreciation and amortization included in equity in earnings (losses) from investments in affiliates.

Adjusted EBITDA, presented herein, is calculated as EBITDA, further adjusted to exclude:

Gains or losses on sales of assets for both consolidated and unconsolidated investments;

Costs associated with hotel acquisitions or dispositions expensed during the period;

Severance expense;

Share-based compensation expense;

Impairment losses and casualty gains or losses; and

Other items that we believe are not representative of our current or future operating performance.

Hotel Adjusted EBITDA measures hotel-level results before debt service, depreciation and corporate expenses for our consolidated hotels, which excludes hotels owned by unconsolidated affiliates, and is a key measure of our profitability. We present Hotel Adjusted EBITDA to help us and our investors evaluate the ongoing operating performance of our consolidated hotels.

EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, our definitions of EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA may not be comparable to similarly titled measures of other companies.

We believe that EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA are among the measures used by our management team to make day-to-day operating decisions and evaluate our operating performance between periods and between REITs by removing the effect of our capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from our operating results; and (ii) EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA 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.

EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss) or other methods of analyzing our operating performance and results as reported under U.S. GAAP. Some of these limitations are:

EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA do not reflect our interest expense;

EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA do not reflect our income tax expense;

EBITDA, Adjusted EBITDA and Hotel 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; and

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

We do not use or present EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA as measures of our liquidity or cash flow. These measures have limitations as analytical tools and should not be considered either in isolation or as a substitute for cash flow or other methods of analyzing our cash flows and liquidity as reported under U.S. GAAP. Some of these limitations are:

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

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

EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA do not reflect the cash requirements to pay our taxes;

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

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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, Adjusted EBITDA and Hotel Adjusted EBITDA do not reflect any cash requirements for such replacements.

Because of these limitations, EBITDA, Adjusted EBITDA and Hotel 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.

The following table provides a reconciliation of Net loss to Hotel Adjusted EBITDA:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions)
Net loss	$	(82	)	$	(276	)	$	(387	)	$	(1,226	)
Depreciation and amortization expense		68			75			213			225
Interest income		—			—			—			(2	)
Interest expense		66			59			195			149
Income tax (benefit) expense		(3	)		1			(2	)		14
Interest expense, income tax and depreciation and    amortization included in equity in earnings from    investments in affiliates		3			2			8			11
EBITDA		52			(139	)		27			(829	)
Loss (gain) on sales of assets, net		11			1			5			(62	)
Acquisition costs		—			9			—			10
Severance expense		—			24			—			26
Share-based compensation expense		5			4			15			10
Impairment and casualty loss, net		2			2			7			696
Other items		7			10			7			20
Adjusted EBITDA		77			(89	)		61			(129	)
Less: Adjusted EBITDA from investments in affiliates		(4	)		2			(4	)		2
Add: All other(1)		11			11			33			34
Hotel Adjusted EBITDA	$	84		$	(76	)	$	90		$	(93	)

(1) Includes other revenues and other expenses, non-income taxes on TRS leases included in other property-level expenses and corporate general and administrative expenses.

Nareit FFO attributable to stockholders and Adjusted FFO attributable to stockholders

We present Nareit FFO attributable to stockholders and Nareit FFO per diluted share (defined as set forth below) as non-GAAP measures of our performance. We calculate funds from (used in) operations (“FFO”) attributable to stockholders for a given operating period in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), as net income (loss) attributable to stockholders (calculated in accordance with U.S. GAAP), excluding depreciation and amortization, gains or losses on sales of assets, impairment, and the cumulative effect of changes in accounting principles, plus adjustments for unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect our pro rata share of the FFO of those entities on the same basis. As noted by Nareit in its December 2018 “Nareit Funds from Operations White Paper – 2018 Restatement,” since real estate values historically have risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For these reasons, Nareit adopted the FFO metric in order to promote an industry-wide measure of REIT operating performance. We believe Nareit FFO provides useful information to investors regarding our operating performance and can facilitate comparisons of operating performance between periods and between REITs. Our presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current Nareit definition, or that interpret the current Nareit definition differently than we do. We calculate Nareit FFO per diluted share as our Nareit FFO divided by the number of fully diluted shares outstanding during a given operating period.

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We also present Adjusted FFO attributable to stockholders and Adjusted FFO per diluted share when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance. Management historically has made the adjustments detailed below in evaluating our performance and in our annual budget process. We believe that the presentation of Adjusted FFO provides useful supplemental information that is beneficial to an investor’s complete understanding of our operating performance. We adjust Nareit FFO attributable to stockholders for the following items, which may occur in any period, and refer to this measure as Adjusted FFO attributable to stockholders:

Costs associated with hotel acquisitions or dispositions expensed during the period;

Severance expense;

Share-based compensation expense; and

Other items that we believe are not representative of our current or future operating performance.

The following table provides a reconciliation of net loss attributable to stockholders to Nareit FFO attributable to stockholders and Adjusted FFO attributable to stockholders:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions, except per share amounts)
Net loss attributable to stockholders	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Depreciation and amortization expense		68			75			213			225
Depreciation and amortization expense    attributable to noncontrolling interests		(1	)		(1	)		(3	)		(3	)
Loss (gain) on sales of assets, net		11			1			5			(62	)
Gain on sale of investments in affiliates(1)		—			—			—			(1	)
Impairment loss		—			2			5			697
Equity investment adjustments:
Equity in losses from investments in affiliates		—			7			6			16
Pro rata FFO of investments in affiliates		3			(3	)		1			(6	)
Nareit FFO attributable to stockholders		(5	)		(195	)		(165	)		(357	)
Casualty loss (gain), net		2			—			2			(1	)
Severance expense		—			24			—			26
Acquisition costs		—			9			—			10
Share-based compensation expense		5			4			15			10
Other items(2)		3			11			2			48
Adjusted FFO attributable to stockholders	$	5		$	(147	)	$	(146	)	$	(264	)
Nareit FFO per share - Diluted(3)	$	(0.02	)	$	(0.83	)	$	(0.70	)	$	(1.52	)
Adjusted FFO per share - Diluted(3)	$	0.02		$	(0.62	)	$	(0.62	)	$	(1.12	)

(1) Included in other loss, net.

(2) For the nine months ended September 30, 2020, includes $30 million of tax expense on hotels sold during the period.

(3) Per share amounts are calculated based on unrounded numbers.

Results of Operations

The following items have had a significant effect on the year-over-year comparability of our operations and are illustrated further in the table of Hotel Revenues and Operating Expenses below:

Property Dispositions: Between January 1, 2020 and September 30, 2021, we disposed of seven consolidated hotels. As a result of these dispositions, our revenues and operating expenses decreased for the three and nine months ended September 30, 2021 as compared to the same periods in 2020. The results of operations during our period of ownership of these hotels are included in our consolidated results.

COVID-19: Beginning in March 2020, we experienced a significant decline in ADR, occupancy and RevPAR due to COVID-19. The economic contraction resulting from the spread of COVID-19 has and is expected to continue to significantly affect our business. Consequently, the results of our portfolio during the three and nine months ended September 30, 2021 will not be comparable to the same periods in 2020.

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Hotel Revenues and Operating Expenses

	Three Months Ended September 30,
	2021		2020		Change			Change from Property Dispositions			Change from Other Factors(1)
	(in millions)
Rooms revenue	$	274	$	70	$	204		$	2		$	202
Food and beverage revenue		76		10		66			—			66
Ancillary hotel revenue		58		15		43			—			43
Rooms expense		76		30		46			1			45
Food and beverage expense		63		18		45			—			45
Other departmental and support    expense		119		64		55			(1	)		56
Other property-level expense		51		84		(33	)		(2	)		(31	)
Management fees expense		19		2		17			—			17

(1) Change from other factors primarily relates to the effects of COVID-19. The increase in revenues and expenses for the three months ended September 30, 2021 was primarily due to the reopening of most of our hotels that were suspended during the same period in 2020 and improved occupancy due to an increase in leisure travel as compared to the same period in 2020.

	Nine Months Ended September 30,
	2021		2020		Change			Change from Property Dispositions			Change from Other Factors(1)
	(in millions)
Rooms revenue	$	587	$	453	$	134		$	(10	)	$	144
Food and beverage revenue		152		174		(22	)		(3	)		(19	)
Ancillary hotel revenue		137		87		50			(1	)		51
Rooms expense		170		162		8			(1	)		9
Food and beverage expense		126		155		(29	)		(3	)		(26	)
Other departmental and support expense		298		296		2			(5	)		7
Other property-level expense		151		200		(49	)		(2	)		(47	)
Management fees expense		40		27		13			(1	)		14

(1) Change from other factors primarily relates to the effects of COVID-19.

Group, transient, contract and other rooms revenue for the three and nine months ended September 30, 2021, as well as the change for each segment compared to the same periods in 2020 are as follows:

	Three Months Ended September 30,
	2021		2020		Change		Change from Property Dispositions		Change from Other Factors(1)
	(in millions)
Group rooms revenue	$	36	$	9	$	27	$	—	$	27
Transient rooms revenue		219		49		170		1		169
Contract rooms revenue		14		10		4		—		4
Other rooms revenue		5		2		3		1		2
Rooms revenue	$	274	$	70	$	204	$	2	$	202

(1) Change from other factors primarily relates to the effects of COVID-19. The increase in revenues for the three months ended September 30, 2021 was primarily due to the reopening of most of our hotels that were suspended during the same period in 2020.

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	Nine Months Ended September 30,
	2021		2020		Change			Change from Property Dispositions			Change from Other Factors(1)
	(in millions)
Group rooms revenue	$	59	$	129	$	(70	)	$	(4	)	$	(66	)
Transient rooms revenue		482		275		207			(6	)		213
Contract rooms revenue		36		38		(2	)		—			(2	)
Other rooms revenue		10		11		(1	)		—			(1	)
Rooms revenue	$	587	$	453	$	134		$	(10	)	$	144

(1) Change from other factors primarily relates to the effects of COVID-19.

Other revenue and Other expense

During the second half of 2020, we permanently closed operations at all three of our laundry facilities resulting in a decrease in both laundry revenue and laundry expense. The increases in support services revenue and expense are due to the reopening of our hotels that have service arrangements with Hilton Grand Vacations (“HGV”), which were suspended for a majority of 2020.

	Three Months Ended September 30,							Nine Months Ended September 30,
	2021		2020		Percent Change			2021		2020		Percent Change
	(in millions)							(in millions)
Support service revenue	$	15	$	3		400.0	%		35		23		52.2	%
Laundry revenue		—		—		—			—		2		(100.0	)
Total other revenue	$	15	$	3		400.0	%	$	35	$	25		40.0	%

	Three Months Ended September 30,							Nine Months Ended September 30,
	2021		2020		Percent Change			2021		2020		Percent Change
	(in millions)							(in millions)
Support services expense	$	14	$	1		1300.0	%	$	34	$	21		61.9	%
Laundry expense		—		5		(100.0	)		—		10		(100.0	)
Total other expense	$	14	$	6		133.3	%	$	34	$	31		9.7	%

Corporate general and administrative

	Three Months Ended September 30,							Nine Months Ended September 30,
	2021		2020		Percent Change			2021		2020		Percent Change
	(in millions)							(in millions)
General and administrative expenses	$	9	$	9		—	%	$	33	$	29		13.8	%
Share-based compensation expense		5		4		25.0			15		10		50.0
Disposition costs		—		—		—			—		1		(100.0	)
Severance expense		—		—		—			—		2		(100.0	)
Total corporate general and    administrative	$	14	$	13		7.7	%	$	48	$	42		14.3	%

Acquisition costs

During the nine months ended September 30, 2020, we incurred $10 million of acquisition costs, primarily as a result of $9 million of transfer tax in connection with the Merger Agreement with Chesapeake based on new information received during the period.

Impairment and casualty loss, net

During the nine months ended September 30, 2021, we recognized an impairment loss of $5 million related to one of our hotels classified as held for sale as of June 30, 2021. We also recognized $2 million of casualty losses as a result of damage caused by Hurricane Ida at one of our hotels.

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During the nine months ended September 30, 2020, we recognized a net loss of $696 million primarily as a result of $607 million of impairment losses related to our goodwill and $90 million of impairment losses primarily related to one of our hotels, and our inability to recover the carrying value of the asset because of COVID-19.

(Loss) gain on sales of assets, net

During the three and nine months ended September 30, 2021, we recognized a net loss of $11 million and $5 million, respectively, primarily as a result of the sales of our consolidated hotels during the respective periods.

During the nine months ended September 30, 2020, we recognized a net gain of $62 million primarily as a result of the sale of two of our consolidated hotels.

Non-operating Income and Expenses

Interest expense

Interest expense increased during the three and nine months ended September 30, 2021 compared to the same periods in 2020 as a result the issuances of $2.1 billion of Senior Secured Notes during the second and third quarters of 2020 and May 2021, partially offset by a decrease in interest expense as a result of the full repayment of the 2016 Term Loan in September 2020, partial repayment of the 2019 Term Facility during the second and third quarters of 2021 and the full repayment of the Revolver during 2021. Interest expense associated with our debt for the three and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,							Nine Months Ended September 30,
	2021		2020		Percent Change			2021		2020		Percent Change
	(in millions)							(in millions)
SF and HHV CMBS Loans(1)	$	21	$	21		—	%	$	63	$	63		—	%
Mortgage Loans		7		5		40.0			19		16		18.8
2016 Term Loan		—		4	NM(2)				—		15	NM(2)
2019 Term Facility		2		5		(60.0	)		11		15		(26.7	)
Revolver		1		6		(83.3	)		9		14		(35.7	)
2025 Senior Secured Notes(3)		13		13		—			37		17		117.6
2028 Senior Secured Notes(3)		11		2		450.0			32		2		1,500.0
2029 Senior Secured Notes(3)		9		—	NM(2)				14		—	NM(2)
Other		2		3		(33.3	)		10		7		42.9
Total interest expense	$	66	$	59		11.9	%	$	195	$	149		30.9	%

(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) Percentage change is not meaningful.

(3) In May and September 2020, Park Intermediate Holdings LLC (our “Operating Company”), PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”), and PK Finance Co-Issuer Inc. (“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. Additionally, in May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $750 million of senior secured notes due 2029 (“2029 Senior Secured Notes,” collectively with the 2025 Senior Secured Notes and 2028 Senior Secured Notes, the “Senior Secured Notes”).

Income tax expense

	Three Months Ended September 30,								Nine Months Ended September 30,
	2021			2020		Percent Change			2021			2020		Percent Change
	(in millions)								(in millions)
Income tax (benefit) expense	$	(3	)	$	1		(400.0	)%	$	(2	)	$	14		(114.3	)%

During the nine months ended September 30, 2021, we recognized a $2 million income tax benefit, comprising a $3 million state tax benefit from utilizing state NOLs, a $1 million benefit from the derecognition of deferred tax liabilities and $2 million of tax expense, primarily from adjustments to the benefit recognized in 2020 from utilizing the NOL carryback provisions of the CARES Act.

Income tax expense for the nine months ended September 30, 2020 includes $30 million of income tax expense from hotels sold during the period, partially offset by a TRS income tax benefit of $20 million from utilizing the NOL carryback provisions of the CARES Act.

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Liquidity and Capital Resources

Overview

We seek to maintain sufficient amounts of liquidity with an appropriate balance of cash, debt and equity to provide financial flexibility. As of September 30, 2021, we had total cash and cash equivalents of $772 million and $70 million of restricted cash. Restricted cash primarily consists of cash restricted as to use by our debt agreements and reserves for capital expenditures in accordance with certain of our management agreements.

As a result of the economic uncertainty resulting from the effects of COVID-19, including decreased occupancy, ADR and RevPAR at our hotels, as described above under “Recent Events”, we expect our cash flows for the remainder of 2021 to be significantly lower than prior to COVID-19. We have taken several steps to preserve capital and increase liquidity, including drawing $1 billion from our Revolver in March 2020 (which we subsequently fully repaid), issuing $650 million of 2025 Senior Secured Notes in May 2020 (a portion of which was used to partially repay amounts outstanding under our Revolver and 2016 Term Loan), issuing $725 million of 2028 Senior Secured Notes in September 2020 (a portion of which was used to repay the 2016 Term Loan in full as well as a portion of the Revolver), issuing $750 million of 2029 Senior Secured Notes in May 2021 (a portion of which was used to partially repay the Revolver and the 2019 Term Facility), suspending our dividend following the payment of the first quarter 2020 dividend and implementing various cost saving initiatives at our hotels including temporary suspension of operations at certain hotels and selected restaurants and other businesses and outlets and reductions in forecasted capital expenditures for maintenance projects to approximately $56 million for 2021. We will continue to assess when the deferred capital expenditures will resume or if any of the deferred expenditures will be cancelled.

In 2021, we sold five consolidated hotels, the W New Orleans – French Quarter, the Hotel Indigo San Diego Gaslamp Quarter, the Courtyard Washington Capitol Hill Navy Yard, the Hotel Adagio, Autograph Collection and the Le Meridien San Francisco. Net proceeds from the sales of these hotels were used to repay $37 million outstanding under the Revolver, which currently has no remaining balance outstanding, and to partially repay $419 million of the 2019 Term Facility.

We generated positive Hotel Adjusted EBITDA for the quarter ended September 30, 2021. With the availability under our Revolver and existing cash and cash equivalents as a result of net proceeds from the offering of our Senior Secured Notes and the proceeds from the sales of two consolidated hotels in 2020 and the sale of five consolidated hotels in 2021, we have sufficient liquidity to pay our near-term debt maturities and to fund other short-term liquidity obligations. We are maintaining higher than historical cash levels due to the continued uncertainty surrounding COVID-19, and we intend to do so until markets stabilize and demand in the lodging industry significantly recovers. In addition, we also may take other actions to improve our liquidity, such as the issuance of additional debt, equity or equity-linked securities, if we determine that doing so would be beneficial to us. However, there can no assurance as to the timing of any such issuance, which may be in the near term, or that any such additional financing will be completed on favorable terms, or at all. In 2020, we amended our credit facilities, which in addition to providing enhanced liquidity, extending the maturity of the Revolver and extending the waiver period for the testing of the financial covenants, placed certain restrictions on the Company, including limitations on our ability to make dividends and distributions (except to the extent required to maintain REIT status, the ability to pay a $0.01 per share per fiscal quarter dividend and certain other agreed exceptions).

Our known short-term liquidity requirements primarily consist of funds necessary to pay for operating expenses and other expenditures, including reimbursements to our hotel manager for payroll and related benefits, costs associated with the operation of our hotels, interest and scheduled principal payments on our outstanding indebtedness, capital expenditures for renovations and maintenance at our hotels, corporate general and administrative expenses, and, when resumed, dividends to our stockholders. Many of the other expenses associated with our hotels are relatively fixed, including portions of rent expense, property taxes and insurance. Since we generally are unable to decrease these costs significantly or rapidly when demand for our hotels decreases, the resulting decline in our revenues can have a greater adverse effect on our net cash flow, margins and profits. Our long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities, capital improvements at our hotels (to the extent not cancelled or deferred), and costs associated with potential acquisitions. Despite the impact of COVID-19 on the global economy and our business, we were able to access the debt capital markets during the past year to complete three separate offerings of our Senior Secured Notes.

Our commitments to fund capital expenditures for renovations and maintenance at our hotels will be funded by cash and cash equivalents, restricted cash to the extent permitted by our lending agreements and cash flow from operations. We have established reserves for capital expenditures (“FF&E reserve”) in accordance with our management and certain debt agreements. Generally, these agreements require that we fund 4% of hotel revenues into an FF&E reserve, unless such amounts have been incurred. As a result of COVID-19, our hotel managers have temporarily delayed contributions to the FF&E reserve accounts and in addition, have allowed our hotels to utilize, as needed, their FF&E reserve for operating expenses at the respective hotels, as long as the hotels remain in compliance with debt agreements.

Our cash management objectives continue to be to maintain the availability of liquidity, minimize operational costs, make debt payments and fund our capital expenditure programs and future acquisitions. Further, we have an investment policy that is focused on the preservation of capital and maximizing the return on new and existing investments.

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Stock Repurchase Program

In February 2019, our Board of Directors approved a stock repurchase program allowing us to repurchase up to $300 million of our common stock over a two-year period, which ended in February 2021. We have not renewed the stock repurchase program at this time. Stock repurchases were made through open market purchases, in privately negotiated transactions, or in such other manner that complied with applicable securities laws. The timing of stock repurchases and the number of shares repurchased were dependent upon prevailing market conditions and other factors. During the three months ended March 31, 2020, we repurchased 4.6 million shares of our common stock for a total purchase price of $66 million. No additional common stock was repurchased during 2020 or the first two months of 2021.

Sources and Uses of Our Cash and Cash Equivalents

The following tables summarize our net cash flows and key metrics related to our liquidity:

	Nine Months Ended September 30,
	2021			2020			Percent Change
	(in millions)
Net cash used in operating activities	$	(95	)	$	(274	)		65.3	%
Net cash provided by investing activities		425			136			212.5	%
Net cash (used in) provided by financing activities		(469	)		921		NM(1)

(1) Percentage change is not meaningful.

Operating Activities

Cash flow from operating activities are primarily generated from the operating income generated at our hotels.

The $179 million decrease in net cash used in operating activities for the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 was primarily due to an increase in cash from operations as a result of the increase in occupancy as our hotels continue to recover from the effects of COVID-19, partially offset by an increase in cash paid for taxes of approximately $27 million, primarily associated with built-in gains from an asset sold in 2020, and an increase in cash paid for interest of $25 million.

Investing Activities

The $425 million in net cash provided by investing activities for the nine months ended September 30, 2021 was primarily attributable to $454 million of net proceeds from the sale of five of our consolidated hotels, partially offset by $28 million in capital expenditures.

The $136 million in net cash provided by investing activities for the nine months ended September 30, 2020 was primarily attributable to the $207 million in net proceeds received from the sale of hotels, partially offset by $70 million in capital expenditures.

Financing Activities

The $469 million in net cash used in financing activities for the nine months ended September 30, 2021 was primarily attributable to $1.2 billion of debt repayments and $15 million of debt issuance costs, partially offset by the issuance of $750 million of 2029 Senior Secured Notes and the $14 million mortgage loan secured by the Doubletree Spokane.

The $921 million in net cash provided by financing activities for the nine months ended September 30, 2020 was primarily attributable to borrowings of $1 billion from our Revolver as a result of COVID-19, the issuance of our $650 million 2025 Senior Secured Notes and $725 million of 2028 Senior Secured Notes, partially offset by $1.1 billion of debt repayments, $241 million in dividends paid and the repurchase of 4.5 million shares of our common stock for $66 million.

Dividends

As a REIT, we are required to distribute at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gain, and after utilization of any NOL carryforward to our stockholders on an annual basis. Therefore, as a general matter, it is unlikely that we will be able to retain substantial cash balances that could be used to meet our liquidity needs from our annual taxable income. Instead, we will need to meet these needs from external sources of capital and amounts, if any, by which our cash flow generated from operations exceeds taxable income. However, as a precautionary measure in light of COVID-19, after the payment of the first quarter dividend in 2020, we suspended our quarterly dividend.

26

Debt

As of September 30, 2021, our total indebtedness was approximately $4.7 billion, including approximately $2.1 billion of our Senior Secured Notes, as disclosed above, and excluding approximately $225 million of our share of debt from investments in affiliates. Substantially all the debt of such unconsolidated affiliates is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us. Refer to Note 7: “Debt” in our unaudited condensed consolidated financial statements included elsewhere within this Quarterly Report on Form 10-Q for additional information.

Off-Balance Sheet Arrangements

Our off-balance sheet arrangements as of September 30, 2021 included construction contract commitments of approximately $116 million for capital expenditures at our properties, of which $78 million relates to the expansion project at the Bonnet Creek complex. The Bonnet Creek expansion project includes additional meeting space for the Signia by Hilton Orlando Bonnet Creek and the Waldorf Astoria Orlando. Our contracts contain clauses that allow us to cancel all or some portion of the work. If cancellation of a contract occurred, our commitment would be any costs incurred up to the cancellation date, in addition to any costs associated with the discharge of the contract.

Critical Accounting Policies and Estimates

The preparation of our financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of our financial statements, the reported amounts of revenues and expenses during the reporting periods and the related disclosures in our condensed consolidated financial statements and accompanying footnotes. We have discussed those 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 year ended December 31, 2020, filed with the Securities and Exchange Commission on February 26, 2021. There have been no material changes to our critical accounting policies or the methods or assumptions we apply.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are exposed to market risk primarily from changes in interest rates, which may affect our future income, cash flows and fair value, depending on changes to interest rates. In certain situations, we may seek to reduce cash flow volatility associated with changes in interest rates by entering into financial arrangements 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.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management has evaluated, under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial Officer, the effectiveness of the disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”), as required by paragraph (b) of Rules 13a-15 and 15d-15 of the Exchange Act. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of September 30, 2021, our disclosure controls and procedures were effective to ensure that information we are required to disclose in reports filed or submitted with the Securities and Exchange Commission (i) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and (ii) is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

27

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 and consumer protection claims. Most occurrences involving liability, claims of negligence and employees are covered by insurance with solvent insurance carriers. For those matters not covered by insurance, which include commercial matters, we recognize a liability when we believe the loss is probable and can be reasonably estimated. 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 liquidity. 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.

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 year ended December 31, 2020.

Item 2. Unregistered Sales of Equity Securities.

2(a): Unregistered Sales of Equity Securities and Use of Proceeds

None.

2(b): Use of Proceeds from Registered Securities

None.

2(c): Purchases of Equity Securities

During the nine months ended September 30, 2021, repurchases made pursuant to our repurchase program were as follows:

Record Date	Total number of shares purchased(1)		Weighted average price paid per share(2)		Total number of shares purchased as part of publicly announced plans or programs		Maximum number (or approximate dollar value) of common shares that may yet be purchased under the plans or programs(3) (in millions)
January 1, 2021 through January 31, 2021		3	$	17.15		—	$	234
February 1, 2021 through February 28, 2021		95,565	$	20.91		—	$	234
March 1, 2021 through March 31, 2021		392	$	21.15		—	$	—
April 1, 2021 through April 30, 2021		230	$	21.82		—	$	—
May 1, 2021 through May 31, 2021		58	$	22.31		—	$	—
June 1, 2021 through June 30, 2021		50	$	20.52		—	$	—
July 1, 2021 through July 31, 2021		168	$	20.33		—	$	—
August 1, 2021 through August 31, 2021		31	$	17.63		—	$	—
September 1, 2021 through September 30, 2021		6,659	$	19.42		—	$	—
		103,156				—

(1) The number of shares purchased represents shares of common stock surrendered by certain of our employees to satisfy their federal and state tax obligations associated with the vesting of restricted common stock.

(2) The weighted average price paid per share for shares of common stock surrendered by certain employees is based on the closing price of our common stock on the trading date immediately prior to the date of delivery of the shares.

(3) The stock repurchase program authorized in February 2019 for the repurchase of up to $300 million of the Company’s common stock expired on February 28, 2021.

Item 3. Defaults Upon Senior Securities.

Not applicable.

28

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

29

Item 6. Exhibits

Exhibit Number	Description
2.1	Distribution Agreement by and among Hilton Worldwide Holdings Inc., Park Hotels & Resorts Inc., Hilton Grand Vacations Inc. and Hilton Domestic Operating Company Inc., dated as of January 2, 2017 (incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K, filed on January 4, 2017).
2.2	Agreement and Plan of Merger by and among Park Hotels & Resorts Inc., PK Domestic Property LLC, PK Domestic Sub LLC, and Chesapeake Lodging Trust, dated as of May 5, 2019 (incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K, filed on May 6, 2019).
3.1	Amended and Restated Certificate of Incorporation of Park Hotels & Resorts Inc. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K, filed on April 30, 2019).
3.2	Amended and Restated By-laws of Park Hotels & Resorts Inc. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K, filed on February 26, 2019).
31.1*	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, furnished herewith.
32.2*	Certification of Principal Financial Officer Pursuant to 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 - the 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 (formatted as Inline XBRL and contained in Exhibit 101).
*	Filed herewith

30

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Park Hotels & Resorts Inc.
Date: November 4, 2021	By:	/s/ Thomas J. Baltimore Jr.
		Thomas J. Baltimore, Jr.
		Chairman of the Board, President and Chief Executive Officer  (Principal Executive Officer)
Date: November 4, 2021	By:	/s/ Sean M. Dell’Orto
		Sean M. Dell’Orto
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Date: November 4, 2021	By:	/s/ Darren W. Robb
		Darren W. Robb
		Senior Vice President and Chief Accounting Officer (Principal Accounting Officer)

31

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas J. Baltimore, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Park Hotels & Resorts 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Securities Exchange Act of 1934, as amended, 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(s) 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.

Date: November 4, 2021	By:	/s/ Thomas J. Baltimore, Jr.
		Thomas J. Baltimore, Jr.
		Chairman of the Board, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sean M. Dell’Orto, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Park Hotels & Resorts 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(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Securities Exchange Act of 1934, as amended, 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(s) 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.

Date: November 4, 2021	By:	/s/ Sean M. Dell’Orto
		Sean M. Dell’Orto
		Executive Vice President and Chief Financial Officer

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 of Park Hotels & Resorts Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas J. Baltimore, Jr., President and Chief Executive Officer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 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 result of operations of the Company.

Date: November 4, 2021	By:	/s/ Thomas J. Baltimore, Jr.
		Thomas J. Baltimore, Jr.
		Chairman of the Board, President and Chief Executive Officer

In accordance with SEC Release NO. 34-47986, this Exhibit is furnished to the SEC as an accompanying document and is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended.

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 of Park Hotels & Resorts Inc. (the “Company”) on Form 10-Q for the quarter ended September 30, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Sean M. Dell’Orto, Executive Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 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 result of operations of the Company.

Date: November 4, 2021	By:	/s/ Sean M. Dell’Orto
		Sean M. Dell’Orto
		Executive Vice President and Chief Financial Officer

In accordance with SEC Release NO. 34-47986, this Exhibit is furnished to the SEC as an accompanying document and is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Trading Symbol	PK
Entity Registrant Name	Park Hotels & Resorts Inc.
Entity Central Index Key	0001617406
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		236,479,179
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, $0.01 par value per share
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37795
Entity Tax Identification Number	36-2058176
Entity Address, Address Line One	1775 Tysons Boulevard
Entity Address, Address Line Two	7th Floor
Entity Address, City or Town	Tysons
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22102
City Area Code	571
Local Phone Number	302-5757

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
ASSETS
Property and equipment, net	$ 8,549	$ 9,193
Investments in affiliates	14	14
Intangibles, net	44	45
Cash and cash equivalents	772	951
Restricted cash	70	30
Accounts receivable, net of allowance for doubtful accounts of $2 and $3	62	26
Prepaid expenses	34	39
Other assets	34	60
Operating lease right-of-use assets	215	229
TOTAL ASSETS (variable interest entities - $239 and $229)	9,794	10,587
Liabilities
Debt	4,670	5,121
Accounts payable and accrued expenses	204	147
Due to hotel managers	96	88
Deferred income tax liabilities	9	10
Other liabilities	115	134
Operating lease liabilities	232	244
Total liabilities (variable interest entities - $218 and $213)	5,326	5,744
Commitments and contingencies - refer to Note 13
Stockholders' Equity
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 236,884,447 shares issued and 236,479,696 shares outstanding as of September 30, 2021 and 236,217,344 shares issued and 235,915,749 shares outstanding as of December 31, 2020	2	2
Additional paid-in capital	4,529	4,519
(Accumulated deficit) retained earnings	(16)	376
Accumulated other comprehensive loss	0	(4)
Total stockholders' equity	4,515	4,893
Noncontrolling interests	(47)	(50)
Total equity	4,468	4,843
TOTAL LIABILITIES AND EQUITY	$ 9,794	$ 10,587

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Allowance for doubtful accounts receivable	$ 2	$ 3
Total assets	9,794	10,587
Total liabilities	$ 5,326	$ 5,744
Common stock, par value (per share)	$ 0.01	$ 0.01
Common stock, authorized shares	6,000,000,000	6,000,000,000
Common stock, issued shares	236,884,447	236,217,344
Common stock, outstanding shares	236,479,696	235,915,749
Consolidated VIEs [Member]
Total assets	$ 239	$ 229
Total liabilities	$ 218	$ 213

XML

Condensed Consolidated Statements of Comprehensive Loss - USD ($) shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Total revenues		$ 423	$ 98	$ 911	$ 739
Operating expenses
Other property-level		51	84	151	200
Management fees		19	2	40	27
Impairment and casualty loss, net		2	2	7	696
Depreciation and amortization		68	75	213	225
Corporate general and administrative		14	13	48	42
Acquisition costs		0	9	0	10
Other		14	6	34	31
Total expenses		426	303	1,087	1,844
(Loss) gain on sales of assets, net		(11)	(1)	(5)	62
Operating loss		(14)	(206)	(181)	(1,043)
Interest income		0	0	0	2
Interest expense		(66)	(59)	(195)	(149)
Equity in losses from investments in affiliates		0	(7)	(6)	(16)
Other loss, net		(5)	(3)	(7)	(6)
Loss before income taxes		(85)	(275)	(389)	(1,212)
Income tax benefit (expense)		3	(1)	2	(14)
Net loss		(82)	(276)	(387)	(1,226)
Net (income) loss attributable to noncontrolling interests		(4)	0	(5)	3
Net loss attributable to stockholders		(86)	(276)	(392)	(1,223)
Other comprehensive income (loss) net of tax expense:
Currency translation adjustment, net of tax expense of $0		0	1	0	4
Change in fair value of interest rate swap, net of tax expense of $0		1	0	2	(6)
Loss from interest rate swap reclassified into earnings		2	0	2	0
Total other comprehensive income (loss)		3	1	4	(2)
Comprehensive loss		(79)	(275)	(383)	(1,228)
Comprehensive loss attributable to noncontrolling interests		(4)		(5)	3
Comprehensive loss attributable to stockholders		$ (83)	$ (275)	$ (388)	$ (1,225)
Loss per share:
Loss per share - Basic	[1]	$ (0.36)	$ (1.17)	$ (1.66)	$ (5.19)
Loss per share - Diluted	[1]	$ (0.36)	$ (1.17)	$ (1.66)	$ (5.19)
Weighted average shares outstanding - Basic		236	235	236	236
Weighted average shares outstanding - Diluted		236	235	236	236
Rooms [Member]
Revenues
Total revenues		$ 274	$ 70	$ 587	$ 453
Operating expenses
Expenses		76	30	170	162
Food and Beverage [Member]
Revenues
Total revenues		76	10	152	174
Operating expenses
Expenses		63	18	126	155
Ancillary Hotel [Member]
Revenues
Total revenues		58	15	137	87
Other [Member]
Revenues
Total revenues		15	3	35	25
Other Departmental and Support [Member]
Operating expenses
Expenses		$ 119	$ 64	$ 298	$ 296

[1] Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented.

XML

Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Foreign currency translation adjustment, tax	$ 0	$ 0	$ 0	$ 0
Change in fair value of interest rate swap, tax	$ 0	$ 0	$ 0	$ 0

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating Activities:
Net loss	$ (387)	$ (1,226)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	213	225
Loss (gain) on sales of assets, net	5	(62)
Impairment and casualty loss, net	7	696
Equity in losses from investments in affiliates	6	16
Other loss, net	7	6
Share-based compensation expense	15	10
Amortization of deferred financing costs	9	6
Distributions from unconsolidated affiliates	0	5
Deferred Income Taxes	(1)	2
Changes in operating assets and liabilities	31	48
Net cash used in operating activities	(95)	(274)
Investing Activities:
Capital expenditures for property and equipment	(28)	(70)
Proceeds from asset dispositions, net	454	207
Contributions to unconsolidated affiliates	(5)	(2)
Insurance proceeds for property damage claims	4	1
Net cash provided by investing activities	425	136
Financing Activities:
Borrowings from credit facilities	0	1,000
Repayments of credit facilities	(1,193)	(1,099)
Proceeds from issuance of Senior Secured Note	750	1,376
Proceeds from Issuance of Mortgage Debt	14	0
Repayments of mortgage debt	(18)	(4)
Debt issuance costs	(15)	(39)
Dividends paid	0	(241)
Distributions to noncontrolling interests, net	(2)	(1)
Tax withholdings on share-based compensation	(5)	(5)
Repurchase of common stock	0	(66)
Net cash (used in) provided by financing activities	(469)	921
Net (decrease) increase in cash and cash equivalents and restricted cash	(139)	783
Cash and cash equivalents and restricted cash, beginning of period	981	386
Cash and cash equivalents and restricted cash, end of period	$ 842	$ 1,169

XML

Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions		Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Non-Controlling Interests [Member]
Balance at Dec. 31, 2019		$ 6,451	$ 2	$ 4,575	$ 1,922	$ (3)	$ (45)
Balance (shares) at Dec. 31, 2019			239,000,000
Share-based compensation, net		(4)		(5)	1
Net loss		(689)			(688)		(1)
Other comprehensive income (loss)		(2)				(2)
Dividends and dividend equivalents	[1]	(106)			(106)
Distributions to noncontrolling interests		(1)					(1)
Repurchase of common stock		(66)		(66)
Repurchases of common stock (Shares)			(4,000,000)
Balance at Mar. 31, 2020		5,583	$ 2	4,504	1,129	(5)	(47)
Balance (shares) at Mar. 31, 2020			235,000,000
Balance at Dec. 31, 2019		6,451	$ 2	4,575	1,922	(3)	(45)
Balance (shares) at Dec. 31, 2019			239,000,000
Net loss		(1,226)
Other comprehensive income (loss)		(2)
Balance at Sep. 30, 2020		5,055	$ 2	4,512	595	(5)	(49)
Balance (shares) at Sep. 30, 2020			236,000,000
Balance at Mar. 31, 2020		5,583	$ 2	4,504	1,129	(5)	(47)
Balance (shares) at Mar. 31, 2020			235,000,000
Share-based compensation, net		5		4	1
Share-based compensation, net (Shares)			1,000,000
Net loss		(261)			(259)		(2)
Other comprehensive income (loss)		1				(1)
Balance at Jun. 30, 2020		5,326	$ 2	4,508	871	(6)	(49)
Balance (shares) at Jun. 30, 2020			236,000,000
Share-based compensation, net		4		4
Net loss		(276)			(276)
Other comprehensive income (loss)		1				1
Balance at Sep. 30, 2020		5,055	$ 2	4,512	595	(5)	(49)
Balance (shares) at Sep. 30, 2020			236,000,000
Balance at Dec. 31, 2020		$ 4,843	$ 2	4,519	376	(4)	(50)
Balance (shares) at Dec. 31, 2020		235,915,749	236,000,000
Share-based compensation, net				1	(1)
Net loss		$ (191)			(190)		(1)
Other comprehensive income (loss)		1				1
Balance at Mar. 31, 2021		4,653	$ 2	4,520	185	(3)	(51)
Balance (shares) at Mar. 31, 2021			236,000,000
Balance at Dec. 31, 2020		$ 4,843	$ 2	4,519	376	(4)	(50)
Balance (shares) at Dec. 31, 2020		235,915,749	236,000,000
Net loss		$ (387)
Other comprehensive income (loss)		4
Balance at Sep. 30, 2021		$ 4,468	$ 2	4,529	(16)		(47)
Balance (shares) at Sep. 30, 2021		236,479,696	236,000,000
Balance at Mar. 31, 2021		$ 4,653	$ 2	4,520	185	(3)	(51)
Balance (shares) at Mar. 31, 2021			236,000,000
Share-based compensation, net		6		5	1
Net loss		(114)			(116)		2
Balance at Jun. 30, 2021		4,545	$ 2	4,525	70	(3)	(49)
Balance (shares) at Jun. 30, 2021			236,000,000
Share-based compensation, net		4		4
Net loss		(82)			(86)		4
Other comprehensive income (loss)		3				3
Distributions to noncontrolling interests		(2)					(2)
Balance at Sep. 30, 2021		$ 4,468	$ 2	$ 4,529	$ (16)		$ (47)
Balance (shares) at Sep. 30, 2021		236,479,696	236,000,000

[1] Dividends declared per common share were $0.45 for the three months ended March 31, 2020.

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Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical)	3 Months Ended
	Mar. 31, 2020 $ / shares
Statement Of Stockholders Equity [Abstract]
Dividends declared per common share	$ 0.45

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Organization and Recent Events

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Organization and Recent Events

Note 1: Organization and Recent Events

Organization

Park Hotels & Resorts Inc. (“we,” “us,” “our” or the “Company”) is a Delaware corporation that owns a portfolio of premium-branded hotels and resorts primarily located in prime city center and resort locations. On January 3, 2017, Hilton Worldwide Holdings Inc. (“Hilton”) completed the spin-off of a portfolio of hotels and resorts that established Park Hotels & Resorts Inc. as an independent, publicly traded company.

On May 5, 2019, the Company, PK Domestic Property LLC, an indirect subsidiary of the Company (“PK Domestic”), and PK Domestic Sub LLC, a wholly-owned subsidiary of PK Domestic (“Merger Sub”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Chesapeake Lodging Trust (“Chesapeake”). On September 18, 2019, pursuant to the terms and subject to the conditions set forth in the Merger Agreement, Chesapeake merged with and into Merger Sub (the “Merger”) and each of Chesapeake’s common shares of beneficial interest, $0.01 par value per share, was converted into $11.00 in cash and 0.628 of a share of our common stock. No fractional shares of our common stock were issued in the Merger. The value of any fractional interests to which a Chesapeake shareholder would otherwise have been entitled was paid in cash.

We are a real estate investment trust (“REIT”) for United States (“U.S.”) federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate, in a manner to qualify as a REIT. From the date of our spin-off from Hilton, Park Intermediate Holdings LLC (our “Operating Company”), directly or indirectly, has held all our assets and has conducted all of our operations. We own 100% of the interests in our Operating Company.

COVID-19 Update

The novel strain of coronavirus and the disease it causes (“COVID-19”) have had and continue to have a significant effect on the hospitality industry and our business. The effects of COVID-19, including government restrictions such as mandated closings of non-essential businesses and travel restrictions, have severely reduced overall lodging demand. Since the beginning of March 2020, we have experienced a significant decline in occupancy and Revenue per Available Room (“RevPAR”) associated with COVID-19 throughout our portfolio, which resulted in a decline in our operating cash flow. The increase in vaccination rates across the country and the easing or removal of government restrictions, quarantining and “social distancing” mandates have resulted in increased travel and hospitality spending during the second and third quarters of 2021. However, the seasonal decline in leisure travel and the delay in return of business travel, coupled with concerns over the spread of the Delta variant, have reduced near-term demand.

We and our hotel managers have taken various actions to mitigate the effects of COVID-19, including temporarily suspending operations at certain of our hotels beginning in March 2020, limiting capacity at our open hotels, deferring approximately $150 million of capital expenditures planned for 2020, reducing forecasted capital expenditures for maintenance projects to approximately $56 million for 2021, suspending our dividend after the first quarter of 2020, and, as a precautionary measure to increase liquidity and preserve financial flexibility, drawing on our revolving credit facility (“Revolver”) and completing three corporate bond offerings totaling $2.1 billion in 2020 and 2021. We have since commenced a phased reopening of all except two of our hotels as restrictions are removed and demand returns. The timing of fully reopening our remaining suspended hotels will depend primarily on government restrictions imposed or re-imposed, recommendations of health officials and market demand.

We are committed to using our liquidity to support our hotels’ operations during the COVID-19 pandemic and subsequent recovery, while being focused on continuing to maintain and enhance our stockholders’ value.

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Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

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

Basis of Presentation

Principles of Consolidation

The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance.

Summary of Significant Accounting Policies

Our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 26, 2021, contains a discussion of the significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2020.

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Dispositions and Acquisitions

9 Months Ended

Sep. 30, 2021

Business Combinations [Abstract]

Dispositions and Acquisitions

Note 3: Dispositions and Acquisitions

Dispositions

During the nine months ended September 30, 2021, we sold the five consolidated hotels listed in the table below, received total gross proceeds of approximately $477 million and recognized a net $5 million loss due to selling costs, which is included in (loss) gain on sales of assets, net in our condensed consolidated statements of comprehensive loss. In addition, we recognized a $5 million impairment loss from the classification of the Hotel Adagio, Autograph Collection, as held for sale at June 30, 2021, as the selling costs reduced the gross proceeds to less than the net book value of the property, which is included in impairment and casualty loss, net in our condensed consolidated statements of comprehensive loss.

Hotel	Location	Month Sold
W New Orleans – French Quarter	New Orleans, Louisiana	April 2021
Hotel Indigo San Diego Gaslamp Quarter(1)	San Diego, California	June 2021
Courtyard Washington Capitol Hill Navy Yard(1)	Washington, D.C.	June 2021
Hotel Adagio, Autograph Collection	San Francisco, California	July 2021
Le Meridien San Francisco	San Francisco, California	August 2021

(1) Sold as a portfolio in the same transaction.

Net proceeds from the sales of these hotels were used to repay $37 million under the Revolver, which currently has no remaining balance outstanding, and partially repay $419 million of our term loan facility due in 2024 (“2019 Term Facility”).

In February 2020, we sold the Embassy Suites Washington DC Georgetown and our interests in the entity that owns the Hilton São Paulo Morumbi for total gross proceeds of $208 million and recognized a gain, net of selling costs, of $64 million on these hotels, which is included in (loss) gain on sales of assets, net in our condensed consolidated statements of comprehensive loss. Additionally, the net gain includes the reclassification of a currency translation adjustment of $7 million from accumulated other comprehensive loss into earnings concurrent with the sale of the Hilton São Paulo Morumbi.

Acquisitions

For the three months ended September 30, 2020, we incurred an additional $9 million in acquisition costs in connection with the September 2019 Merger Agreement with Chesapeake, primarily related to transfer taxes based on new information received during the period, which is included in acquisition costs in our condensed consolidated statements of comprehensive loss.

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Property and Equipment

9 Months Ended

Sep. 30, 2021

Property Plant And Equipment [Abstract]

Property and Equipment

Note 4: Property and Equipment

Property and equipment were:

	September 30, 2021			December 31, 2020
	(in millions)
Land	$	3,333		$	3,429
Buildings and leasehold improvements		6,600			6,951
Furniture and equipment		1,000			1,042
Construction-in-progress		63			52
		10,996			11,474
Accumulated depreciation and amortization		(2,447	)		(2,281	)
	$	8,549		$	9,193

Depreciation of property and equipment was $68 million and $75 million during the three months ended September 30, 2021 and 2020, respectively, and $212 million and $224 million during the nine months ended September 30, 2021 and 2020, respectively.

For the nine months ended September 30, 2021, we recognized $5 million of impairment losses related to one of our hotels, which was classified as held for sale as of June 30, 2021, and subsequently sold in July 2021, as the estimated selling costs were expected to reduce the gross proceeds below the net book value of the property.

For the nine months ended September 30, 2020, we recognized $90 million of impairment losses, primarily related to one of our hotels, and our inability to recover the carrying value of the asset because of COVID-19.

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Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates

9 Months Ended

Sep. 30, 2021

Consolidated Variable Interest Entities And Investments In Affiliates [Abstract]

Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates

Note 5: Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates

Consolidated VIEs

We consolidate VIEs that own three hotels in the U.S. We are the primary beneficiary of these VIEs as we have 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 VIEs are only available to settle the obligations of these entities. Our condensed consolidated balance sheets include the following assets and liabilities of these entities:

	September 30, 2021		December 31, 2020
	(in millions)
Property and equipment, net	$	211	$	216
Cash and cash equivalents		19		8
Restricted cash		4		2
Accounts receivable, net		4		1
Prepaid expenses		1		1
Other assets		—		1
Debt		208		207
Accounts payable and accrued expenses		7		5
Other liabilities		3		1

Unconsolidated Entities

Investments in affiliates were:

	Ownership %	September 30, 2021		December 31, 2020
		(in millions)
Hilton San Diego Bayfront	25%	$	11	$	11
All others (6 hotels)(1)	20% - 50%		3		3
		$	14	$	14

(1) The ground lease for the Embassy Suites Secaucus Meadowlands expired on October 31, 2021 and the property was turned over to the ground lessor on that date.

The affiliates in which we own investments accounted for under the equity method had total debt of approximately $943 million as of September 30, 2021 and December 31, 2020, respectively. Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us.

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Goodwill

9 Months Ended

Sep. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill

Note 6: Goodwill

Due to the effects of COVID-19, we assessed goodwill for impairment during the first quarter of 2020 and determined that the carrying value of our consolidated and unconsolidated hotel reporting units exceeded their respective estimated fair value. As a result, we fully impaired our remaining goodwill balance, recognizing an impairment loss of $607 million in the first quarter of 2020.

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Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

Note 7: Debt

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

			Principal balance as of
	Interest Rate at September 30, 2021	Maturity Date	September 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)		505			509
2019 Term Facility(4)	L + 2.65%	August 2024		78			670
Revolver(4)	L + 3.00%	2021 to 2023(5)		—			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
				4,708			5,156
Add: unamortized premium				3			3
Less: unamortized deferred financing costs and    discount				(41	)		(38	)
			$	4,670		$	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 nine months ended September 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 Acquisitions” 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”).

We are required to deposit with lenders certain cash reserves for restricted uses. As of September 30, 2021 and December 31, 2020, our condensed consolidated balance sheets included $56 million and $10 million of restricted cash, respectively, related to our CMBS and mortgage loans.

2029 Senior Secured Notes

In May 2021, our Operating Company, PK Domestic and PK Finance issued an aggregate of $750 million of 2029 Senior Secured Notes. Net proceeds were used to repay $564 million of our outstanding balance under the Revolver, which may be redrawn, and $173 million of the 2019 Term Facility. The 2029 Senior Secured Notes bear interest at a rate of 4.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning November 15, 2021. The 2029 Senior Secured Notes will mature on May 15, 2029. We capitalized $13 million of issuance costs during the nine months ended September 30, 2021.

We may redeem the 2029 Senior Secured Notes at any time prior to May 15, 2024, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date plus a make-whole premium. On or after May 15, 2024, we may redeem the 2029 Senior Secured Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after May 15, 2026, we may redeem the 2029 Senior Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, before May 15, 2024, we may redeem up to 40% of the 2029 Senior Secured Notes with the net cash proceeds from certain equity offerings at a redemption price of 104.875% of the principal amount redeemed.

Indentures

The 2029 Senior Secured Notes are guaranteed by us and by the subsidiaries of our Operating Company that also guarantee indebtedness under our credit facilities, which guarantors also guarantee the obligations under the Company’s Senior Secured Notes on a first priority basis. The guarantees are full and unconditional and joint and several. The 2029 Senior Secured Notes are secured, subject to permitted liens, by a first priority security interest in all of the capital stock of certain wholly-owned subsidiaries of certain of the guarantors and PK Domestic, which collateral also secures the obligations under our credit and term loan facilities on a first priority basis. The indenture governing the 2029 Senior Secured Notes contains customary covenants that limit the issuers’ ability and, in certain instances, the ability of the issuers’ subsidiaries, to borrow money, create liens on assets, make distributions and pay dividends on or redeem or repurchase stock, make certain types of investments, sell stock in certain subsidiaries, enter into agreements that restrict dividends or other payments from subsidiaries, enter into transactions with affiliates, issue guarantees of indebtedness, and sell assets or merge with other companies. These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to us to the extent necessary for us to fund a dividend or distribution by us that we believe is necessary to maintain our status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed $100 million, plus 95% of our cumulative Funds From Operations (as defined in the indenture), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) certain convertible indebtedness of the Operating Company. In addition, the indenture requires our Operating Company to maintain total unencumbered assets as of each fiscal quarter of at least 150% of total unsecured indebtedness, in each case calculated on a consolidated basis.

Debt Maturities

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

Year	(in millions)
2021	$	2
2022		98
2023		829
2024		85
2025		657
Thereafter(1)		3,037
	$	4,708

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

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Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

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:

			September 30, 2021				December 31, 2020
	Hierarchy Level		Carrying Amount		Fair Value		Carrying Amount		Fair Value
			(in millions)
Liabilities:
SF CMBS Loan		3	$	725	$	734	$	725	$	708
HHV CMBS Loan		3		1,275		1,282		1,275		1,195
2019 Term Facility		3		78		75		670		661
Revolver		3		—		—		601		596
2025 Senior Secured Notes		1		650		693		650		705
2028 Senior Secured Notes		1		725		769		725		774
2029 Senior Secured Notes		1		750		771		—		—
Mortgage loans		3		505		496		509		480

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Income Taxes

9 Months Ended

Sep. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 9: Income Taxes

We are a REIT for U.S. federal income tax purposes. We have been organized and operated, and we expect to continue to be organized and operate in a manner to qualify as a REIT. To qualify as a REIT, we must satisfy requirements related to, among other things, the real estate qualification of sources of our income, the real estate composition and values of our assets, the amounts we distribute to our stockholders annually and the diversity of ownership of our stock. To the extent we continue to remain qualified as a REIT, we generally will not be subject to U.S. federal income tax on taxable income generated by our REIT activities that we distribute annually to our stockholders. Accordingly, no provision for U.S. federal income taxes has been included in our accompanying condensed consolidated financial statements for the three and nine months ended September 30, 2021 related to our REIT activities, other than taxes related to our built-in gain property (representing property held by us with an excess of fair value over tax basis on January 4, 2017).

We will be subject to U.S. federal income tax on taxable sales of built-in gain property through January 3, 2022. In addition, we are subject to non-U.S. income tax on foreign held REIT activities and certain sales of foreign investments. Further, our taxable REIT subsidiaries (“TRSs”) are generally subject to U.S. federal, state and local, and foreign income taxes (as applicable).

The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted on March 27, 2020 and included several tax provisions that may impact us and our subsidiaries, including:

the ability for our TRSs to carry back net operating losses (“NOLs”) arising in 2020 to all post spin-off taxable years preceding the taxable year of the loss;

an increase of the business interest limitation under Internal Revenue Code (“Code”) section 163(j) from 30 percent to 50 percent of adjusted taxable income for taxable years beginning in 2019 and 2020 and the addition of an election by taxpayers to use their 2019 adjusted taxable income as their adjusted taxable income in 2020 for purposes of applying the limitation; and

a “technical correction” amending Code section 168(e)(3)(E) to add “qualified improvement property” to “15-year property” and assigning a class life of 20-years under section 168(g)(3)(B) to qualified improvement property under section 168(e)(3)(E)(vii).

During the nine months ended September 30, 2021, we recognized a $2 million income tax benefit, comprising a $3 million state tax benefit from utilizing state NOLs, a $1 million benefit from the derecognition of deferred tax liabilities and $2 million of tax expense, primarily from adjustments to the benefit recognized in 2020 from utilizing the NOL carryback provisions of the CARES Act.

During the nine months ended September 30, 2020, we recognized $14 million of income tax expense, which was comprised of $14 million of built-in gains tax expense from assets sold during the period and $16 million of non-U.S. income tax expense on the

gain from the entity sold during the period, partially offset by a TRS income tax benefit of $20 million from utilizing the NOL carryback provisions of the CARES Act.

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Share-Based Compensation

9 Months Ended

Sep. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

Note 10: Share-Based Compensation

We issue equity-based awards to our employees pursuant to the 2017 Omnibus Incentive Plan (“2017 Employee Plan”) and our non-employee directors pursuant to the 2017 Stock Plan for Non-Employee Directors (as amended and restated from time to time, the “2017 Director Plan”). The 2017 Employee Plan provides that a maximum of 8,000,000 shares of our common stock may be issued, and as of September 30, 2021, 2,915,404 shares of common stock remain available for future issuance. As amended and approved by our stockholders in April 2021, the 2017 Director Plan provides that a maximum of 950,000 shares of our common stock may be issued, and as of September 30, 2021, 498,153 shares of common stock remain available for future issuance. For the three months ended September 30, 2021 and 2020, we recognized $5 million and $4 million of share-based compensation expense, respectively, and $15 million and $10 million, respectively, for the nine months ended September 30, 2021 and 2020. As of September 30, 2021, unrecognized compensation expense was $22 million, which is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of shares vested (calculated as the number of shares multiplied by the vesting date share price) during the nine months ended September 30, 2021 and 2020 was $18 million and $17 million, respectively.

Restricted Stock Awards

Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the nine months ended September 30, 2021:

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021		834,258		$	21.68
Granted		426,629			20.54
Vested		(449,406	)		19.07
Forfeited		(19,565	)		22.50
Unvested at September 30, 2021		791,916		$	22.53

Performance Stock Units

Performance Stock Units (“PSUs”) generally vest at the end of a three-year performance period and are subject to the achievement of a market condition based on a measure of our total shareholder return relative to the total shareholder return of the companies that comprise the FTSE Nareit Lodging Resorts Index (that have a market capitalization in excess of $1 billion as of the first day of the applicable performance period). The number of PSUs that may become vested ranges from zero to 200% of the number of PSUs granted to an employee, based on the level of achievement of the foregoing performance measure.

Additionally, in November 2020, we granted special awards with vesting of these awards subject to the achievement of eight increasing levels of our average closing sales price per share, from $11.00 to $25.00, over a consecutive 20 trading day period (“Share Price Target”). One-eighth of PSUs will vest at each date a Share Price Target is achieved and any PSUs remaining after a four-year performance period will be forfeited. As of September 30, 2021, six of the eight Share Price Targets were achieved and thus 75% of the awards granted were vested.

The following table provides a summary of PSUs for the nine months ended September 30, 2021:

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021		1,078,555		$	18.70
Granted		327,110			27.17
Vested		(428,255	)		16.33
Forfeited		(5,642	)		20.29
Unvested at September 30, 2021		971,768		$	22.59

The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions:

Expected volatility(1)		60.0	%
Dividend yield(2)		—
Risk-free rate		0.2	%
Expected term	3 years

(1) The weighted average expected volatility was 60.0%.

(2) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest.

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Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Note 11: Earnings Per Share

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions, except per share amounts)
Numerator:
Net loss attributable to stockholders	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Earnings attributable to participating securities		—			—			—			—
Net loss attributable to stockholders, net of earnings    allocated to participating securities	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Denominator:
Weighted average shares outstanding – basic		236			235			236			236
Unvested restricted shares		—			—			—			—
Weighted average shares outstanding – diluted		236			235			236			236
Loss per share - Basic(1)	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)
Loss per share - Diluted(1)	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)

(1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented.

Certain of our outstanding equity awards were excluded from the above calculation of EPS for the three and nine months ended September 30, 2021 and 2020 because their effect would have been anti-dilutive.

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Business Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segment Information

Note 12: Business Segment Information

As of September 30, 2021, we have two operating segments, our consolidated hotels and unconsolidated hotels. Our unconsolidated hotels operating segment does not meet the definition of a reportable segment, thus our consolidated hotels is our only reportable segment. We evaluate our consolidated hotels primarily based on hotel adjusted earnings (loss) before interest expense, taxes and depreciation and amortization (“EBITDA”). Hotel Adjusted EBITDA is calculated as EBITDA from hotel operations, adjusted to exclude:

Gains or losses on sales of assets for both consolidated and unconsolidated investments;

Costs associated with hotel acquisitions or dispositions expensed during the period;

Severance expense;

Share-based compensation expense;

Impairment losses and casualty gains or losses; and

Other items that we believe are not representative of our current or future operating performance.

The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and net loss to Hotel Adjusted EBITDA:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions)
Revenues:
Total consolidated hotel revenue	$	408		$	95		$	876		$	714
Other revenues		15			3			35			25
Total revenues	$	423		$	98		$	911		$	739
Net loss	$	(82	)	$	(276	)	$	(387	)	$	(1,226	)
Other revenues		(15	)		(3	)		(35	)		(25	)
Depreciation and amortization expense		68			75			213			225
Corporate general and administrative expense(1)		14			13			48			40
Impairment and casualty loss, net		2			2			7			696
Acquisition costs		—			9			—			10
Other operating expenses		14			6			34			31
Loss (gain) on sales of assets, net		11			1			5			(62	)
Interest income		—			—			—			(2	)
Interest expense		66			59			195			149
Equity in losses from investments in affiliates		—			7			6			16
Income tax (benefit) expense		(3	)		1			(2	)		14
Severance expense		—			24			—			26
Other loss, net		5			3			7			6
Other items		4			3			(1	)		9
Hotel Adjusted EBITDA	$	84		$	(76	)	$	90		$	(93	)

(1) Excludes severance expense.

The following table presents total assets for our consolidated hotels, reconciled to total assets:

	September 30, 2021		December 31, 2020
	(in millions)
Consolidated hotels	$	9,775	$	10,568
All other		19		19
Total assets	$	9,794	$	10,587

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 13: Commitments and Contingencies

As of September 30, 2021, we had outstanding commitments under third-party contracts of approximately $116 million for capital expenditures at our properties, of which $78 million relates to the expansion project at the Bonnet Creek complex. The Bonnet Creek expansion project includes additional meeting space for the Signia by Hilton Orlando Bonnet Creek and the Waldorf Astoria Orlando. Our contracts contain clauses that allow us to cancel all or some portion of the work. If cancellation of a contract occurred, our commitment would be any costs incurred up to the cancellation date, in addition to any costs associated with the discharge of the contract.

We are involved in litigation arising from the normal course of business, some of which includes claims for substantial sums, and may make certain indemnifications or guarantees to select buyers of our hotels as part of a sale process. We are also involved in claims and litigation that is not in the ordinary course of business in connection with the spin-off from Hilton. The spin-off agreements indemnify us from certain of these claims as well as require us to indemnify Hilton for other claims. In addition, losses related to certain contingent liabilities could be apportioned to us under the spin-off agreements. In connection with our obligation to indemnify Hilton under the spin-off agreements, we have reserved approximately $8 million as of September 30, 2021 related to litigation with respect to an audit by the Australian Tax Office (“ATO”) of Hilton related to the sale of the Hilton Sydney in June 2015. In February 2021, we were required to make a payment to Hilton of approximately $11 million representing our share of the deposit required by the ATO of Hilton to further defend against the claim and for certain out-of-pocket expenses incurred by Hilton. This amount could change as the litigation of the ATO’s claim progresses.

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

9 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The unaudited condensed consolidated financial statements reflect our financial position, results of operations and cash flows, in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). We have condensed or omitted certain information and footnote disclosures normally included in financial statements presented in accordance with U.S. GAAP. In our opinion, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. All significant intercompany transactions and balances within the financial statements have been eliminated.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2021.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Interim results are not necessarily indicative of full year performance.

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Dispositions and Acquisitions (Tables)

9 Months Ended

Sep. 30, 2021

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Summary of Assets and Liabilities Held for Sale and Dispositions

Hotel	Location	Month Sold
W New Orleans – French Quarter	New Orleans, Louisiana	April 2021
Hotel Indigo San Diego Gaslamp Quarter(1)	San Diego, California	June 2021
Courtyard Washington Capitol Hill Navy Yard(1)	Washington, D.C.	June 2021
Hotel Adagio, Autograph Collection	San Francisco, California	July 2021
Le Meridien San Francisco	San Francisco, California	August 2021

(1) Sold as a portfolio in the same transaction.

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Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2021

Property Plant And Equipment [Abstract]

Property and Equipment

Property and equipment were:

	September 30, 2021			December 31, 2020
	(in millions)
Land	$	3,333		$	3,429
Buildings and leasehold improvements		6,600			6,951
Furniture and equipment		1,000			1,042
Construction-in-progress		63			52
		10,996			11,474
Accumulated depreciation and amortization		(2,447	)		(2,281	)
	$	8,549		$	9,193

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Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates (Tables)

9 Months Ended

Sep. 30, 2021

Consolidated Variable Interest Entities And Investments In Affiliates [Abstract]

Schedule of Assets and Liabilities Included in Consolidated Balance Sheets

Our condensed consolidated balance sheets include the following assets and liabilities of these entities:

	September 30, 2021		December 31, 2020
	(in millions)
Property and equipment, net	$	211	$	216
Cash and cash equivalents		19		8
Restricted cash		4		2
Accounts receivable, net		4		1
Prepaid expenses		1		1
Other assets		—		1
Debt		208		207
Accounts payable and accrued expenses		7		5
Other liabilities		3		1

Schedule of Investment in Affiliates

Investments in affiliates were:

	Ownership %	September 30, 2021		December 31, 2020
		(in millions)
Hilton San Diego Bayfront	25%	$	11	$	11
All others (6 hotels)(1)	20% - 50%		3		3
		$	14	$	14

(1) The ground lease for the Embassy Suites Secaucus Meadowlands expired on October 31, 2021 and the property was turned over to the ground lessor on that date.

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Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Debt

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

			Principal balance as of
	Interest Rate at September 30, 2021	Maturity Date	September 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)		505			509
2019 Term Facility(4)	L + 2.65%	August 2024		78			670
Revolver(4)	L + 3.00%	2021 to 2023(5)		—			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
				4,708			5,156
Add: unamortized premium				3			3
Less: unamortized deferred financing costs and    discount				(41	)		(38	)
			$	4,670		$	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 nine months ended September 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 Acquisitions” 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 September 30, 2021 were:

Year	(in millions)
2021	$	2
2022		98
2023		829
2024		85
2025		657
Thereafter(1)		3,037
	$	4,708

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

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value of Debt and Hierarchy Level Used to Estimate Fair Values

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

			September 30, 2021				December 31, 2020
	Hierarchy Level		Carrying Amount		Fair Value		Carrying Amount		Fair Value
			(in millions)
Liabilities:
SF CMBS Loan		3	$	725	$	734	$	725	$	708
HHV CMBS Loan		3		1,275		1,282		1,275		1,195
2019 Term Facility		3		78		75		670		661
Revolver		3		—		—		601		596
2025 Senior Secured Notes		1		650		693		650		705
2028 Senior Secured Notes		1		725		769		725		774
2029 Senior Secured Notes		1		750		771		—		—
Mortgage loans		3		505		496		509		480

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Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Restricted Stock Awards ("RSAs")

Restricted Stock Awards (“RSAs”) generally vest in annual installments between one and three years from each grant date. The following table provides a summary of RSAs for the nine months ended September 30, 2021:

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021		834,258		$	21.68
Granted		426,629			20.54
Vested		(449,406	)		19.07
Forfeited		(19,565	)		22.50
Unvested at September 30, 2021		791,916		$	22.53

Schedule of Performance Stock Units ("PSUs")

The following table provides a summary of PSUs for the nine months ended September 30, 2021:

	Number of Shares			Weighted-Average Grant Date Fair Value
Unvested at January 1, 2021		1,078,555		$	18.70
Granted		327,110			27.17
Vested		(428,255	)		16.33
Forfeited		(5,642	)		20.29
Unvested at September 30, 2021		971,768		$	22.59

Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model

The grant date fair values of the awards that are subject to the achievement of market conditions based on total shareholder return were determined using a Monte Carlo simulation valuation model with the following assumptions:

Expected volatility(1)		60.0	%
Dividend yield(2)		—
Risk-free rate		0.2	%
Expected term	3 years

(1) The weighted average expected volatility was 60.0%.

(2) Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest.

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions, except per share amounts)
Numerator:
Net loss attributable to stockholders	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Earnings attributable to participating securities		—			—			—			—
Net loss attributable to stockholders, net of earnings    allocated to participating securities	$	(86	)	$	(276	)	$	(392	)	$	(1,223	)
Denominator:
Weighted average shares outstanding – basic		236			235			236			236
Unvested restricted shares		—			—			—			—
Weighted average shares outstanding – diluted		236			235			236			236
Loss per share - Basic(1)	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)
Loss per share - Diluted(1)	$	(0.36	)	$	(1.17	)	$	(1.66	)	$	(5.19	)

(1) Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented.

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Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Reconciliation of Revenues from Consolidated Hotels to Condensed Combined Consolidated Amounts and Net Loss to Hotel Adjusted EBITDA

The following table presents revenues for our consolidated hotels reconciled to our consolidated amounts and net loss to Hotel Adjusted EBITDA:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
	(in millions)
Revenues:
Total consolidated hotel revenue	$	408		$	95		$	876		$	714
Other revenues		15			3			35			25
Total revenues	$	423		$	98		$	911		$	739
Net loss	$	(82	)	$	(276	)	$	(387	)	$	(1,226	)
Other revenues		(15	)		(3	)		(35	)		(25	)
Depreciation and amortization expense		68			75			213			225
Corporate general and administrative expense(1)		14			13			48			40
Impairment and casualty loss, net		2			2			7			696
Acquisition costs		—			9			—			10
Other operating expenses		14			6			34			31
Loss (gain) on sales of assets, net		11			1			5			(62	)
Interest income		—			—			—			(2	)
Interest expense		66			59			195			149
Equity in losses from investments in affiliates		—			7			6			16
Income tax (benefit) expense		(3	)		1			(2	)		14
Severance expense		—			24			—			26
Other loss, net		5			3			7			6
Other items		4			3			(1	)		9
Hotel Adjusted EBITDA	$	84		$	(76	)	$	90		$	(93	)

(1) Excludes severance expense.

Schedule of Total Assets by Consolidated Hotels, Reconciled to Total Assets

The following table presents total assets for our consolidated hotels, reconciled to total assets:

	September 30, 2021		December 31, 2020
	(in millions)
Consolidated hotels	$	9,775	$	10,568
All other		19		19
Total assets	$	9,794	$	10,587

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Organization and Recent Events - Additional Information (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($) Bondoffering	Nov. 04, 2021 Hotel	May 05, 2019 $ / shares shares	Jan. 03, 2017
COVID-19 [Member]
Organization [Line Items]
Deferring maintenance and ROI Capital expenditures		$ 150
Number of bond offering completed | Bondoffering		3
Proceeds from bond offering		$ 2,100
COVID-19 [Member] | Subsequent Event [Member]
Organization [Line Items]
Number of hotels not yet open | Hotel			2
COVID-19 [Member] | Scenario Forecast [Member]
Organization [Line Items]
Forecasted amount of capital expenditures for maintenance	$ 56
Proceeds from bond offering	$ 2,100
Park Intermediate Holdings LLC [Member]
Organization [Line Items]
Percentage of ownership interest					100.00%
Chesapeake Lodging Trust [Member]
Organization [Line Items]
Business acquisition,par value per common share | $ / shares				$ 0.01
Business acquisition, cash consideration transferred, per share | $ / shares				$ 11.00
Business acquisition, consideration transferred number of shares per share | shares				0.628
Fractional shares of common stock to be issued in merger agreement | shares				0

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Dispositions and Acquisitions - Additional Information (Detail) $ in Millions		1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2021 USD ($)	Feb. 29, 2020 USD ($)	Sep. 30, 2021 USD ($) Hotel	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) Hotel	Sep. 30, 2020 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of hotel portfolio properties sold | Hotel			5		5
Gross proceeds on sale of hotel portfolio properties					$ 477
Repayments of Lines of Credit					1,193	$ 1,099
Repayments Of Debt					18	4
Net gain (loss) on selling cost of hotel portfolio properties					(5)
Acquisition costs			$ 0	$ 9	0	10
Acquisition costs			$ 0	9	0	$ 10
Gain (loss) on sale of assets and asset impairment charges					(5)
Chesapeake Lodging Trust [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Acquisition costs				$ 9
Hilton Sao Paulo Morumbi [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Reclassification of currency translation adjustment from accumulated other comprehensive loss to earnings on disposition of hotel portfolio properties		$ 7
Hotel Adagio, Autograph Collection [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (loss) on sale of assets and asset impairment charges	$ (5)
Embassy Suites Washington DC Georgetown [Member] | Hilton Sao Paulo Morumbi [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross proceeds on sale of hotel portfolio properties		208
Net gain (loss) on selling cost of hotel portfolio properties		$ 64
Revolving Credit Facility [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments of Lines of Credit					37
2019 Term Facility [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Repayments Of Debt					$ 419

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Dispositions and Acquisitions - Summary of Hotel Portfolio Properties Sold (Detail)	9 Months Ended
	Sep. 30, 2021
W New Orleans - French Quarter [Member]
Business Acquisition [Line Items]
Location	New Orleans, Louisiana
Month Sold	2021-04
Hotel Indigo San Diego Gaslamp Quarter [Member]
Business Acquisition [Line Items]
Location	San Diego, California	[1]
Month Sold	2021-06	[1]
Courtyard Washington Capitol Hill Navy Yard [Member]
Business Acquisition [Line Items]
Location	Washington, D.C.	[1]
Month Sold	2021-06	[1]
Hotel Adagio, Autograph Collection [Member]
Business Acquisition [Line Items]
Location	San Francisco, California
Month Sold	2021-07
Le Meridien San Francisco [Member]
Business Acquisition [Line Items]
Location	San Francisco, California
Month Sold	2021-08

[1] Sold as a portfolio in the same transaction.

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Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Abstract]
Land	$ 3,333	$ 3,429
Buildings and leasehold improvements	6,600	6,951
Furniture and equipment	1,000	1,042
Construction-in-progress	63	52
Property and equipment, gross	10,996	11,474
Accumulated depreciation and amortization	(2,447)	(2,281)
Property and equipment, net	$ 8,549	$ 9,193

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Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Depreciation	$ 68	$ 75	$ 212	$ 224
Gain (loss) on sale of assets and asset impairment charges			$ (5)
Impairment Loss, Property and equipment				$ 90

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Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Additional Information (Detail) $ in Millions	Sep. 30, 2021 USD ($) Entity	Dec. 31, 2020 USD ($)
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of consolidated VIEs | Entity	3
Debt of unconsolidated joint ventures | $	$ 943	$ 943

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Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Assets and Liabilities Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Property and equipment, net	$ 8,549	$ 9,193
Cash and cash equivalents	772	951
Restricted cash	70	30
Accounts receivable, net	62	26
Prepaid expenses	34	39
Other assets	34	60
Debt	4,670	5,121
Accounts payable and accrued expenses	204	147
Other liabilities	115	134
Consolidated VIEs [Member]
Variable Interest Entity [Line Items]
Property and equipment, net	211	216
Cash and cash equivalents	19	8
Restricted cash	4	2
Accounts receivable, net	4	1
Prepaid expenses	1	1
Other assets	0	1
Debt	208	207
Accounts payable and accrued expenses	7	5
Other liabilities	$ 3	$ 1

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Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Investments in Affiliates (Detail) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Schedule Of Equity Method Investments [Line Items]
Investments in affiliates		$ 14	$ 14
Hilton San Diego Bayfront [Member]
Schedule Of Equity Method Investments [Line Items]
Ownership Percentage		25.00%
Investments in affiliates		$ 11	11
All others (6 hotels) [Member]
Schedule Of Equity Method Investments [Line Items]
Investments in affiliates	[1]	$ 3	$ 3
All others (6 hotels) [Member] | Minimum [Member]
Schedule Of Equity Method Investments [Line Items]
Ownership Percentage	[1]	20.00%
All others (6 hotels) [Member] | Maximum [Member]
Schedule Of Equity Method Investments [Line Items]
Ownership Percentage	[1]	50.00%

[1] The ground lease for the Embassy Suites Secaucus Meadowlands expired on October 31, 2021 and the property was turned over to the ground lessor on that date.

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Consolidated Variable Interest Entities ("VIEs") and Investments in Affiliates - Schedule of Investments in Affiliates (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2021
Embassy Suites Secaucus Meadowlands [Member]
Schedule Of Equity Method Investments [Line Items]
Lease expiration date	Oct. 31, 2021

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Goodwill - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill impairment loss	$ 607

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Debt - Schedule of Debt (Detail) - USD ($) $ in Millions		9 Months Ended
		Sep. 30, 2021		Dec. 31, 2020		Oct. 31, 2016
Debt Instrument [Line Items]
Debt and financing lease obligations, gross		$ 4,708		$ 5,156
Add: unamortized premium		3		3
Less: unamortized deferred financing costs and discount		(41)		(38)
Debt		4,670		5,121
SF CMBS Loan [Member]
Debt Instrument [Line Items]
Debt, gross		$ 725	[1]	725	[1]	$ 725
Debt instrument, interest rate, stated percentage	[1]	4.11%
Maturity Date	[1]	2023-11
HHV CMBS Loan [Member]
Debt Instrument [Line Items]
Debt, gross		$ 1,275	[1]	1,275	[1]	$ 1,275
Debt instrument, interest rate, stated percentage	[1]	4.20%
Maturity Date	[1]	2026-11
Mortgage Loans [Member]
Debt Instrument [Line Items]
Debt, gross		$ 505		509
Debt, weighted average interest rate		4.81%
Maturity Date, start year	[2],[3]	2022
Maturity Date, end year	[2],[3]	2026
2025 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes	[4]	$ 650		650
Debt instrument, interest rate, stated percentage	[4]	7.50%
Maturity Date	[4]	2025-06
2028 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes	[4]	$ 725		725
Debt instrument, interest rate, stated percentage	[4]	5.88%
Maturity Date	[4]	2028-10
2029 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes		$ 750		0
Debt instrument, interest rate, stated percentage		4.88%
Maturity Date		2029-05
Finance Lease Obligations [Member]
Debt Instrument [Line Items]
Finance lease obligations		$ 0		1
Debt instrument, interest rate, stated percentage		3.07%
Maturity Date, start year		2021
Maturity Date, end year		2022
2019 Term Facility [Member]
Debt Instrument [Line Items]
Debt, gross	[5]	$ 78		670
Maturity Date	[5]	2024-08
2019 Term Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	[5]	2.65%
Revolver [Member]
Debt Instrument [Line Items]
Debt, gross	[5]	$ 0		$ 601
Maturity Date, start year	[5],[6]	2021
Maturity Date, end year	[5],[6]	2023
Revolver [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate	[5]	3.00%

[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 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”).

[5] 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 nine months ended September 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 Acquisitions” for additional information.

[6] 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.

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Debt - Schedule of Debt (Parenthetical) (Detail) - USD ($)		1 Months Ended				9 Months Ended
		Jun. 30, 2021	Jan. 31, 2021	Sep. 30, 2020	May 31, 2020	Sep. 30, 2021		Sep. 30, 2020	Dec. 31, 2020		Oct. 31, 2016
Debt Instrument [Line Items]
Repayment of loan secured						$ 18,000,000		$ 4,000,000
Proceeds from issuance of loan secured						14,000,000		0
Debt instrument, interest rate					0.25%
2019 Term Facility [Member]
Debt Instrument [Line Items]
Debt, gross	[1]					78,000,000			$ 670,000,000
Repayment of loan secured						419,000,000
Debt instrument description of interest rate					LIBOR floor of 25 basis points
Revolver [Member]
Debt Instrument [Line Items]
Debt, gross	[1]					$ 0			601,000,000
Maturity Date, end year	[1],[2]					2023
Debt instrument description of interest rate					LIBOR floor of 25 basis points
Revolver [Member] | Debt Amendment [Member]
Debt Instrument [Line Items]
Line of credit facility, increase in aggregate commitments				$ 75,000,000				75,000,000
Line of credit facility, maximum borrowing capacity				1,075,000,000.000				1,075,000,000.000
Aggregate commitments				$ 901,000,000				901,000,000
Line of credit facility, expiration period				2 years
Debt instrument, maturity date end year				Dec. 31, 2023
Line of credit facility, remaining borrowing capacity				$ 174,000,000				174,000,000
Debt instrument, maturity date start year				Dec. 31, 2021
SF CMBS Loan [Member]
Debt Instrument [Line Items]
Debt, gross						$ 725,000,000	[3]		725,000,000	[3]	$ 725,000,000
Debt instrument, interest rate, stated percentage	[3]					4.11%
HHV CMBS Loan [Member]
Debt Instrument [Line Items]
Debt, gross						$ 1,275,000,000	[3]		$ 1,275,000,000	[3]	$ 1,275,000,000
Debt instrument, interest rate, stated percentage	[3]					4.20%
Hilton Denver City Center Mortgage Loan [Member]
Debt Instrument [Line Items]
Maturity Date, end year						2042
Debt instrument, call date earliest						Aug. 31, 2022
Doubletree Spokane JV Mortgage Loan [Member]
Debt Instrument [Line Items]
Repayment of loan secured		$ 12,000,000
Proceeds from issuance of loan secured		$ 14,000,000
Debt instrument maturity date						Jul. 01, 2026
W Chicago City Centre [Member]
Debt Instrument [Line Items]
Debt instrument default rate			8.25%
Debt instrument, interest rate, stated percentage			4.25%
Debt Instrument, payment			$ 75,000,000
PK Domestic and PK Finance Co-Issuer Inc [Member] | 2025 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes				$ 650,000,000	$ 650,000,000			650,000,000
PK Domestic and PK Finance Co-Issuer Inc [Member] | 2028 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Senior Secured Notes				$ 725,000,000	$ 725,000,000			$ 725,000,000

[1] 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 nine months ended September 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 Acquisitions” for additional information.

[2] 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.

[3] 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”).

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Debt - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	May 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Restricted cash	$ 70,000,000			$ 30,000,000
Repayments of credit facilities	1,193,000,000	$ 1,099,000,000
Repayments of term loan	18,000,000	$ 4,000,000
Revolver [Member]
Debt Instrument [Line Items]
Repayments of credit facilities	37,000,000
2019 Term Facility [Member]
Debt Instrument [Line Items]
Repayments of term loan	419,000,000
CMBS and mortgage loans [Member]
Debt Instrument [Line Items]
Restricted cash	$ 56,000,000			$ 10,000,000
2029 Senior Secured Notes [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	4.88%
2029 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member]
Debt Instrument [Line Items]
Senior secured notes issued			$ 750,000,000
Debt instrument, interest rate, stated percentage	4.875%
Payment, description	The 2029 Senior Secured Notes bear interest at a rate of 4.875% per annum, payable semi-annually in arrears on May 15 and November 15 of each year, beginning November 15, 2021.
Debt instrument maturity date	May 15, 2029
Debt issuance cost	$ 13,000,000
Debt instrument, redemption, description	We may redeem the 2029 Senior Secured Notes at any time prior to May 15, 2024, in whole or in part, at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest, if any, to the redemption date plus a make-whole premium. On or after May 15, 2024, we may redeem the 2029 Senior Secured Notes, in whole or in part, at the applicable redemption prices set forth in the indenture. On or after May 15, 2026, we may redeem the 2029 Senior Secured Notes at 100% of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In addition, before May 15, 2024, we may redeem up to 40% of the 2029 Senior Secured Notes with the net cash proceeds from certain equity offerings at a redemption price of 104.875% of the principal amount redeemed.
Redemption price percentage of principal amount	100.00%
2029 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Debt Instrument, Redemption Period Before May 15, 2024 [Member]
Debt Instrument [Line Items]
Redemption price percentage	104.875%
Redemption period, start date	May 15, 2024
2029 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Debt Instrument, Redemption Period Before May 15, 2024 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Redemption percentage of senior secured notes	40.00%
2029 Senior Secured Notes [Member] | PK Domestic and PK Finance [Member] | Debt Instrument, Redemption Period After May 15, 2026 [Member]
Debt Instrument [Line Items]
Redemption price percentage of principal amount	100.00%
Redemption period, start date	May 15, 2026
2029 Senior Secured Notes [Member] | Revolver [Member] | PK Domestic and PK Finance [Member]
Debt Instrument [Line Items]
Repayments of credit facilities	$ 564,000,000
2029 Senior Secured Notes [Member] | 2019 Term Facility [Member] | PK Domestic and PK Finance [Member]
Debt Instrument [Line Items]
Repayments of term loan	$ 173,000,000
Senior Secured Notes [Member] | PK Domestic and PK Finance [Member]
Debt Instrument [Line Items]
Debt instrument, covenant description	These covenants are subject to a number of exceptions and qualifications, including the ability to declare or pay any cash dividend or make any cash distribution to us to the extent necessary for us to fund a dividend or distribution by us that we believe is necessary to maintain our status as a REIT or to avoid payment of any tax for any calendar year that could be avoided by reason of such distribution, and the ability to make certain restricted payments not to exceed $100 million, plus 95% of our cumulative Funds From Operations (as defined in the indenture), plus the aggregate net proceeds from (i) the sale of certain equity interests in, (ii) capital contributions to, and (iii) certain convertible indebtedness of the Operating Company.
Maximum aggregate payment permitted for restricted transactions	$ 100,000,000
Maximum FFO permitted for restricted transactions	95.00%
Minimum unencumbered assets to total indebtedness	150.00%

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Debt - Debt Maturities, Assuming the Exercise of all Extensions that are Exercisable Solely at our Option (Detail) $ in Millions	Sep. 30, 2021 USD ($)
Debt Disclosure [Abstract]
2021	$ 2
2022	98
2023	829
2024	85
2025	657
Thereafter	3,037	[1]
Debt and capital lease obligations, gross	$ 4,708

[1] Assumes the exercise of all extensions that are exercisable solely at our option.

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Fair Value Measurements - Fair Value of Debt and Hierarchy Level Used to Estimate Fair Values (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Carrying amount [Member] | SF CMBS Loan [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	$ 725	$ 725
Carrying amount [Member] | HHV CMBS Loan [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	1,275	1,275
Carrying amount [Member] | 2019 Term Facility [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	78	670
Carrying amount [Member] | Revolver [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	0	601
Carrying amount [Member] | 2025 Senior Secured Notes [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	650	650
Carrying amount [Member] | 2028 Senior Secured Notes [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	725	725
Carrying amount [Member] | 2029 Senior Secured Notes [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	750
Carrying amount [Member] | Mortgage Loans [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	505	509
Fair Value [Member] | SF CMBS Loan [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	734	708
Fair Value [Member] | HHV CMBS Loan [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	1,282	1,195
Fair Value [Member] | 2019 Term Facility [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	75	661
Fair Value [Member] | Revolver [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	0	596
Fair Value [Member] | 2025 Senior Secured Notes [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	693	705
Fair Value [Member] | 2028 Senior Secured Notes [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	769	774
Fair Value [Member] | 2029 Senior Secured Notes [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	771
Fair Value [Member] | Mortgage Loans [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loan	$ 496	$ 480

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Income Taxes [Line Items]
Income tax (benefit) expense	$ (3,000,000)	$ 1,000,000	$ (2,000,000)	$ 14,000,000
State tax benefit			(3,000,000)
Tax benefit from deferred tax liabilities	1,000,000		$ 1,000,000
Percentage of adjusted taxable income			50.00%		30.00%
Built-in gains tax expense from assets sold				14,000,000
Non-U.S. income tax expense				16,000,000
Income tax benefit partially offset by TRS				$ 20,000,000
Income tax expense (benefit) from NOL carryback	2,000,000		$ 2,000,000
U.S. Federal Tax [Member] | REIT [Member]
Income Taxes [Line Items]
Income tax (benefit) expense	$ 0		$ 0

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Share-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Nov. 30, 2020 d $ / shares	Sep. 30, 2021 USD ($) shares	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) Target shares	Sep. 30, 2020 USD ($)	Dec. 31, 2020 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, authorized shares		6,000,000,000		6,000,000,000		6,000,000,000
2017 Employee Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock reserved for future issuance		2,915,404		2,915,404
Compensation expense | $		$ 5	$ 4	$ 15	$ 10
Unrecognized compensation costs related to unvested awards | $		$ 22		$ 22
Unrecognized compensation costs related to unvested awards, weighted-average period				1 year 9 months 18 days
Total fair value of shares vested | $				$ 18	$ 17
2017 Employee Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, authorized shares		8,000,000		8,000,000
2017 Director Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares of common stock reserved for future issuance		498,153		498,153
2017 Director Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, authorized shares		950,000		950,000
Performance Stock Units ("PSUs") [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award performance period				3 years
Market capitalization | $		$ 1,000		$ 1,000
Vesting rights				zero to 200
Performance Stock Units ("PSUs") [Member] | Special Awards [Member] | Eight Share Price Targets [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rights	One-eighth
Consecutive trading day period | d	20
PSUs remaining performance period forfeited	4 years
Share price target achieved | Target				6
Total share price targets | Target				8
Percentage of awards granted vested				75.00%
Performance Stock Units ("PSUs") [Member] | Maximum [Member] | Special Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rights				200
Average closing sales price per share, | $ / shares	$ 25.00
Performance Stock Units ("PSUs") [Member] | Minimum [Member] | Annual Grants [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting rights				0
Performance Stock Units ("PSUs") [Member] | Minimum [Member] | Special Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Average closing sales price per share, | $ / shares	$ 11.00

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Share-Based Compensation - Schedule of Restricted Stock Awards ("RSAs") (Detail) - Restricted stock awards (RSAs) [Member]	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Beginning balance | shares	834,258
Number of Shares, Granted | shares	426,629
Number of Shares, Vested | shares	(449,406)
Number of Shares, Forfeited | shares	(19,565)
Number of Shares, Ending balance | shares	791,916
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 21.68
Weighted Average Grant Date Fair Value, Granted | $ / shares	20.54
Weighted Average Grant Date Fair Value, Vested | $ / shares	19.07
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	22.50
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 22.53

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Share-Based Compensation - Schedule of Performance Stock Units ("PSUs") (Detail) - Performance Stock Units ("PSUs") [Member]	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Beginning balance | shares	1,078,555
Number of Shares, Granted | shares	327,110
Number of Shares, Vested | shares	(428,255)
Number of Shares, Forfeited | shares	(5,642)
Number of Shares, Ending balance | shares	971,768
Weighted Average Grant Date Fair Value, Beginning balance | $ / shares	$ 18.70
Weighted Average Grant Date Fair Value, Granted | $ / shares	27.17
Weighted Average Grant Date Fair Value, Vested | $ / shares	16.33
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	20.29
Weighted Average Grant Date Fair Value, Ending balance | $ / shares	$ 22.59

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Share-Based Compensation - Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model (Detail)	9 Months Ended
	Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected volatility	60.00%	[1]
Dividend yield	0.00%	[2]
Risk-free rate	0.20%
Expected term	3 years

[1] The weighted average expected volatility was 60.0%.

[2] Dividends are assumed to be reinvested in shares of our common stock and dividends will not be paid unless shares vest.

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Share-Based Compensation - Schedule of Grant Date Fair Values of Awards Using Monte Carlo Simulation Valuation Model (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted average expected volatility	60.00%

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Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net loss attributable to stockholders		$ (86)	$ (276)	$ (392)	$ (1,223)
Earnings attributable to participating securities		0	0	0	0
Net loss attributable to stockholders, net of earnings allocated to participating securities		$ (86)	$ (276)	$ (392)	$ (1,223)
Denominator:
Weighted average shares outstanding – basic		236	235	236	236
Unvested restricted shares		0	0	0	0
Weighted average shares outstanding – diluted		236	235	236	236
Loss per share - Basic	[1]	$ (0.36)	$ (1.17)	$ (1.66)	$ (5.19)
Loss per share - Diluted	[1]	$ (0.36)	$ (1.17)	$ (1.66)	$ (5.19)

[1] Per share amounts are calculated based on unrounded numbers and are calculated independently for each period presented.

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Business Segment Information - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2021 Segment
Segment Reporting [Abstract]
Number of operating business segments	2
Number of reportable segment	1

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Business Segment Information - Reconciliation of Revenues from Consolidated Hotels to Condensed Combined Consolidated Amounts and Net Loss to Hotel Adjusted EBITDA (Detail) - USD ($) $ in Millions		3 Months Ended						9 Months Ended
		Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items]
Total revenues		$ 423			$ 98			$ 911	$ 739
Net loss		(82)	$ (114)	$ (191)	(276)	$ (261)	$ (689)	(387)	(1,226)
Depreciation and amortization expense		68			75			213	225
Corporate general and administrative expense	[1]	14			13			48	40
Impairment and casualty loss, net		2			2			7	696
Acquisition costs		0			9			0	10
Other operating expenses		14			6			34	31
Loss (gain) on sales of assets, net		11			1			5	(62)
Interest income		0			0			0	(2)
Interest expense		66			59			195	149
Equity in losses from investments in affiliates		0			7			6	16
Income tax (benefit) expense		(3)			1			(2)	14
Severance expense		0			24			0	26
Other loss, net		5			3			7	6
Other items		4			3			(1)	9
Hotel Adjusted EBITDA		84			(76)			90	(93)
Total consolidated hotel revenue [Member]
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items]
Total revenues		408			95			876	714
Other [Member]
Reconciliation of Revenue and Adjusted EBITDA from Segments to Consolidated Amounts [Line Items]
Total revenues		$ 15			$ 3			$ 35	$ 25

[1] Excludes severance expense.

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Business Segment Information - Schedule of Total Assets by Consolidated Hotels, Reconciled to Total Assets (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Segment Reporting Asset Reconciling Item [Line Items]
Total assets	$ 9,794	$ 10,587
Consolidated Hotels [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Total assets	9,775	10,568
All Other [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Total assets	$ 19	$ 19

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Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended
	Feb. 28, 2021	Sep. 30, 2021
Other Commitments [Line Items]
Purchase commitment, remaining minimum amount committed		$ 116
Hilton Sydney [Member]
Other Commitments [Line Items]
Payment for claim	$ 11
Bonnet Creek complex [Member]
Other Commitments [Line Items]
Purchase commitment, remaining minimum amount committed		78
Spin-off Agreements [Member] | Hilton Sydney [Member]
Other Commitments [Line Items]
Reserve for ongoing claims		$ 8