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

Consolidated VIEs

We consolidate three VIEs that own 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, 2018		December 31, 2017
	(in millions)
Property and equipment, net	$	222	$	215
Cash and cash equivalents		16		14
Restricted cash		1		7
Accounts receivable, net		6		2
Prepaid expenses		1		2
Debt		207		207
Accounts payable and accrued expenses		8		8
Due to hotel manager		—		1
Other liabilities		1		1

During the nine months ended September 30, 2018 and 2017, we did not provide any financial or other support to these VIEs that we were not previously contractually required to provide, nor do we intend to provide any such support in the future.

Unconsolidated Entities

Investments in affiliates were:

	Ownership %	September 30, 2018		December 31, 2017
		(in millions)
Hilton Berlin⁽¹⁾	40%	$	—	$	33
Hilton San Diego Bayfront	25%		20		20
All others (7 hotels)	20% - 50%		33		31
		$	53	$	84

⁽¹⁾	Disposed of in May 2018. Refer to Note 3: “Dispositions” for additional information.

The affiliates in which we own investments accounted for under the equity method had total debt of approximately $956 million and $962 million as of September 30, 2018 and December 31, 2017, respectively. Substantially all the debt is secured solely by the affiliates’ assets or is guaranteed by other partners without recourse to us.