Fair Value Measurements

12 Months Ended

Dec. 31, 2023

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:


		December 31, 2023				December 31, 2022
	Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value

		(in millions)
Liabilities:
HHV Mortgage Loan	3	$	1,275	$	1,195	$	1,275	$	1,142
Other mortgage loans	3	385		365		469		435
Revolver	3	—		—		50		50
2025 Senior Notes	1	650		652		650		652
2028 Senior Notes	1	725		713		725		661
2029 Senior Notes	1	750		702		750		635

The fair value of the SF Mortgage Loan, which has a carrying value of $725 million as of both December 31, 2023 and 2022, and categorized as Level 3 of the fair value hierarchy, was $718 million and $692 million, respectively, as of December 31, 2023 and 2022. Refer to Note 7: "Debt" for additional information.

During the year ended December 31, 2023, we recognized an impairment loss related to one of our hotels. In October 2023, this hotel, along with the other hotel securing our SF Mortgage Loan, were placed into receivership. Refer to Note 7: "Debt" for additional information. The estimated value of the asset that was measured on a nonrecurring basis was:


	December 31, 2023
	Fair Value		Impairment Loss
	(in millions)
Property and equipment(1)	$	234	$	202
Total	$	234	$	202

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(1)Fair value as of December 31, 2023 was measured using significant unobservable inputs (Level 3). We estimated fair value of the asset using a discounted cash flow analysis, with an estimated stabilized growth rate of 3%, a discounted cash flow term of 10 years, terminal capitalization rate of 6.3%, and discount rate of 9.5%. The discount and terminal capitalization rates used for the fair values of the asset reflected the risk profile of the market where the property is located.

- Definition

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

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