Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following table summarizes the assets which were measured at fair value and impaired for the nine months ended September 30, 2020 and the year ended December 31, 2019 (in millions):


			Basis of Fair Value Measurements
	Fair Value of Assets at Impairment		Quoted Prices in Active Market for Identical Items (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3) (1)		Total Losses
For the nine months ended September 30, 2020
Real estate (2)	$	310	$	—	$	7	$	303	$	52


For the year ended December 31, 2019
Real estate	$	299	$	—	$	31	$	268	$	138
Right of use assets	$	22	$	—	$	—	$	22	$	3

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(1) The Level 3 unobservable inputs consist of internally developed cash flow models and fair value estimates that included projections of revenues, expenses and capital expenditures and market valuations based on multiples of revenue generally ranging from 2.0x to 3.0x. These assumptions were based on trends and comparable transactions in the lodging industry; our historical data and experience; our budgets, including those prepared by our third-party hotel manager; lodging industry valuation trends; and micro- and macro-economic trends and projections. Our estimated fair values also considered factors related to our franchise and management agreements, requirements to meet certain brand standards and other potential costs to be incurred during our projected holding period.

(2) Total losses exclude impairments on previously disposed assets because they are no longer held by us.

Carrying Amount and Estimated Fair Values of Financial Assets and Liabilities

For those financial instruments not carried at fair value, the carrying amount and estimated fair values of our financial assets and liabilities were as follows as of September 30, 2020 and December 31, 2019 (in millions):


	September 30, 2020				December 31, 2019
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Debt - CMBS Facility(1)(2)	$	767	$	735	$	921	$	921
Debt - Revolving Facility(1)(2)	$	100	$	95	$	—	$	—
Mandatorily redeemable preferred shares(1)	$	15	$	14	$	15	$	15

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(1)Classified as Level 3 under the fair value hierarchy.

(2)Carrying amount excludes deferred financing costs, net, of less than $1 million as of September 30, 2020 and $6 million as of December 31, 2019.