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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregated Revenues
See Note 17 for our revenues disaggregated by the nature of the product or service.
Contract Balances
Contract assets, included in receivables, net on our condensed consolidated balance sheets, were $4 million and insignificant at September 30, 2025 and December 31, 2024, respectively. As our profitability hurdles are generally calculated on a full-year basis, we expect our contract assets to be insignificant at year end.
Contract liabilities were comprised of the following:
September 30, 2025December 31, 2024
Deferred revenue related to the loyalty program$1,512 $1,333 
Deferred revenue related to distribution and destination management services480 705 
Deferred revenue related to co-branded credit card programs77 66 
Advanced deposits66 53 
Initial fees received from franchise owners49 47 
Deferred revenue related to insurance programs17 112 
Other deferred revenue89 80 
Total contract liabilities$2,290 $2,396 
Revenue recognized during the three months ended September 30, 2025 and September 30, 2024 included in the contract liabilities balance at the beginning of each year was $201 million and $190 million, respectively. Revenue recognized during the nine months ended September 30, 2025 and September 30, 2024 included in the contract liabilities balance at the beginning of each year was $1,122 million and $1,040 million, respectively. This revenue primarily related to distribution and destination management services and the loyalty program.
Revenue Allocated to Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted revenue expected to be recognized in future periods was approximately $130 million at September 30, 2025. This was primarily related to design services fees from third-party owners and initial application fees from franchisees. Design services fees are recognized as revenues over multiple years, typically over a period of less than five years, using the percentage-of-completion method based on the achievement of design and/or renovation or construction milestones, timing of which is inherently uncertain. Initial application fees are recognized as revenues using the straight-line method over the initial term of the franchise agreement, which is generally 20 years. Of the $130 million of contracted revenue, we expect to recognize approximately 10% within the next 12 months, with the remainder to be recognized thereafter.