We invest in debt and equity securities that we believe are strategically and operationally important to our business. These investments take the form of (i) investments in variable interest entities, (ii) equity method investments where we have the ability to significantly influence the operations of the entity, (iii) marketable securities held to fund operating programs and for investment purposes, and (iv) other types of investments.

Bahia Principe—During the year ended December 31, 2024, we entered into a shareholders' agreement with an unrelated third party and acquired 50% of the outstanding shares of Management Hotelero Piñero, S.L. (the "Bahia Principe Transaction"). The joint venture, which is a variable interest entity ("VIE"), owns the Bahia Principe brand and manages Bahia Principe Hotels & Resorts-branded properties (see Note 7). Through our variable interest, we have the power to direct the activities that most significantly affect the economic performance of the VIE and have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE and therefore, we are the primary beneficiary. We consolidate the operating results and financial position of this VIE in our condensed consolidated financial statements within our management and franchising segment.

The following table summarizes the VIE's assets and liabilities, including the effect of foreign currency translation, recorded on our condensed consolidated balance sheets at September 30, 2025 and December 31, 2024. The assets may only be used to settle obligations of the consolidated VIE, if any. In addition, there is no recourse to us for the consolidated VIE's liabilities.


	September 30, 2025		December 31, 2024
Cash and cash equivalents	$	23	$	2
Receivables	3		15

Total current assets	26		17
Operating lease right-of-use assets	1		1
Goodwill	177		147
Intangibles, net	570		515


Other assets	57		50
Total assets	$	831	$	730

Accounts payable	$	1	$	15
Accrued expenses and other current liabilities	4		1
Total current liabilities	5		16
Long-term operating lease liabilities	1		1

Other long-term liabilities	184		161
Total liabilities	$	190	$	178

The resorts managed by the joint venture increase our all-inclusive portfolio and provide guests and loyalty program members more opportunities to experience all-inclusive travel. In conjunction with the transaction, we entered into various agreements with the joint venture and its related parties to provide certain commercial and management support services to the joint venture and to support the growth of the Bahia Principe brand and the operation of the Bahia Principe Hotels & Resorts-branded properties.

UVC Transaction—During the nine months ended September 30, 2024, we completed a restructuring of the entity that owns the Unlimited Vacation Club paid membership program business and sold 80% of the entity to an unrelated third party for $80 million (the "UVC Transaction"). As a result of the transaction, we deconsolidated the entity as we no longer have a controlling financial interest, and we account for our remaining 20% ownership interest as an equity method investment in an unconsolidated hospitality venture. We received $41 million of proceeds, net of $39 million of cash disposed; recorded a $20 million equity method investment representing the fair value of our retained investment in the entity; and recorded $86 million of guarantee liabilities as described below. The transaction was accounted for as a business disposition and resulted in a $231 million pre-tax gain, which was recognized in gains (losses) on sales of real estate and other on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2024. We continue to manage the Unlimited Vacation Club business under a long-term management agreement and license and royalty agreement. The operating results of the Unlimited Vacation Club business prior to the UVC Transaction are reported within our distribution segment.

The fair value of our retained investment in the entity was determined using a Black-Scholes-Merton option-pricing model of our common shares in the entity. The valuation methodology included assumptions and judgments regarding volatility and discount rates, which are primarily Level Three assumptions.

In conjunction with the transaction, we agreed to guarantee up to $70 million of our hospitality venture partner's investment upon the occurrence of certain events, and we recorded a $25 million guarantee liability at fair value in other long-term liabilities on our condensed consolidated balance sheet. The fair value was estimated using the with and without method, which included projected cash flows based on contract terms. The valuation methodology included assumptions and judgments regarding discount rates and length of time, which are primarily Level Three assumptions.

Additionally, we agreed to indemnify the unconsolidated hospitality venture, the primary obligor to the foreign taxing authorities, for obligations the entity may incur as a result of uncertain tax positions. Following the transaction, we accounted for the indemnification as a guarantee. We derecognized the long-term income taxes payable related to the uncertain tax positions and recorded a $61 million guarantee liability at fair value in other long-term liabilities on our condensed consolidated balance sheet. The fair value of the indemnification was estimated using a probability-based weighting approach to determine the likelihood of payment of the tax liability, penalties, and interest related to the 2013 through 2018 tax years. The valuation methodology included assumptions and judgments regarding probability weighting, discount rates, and expected timing of cash flows, which are primarily Level Three assumptions. At September 30, 2025, the indemnification for open tax years had a maximum exposure of $75 million.

The entity that owns the Unlimited Vacation Club business is classified as a VIE in which we hold a variable interest but are not the primary beneficiary, and we account for our common ownership interest as an equity method investment. At September 30, 2025 and December 31, 2024, we had $75 million and $68 million, respectively, recorded in other long-term liabilities (see Note 11) on our condensed consolidated balance sheets related to our guaranteed obligations of this unconsolidated VIE. At September 30, 2025 and December 31, 2024, our maximum exposure to loss was $145 million and $142 million, respectively, which includes the maximum exposure under the guarantee and indemnification (see Note 13).

During the three and nine months ended September 30, 2025, we recognized $29 million and $36 million, respectively, of impairment charges, and during the three and nine months ended September 30, 2024, we recognized no amount and $10 million, respectively, of impairment charges in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss). The impairment charges were related to certain investments in unconsolidated hospitality ventures in which the estimated fair values were less than the carrying values, and the impairments were deemed other than temporary. We estimated the fair values of our investments, which are classified as Level Three in the hierarchy, using pending third-party offers or internally-developed cash flow models.

Juniper Hotels Limited—On February 28, 2024, Juniper Hotels Limited completed its initial public offering ("IPO") and issued 50,000,000 equity shares on the BSE Limited and National Stock Exchange of India Limited stock exchanges. Both prior and subsequent to the IPO, we hold 86,251,192 equity shares in the entity. At September 30, 2025, the aggregate value of our equity shares was $274 million based on the price per share of the principal market.

As a result of the IPO, our ownership interest in the unconsolidated hospitality venture was diluted from 50.0% to 38.8%. As we maintain the ability to significantly influence the operations of the entity, we recorded an increase to our equity method investment and recognized a $79 million non-cash pre-tax dilution gain in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss) during the nine months ended September 30, 2024.


	September 30, 2025		December 31, 2024
Loyalty program (Note 9)	$	748	$	642
Deferred compensation plans held in rabbi trusts (Note 9)	588		548
Captive insurance company (Note 9)	112		86
Total marketable securities held to fund operating programs	$	1,448	$	1,276
Less: current portion of marketable securities held to fund operating programs included in cash and cash equivalents and short-term investments	(96)		(55)
Marketable securities held to fund operating programs included in other assets	$	1,352	$	1,221


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Unrealized gains (losses), net
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1)	$	20	$	(5)	$	36	$	19
Revenues for reimbursed costs (2)	10		(3)		17		8
Other income (loss), net (Note 19)	2		6		7		7
Other comprehensive income (loss) (Note 14)	2		15		13		9

Realized gains, net
Net gains (losses) and interest income from marketable securities held to fund rabbi trusts (1)	$	2	$	23	$	5	$	27
Revenues for reimbursed costs (2)	1		11		3		13
Other income (loss), net (Note 19)	1		—		1		—
(1) Unrealized and realized gains (losses) recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts are offset by amounts recognized in general and administrative expenses and owned and leased expenses with no impact on net income (loss).
(2) Unrealized and realized gains (losses) recognized in revenues for reimbursed costs related to marketable securities held to fund rabbi trusts are offset by amounts recognized in reimbursed costs with no impact on net income (loss).


	September 30, 2025		December 31, 2024
Interest-bearing money market funds	$	244	$	600

Time deposits (1)	40		379
Ordinary shares in Playa Hotels (Note 9)	—		154
Total marketable securities held for investment purposes	$	284	$	1,133
Less: current portion of marketable securities held for investment purposes included in cash and cash equivalents and short-term investments	(281)		(975)
Marketable securities held for investment purposes included in other assets	$	3	$	158
(1) Time deposits have contractual maturities on various dates through 2027. The amortized cost of our time deposits approximates fair value.

During the nine months ended September 30, 2025, we acquired all of the issued and outstanding ordinary shares of Playa Hotels & Resorts N.V. ("Playa Hotels") (see Note 7). Prior to the acquisition, we held ordinary shares in Playa Hotels, which were accounted for as equity securities with a readily determinable fair value as we did not have the ability to significantly influence the operations of the entity. The following table summarizes net gains (losses) recognized in other income (loss), net on our condensed consolidated statements of income (loss) (see Note 19):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net gains (losses)	$	—	$	(8)	$	10	$	(11)
Less: net gains recognized on shares during the period	—		—		(10)		—
Unrealized gains (losses), net recognized on shares held at period end	$	—	$	(8)	$	—	$	(11)


	September 30, 2025		Cash and cash equivalents		Short-term investments		Other assets
Level One—Quoted Prices in Active Markets for Identical Assets
Interest-bearing money market funds	$	308	$	308	$	—	$	—
Mutual funds and exchange-traded funds	596		—		—		596

Common shares	12		—		—		12
Level Two—Significant Other Observable Inputs

Time deposits	133		17		20		96
U.S. government obligations	287		—		6		281
U.S. government agencies	31		—		—		31
Corporate debt securities	289		—		26		263
Mortgage-backed securities	36		—		—		36
Asset-backed securities	36		—		—		36
Municipal and provincial notes and bonds	4		—		—		4



Total	$	1,732	$	325	$	52	$	1,355


	December 31, 2024		Cash and cash equivalents		Short-term investments		Other assets
Level One—Quoted Prices in Active Markets for Identical Assets
Interest-bearing money market funds	$	638	$	638	$	—	$	—
Mutual funds and exchange-traded funds	555		—		—		555
Ordinary and common shares	164		—		—		164
Level Two—Significant Other Observable Inputs
Time deposits	404		20		355		29
U.S. government obligations	307		—		5		302
U.S. government agencies	21		—		—		21
Corporate debt securities	249		—		12		237
Mortgage-backed securities	29		—		—		29
Asset-backed securities	38		—		—		38
Municipal and provincial notes and bonds	4		—		—		4
Total	$	2,409	$	658	$	372	$	1,379

During both the nine months ended September 30, 2025 and September 30, 2024, there were no transfers between levels of the fair value hierarchy. We do not have nonfinancial assets or nonfinancial liabilities required to be measured at fair value on a recurring basis.


	September 30, 2025		December 31, 2024
HTM debt securities (1)	$	315	$	276
Less: allowance for credit losses	(9)		(9)
Total HTM debt securities, net of allowances	$	306	$	267

Gross HTM debt securities on nonaccrual status	$	16	$	—
(1) Includes a $194 million preferred equity investment, net of a $31 million and $35 million unamortized discount, at September 30, 2025 and December 31, 2024, respectively, in a third-party entity that owns a managed hotel. Accretion of the discount was recognized in interest income within other income (loss), net on our condensed consolidated statements of income (loss) (see Note 19) and was based on an imputed interest rate of approximately 8.9%.


	2025		2024
Allowance at January 1	$	9	$	13



Provisions (reversals), net (1)	—		(2)
Write-offs	—		(2)
Allowance at June 30	$	9	$	9
Provisions (1)	—		—

Allowance at September 30	$	9	$	9


(1) Provisions for credit losses were partially or fully offset by interest income recognized in the same periods (see Note 19).

We estimated the fair value of these HTM debt securities to be approximately $305 million and $270 million at September 30, 2025 and December 31, 2024, respectively. Our preferred equity investments, which are redeemable on various dates through 2032, are classified as Level Three in the fair value hierarchy. The fair values were estimated using probability-based discounted future cash flow models based on current market inputs for similar types of arrangements. The primary sensitivity in these models is the selection of appropriate discount rates and probability weighting. Fluctuations in these assumptions could result in different estimates of fair value. The remaining HTM debt security, which is redeemable in 2062, is classified as Level Two in the fair value hierarchy due to the use and weighting of multiple market inputs being considered in the final price of the security.

Convertible Debt Security—During the three months ended September 30, 2025, a $30 million convertible debt investment associated with one of our franchised properties was extinguished in conjunction with the recapitalization of the franchisee. The uncollectible investment, which was classified as AFS and recorded within other assets on our condensed consolidated balance sheets, was written off upon extinguishment. As part of the recapitalization, we maintained the long-term franchise agreement for the property.

During the three and nine months ended September 30, 2025, we recognized no amount and $30 million, respectively, of credit loss provisions in other income (loss), net on our condensed consolidated statements of income (loss) (see Note 19) related to this investment. Prior to the extinguishment, we remeasured the fair value of our investment on a recurring basis using a discounted future cash flow model. At December 31, 2024, we estimated the fair value of the investment, which was classified as Level Three in the fair value hierarchy, to be $42 million.

Equity Securities Without a Readily Determinable Fair Value—At September 30, 2025 and December 31, 2024, we held $11 million and $12 million, respectively, of investments in equity securities without a readily determinable fair value, which are recorded within other assets on our condensed consolidated balance sheets and represent investments in entities where we do not have the ability to significantly influence the operations of the entity.