Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net Property and Equipment, Net

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Property and Equipment, Net Property and Equipment, Net
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
7. PROPERTY AND EQUIPMENT, NET
During the fourth quarter of 2021, the Company’s Board approved a plan to sell its two owned hotels. As a result of the Board approval, the Company evaluated the recoverability of its owned hotels’ long-lived assets and in the fourth quarter of 2021, the Company recorded a $6 million impairment charge which was reported within impairments, net on the Consolidated Statement of Income/(Loss). Due to the ongoing recovery of travel demand in 2021 and the favorable impact it had on the Company’s operations, the Company believes there were no other events that would indicate that an impairment to such property and equipment may have occurred in 2021. As a result of the impact COVID-19 had on the Company’s results during 2020, the Company evaluated the recoverability of its net property and equipment associated with its two owned hotels for impairment in 2020 and believed that it was more likely than not that the carrying value of those assets were recoverable from future expected cash flows, on an undiscounted basis, from such assets.
Property and equipment, net consisted of:
As of December 31,
2021 2020
Land $ —  $ 19 
Buildings and leasehold improvements 30  215 
Capitalized software 326  353 
Furniture, fixtures and equipment 32  85 
Finance leases 64  65 
Construction in progress 12  3 
464  740 
Less: Accumulated depreciation 358  462 
$ 106  $ 278 

As of December 31, 2021 the Company reported $146 million of net property and equipment in assets held for sale on the Consolidated Balance Sheets.
The Company recorded depreciation expense of $57 million, $61 million, and $71 million during 2021, 2020 and 2019, respectively, related to property and equipment.