Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.23.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Summary of Net Revenues and Adjusted EBITDA by Segment
Three Months Ended September 30,
2023 2022
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising (a)
$ 402  $ 215  $ 367  $ 201 
Hotel Management
 n/a n/a 40  7 
Total Reportable Segments
 402  215  407  208 
Corporate and Other
 —  (15) —  (17)
Total Company
 $ 402  $ 200  $ 407  $ 191 
______________________
(a)    For 2023, the Hotel Franchising segment includes the former Hotel Management segment, which is primarily comprised of the Company's remaining international full-service managed business.
Reconciliation of Net Income to Adjusted EBITDA
The table below is a reconciliation of net income to adjusted EBITDA.
Three Months Ended September 30,
2023 2022
Net income $ 103  $ 101 
Provision for income taxes 33  38 
Depreciation and amortization 19  18 
Interest expense, net 27  21 
Stock-based compensation 10  8 
Development advance notes amortization 4  3 
Transaction-related 1 — 
Separation-related —  1 
Foreign currency impact of highly inflationary countries
 3  1 
Adjusted EBITDA
 $ 200  $ 191 
Nine Months Ended September 30,
2023 2022
Net Revenues
Adjusted EBITDA
Net Revenues
Adjusted EBITDA
Hotel Franchising (a)
$ 1,076  $ 554  $ 974  $ 541 
Hotel Management
 n/a n/a 190  33 
Total Reportable Segments
 1,076  554  1,164  574 
Corporate and Other
 —  (49) —  (50)
Total Company
 $ 1,076  $ 505  $ 1,164  $ 524 
______________________
(a)    For 2023, the Hotel Franchising segment includes the former Hotel Management segment, which is primarily comprised of the Company's remaining international full-service managed business.
The table below is a reconciliation of net income to adjusted EBITDA.
Nine Months Ended September 30,
2023 2022
Net income $ 240  $ 299 
Provision for income taxes 83  104 
Depreciation and amortization 56  58 
Interest expense, net 73  60 
Early extinguishment of debt 3  2 
Stock-based compensation 28  25 
Development advance notes amortization 11  9 
Transaction-related 5  — 
Gain on asset sale, net —  (35)
Foreign currency impact of highly inflationary countries
 6  2 
Adjusted EBITDA
 $ 505  $ 524