Other Expenses and Charges |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expenses and Charges |
Impairment and Other Charges Relating to Large Franchisee
The Company has a large European franchisee, Revo, that has been, for the past several months, trying to obtain long-term permanent financing. As the Company was in the process of preparing its consolidated financial statements, it became aware that such franchisee was unsuccessful in obtaining the financing and has also been encountering liquidity issues stemming from its inability to successfully execute on integrating its acquisitions as well as higher than expected operating costs. As a result, in January 2026, the franchisee commenced insolvency proceedings under self-administration for most of its operating entities. The Company’s accounts receivable, loans receivable and development advance notes with this franchisee is secured by a collateral package that includes certain share pledges, bank account pledges, trademark/IP pledges, second liens on select real estate and personal guarantees from the franchisee’s principal. The Company has also learned that the franchisee’s insolvencies will, directly or indirectly, impact certain entities serving as guarantors to the Company or whose shares have been pledged to the Company, as well as the net worth of the franchisee’s principal, who has guaranteed certain debt. As a result, the Company evaluated the recoverability of the carrying value of its assets associated with this franchisee, including the Vienna House trademark and related franchise agreement intangible assets, loans receivable, development advance notes and accounts receivables and recorded impairment and other charges of $160 million.
The following is the breakout of the impairment and other charges recorded in 2025 related to this large franchisee:
Starting in the fourth quarter of 2025, the Company ceased recognizing revenues related to this franchisee due to uncertainty of collectability. However these revenues will continue to accrue and will be recognized to revenue when there is a consistent pattern of collections from the franchisee which demonstrates collectability is probable.
Impairment
As a result of the insolvency filing of Revo, the Company recorded impairment charges totaling $86 million in 2025. Such impairment charges for the trademark, franchise agreements and development advance notes were recorded in its Hotel Franchising segment and reported within impairments on the Consolidated Statements of Income.
As a result of the Company’s evaluation of the recoverability of the carrying value of certain assets, the Company recorded an impairment charge of $12 million, primarily related to development advance notes, during the first quarter of 2024. The impairment charge was reported within impairments on the Consolidated Statements of Income.
Restructuring and other-related
Restructuring
During the second quarter of 2025, the Company approved a restructuring plan focused on streamlining its organizational structure, primarily within its marketing, reservation and loyalty functions. As a result, the Company incurred $16 million of restructuring expenses, primarily in its Hotel Franchising segment and impacting a total of 181 employees. Such expenses included $8 million related to the closure of a leased call center facility in Canada, of which $3 million were personnel-related and impacting 74 employees.
During the first quarter of 2024, the Company approved a restructuring plan focused on enhancing its organizational efficiency. As a result, the Company incurred $15 million of restructuring expenses, all of which were personnel-related and primarily in its Hotel Franchising segment. Such plan resulted in a reduction of 135 employees in 2024. The following table presents activity for both plans for the year ended December 31, 2025:
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(a)Reported within accrued expenses and other current liabilities on the Consolidated Balance Sheets.
(b)Reported within accrued expenses and other current liabilities of $5 million and other non-current liabilities of $3 million as of December 31, 2025 on the Consolidated Balance Sheets.
The following table presents activity for the year ended December 31, 2024:
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(a)Represents non-cash payments in Company stock.
Other-related
During 2025, the Company incurred $2 million in other-related costs associated with post-employment transition advisory services.
Transaction-Related
The Company recognized transaction-related expenses of $2 million during 2025, primarily related to stock-based compensation costs associated with the failed hostile takeover defense. The Company recognized transaction-related expenses of $47 million during 2024, primarily related to costs associated with the failed hostile takeover defense and costs related to the repricing of the Company’s term loan B. Such amounts primarily consisted of legal and advisory costs. The Company recognized transaction-related expenses of $11 million during 2023 related to corporate transactions, including costs associated with the failed hostile takeover defense and the refinancing of the Company’s term loan B. During 2024, the Company made $51 million of transaction-related payments. Such amounts primarily consisted of legal and advisory costs.
Separation-Related
Separation-related costs associated with the Company’s spin-off from former Parent were $1 million of expense during 2025. Separation-related costs associated with the Company’s spin-off from former Parent were $11 million of income during 2024, which were primarily due to the reversal of a reserve related to the expiration of a tax matter. The Company recognized expenses of $1 million during 2023, which primarily consisted of legal and tax-related costs.
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