Hyatt Hotels CorpH
Hyatt Hotels Corp Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLES, NET
Goodwill
| Management and franchising | Owned and leased | Distribution | Overhead | Unallocated (1) | Total | ||||||||||||||||||||||||||||||
| Balance at January 1, 2024 | |||||||||||||||||||||||||||||||||||
| Goodwill | $ | 1,530 | $ | 210 | $ | 1,628 | $ | 2 | $ | — | $ | 3,370 | |||||||||||||||||||||||
| Accumulated impairment losses | (4) | (161) | — | — | — | (165) | |||||||||||||||||||||||||||||
| Goodwill, net | $ | 1,526 | $ | 49 | $ | 1,628 | $ | 2 | $ | — | $ | 3,205 | |||||||||||||||||||||||
| Activity during the year | |||||||||||||||||||||||||||||||||||
| Additions | 86 | — | — | — | 336 | 422 | |||||||||||||||||||||||||||||
| Disposals | — | — | (914) | — | — | (914) | |||||||||||||||||||||||||||||
| Impairment losses | (110) | (15) | (38) | — | — | (163) | |||||||||||||||||||||||||||||
Measurement period adjustments (Note 7) | — | — | (1) | — | — | (1) | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | (7) | — | — | — | (1) | (8) | |||||||||||||||||||||||||||||
| Balance at December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Goodwill | 1,609 | 210 | 713 | 2 | 335 | 2,869 | |||||||||||||||||||||||||||||
| Accumulated impairment losses | (114) | (176) | (38) | — | — | (328) | |||||||||||||||||||||||||||||
| Goodwill, net | $ | 1,495 | $ | 34 | $ | 675 | $ | 2 | $ | 335 | $ | 2,541 | |||||||||||||||||||||||
| Activity during the year | |||||||||||||||||||||||||||||||||||
| Additions (Note 7) | — | — | — | — | 964 | 964 | |||||||||||||||||||||||||||||
| Measurement period adjustments (Note 7) | 46 | — | — | — | (132) | (86) | |||||||||||||||||||||||||||||
| Allocations and other adjustments (1) | 1,078 | — | 108 | (2) | (1,184) | — | |||||||||||||||||||||||||||||
| Foreign currency translation adjustments | 18 | — | — | — | 17 | 35 | |||||||||||||||||||||||||||||
| Balance at December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Goodwill | 2,751 | 210 | 821 | — | — | 3,782 | |||||||||||||||||||||||||||||
| Accumulated impairment losses | (114) | (176) | (38) | — | — | (328) | |||||||||||||||||||||||||||||
| Goodwill, net | $ | 2,637 | $ | 34 | $ | 783 | $ | — | $ | — | $ | 3,454 | |||||||||||||||||||||||
(1) During the year ended December 31, 2025, we completed the allocations of the preliminary goodwill balance attributed to the Playa Hotels Acquisition and goodwill balance attributed to the Bahia Principe Transaction to our reporting units (see Note 7). | |||||||||||||||||||||||||||||||||||
During the year ended December 31, 2025, we implemented organizational changes, and as a result, we reassessed our reporting units and performed interim impairment analyses. During the year ended December 31, 2025, we did not recognize any goodwill impairment charges.
During the year ended December 31, 2024, we recognized $163 million of goodwill impairment charges, of which $148 million was a result of our annual impairment analyses (see Note 2) and $15 million was related to the sale of the shares of the entities that own Hyatt Regency Aruba Resort Spa and Casino (see Note 7). These goodwill impairment charges were recognized in asset impairments on our consolidated statements of income (loss) within our management and franchising, distribution, and owned and leased segments. Through our annual impairment analyses, we determined that the carrying values of two of our reporting units were in excess of the fair values. We estimated the fair values of the goodwill allocated to the reporting units using a combination of a discounted cash flow model and the guideline public companies method, which utilized Level Three inputs including projected cash flows, discount rates, and capitalization rates.
During the year ended December 31, 2023, we did not recognize any goodwill impairment charges.
Intangibles
| December 31, 2025 | |||||||||||||||||||||||
| Weighted-average useful lives in years | Gross carrying value | Accumulated amortization | Net carrying value | ||||||||||||||||||||
| Management and hotel services agreement and franchise agreement intangibles | 20 | $ | 1,545 | $ | (367) | $ | 1,178 | ||||||||||||||||
| Brand and other indefinite-lived intangibles | — | 809 | — | 809 | |||||||||||||||||||
| Customer relationships intangibles | 11 | 354 | (129) | 225 | |||||||||||||||||||
| Other intangibles | 9 | 29 | (12) | 17 | |||||||||||||||||||
| Total | $ | 2,737 | $ | (508) | $ | 2,229 | |||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Gross carrying value | Accumulated amortization | Net carrying value | |||||||||||||||||||||
| Management and hotel services agreement and franchise agreement intangibles | $ | 1,368 | $ | (290) | $ | 1,078 | |||||||||||||||||
| Brand and other indefinite-lived intangibles | 806 | — | 806 | ||||||||||||||||||||
| Customer relationships intangibles | 410 | (153) | 257 | ||||||||||||||||||||
| Other intangibles | 35 | (9) | 26 | ||||||||||||||||||||
| Total | $ | 2,619 | $ | (452) | $ | 2,167 | |||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Amortization expense | $ | 145 | $ | 131 | $ | 178 | |||||||||||
We estimate amortization expense for definite-lived intangibles for the next five years and thereafter as follows:
| Year Ending December 31, | |||||
| 2026 | $ | 132 | |||
| 2027 | 126 | ||||
| 2028 | 120 | ||||
| 2029 | 113 | ||||
| 2030 | 105 | ||||
| Thereafter | 824 | ||||
| Total amortization expense | $ | 1,420 | |||
The following table summarizes impairment charges recognized in asset impairments on our consolidated statements of income (loss):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Management and hotel services agreement and franchise agreement intangibles (1) | $ | 22 | $ | 16 | $ | 12 | |||||||||||
| Brand and other indefinite-lived intangibles (2) | 6 | 8 | 17 | ||||||||||||||
| Other intangibles (1) | 4 | — | — | ||||||||||||||
| (1) Primarily the result of contract terminations and recognized within our management and franchising segment. | |||||||||||||||||
| (2) The carrying values of certain assets within our management and franchising and distribution segments were in excess of the fair values. The inputs used in determining the impairment charges are classified as Level Three in the fair value hierarchy. | |||||||||||||||||
For additional information about acquisition and disposition activity impacting goodwill and intangibles, see Note 7.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 18, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.