| RECEIVABLES Receivables At December 31, 2024 and December 31, 2023, we had $1,121 million and $883 million, respectively, of net receivables recorded on our consolidated balance sheets. The following table summarizes the activity in our receivables allowance for credit losses: | | | | | | | | | | | | | 2024 | | 2023 | | Allowance at January 1 | $ | 50 | | | $ | 63 | | | Provisions (reversals), net | 19 | | | (5) | | | Write-offs | (7) | | | (8) | | | | | | | | | | | Allowance at December 31 | $ | 62 | | | $ | 50 | |
Financing Receivables | | | | | | | | | | | | | | | | | | | December 31, 2024 | | December 31, 2023 | | | | | | | | Secured financing to hotel owners (1) | $ | 150 | | | $ | — | | | | | | | | | | | | | | | | | | | Unsecured financing to hotel owners and unconsolidated hospitality ventures (2) | 295 | | | 137 | | | | | | | | | Total financing receivables | $ | 445 | | | $ | 137 | | | | | | | | | Less: current portion of financing receivables included in receivables, net | (41) | | | (22) | | | | | | | | | Less: allowance for credit losses (3) | (36) | | | (42) | | | | | | | | | Total long-term financing receivables, net of allowances | $ | 368 | | | $ | 73 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) Includes an $85 million loan purchased, a CHF 41 million loan issued in conjunction with the sale of Park Hyatt Zurich, and a $20 million loan issued in conjunction with the sale of Hyatt Regency O'Hare Chicago (see Note 7). | | | | | | | (2) At December 31, 2024, unsecured financing included a $35 million loan, net of a $15 million unamortized discount based on an imputed interest rate of approximately 9.5%, related to the seller financing issued in conjunction with the sale of an undeveloped land parcel (see Note 7). | | | | | | | (3) At December 31, 2024, there was no allowance for credit losses recorded for secured financing to hotel owners. | | | | | | |
Allowance for Credit Losses—The following table summarizes the activity in our unsecured financing receivables allowance for credit losses: | | | | | | | | | | | | | 2024 | | 2023 | | Allowance at January 1 | $ | 42 | | | $ | 44 | | | Write-offs | (6) | | | (2) | | | Foreign currency exchange, net | (2) | | | — | | | Provisions (reversals), net | 2 | | | — | | | | | | | | | | | Allowance at December 31 | $ | 36 | | | $ | 42 | |
Credit Monitoring—Our unsecured financing receivables were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | Gross loan balance (principal and interest) | | Related allowance | | Net financing receivables | | Gross receivables on nonaccrual status | | Loans | $ | 259 | | | $ | (33) | | | $ | 226 | | | $ | 20 | | | Other financing arrangements | 36 | | | (3) | | | 33 | | | — | | | Total unsecured financing receivables | $ | 295 | | | $ | (36) | | | $ | 259 | | | $ | 20 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | Gross loan balance (principal and interest) | | Related allowance | | Net financing receivables | | Gross receivables on nonaccrual status | | Loans | $ | 128 | | | $ | (39) | | | $ | 89 | | | $ | 22 | | | Other financing arrangements | 9 | | | (3) | | | 6 | | | — | | | Total unsecured financing receivables | $ | 137 | | | $ | (42) | | | $ | 95 | | | $ | 22 | |
Fair Value—We estimated the fair value of financing receivables to be approximately $440 million and $133 million at December 31, 2024 and December 31, 2023, respectively. The fair values, which are classified as Level Three in the fair value hierarchy, are estimated using discounted future cash flow models. The principal inputs used are projected future cash flows and the discount rate, which is generally the effective interest rate of the loan.
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