
	Management and franchising		Owned and leased		Distribution (1)		Overhead		Unallocated (2)		Total
Balance at January 1, 2023
Goodwill	$	1,465	$	210	$	1,589	$	2	$	—	$	3,266
Accumulated impairment losses	(4)		(161)		—		—		—		(165)
Goodwill, net	$	1,461	$	49	$	1,589	$	2	$	—	$	3,101
Activity during the year

Additions	62		—		39		—		—		101
Foreign currency translation adjustments	3		—		—		—		—		3

Balance at December 31, 2023
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
(1) At December 31, 2023, one of our reporting units with $914 million of allocated goodwill had a negative carrying value.
(2) At December 31, 2024, we have not completed the assignment of goodwill attributed to the Bahia Principe Transaction to reporting units (see Note 7).

During the years ended December 31, 2024, December 31, 2023, and December 31, 2022, we recognized goodwill impairment charges of $15 million, $0 million, and $7 million, respectively, related to the sales of certain hotels. These goodwill impairment charges were recognized in asset impairments on our consolidated statements of income within our owned and leased segment (see Note 7). During the year ended December 31, 2024, as a result of our annual impairment analyses (see Note 2), we determined that the carrying values of two of our reporting units were in excess of the fair values, and we recognized $148 million of goodwill impairment charges in asset impairments on our consolidated statements of income within our management and franchising and distribution segments. We estimated the fair values of the goodwill allocated to the reporting units, which are classified as Level Three in the fair value hierarchy, using a weighted methodology considering the output from both a discounted future cash flow model and the guideline public companies method. The assumptions and judgments included projected future cash flows, discount rate, and capitalization rate. For the reporting unit within our management and franchising segment, changes in projected business performance expectations or specific valuation factors outside of our control, such as the discount rate, may significantly impact the estimated fair value of the reporting unit. A 5% decline in the underlying cash flows or a 1% increase in the discount rate or capitalization rate would result in a material impairment charge.


		December 31, 2024
	Weighted-average useful lives in years	Gross carrying value		Accumulated amortization		Net carrying value
Management and hotel services agreement and franchise agreement intangibles	19	$	1,368	$	(290)	$	1,078
Brand and other indefinite-lived intangibles	—	806		—		806
Customer relationships intangibles	10	410		(153)		257
Other intangibles	10	35		(9)		26
Total		$	2,619	$	(452)	$	2,167


	December 31, 2023
	Gross carrying value		Accumulated amortization		Net carrying value
Management and hotel services agreement and franchise agreement intangibles	$	906	$	(248)	$	658
Brand and other indefinite-lived intangibles	608		—		608
Customer relationships intangibles	620		(243)		377
Other intangibles	33		(6)		27
Total	$	2,167	$	(497)	$	1,670

During the years ended December 31, 2024, December 31, 2023, and December 31, 2022, we recognized $8 million, $17 million, and $21 million, respectively, of impairment charges related to brand intangibles, as we determined that the carrying values of certain assets were in excess of the fair values, and $16 million, $12 million, and $10 million, respectively, of impairment charges related to management and franchise agreement intangibles, primarily as a result of contract terminations. The impairment charges were recognized in asset impairments on our consolidated statements of income, primarily within our management and franchising segment. The judgments and assumptions used in determining the impairment charges are classified as Level Three in the fair value hierarchy.