Where were the two hotels located for which Americas Best Value Inn was the lessee on ground leases?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease information (as lessee): During part of 2023 and as of December 31, 2022, we leased office space in Denver, CO under an operating lease that expired in November 2023. Additionally, we were the lessee on ground leases for two hotels. subject to operating leases with unrelated third parties in Seattle, WA and Kalispell, MT, respectively, that expired in February 2024 and expires in 2028, respectively. These leases generally contain fixed contractual rent changes and certain of the leases provide for operating expense reimbursements. We recognize rental expense on leases that contain fixed contractual rent changes on a straight line basis over the terms of the respective leases. We recorded rental expenses, excluding amounts paid for real estate taxes or other building operations, as follows (in thousands):
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 70–71)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, during part of 2023 and as of December 31, 2022, Americas Best Value Inn was the lessee on ground leases for two hotels. These hotels were subject to operating leases with unrelated third parties. One hotel was located in Seattle, WA, and the other was in Kalispell, MT.
The lease for the Seattle, WA hotel expired in February 2024. The lease for the Kalispell, MT hotel expires in 2028. These leases generally contain fixed contractual rent changes. Some of the leases provide for operating expense reimbursements.
Americas Best Value Inn recognizes rental expense on leases that contain fixed contractual rent changes on a straight-line basis over the terms of the respective leases. The company recorded rental expenses, excluding amounts paid for real estate taxes or other building operations. This information is relevant to potential franchisees as it provides insight into the company's leasing practices and financial obligations related to property leases.