What was the range of expected dividend yield for the Atwell Suites LTIP in 2022?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| APP | LTIP | |
|---|---|---|
| Monte Carlo Simulation, Binomial | ||
| Binomial | and Finnerty | |
| 2024 | ||
| valuation model | ||
| Weighted-average share price | 8,364.5 | 7,940.0 |
| (British pence) | ||
| Expected dividend yield | - | 2.12% |
| Risk-free interest rate | - | 4.20% |
| Volatility(i) | - | 26.0% |
| Term (years) | 2.5 | 3.0 |
| 2023 | ||
| valuation model | ||
| Weighted-average share price | 5,520.4 | 5,318.0 |
| (British pence) | ||
| Expected dividend yield | - | 2.5% to 2.8% |
| Risk-free interest rate | - | 3.85% |
| Volatility(i) | - | 29% to 30% |
| Term (years) | 2.6 | 2.8 |
| 2022 | ||
| valuation model | ||
| Weighted-average share price | 4,926.6 | 4,875.0 |
| (British pence) | ||
| Expected dividend yield | - | 2.3% to 2.7% |
| Risk-free interest rate | - | 1.3% |
| Volatility(i) | - | 35% to 45% |
| Term (years) | 1.5 | 3.0 |
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the expected dividend yield for the LTIP (Long Term Incentive Plan) in 2022 was projected to range from 2.3% to 2.7%. This projection was based on a valuation model that considered a weighted-average share price of 4,875.0 British pence.
In addition to the expected dividend yield, the valuation model also factored in a risk-free interest rate of 1.3% and volatility ranging from 35% to 45%. The term for this particular valuation was set at 3.0 years.
These figures provide a snapshot of the financial expectations and conditions surrounding the Atwell Suites LTIP during 2022, as estimated by the company's valuation model. Prospective franchisees should understand that these are projections and not guarantees of actual performance.