What was the amount of principal payments on long-term debt for Baymont Inn Suites in 2024?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
le, the account is written-off to the allowance for doubtful accounts. The Company also considers whether the historical economic conditions are comparable to current economic conditions. If current or expected future conditions differ from the conditions in effect when the historical experience was generated, the Company would adjust the allowance for doubtful accounts to reflect the expected effects of the current environment on the collectability of the Company's trade receivables which may be material.
The following table sets forth the activity in the Company's allowance for doubtful accounts on trade accounts receivables for the years ended:
| December 31, 2024 | December 31, 2023 | December 31, 2022 | |
|---|---|---|---|
| Beginning balance | $ 60 $ | 64 $ | 81 |
| Provision for/(recovery of) doubtful acc |
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, in the fourth quarter of 2024, the company made principal payments of $33 million on finance lease obligations. This payment was related to the purchase of its corporate headquarters, which was previously accounted for as a finance lease.
Specifically, Baymont Inn Suites paid $48 million to purchase its corporate headquarters. Of this amount, $33 million was recorded as a finance lease liability within long-term debt, and the remaining $15 million was recorded as land and building within property and equipment. Additionally, an $18 million non-cash reclassification representing the net book value of the finance lease asset was recorded to land and building.
This transaction resulted in Baymont Inn Suites reporting $33 million within financing activities as principal payments on finance lease obligations and $15 million within investing activities as property and equipment on its Consolidated Statement of Cash Flows.