What was the interest expense for Baymont Inn Suites in 2023?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ent, net for more details.
Deferred Debt Issuance Costs
The Company classifies deferred debt issuance costs related to its revolving credit facility within other non-current assets on the Consolidated Balance Sheets. Such deferred debt issuance costs were $2 million and $3 million as of December 31, 2024 and 2023, respectively.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the company incurred interest expense of $108 million in 2023. Additionally, cash paid related to this interest was $103 million for the same year. The interest income was $6 million in 2023.
For a prospective franchisee, understanding the franchisor's interest expenses can provide insight into the company's financial leverage and debt management strategies. A high interest expense might indicate significant borrowing, which could impact the franchisor's ability to invest in growth or support its franchisees. Conversely, effective management of interest expenses can free up capital for franchisee support and system improvements.
It's also important to note the difference between the interest expense and the cash paid related to interest, as this can reflect the timing of payments and any accrued interest. The interest income can offset the total interest expense, providing a more accurate view of the net interest cost. Reviewing these figures in relation to Baymont Inn Suites's overall revenues and profitability can offer a more comprehensive understanding of the company's financial health and stability.