What was the net income for Baymont Inn Suites operating activities in 2022?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalties and franchise fee revenues on the Consolidated Statements of Income include initial franchise fees of $22 million, $16 million and $15 million in 2024, 2023 and 2022, respectively.
Separation-related costs associated with the Company's spin-off from former parent were $1 million of income during 2024, which were primarily due to the reversal of a reserve related to the expiration of a tax matter. The Company recognized expenses of $1 million during both 2023 and 2022, which primarily consisted of legal and tax-related costs.
In March 2022, the Company completed the sale of its Wyndham Grand Bonnet Creek Resort for gross proceeds of $21 million ($118 million, net of transaction costs) and recognized a $35 million gain, net of transaction costs, for the year ended December 31, 2022.
Due to the adoption of the 2023 Accounting Update*,* the Company changed its primary measure of segment profit or loss from adjusted EBITDA to net income. The CODM evaluates the operating results of the Company on a consolidated basis based upon net revenues and net income, which is the measure of profit or loss that is most consistent with GAAP measurement principles and is used by th
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Baymont Inn Suites's parent company, Wyndham Hotels, evaluates the operating results on a consolidated basis. The document states that the primary measure of segment profit or loss changed from adjusted EBITDA to net income due to the adoption of the 2023 Accounting Update. The Chief Operating Decision Maker (CODM) assesses performance and allocates resources based on net revenues and net income.
For the year 2022, the FDD mentions several financial transactions that impact the consolidated statement of income. These include initial franchise fees of $15 million, separation-related expenses of $1 million, and a $35 million gain from the sale of the Wyndham Grand Bonnet Creek Resort, net of transaction costs. These figures are part of the overall consolidated financial results, which are used to evaluate the performance of Wyndham Hotels, including Baymont Inn Suites.
While the FDD provides details on various income and expense items, it does not explicitly state the net income specifically for Baymont Inn Suites operating activities in 2022. Instead, it focuses on the consolidated financial statements of Wyndham Hotels, which include Baymont Inn Suites as part of its hotel franchising segment. A prospective franchisee would need to request more specific financial details about Baymont Inn Suites's individual performance from the franchisor to fully understand its profitability.