What was the total amount of proceeds from borrowings for Baymont Inn Suites in 2024?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
In August 2020, the Company issued $500 million of senior unsecured notes, which mature in 2028 and bear interest at a rate of4.375% per year, for net proceeds of $492 million. Interest is payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2021.
Prior to the fourth quarter of 2024, the Company's finance leases consisted of the lease of its corporate headquarters. In connection with the Company's separation from former Parent, it was assigned the lease for its corporate headquarters located in Parsippany, New Jersey from its former Parent, which resulted in the Company recording a finance lease obligation and asset. In the fourth quarter of 2024, the Company purchased the property for its corporate headquarters. See Note 6, Property and Equipment, net for more details.
In the fourth quarter of 2024, the Company purchased its corporate headquarters which was previously accounted for as a finance lease. The Company paid $48 million, of which $33 million was recorded to finance lease liability within long-term debt on the Consolidated Balance Sheet and the remaining $15 million was recorded to land and building within property and equipment, net on its Consolidated Balance Sheet. Additionally, the Company recorded an $18 million non-cash reclass representing the net book value of the finance lease asset, to land and building which is reported within property and equipment, net on its Consolidated Balance Sheet. In connection with this transaction, the Company reported $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.
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, details regarding the total proceeds from borrowings specifically for Baymont Inn Suites hotels are not disclosed. However, the document does provide some information on the company's financial activities. For example, in August 2020, the company (likely referring to Wyndham Hotels & Resorts, Inc., the guarantor of Baymont Franchise Systems, Inc.) issued $500 million in senior unsecured notes, resulting in net proceeds of $492 million. Additionally, in the fourth quarter of 2024, the company purchased its corporate headquarters for $48 million, with $33 million recorded as a finance lease liability.
While these figures provide insight into the broader financial activities of Wyndham Hotels & Resorts, they do not isolate the borrowing activities or proceeds specifically attributable to Baymont Inn Suites franchises. The FDD mentions a new term loan B subject to quarterly amortization starting in the third quarter of 2024, but it does not specify the initial principal amount or total proceeds from this loan.
For a prospective Baymont Inn Suites franchisee, this lack of specific information highlights the importance of conducting thorough due diligence. It would be prudent to ask the franchisor, Baymont Franchise Systems, Inc., directly about any borrowing activities or financial arrangements that specifically support or impact the Baymont Inn Suites franchise system. Understanding the financial health and debt obligations of the franchisor can provide valuable context for assessing the overall stability and potential risks associated with investing in a Baymont Inn Suites franchise.