What was the total net revenue for Baymont Inn Suites in 2023?
Baymont_Inn_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Available capacity | $ | 662 | Deferred initial franchise fees represent payments received in advance from prospective franchisees upon the signing of a franchise agreement and are generally recognized to revenue within 13 years. Deferred loyalty revenues represent the portion of loyalty program fees charged to franchisees, net of redemption costs, that have been deferred and will be recognized over time based upon loyalty point redemption patterns. Deferred co-branded credit card program revenue represents payments received in advance from the Company's co-branded credit card partners, primarily for card member activity, which is typically recognized within one year.
Performance Obligations
A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. The consideration received from a customer is allocated to each distinct performance obligation and recognized as revenue when, or as, each performance obligation is satisfied. The following table summarizes the Company's remaining performance obligations for the years set forth below:
Source: Item 23 — RECEIPTS (FDD pages 97–443)
What This Means (2025 FDD)
According to Baymont Inn Suites's 2025 Franchise Disclosure Document, the total net revenue for Hotel Franchising in 2023 was $1,397. This figure encompasses various revenue streams, including royalties and franchise fees, marketing and reservation fees, loyalty revenue, management and other fees, license and other fees, and cost reimbursements. Additionally, other revenues are included in this total.
For a prospective franchisee, understanding the composition of this revenue is crucial. Royalties and franchise fees, which amounted to $532 in 2023, are a primary source of income for Baymont Inn Suites, derived from a percentage of gross room revenues from franchised hotels. Marketing and reservation fees, totaling $487 in 2023, are collected to cover expenses related to operating a centralized reservation system, e-commerce channels, and advertising efforts. Loyalty revenue, at $91 in 2023, reflects income generated from the Wyndham Rewards program.
Management and other fees, license and other fees, and cost reimbursements contributed $14, $112, and $13 respectively in 2023. These figures represent additional revenue streams for Baymont Inn Suites, derived from various services and agreements with franchisees. Other revenues, amounting to $148 in 2023, are primarily related to revenues from its co-branded credit card program and property management systems. The total net revenues represent the overall financial health of the Baymont Inn Suites franchising system.
It is important to note that the Hotel Franchising segment for 2023 includes the former Hotel Management segment, which primarily consists of the company's remaining international full-service managed business. This consolidation impacts the overall revenue figures and should be considered when evaluating the financial performance of Baymont Inn Suites.