What was the amount of depreciation and amortization for Best Western in 2023 (in thousands)?

According to Best Western's 2025 Franchise Disclosure Document, the total depreciation and amortization expenses for 2023 amounted to $18,162,000. This figure encompasses several components, including the depreciation of property and equipment, amortization of computer software, depreciation of hotel investments, and amortization of goodwill and other intangible assets. Understanding these individual components can provide a more detailed view of Best Western's financial management and asset utilization. These expenses reflect the reduction in value of Best Western's assets over time, which is a normal part of business operations.

Breaking down the $18,162,000 total, depreciation of property and equipment accounted for $1,805,000, while amortization of computer software was $12,684,000. Depreciation of hotel investments totaled $2,477,000, and amortization of goodwill and other intangible assets was $1,196,000. These figures are important for prospective franchisees to understand as they reflect the ongoing expenses related to the use and eventual replacement of assets.

These depreciation and amortization expenses are significant because they impact Best Western's overall profitability and are considered non-cash expenses, meaning they don't involve an actual outflow of cash. Instead, they represent the accounting recognition of asset value decline. For potential franchisees, understanding these expenses is crucial for assessing the financial health and stability of Best Western. It's also worth noting that the company has specific policies for amortizing goodwill and definite-life intangible assets, which are amortized over 10 years and 7.5 to 10 years, respectively, depending on the asset type.