What was the depreciation and amortization amount for Best Western in 2024 (in thousands)?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2024 | 2023 | |
|---|---|---|---|
| Depreciation of property and equipment | $ 1,382 | $ 1,805 | |
| Amortization of computer software | 15,665 | 12,684 | |
| Depreciation and amortization of property, equipment and computer software | 17,047 | 14,489 | |
| Depreciation of hotel investments (Note 7) | 2,531 | 2,477 | |
| Amortization of goodwill and other intangible assets (Note 15) | 1,196 | 1,196 | |
| Depreciation and amortization | $ 20,774 | $ 18,162 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the total depreciation and amortization expenses for 2024 amounted to $20,774,000. This figure encompasses various components, including the depreciation of property and equipment, amortization of computer software, depreciation of hotel investments, and amortization of goodwill and other intangible assets.
Breaking down the components, depreciation of property and equipment accounted for $1,382,000, while amortization of computer software represented a more significant portion at $15,665,000. Depreciation of hotel investments contributed $2,531,000, and amortization of goodwill and other intangible assets amounted to $1,196,000. These figures provide a detailed view of how Best Western allocates and accounts for the decline in value of its tangible and intangible assets.
For a prospective Best Western franchisee, understanding these depreciation and amortization expenses is crucial as it reflects the company's investment in its infrastructure, technology, and brand. Monitoring these expenses over time can provide insights into Best Western's capital expenditure strategies and how it manages its assets to maintain competitiveness and operational efficiency. Additionally, it's important to note that these expenses are non-cash, meaning they don't represent actual cash outflows but rather the allocation of the cost of assets over their useful lives.