How much did Best Western spend on amortization of computer software in 2023?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| Depreciation of property and equipment | $ 1,805 | $ 2,111 |
| Amortization of computer software | 12,684 | 10,064 |
| Depreciation and amortization of property, equipment and computer software | 14,489 | 12,175 |
| Depreciation of hotel investments (Note 7) | 2,477 | 1,377 |
| Amortization of goodwill and other intangible assets (Note 15) | 1,196 | 1,196 |
| Depreciation and amortization | $ 18,162 | $ 14,748 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the company's amortization of computer software expenses totaled $12,684,000 in 2023. This figure is part of the overall depreciation and amortization expenses, which also include property and equipment. The FDD provides a breakdown of these expenses to offer insight into the allocation of resources.
For a prospective Best Western franchisee, understanding these figures is crucial for assessing the financial health and operational investments of the company. Amortization of computer software reflects Best Western's ongoing investment in technology, which is essential for maintaining a competitive edge in the hospitality industry. This investment directly impacts franchisees, as they rely on these systems for reservations, property management, and guest services.
The substantial investment in computer software also suggests that Best Western is committed to providing its franchisees with up-to-date tools and resources. However, franchisees should also consider the potential costs associated with software upgrades and maintenance, as outlined in Item 23 of the FDD. It is important to evaluate whether the benefits of these technological investments outweigh the associated expenses and how these costs might affect their individual franchise's profitability.
Reviewing the trends in amortization expenses over several years, as presented in the FDD, can further inform a franchisee's decision-making process. Comparing these figures with industry benchmarks and the performance of other hotel franchises can provide a more comprehensive understanding of Best Western's financial management and its commitment to technological advancement.