What was the net value of Best Western's computer software in 2023, in thousands of dollars?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2024 | 2023 | |
|---|---|---|---|
| Property and equipment, at cost: | |||
| Furniture and equipment | $ 27,553 | $ 27,359 | |
| Buildings | 20,030 | 19,815 | |
| Land | 2,335 | 2,335 | |
| Leasehold improvements | 2,282 | 2,160 | |
| Land improvements | 1,234 | 1,234 | |
| Work in process | 135 | 56 | |
| Property and equipment | 53,569 | 52,959 | |
| Less accumulated depreciation | (44,115) | (43,795) | |
| Property and equipment, net | 9,454 | 9,164 | |
| Computer software, at cost: | |||
| Developed | 113,827 | 96,145 | |
| Purchased | 6,707 | 8,158 | |
| Work in process | 2,178 | 2,844 | |
| Computer software | 122,712 | 107,147 | |
| Less accumulated amortization | (93,579) | (81,835) | |
| Computer software, net | 29,133 | 25,312 | |
| Property, equipment and computer software, net | $ 38,587 | $ 34,476 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the net value of their computer software in 2023 was $25,312,000. This figure represents the cost of both developed and purchased software, along with work in progress, less accumulated amortization.
For a prospective franchisee, this indicates the scale of investment Best Western has made in its technological infrastructure. This investment likely supports various aspects of the business, such as reservations, property management, and customer relationship management. The fact that Best Western itemizes 'Developed' and 'Purchased' software may reflect their strategy of building custom solutions alongside integrating off-the-shelf products.
The difference between the gross 'Computer software' value of $107,147,000 and the net value of $25,312,000 highlights the impact of amortization, which is the systematic reduction of the intangible asset's value over its useful life. This suggests that a significant portion of Best Western's software assets have been in use for some time. The FDD also lists figures for 2024, showing how these values changed year-over-year, which can provide insight into Best Western's ongoing technology investments.