What costs does Bw Premier Collection capitalize and amortize related to contracts?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
ed to initial affiliation fees and the BWR program.
Certain costs to obtain contracts with Members, soft brand licensees, SureStay franchisees, and WorldHotels licensees are capitalized and amortized on a straight-line basis over the hotelier's expected life as a branded hotel or over the initial contract term. The costs of obtaining a contract with a Member, soft brand licensee, SureStay franchisee, and WorldHotels licensee are recorded in prepaid expenses and other current assets, and other assets, net in the Consolidated Statements of Financial Position. The related amortization is recorded in compensation, taxes and benefits in the Consolidated Statements of Revenues and Expenses. The Company had capitalized costs to obtain contracts with customers of $13.2 million and $12.9 million at November 30, 2024
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, certain costs associated with obtaining contracts are capitalized and amortized. These contracts are with Members, soft brand licensees, SureStay franchisees, and WorldHotels licensees. The amortization occurs on a straight-line basis, either over the expected life of the hotelier as a branded hotel or over the initial term of the contract.
The costs of obtaining these contracts are initially recorded as prepaid expenses and other current assets, as well as other assets, net in the Consolidated Statements of Financial Position. The related amortization is then recorded in compensation, taxes, and benefits within the Consolidated Statements of Revenues and Expenses.
As of November 30, 2024, Bw Premier Collection had capitalized costs to obtain contracts with customers totaling $13.2 million, and $12.9 million as of November 30, 2023. This indicates the scale of investment Bw Premier Collection makes in securing and maintaining its relationships with various hotel properties under its brand umbrella.