What is Bw Premier Collection's policy on short-term leases?

According to Bw Premier Collection's 2025 Franchise Disclosure Document, the company has elected to apply a short-term lease recognition exemption for all leases. This means that Bw Premier Collection does not record leases with an initial term of 12 months or less on its consolidated balance sheet. Instead, the lease payments for these short-term leases are recognized as lease expenses on a straight-line basis over the lease term.

This accounting treatment simplifies the financial reporting for these short-term leases, as Bw Premier Collection does not need to recognize a right-of-use (ROU) asset or a lease liability on its balance sheet for leases with a term of 12 months or less. This can reduce the administrative burden and complexity associated with lease accounting.

For a potential franchisee, this policy indicates that Bw Premier Collection focuses on leases with terms longer than 12 months for its significant assets, while short-term leases are treated as operating expenses. This approach is not unusual, as many companies use the short-term lease exemption to simplify their accounting processes. However, this excerpt refers to the company's leasing practices and does not specify whether franchisees are permitted to enter into short-term leases for their Bw Premier Collection hotels.