What was the reported depreciation of hotel investments for Bw Premier Collection in 2023 (in thousands)?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of November 30, | |||||
|---|---|---|---|---|---|
| (in thousands) | 2023 | 2022 | |||
| Hotel investments, at cost: | $ | $ | |||
| Buildings | 40,263 | 39,328 | |||
| Land | 6,985 | 6,985 | |||
| Furniture and equipment | 6,785 | 6,431 | |||
| Land improvements | 1,742 | 1,362 | |||
| Work in process | 104 | 674 | |||
| Hotel investments | 55,879 | 54,780 | |||
| Less accumulated depreciation | (3,854) | (1,377) | |||
| Hotel investments, net | $ 52,025 | $ 53,403 |
Depreciation expense on hotel investments was approximately $2.5 million and $1.4 million for the y
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the depreciation expense on hotel investments was approximately $2.5 million for the year ended November 30, 2023. This figure reflects the accounting recognition of the reduction in value of Bw Premier Collection's hotel assets over that period. Depreciation is a non-cash expense that reflects the wear and tear, obsolescence, or decline in the useful life of the hotels.
For a prospective franchisee, understanding depreciation is crucial as it impacts the overall financial performance of Bw Premier Collection. While depreciation itself doesn't involve a cash outflow, it reduces the reported profit, which can affect various financial metrics and potentially influence investment decisions. This figure is important for assessing the profitability and asset management strategies of Bw Premier Collection.
It's also worth noting that the FDD mentions that the hotel investments, net, consisted of land acquired in December 2019 and March 2020 to develop two hotels, located in Tempe, Arizona, and Denver, Colorado, respectively. The Vīb in Tempe, Arizona opened in March 2022 and the Vīb in Denver, Colorado opened in June 2022, after which depreciation of these assets commenced. This context provides insight into the specific assets contributing to the reported depreciation expense.