What was the total amount borrowed by Bw Premier Collection as of November 30, 2024?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
the Deed of Trust and is guaranteed by the Company.
The Company had borrowed $15.3 million and $15.2 million as of November 30, 2024 and 2023, respectively. The current portion of $0.4 million and $0.4 million is included in accounts payable and accrued liabilities and $14.5 million and $14.8 million is included in non-current construction loans in the Consolidated Statements of Financial Position for the years ended November 30, 2024 and 2023, respectively.
Construction loan interest of $0.5 million and $0.5 million was incurred for the years ended November 30, 2024 and 2023, of which $0.0 million and $0.0 million was capitalized and included in hotel investments, net in the Consolidated Statements of Financial Position for the years ended November 30, 2024 and 2023, respectively. $0.5 million and $0.5 million of construction loan interest was expensed in interest and dividend income, and interest and other expense, net in the Consolidated Statements of Revenues and Expenses for the years ended November 30, 2024 and 2023, respectively.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection Franchise Disclosure Document, the company had borrowed $15.3 million as of November 30, 2024. This amount is related to the Tempe Loan. The interest rate on this loan is fixed at an annual rate of 3.50% and is computed and accrued on an ACT/360 basis. The loan is secured by a Deed of Trust and guaranteed by the company. Of the $15.3 million, $0.4 million is classified as a current portion and is included in accounts payable and accrued liabilities, while $14.5 million is included in non-current construction loans in the Consolidated Statements of Financial Position.
In addition to the Tempe Loan, Bw Premier Collection also had a Denver Loan. As of November 30, 2024, the company had borrowed $24.4 million under the Denver Loan. The interest rate on the Denver Loan is a fixed annual rate of 3.21%, computed and accrued on an ACT/360 basis. Similar to the Tempe Loan, the Denver Loan is secured by a Deed of Trust and guaranteed by the company. Of the $24.4 million, $0.7 million is classified as a current portion and is included in accounts payable and accrued liabilities, with the remaining $22.6 million classified as non-current construction loans.
Furthermore, Bw Premier Collection had a Uncommitted Revolving Line of Credit with the Royal Bank of Canada, allowing for credit advances up to $160 million, secured by the company's marketable securities. However, as of November 30, 2024, there were no outstanding borrowings against this line of credit. In January 2024, the company also entered into an agreement for a Revolving Credit Facility of $10 million to assist in the development of @Home by Best Western hotels, but there were no draws on this facility as of November 30, 2024.
In summary, as of November 30, 2024, Bw Premier Collection had $15.3 million borrowed under the Tempe Loan and $24.4 million borrowed under the Denver Loan. This means the total amount borrowed by Bw Premier Collection as of November 30, 2024, was $39.7 million. A prospective franchisee should consider these debts when evaluating the financial stability of Bw Premier Collection.