To which two reporting units is goodwill allocated for Bw Premier Collection?

According to the 2025 FDD, goodwill for Bw Premier Collection is allocated to two specific reporting units: WorldHotels and AutoClerk. This allocation is part of the company's process for evaluating potential impairment of these assets. Goodwill represents the intangible assets acquired in a business combination, such as brand reputation or customer relationships, that are not separately identifiable.

The FDD indicates that Bw Premier Collection assesses the potential impairment of goodwill and other intangible assets annually. This involves evaluating whether the fair value of the reporting unit or intangible assets is less than their carrying amount. The company may choose to perform a qualitative assessment initially, and if necessary, follow up with a quantitative impairment test. These tests are crucial for ensuring that the value of these assets on the company's balance sheet accurately reflects their current market value.

For a prospective Bw Premier Collection franchisee, understanding how goodwill is managed and assessed is important because it reflects the financial health and stability of the brand. The fact that goodwill is specifically allocated to WorldHotels and AutoClerk suggests that these units are significant components of the overall business. Furthermore, the annual impairment assessments indicate a proactive approach to managing and valuing these intangible assets, which can provide reassurance about the brand's financial management practices.