How was the WorldHotels acquisition accounted for by Bw Premier Collection's parent company?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
On February 15, 2019, the Company entered into and closed a definitive Share Sale and Purchase Agreement with WorldHotels Holdings, LLC ("WH Holdings") and ALHI Holdings, LLC ("ALHI") to purchase 100% of the outstanding shares of BV Acquisitions X GmbH from WH Holdings (thereby also acquiring BV Acquisitions' approximately 98% ownership of the outstanding shares of WorldHotels Aktiengesellschaft ("WH
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 FDD, the parent company of Bw Premier Collection, Best Western International, Inc., acquired WorldHotels Aktiengesellschaft in two stages. On February 15, 2019, Best Western finalized an agreement to purchase 100% of the outstanding shares of BV Acquisitions X GmbH from WorldHotels Holdings, LLC, thereby acquiring approximately 98% ownership of WorldHotels Aktiengesellschaft. Best Western also assumed certain rights and obligations of ALHI Holdings, LLC.
In 2020, Best Western acquired the remaining approximately 2% ownership of WorldHotels, thus achieving 100% ownership. The FDD specifies that the WorldHotels Acquisition was accounted for as a business combination, following the guidelines outlined in ASC Topic 805, Business Combinations.
For a prospective Bw Premier Collection franchisee, this accounting treatment indicates that Best Western followed standard accounting practices for the acquisition. This may provide some assurance of the financial transparency and due diligence involved in the acquisition of WorldHotels. It also means that the assets and liabilities of WorldHotels were consolidated into Best Western's financial statements, impacting the overall financial position of the parent company.