What was the allowance for credit losses for Caption By Hyatt's HTM debt securities at January 1?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Other Investments
HTM Debt Securities—We hold investments in third-party entities associated with certain of our hotels. The investments are redeemable on various dates through 2062 and recorded as HTM debt securities within other assets on our consolidated balance sheets:
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the allowance for credit losses for HTM (held-to-maturity) debt securities can be found in the provided table summarizing HTM debt securities. The table shows the HTM debt securities and the allowance for credit losses as of two dates.
The table indicates that the allowance for credit losses was $(13) as of the earlier date, which is December 31, 2023. The table also shows that the allowance for credit losses was $(9) as of the later date, which is December 31, 2024.
Because the table provides data as of December 31, 2023 and December 31, 2024, but not January 1 of either year, the FDD does not explicitly state the allowance for credit losses for HTM debt securities on January 1. A prospective franchisee should ask Caption By Hyatt for clarification on the allowance for credit losses on January 1 to better understand the company's financial position at the start of the year.