What was the amount of deferred revenue related to the loyalty program for Caption By Hyatt in 2023?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
aggregated Revenues**
See Note 19 for our revenues disaggregated by the nature of the product or service.
Contract Balances
Contract assets were insignificant at both December 31, 2024 and December 31, 2023.
Contract liabilities were comprised of the following:
| Deferred revenue related to the loyalty program | $ | 1,333 | $ 1,130 |
|---|---|---|---|
| Deferred revenue related to distribution and destination management services | 705 | 719 | |
| Deferred revenue related to insurance programs | 112 | 75 | |
| Deferred revenue related to co-branded credit card programs | 66 |
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 deferred revenue related to the loyalty program was $1,130 million as of December 31, 2023. This deferred revenue represents the amount of revenue that Caption By Hyatt has received but not yet recognized as earned because the services related to the loyalty program (such as award redemptions) have not yet been fully provided.
This deferred revenue arises from the World of Hyatt loyalty program, where members earn points based on their spending at Hyatt properties and through strategic alliances. These points can be redeemed for stays and other services. Caption By Hyatt defers the revenue until the points are redeemed, at which point they recognize the revenue.
For a prospective Caption By Hyatt franchisee, understanding the loyalty program's financial aspects is crucial. The deferred revenue balance indicates the scale of future obligations Caption By Hyatt has to its loyalty members. The costs of administering the loyalty program are charged to participating properties through an assessment fee based on members' qualified expenditures. This means franchisees contribute to the program's costs, and the deferred revenue is a liability that will be offset as services are rendered to loyalty members at their properties. Franchisees should monitor how these assessments and redemption patterns affect their financial performance.