What was the amount of Caption By Hyatt's long-term debt as of December 31, 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
| LIABILITIES AND EQUITY | ||
|---|---|---|
| CURRENT LIABILITIES: | ||
| Current maturities of long-term debt | $ 456 | $ 751 |
| Accounts payable | 475 | 493 |
| Accrued expenses and other current liabilities | 565 | 468 |
| Current contract liabilities | 1,553 | 1,598 |
| Accrued compensation and benefits | 192 | 210 |
| Current operating lease liabilities | 33 | 41 |
| Liabilities held for sale | — | 17 |
| Total current liabilities | 3,274 | 3,578 |
| Long-term debt | 3,326 | 2,305 |
| Long-term contract liabilities | 843 | 1,759 |
| Long-term operating lease liabilities | 245 | 273 |
| Other long-term liabilities | 1,810 | 1,351 |
| Total liabilities | 9,498 | 9,266 |
Source: Item 23 — Receipts (FDD pages 85–349)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the company's long-term debt as of December 31, 2024, was $3,326 million. This figure is a significant indicator of Caption By Hyatt's financial leverage and its reliance on long-term borrowing to finance its operations and growth.
For a prospective franchisee, understanding the franchisor's debt level is crucial. A high level of long-term debt could indicate financial instability or a heavy burden of interest payments, which might affect the franchisor's ability to support its franchisees. It could also signal that Caption By Hyatt is aggressively investing in expansion, which could be a positive sign if managed effectively.
However, it's also important to compare this figure to previous years and to the assets of the company. In this case, Caption By Hyatt's long-term debt was $2,305 million the previous year. This represents a notable increase in long-term debt from 2023 to 2024. Prospective franchisees should further investigate the reasons behind this increase and how it might impact the franchise system.
Franchisees should also consider Caption By Hyatt's strategies for managing this debt and ensuring it does not negatively impact the services and support provided to franchisees. Consulting with a financial advisor to analyze these figures in the context of the broader franchise opportunity is advisable.