What was the amount of payments for key money assets for Caption By Hyatt in 2023?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
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CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2024, December 31, 2023, and December 31, 2022 (In millions of dollars)
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
| Net income | $ 1,296 | $ | 220 | $ 455 |
| Adjustments to reconcile net income to net cash provided by operating activ |
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 payments for key money assets in 2023 were $132 million. Key money assets refer to consideration provided to customers, which are recorded as other assets and amortized to contra revenue over the expected customer life, typically the initial term of the management and hotel services agreement or franchise agreement.
For a prospective Caption By Hyatt franchisee, this indicates the scale of financial transactions related to securing and maintaining franchise agreements. These payments can significantly impact the franchisee's financial planning and cash flow management. Understanding the nature and amortization schedule of these key money assets is crucial for assessing the long-term financial implications of the franchise agreement.
The figures provided in the cash flow statement offer transparency into how Caption By Hyatt manages its financial resources and obligations. Franchisees should analyze these figures in conjunction with other financial disclosures to gain a comprehensive understanding of the franchisor's financial health and stability. This information is vital for making informed decisions about investing in a Caption By Hyatt franchise.