What was the amount of write-offs recorded by Caption By Hyatt in 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
RECEIVABLES**
Receivables
At December 31, 2024 and December 31, 2023, we had $1,121 million and $883 million, respectively, of net receivables recorded on our consolidated balance sheets.
The following table summarizes the activity in our receivables allowance for credit losses:
| 2024 | 2023 | |
|---|---|---|
| Allowance at January 1 | $ 50 | $ 63 |
| Provisions (reversals), net | 19 | (5) |
| Write-offs | (7) | (8) |
| Allowance at December 31 | $ 62 | $ 50 |
Financing Receivables
| | December 31, 2024 | December 31, 2023 |
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 company recorded write-offs related to allowance for credit losses on unsecured financing receivables and other assets. For unsecured financing receivables, the write-offs amounted to $7 million during the year 2024. Additionally, Caption By Hyatt had write-offs of $6 million related to other assets during the same period.
These figures reflect the actual losses that Caption By Hyatt has recognized from uncollectible amounts. For a prospective franchisee, understanding these write-off amounts can provide insight into the risk management and financial health of the company. It's important to note that these write-offs are specific to the parent company's financing receivables and assets, and may not directly correlate to the performance or financial risks of individual franchised locations.
It is also important to consider the context of these write-offs within the broader financial statements. Reviewing the provisions (reversals) net amounts, which were $19 million for unsecured financing receivables and $2 million for other assets in 2024, can provide a more complete picture of how Caption By Hyatt manages and adjusts its allowances for potential credit losses. This information, combined with an understanding of the company's lending and financing practices, can help potential franchisees assess the financial stability and risk management strategies of the franchisor.