What brand does the joint venture, which is a VIE, own in relation to Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
During the year ended December 31, 2024, we entered into a shareholders' agreement with an unrelated third-party and acquired 50% of the outstanding shares of Management Hotelero Piñero, S.L. The joint venture, which is a VIE, owns the Bahia Principe brand and manages Bahia Principe Hotels & Resorts-branded properties (see Note 7). Through our variable interest, we have the power to direct the activities that most significantly affect the economic performance of the VIE and have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE and therefore, we are the primary beneficiary. We consolidate the operating results and financial position of this VIE in our consolidated financial statements within our management and franchising segment.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, Hyatt entered into a shareholders' agreement and acquired 50% of the shares of Management Hotelero Piñero, S.L. This joint venture is classified as a variable interest entity (VIE).
The document specifies that the joint venture owns the Bahia Principe brand. Additionally, it manages properties branded as Bahia Principe Hotels & Resorts.
Because Hyatt consolidates the VIE's operating results and financial position within its own financial statements, prospective Caption By Hyatt franchisees should be aware that the financial performance of the Bahia Principe brand could potentially impact Hyatt's overall financial reporting. The FDD indicates that Hyatt has the power to direct the activities that most significantly affect the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.