What was the change in accrued capital expenditures for Caption By Hyatt in 2023?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) Includes a $8 million and $3 million liability recorded in accrued expenses and other current liabilities on our consolidated balance sheets at December 31, 2024 and December 31, 2023, respectively, related to the 1% U.S. federal excise tax on certain share repurchases enacted by the Inflation Reduction Act of 2022.
(3) Includes a $1 million liability recorded in accrued expenses and other current liabilities on our consolidated balance sheets to be paid upon vesting of certain stock-based compensation awards.
Insurance—We obtain insurance for potential losses from general liability, property, automobile, aviation, environmental, workers' compensation, employment practices, crime, cyber, and other miscellaneous risks. A portion of these risks is retained through a U.S.-based and licensed captive insurance company that is a wholly owned subsidiary of Hyatt and generally insures our deductibles and retentions. Reserve requirements are established based on actuarial projections of ultimate losses. Reserves for losses in our captive insurance company to be paid within 12 months are $46 million and $41 million at December 31, 2024 and December 31, 2023, respectively, and are recorded in accrued expenses and other current liabilities on our consolidated balance sheets. Reserves for losses in our captive insurance company to be paid in future periods are $83 million and $73 million at December 31, 2024 and December 31, 2023, respectively, and are recorded in other long-term liabilities on our consolidated balance sheets (see Note 13).
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, information regarding accrued capital expenditures specific to Caption By Hyatt is not available. However, the FDD does include data on Hyatt Hotels Corporation's consolidated financial statements, which may provide some insight into the company's overall financial health. Specifically, the document mentions items such as accrued expenses and other current liabilities, which could include elements related to capital expenditures.
While the FDD does not break down these figures by brand, it does provide a broader view of the company's financial obligations. For instance, the document mentions liabilities recorded in accrued expenses related to the U.S. federal excise tax on share repurchases. Additionally, there are details on reserves for losses in the captive insurance company, which are recorded in accrued expenses and other long-term liabilities.
For a prospective Caption By Hyatt franchisee, it would be prudent to inquire directly with the franchisor about any specific capital expenditure requirements or expectations. Understanding how the brand's capital expenditures are managed and budgeted can be crucial for financial planning and assessing the overall investment needed to start and operate a franchise.