What were the contingent rentals for Caption By Hyatt in 2022?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ts of income during the year ended December 31, 2022. The operating results and financial position of this hotel prior to the sale remain within our owned and leased segment.
8. LEASES
Lessee
A summary of operating lease expenses, net of insignificant sublease income, was as follows:
| | Year Ended December 31,
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 contingent rentals for the year ended December 31, 2022, were $111.
Contingent rentals are lease payments that fluctuate based on factors such as revenue or sales performance. For a Caption By Hyatt franchisee, this means that the amount of rent paid could increase or decrease depending on the hotel's financial performance. This can be beneficial in slower periods, as the rent expense would be lower, but it also means higher rent during peak times.
Understanding the basis for these contingent rentals is crucial. Prospective franchisees should inquire about the specific metrics that trigger these variable payments and how they are calculated. This information will help in forecasting expenses and assessing the potential profitability of a Caption By Hyatt franchise.