What was the depreciation expense for Caption By Hyatt for the year ended December 31, 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
esidential Management business recognized in other direct costs. Owned and leased includes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
| Year Ended December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||||
| Segment Adjusted EBITDA | $ | 1,255 | $ | 1,231 $ | 1,105 | |||
| Unallocated overhead expenses | (160) | (177) | (170) | |||||
| Eliminations | 1 | 1 | 1 | |||||
| Contra revenue | (69) | (47) | (31) | |||||
| Revenues for reimbursed costs | 3,352 | 3,058 | 2,620 | |||||
| Stock-based compensation expense (Note 17) (1) | (62) | (75) | (60) | |||||
| Transaction and integration costs | (42) | (42) | (35) | |||||
| Depreciation and amortization | (333) | (397) | (426) | |||||
| Reimbursed costs | (3,457) | (3,144) | (2,632) | |||||
| Equity earnings (losses) from unconsolidated hospitality ventures | 31 | (1) | 5 | |||||
| Interest expense | (180) | (145) | (150) | |||||
| Gains (losses) on sales of real |
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 depreciation and amortization expense for the year ended December 31, 2024, was $333 million. This figure reflects the accounting expense recognized for the reduction in value of tangible and intangible assets over that year. For prospective franchisees, understanding depreciation and amortization is crucial as it impacts the profitability calculations and overall financial health of Caption By Hyatt.
Depreciation and amortization are non-cash expenses, meaning they don't represent actual cash outflows during the period. Instead, they reflect the allocation of the cost of assets over their useful lives. A high depreciation expense can reduce the company's reported income, which in turn affects various financial ratios and metrics that investors and franchisees might consider. However, it's important to note that this expense also provides a tax benefit, as it lowers the taxable income of Caption By Hyatt.
Franchisees should be aware that while this figure provides insight into the overall depreciation expense for Caption By Hyatt, it does not detail the depreciation related specifically to franchised locations. To gain a clearer picture of the expenses they might incur, prospective franchisees should inquire about typical depreciation schedules for assets they will own or lease as part of their franchise agreement. Understanding these costs will allow for more accurate financial forecasting and business planning.