For which hotels is Caption By Hyatt considered the agent for redemption of promotional awards?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, Hyatt acts as the agent for the redemption of promotional awards at managed and franchised hotels. This means that while Hyatt is responsible for arranging the redemption of these awards, they do not directly fulfill the award night obligation at these locations. Instead, Hyatt recognizes previously deferred revenue in revenues for reimbursed costs on its consolidated statements of income, net of redemption expense paid to managed and franchised hotels.

For owned and leased hotels, Hyatt acts as the principal in these transactions, directly fulfilling the award night obligations. A portion of revenues from these hotels is deferred when loyalty program members earn points, and this revenue is recognized upon redemption at the owned or leased locations.

This distinction is important for prospective Caption By Hyatt franchisees as it clarifies the financial responsibilities and revenue recognition processes related to the World of Hyatt loyalty program. Franchisees need to understand how award redemptions impact their revenue and the associated costs, as Hyatt reimburses the franchised hotels for these redemptions.