What is included in the Adjusted EBITDA for the Owned and Leased segment of Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
- Owned and leased—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations, and for purposes of segment Adjusted EBITDA, includes our pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany management fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs and are eliminated in consolidation.
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 Owned and Leased segment's Adjusted EBITDA includes earnings from owned and leased hotel properties, primarily in the United States but also in some international locations. It also incorporates Caption By Hyatt's pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA, based on the brand's ownership percentage in each venture.
Specifically, the Adjusted EBITDA includes intercompany management fee expenses paid to the management and franchising segment, which are then eliminated during consolidation. Additionally, intersegment revenues related to promotional award redemptions earned by the owned and leased hotels from co-branded credit card programs are included but also eliminated in consolidation.
For a prospective Caption By Hyatt franchisee, understanding how Adjusted EBITDA is calculated for the Owned and Leased segment is crucial for assessing the financial performance and profitability of these properties. It provides insight into the revenue streams and expense management within this segment, as well as the impact of intercompany transactions and shared ventures on the overall financial picture.