Are intersegment revenues eliminated in consolidation for Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Principles of Consolidation—Our consolidated financial statements present the results of operations, financial position, and cash flows of Hyatt Hotels Corporation and its majority owned and controlled subsidiaries as well as entities consolidated under the variable interest entity ("VIE") model. All intercompany accounts and transactions have been 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 company eliminates all intercompany accounts and transactions during consolidation. This means that when Caption By Hyatt prepares its financial statements, any transactions or balances between its various subsidiaries or entities are removed to present a clear and accurate picture of the company's overall financial position.
For a prospective Caption By Hyatt franchisee, this consolidation policy is important because it ensures that the financial statements reflect the true performance of the entire organization, without any artificial inflation or distortion caused by internal transactions. This provides a more reliable basis for assessing the financial health and stability of Caption By Hyatt as a franchise system.
This practice is standard in corporate accounting. Eliminating intercompany transactions prevents double-counting of revenues or expenses and provides stakeholders with a transparent view of the company's financial performance. Franchisees can have confidence that the financial data presented by Caption By Hyatt accurately represents the economic reality of the business.