What measures does the CODM use to evaluate performance for Caption By Hyatt?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, the Chief Operating Decision Maker (CODM) assesses performance using several key financial metrics. These include gross fee revenues, owned and leased revenues, distribution revenues, other revenues, and Adjusted EBITDA. These measures are used to identify trends and evaluate the operating performance of different segments within Caption By Hyatt, relative to the broader industry and its competitors. This comparative analysis informs decisions about how resources are allocated across the various segments of the business.

Gross fees consist of base management fees, incentive management fees, and franchise and other fees. Base management fees are a percentage of gross revenues, while incentive management fees are based on hotel profitability. Franchise fees include initial and ongoing royalty fees, termination fees, license fees from co-branded credit cards and branded residential units, and fees from hotel services provided to all-inclusive resorts. Net fees are gross fees minus key money assets amortization and performance cure payments, which are payments made to customers.

Owned and leased revenues come from room rentals and services at owned and leased hotels, presented net of sales, occupancy, and other taxes. Distribution revenues are generated from vacation packages, experiences, charter flights through ALG Vacations, destination services and excursions via Amstar, and commissions from Mr & Mrs Smith bookings. Other revenues include sales of promotional awards through co-branded credit programs, revenues from the paid membership program, and the Destination Residential Management business. Significant segment expenses considered by the CODM include Adjusted general and administrative expenses, owned and leased expenses, and distribution expenses. The CODM does not use discrete asset information to evaluate operating segments.