What were the minimum rentals for Caption By Hyatt for the year ended December 31, 2022?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ts of income during the year ended December 31, 2022. The operating results and financial position of this hotel prior to the sale remain within our owned and leased segment.
8. LEASES
Lessee
A summary of operating lease expenses, net of insignificant sublease income, was as follows:
| | Year Ended December 31,
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 minimum rentals for the year ended December 31, 2022, were $44 million. This figure represents the base amount Caption By Hyatt was obligated to pay under its lease agreements during that year. It's important to note that this is a consolidated figure, reflecting the total minimum rental expenses across all of Hyatt's leased properties, not just those operating under the Caption By Hyatt brand. As Caption By Hyatt is part of Hyatt Hotels Corporation, this figure reflects the financial obligations of the parent company.
In addition to minimum rentals, Caption By Hyatt also incurred contingent rentals, which amounted to $111 million for the same period. Contingent rentals are lease payments that fluctuate based on factors such as revenue or sales performance of the leased properties. The total operating lease expenses for Caption By Hyatt, combining both minimum and contingent rentals, reached $155 million in 2022.
For a prospective Caption By Hyatt franchisee, understanding these figures provides context regarding the overall financial health and leasing obligations of the parent company. While these numbers don't directly translate to the specific rental costs a new franchisee might face, they offer insight into how Hyatt manages its property portfolio and lease agreements. Franchisees should focus on the specific lease terms outlined in their franchise agreement and consult with financial advisors to assess their individual rental obligations and financial projections.
It's also worth noting the trend in rental expenses over the years presented in the FDD. The minimum rentals have remained relatively stable, while contingent rentals have shown more variability. This could indicate changes in the performance of leased properties or adjustments in lease agreements. Franchisees should consider these trends and how they might impact their own rental costs and profitability.