What are 'owned and leased revenues' derived from for a Caption By Hyatt franchise, and are taxes included?

According to Caption By Hyatt's 2025 Franchise Disclosure Document, 'owned and leased revenues' come from room rentals and services at hotels that Caption By Hyatt owns or leases. These revenues are presented net of sales, occupancy, and other taxes. This means that the reported revenue figures do not include taxes collected on behalf of governmental taxing authorities, as these are excluded from the transaction price of the underlying products and services.

For a prospective Caption By Hyatt franchisee, understanding the source and composition of 'owned and leased revenues' is crucial for several reasons. Firstly, it provides insight into the performance of hotels directly operated by Caption By Hyatt, which can serve as a benchmark for franchisee-owned locations. Secondly, knowing that revenues are reported net of taxes allows franchisees to accurately compare revenue figures across different locations and time periods, without the distortion of varying tax rates or policies.

This approach to revenue reporting is fairly standard in the hospitality industry, as it provides a clearer picture of the actual income generated from hotel operations. Franchisees should pay close attention to how Caption By Hyatt defines and reports its revenues, as this will impact their own financial reporting and performance analysis. Additionally, franchisees should be aware of the specific taxes applicable to their location and how these taxes are collected and remitted to the relevant authorities.