What was the pre-tax gain recognized by Caption By Hyatt from the sale of Park Hyatt Zurich?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
lion pre-tax gain, which was recognized in gains (losses) on sales of real estate and other on our consolidated statements of income during the year ended December 31, 2024. The operating results and financial position of this hotel prior to the sale remain within our owned and leased segment.
Park Hyatt Zurich—During the year ended December 31, 2024, we sold Park Hyatt Zurich to an unrelated third party and accounted for the transaction as an asset disposition. We received proceeds of CHF 220 million (approximately $244 million), net of closing costs and proration adjustments, and issued a CHF 41 million (approximately $45 million) secured financing receivable with an initial maturity date of five years (see Note 6). Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $257 million pre-tax gain, including the reclassification of $6 million of currency translation gains from accumulated other comprehensive
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, during the year ended December 31, 2024, Caption By Hyatt sold Park Hyatt Zurich to an unrelated third party. This transaction was accounted for as an asset disposition. Caption By Hyatt received proceeds of CHF 220 million, which is approximately $244 million, after accounting for closing costs and proration adjustments. Additionally, Caption By Hyatt issued a CHF 41 million secured financing receivable, equivalent to approximately $45 million, with an initial maturity date of five years. Upon the sale, Caption By Hyatt entered into a long-term management agreement for the property.
The sale of Park Hyatt Zurich resulted in a $257 million pre-tax gain for Caption By Hyatt. This gain includes the reclassification of $6 million of currency translation gains from accumulated other comprehensive loss. The $257 million gain was recognized in gains (losses) on sales of real estate and other on Caption By Hyatt's consolidated statements of income for the year ended December 31, 2024.
This information is relevant for prospective Caption By Hyatt franchisees as it provides insight into the company's financial activities, specifically its real estate transactions and how these transactions impact its financial statements. Understanding these transactions can help franchisees assess the financial health and strategic decisions of Caption By Hyatt. The fact that Caption By Hyatt continues to manage the property under a long-term management agreement post-sale indicates a continued involvement and potential revenue stream from the property, even after its disposition.