How does Caption By Hyatt recognize revenues from room rentals at owned and leased hotels?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
Room rentals and other services provided at owned and leased hotels
We provide room rentals and other services to our guests, including, but not limited to, food and beverage, spa, laundry, and parking. These products and services each represent individual performance obligations, and in exchange for these services, we receive fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time the services are rendered or the goods are provided. If a guest enters into a package including multiple goods or services, the fixed price is allocated to each distinct good or service based on the standalone selling price for each item. Revenues are recognized over time when we transfer control of the good or service to the customer. Room rental revenues are recognized on a daily basis as the guest occupies the room, and revenues related to other products and services are recognized when the product or service is provided to the guest.
Hotels commonly enter into arrangements with online travel agencies, trade associations, and other entities. As part of these arrangements, we may pay the other party a commission or rebate based on the revenues generated through that channel. We recognize revenues gross or net of rebates and commissions depending on the terms of each contract.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, revenues from room rentals at owned and leased hotels are recognized on a daily basis as guests occupy the rooms. Caption By Hyatt also provides other services such as food and beverage, spa, laundry, and parking. Revenues for these additional products and services are recognized when the product or service is provided to the guest. The payments are due in full when services are rendered or goods are provided based on published rates or negotiated contracts.
If a guest purchases a package that includes multiple goods or services, Caption By Hyatt allocates the fixed price to each distinct item based on its standalone selling price. This means that the revenue for each component of the package (e.g., room rental, spa treatment, meals) is accounted for separately based on its individual value.
Caption By Hyatt also notes that hotels may enter into arrangements with online travel agencies or trade associations, potentially paying commissions or rebates based on the revenue generated through these channels. The FDD states that Caption By Hyatt recognizes revenues either gross or net of these rebates and commissions, depending on the specific terms outlined in each contract.