What were the reimbursed costs for Caption By Hyatt for the year ended December 31, 2022?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
esidential Management business recognized in other direct costs. Owned and leased includes the change in market performance of the underlying invested assets recognized in net gains (losses) and interest income from marketable securities held to fund rabbi trusts.
The following table provides a reconciliation of segment Adjusted EBITDA to income before income taxes:
| Year Ended December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||||
| Segment Adjusted EBITDA | $ | 1,255 | $ | 1,231 $ | 1,105 | |||
| Unallocated overhead expenses | (160) | (177) | (170) | |||||
| Eliminations | 1 | 1 | 1 | |||||
| Contra revenue | (69) | (47) | (31) | |||||
| Revenues for reimbursed costs | 3,352 | 3,058 | 2,620 | |||||
| Stock-based compensation expense (Note 17) (1) | (62) | (75) | (60) | |||||
| Transaction and integration costs | (42) | (42) | (35) | |||||
| Depreciation and amortization | (333) | (397) | (426) | |||||
| Reimbursed costs | (3,457) | (3,144) | (2,632) | |||||
| Equity earnings (losses) from unconsolidated hospitality ventures | 31 | (1) | 5 | |||||
| Interest expense | (180) | (145) | (150) | |||||
| Gains (losses) on sales of real |
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 reimbursed costs for the year ended December 31, 2022, were $2,632 million. This figure represents expenses that Caption By Hyatt incurred and then recovered from third-party owners and franchisees. These costs are associated with system-wide services provided on behalf of managed and franchised properties, as well as the administration of the loyalty program that benefits Hyatt's portfolio.
For a prospective Caption By Hyatt franchisee, understanding reimbursed costs is crucial. It indicates the scale of operational expenses that are initially covered by the franchisor but ultimately passed on to the franchisees and property owners. This can include technology, marketing, training, and other support services essential for running the franchise. The fact that these costs are substantial—over $2.6 billion in 2022—suggests that Caption By Hyatt invests significantly in system-wide support and resources.
It's important for potential franchisees to analyze these reimbursed costs in relation to the revenues generated. While the franchisor incurs these costs, they are offset by corresponding revenues, indicating a balanced financial approach. Franchisees should inquire about the specific types of expenses included in these reimbursed costs to assess their value and impact on the overall profitability of their individual franchise. Understanding the nature and justification of these costs will help franchisees evaluate the financial transparency and efficiency of the Caption By Hyatt franchise system.
Furthermore, the FDD indicates that revenues for reimbursed costs for the year ended December 31, 2022, were $2,620 million. This is slightly less than the reimbursed costs of $2,632 million, which could indicate a slight difference in the timing of revenue recognition or other accounting adjustments. A prospective franchisee should seek clarification from Caption By Hyatt regarding any discrepancies between reimbursed costs and revenues to fully understand the financial dynamics of the franchise system.