When did Caption By Hyatt revise its definition of Adjusted EBITDA?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
included earnings from a paid membership program offering benefits exclusively at certain all-inclusive resorts primarily in Latin America and the Caribbean. Adjusted EBITDA includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
Within overhead, we include unallocated corporate expenses.
During the year ended December 31, 2024, we revised our definition of Adjusted EBITDA to exclude transaction and integration costs (see Note 1), and we recast prior-period results to provide comparability. The revised definition excludes integration costs, which were previously recognized in integration costs during the three months ended March 31, 2024 and general and administrative expenses during the years ended December 31, 2023 and December 31, 2022, and transaction costs, which were previously recognized in general and administrative expenses during the three months ended March 31, 2024 and the years ended December 31, 2023 and December 31, 2022. Previously, only transaction costs recognized in gains (losses) on sales of real estate and other and other income (loss), net were excluded from Adjusted EBITDA.
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 company revised its definition of Adjusted EBITDA during the year ended December 31, 2024. This revision involved excluding transaction and integration costs from the calculation. To ensure consistency and comparability, Caption By Hyatt also recast prior-period results using the revised definition.
The specific costs now excluded from Adjusted EBITDA were previously recognized in different expense categories. Integration costs were initially recognized in integration costs during the three months ended March 31, 2024, and in general and administrative expenses for the years ended December 31, 2023, and December 31, 2022. Transaction costs were previously recognized in general and administrative expenses during the three months ended March 31, 2024, and the years ended December 31, 2023, and December 31, 2022.
Before this revision, only transaction costs recognized in gains (losses) on sales of real estate and other and other income (loss), net were excluded from Adjusted EBITDA. Caption By Hyatt believes that the revised definition offers a more accurate representation of its core operations and enhances the comparability of its financial results. This change also aligns with how the company's management evaluates operating performance, providing a clearer view for assessing trends and segment performance against industry standards and competitors.