Does this table provide information about liabilities for Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ir values.
We finalized the fair values of the assets acquired and liabilities assumed in the second quarter of 2024, which resulted in insignificant measurement period adjustments.
The following table summarizes the fair value of the identifiable net assets acquired at the acquisition date:
| Cash and cash equivalents | $ 22 |
|---|---|
| Receivables | 6 |
| Prepaids and other assets | 1 |
| Goodwill (1) | 38 |
| Indefinite-lived intangibles (2) | 12 |
| Customer relationships intangibles (3) | 12 |
| Other intangibles (4) | 16 |
| Total assets acquired | $ 107 |
| Accounts payable | $ 1 |
| Accrued expenses and other current liabilities | 5 |
| Current contract liabilities | 19 |
| Long-term contract liabilities | 3 |
| Other long-term liabilities | 7 |
| Total liabilities assumed | $ 35 |
| Total net assets acquired attributable to Hyatt Hotels Corporation | $ 72 |
- (1) The goodwill, which is recorded on the distribution segment, is attributable to growth opportunities we expect to realize through direct booking access to properties within the Mr & Mrs Smith platform through our distribution channels. Goodwill is not tax deductible.
- (2) Relates to the Mr & Mrs Smith brand name.
- (3) Amortized over a useful life of 12 years.
- (4) Amortized over a useful life of 10 years.
During the year ended December 31, 2023, we recognized $5 million of transaction costs, primarily related to financial advisory and legal fees, in transaction and integration costs on our consolidated statements of income.
Dream Hotel Group—During the year ended December 31, 2023, we acquired 100% of the limited liability company interests of each of Chatwal Hotels & Resorts, LLC, DHG Manager, LLC, and each of the subsidiaries of DHG Manager, LLC (collectively, Dream Hotel Group) for $125 million of base consideration, subject to customary adjustments related to working capital and indebtedness, and up to an additional $175 million of contingent consideration to be paid upon the achievement of certain milestones related to the development of additional hotels and/or potential new hotels previously identified by the sellers.
We closed on the transaction on February 2, 2023 and paid $125 million of cash. Upon acquisition, we recorded a $107 million contingent consideration liability at fair value in other long-term liabilities on our consolidated balance sheet. The fair value was estimated using a Monte Carlo simulation to model the likelihood of achieving the agreed-upon milestones based on available information as of the acquisition date. The valuation methodology includes assumptions and judgments regarding the discount rate, estimated probability of achieving the milestones, and expected timing of payments, which are primarily Level Three assumptions. Total purchase consideration was determined as follows:
| Cash paid | $ 125 |
|---|---|
| Fair value of contingent consideration | 107 |
| Total purchase consideration | $ 232 |
The acquisition includes management and license agreements for both operating and additional hotels that are expected to open in the future, primarily across North America, and the affiliated trade names. Following the acquisition date, fee revenues and operating expenses of Dream Hotel Group were recognized on our consolidated statements of income. For the period from the acquisition date through December 31, 2023, total revenues and net income attributable to Dream Hotel Group were $7 million and $4 million, respectively.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, one table provides information on liabilities assumed. Specifically, this table outlines liabilities assumed in relation to assets acquired by Hyatt Hotels Corporation. These liabilities include accounts payable, accrued expenses and other current liabilities, current contract liabilities, long-term contract liabilities, and other long-term liabilities. The total liabilities assumed are listed as $35 million. This information would be relevant to a prospective Caption By Hyatt franchisee as it provides insight into the types and amounts of liabilities that Hyatt Hotels Corporation, the parent company, assumes in its business operations.
Another table outlines liabilities assumed in relation to assets acquired by Hyatt Hotels Corporation. These liabilities include accounts payable, accrued expenses and other current liabilities, accrued compensation and benefits, current operating lease liabilities, long-term operating lease liabilities and other long-term liabilities. The total liabilities assumed are listed as $20 million. This information would be relevant to a prospective Caption By Hyatt franchisee as it provides insight into the types and amounts of liabilities that Hyatt Hotels Corporation, the parent company, assumes in its business operations.
A further table outlines liabilities assumed in relation to assets acquired by Hyatt Hotels Corporation. These liabilities include accounts payable, accrued expenses and other current liabilities, long-term operating lease liabilities and other long-term liabilities. The total liabilities assumed are listed as $179 million. This information would be relevant to a prospective Caption By Hyatt franchisee as it provides insight into the types and amounts of liabilities that Hyatt Hotels Corporation, the parent company, assumes in its business operations.