What was the total amount of 'Intersegment revenues' for Caption By Hyatt from 'Management and franchising'?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
venues | 1,143 | 1,368 | | 1,236 | 3,747 | | (91) | 3,656 | | Contra revenue | (47) | — | | — | (47) | | — | (47) | | Revenues for reimbursed costs | 3,058 | — | | — | 3,058 | | — | 3,058 | | Total revenues | $ 4,154 | $ 1,368 | $ | 1,236 | $ 6,758 | $ | (91) $ | 6,667 | | Intersegment revenues | $ 62 | $ 29 | $ | — | $ 91 | | | |
Year Ended December 31, 2022
| Management and franchising | Owned and leased | Distribution | Segment Total | Eliminations | Total | ||
|---|---|---|---|---|---|---|---|
| Base management fees | $ 356 | $ — | $ — | $ 356 | $ | (37) $ | 319 |
| Incentive management fees | 205 | — | — | 205 | (13) | 192 | |
| Franchise and other fees | 307 | — | — | 307 | (10) | 297 | |
| Gross fees | 868 | — | — | 868 | (60) | 808 | |
| Rooms and packages | — | 800 | — | 800 | (28) | 772 | |
| Food and beverage | — | 305 | — | 305 | — | 305 | |
| Other | — | 158 | — | 158 | — | 158 | |
| Owned and leased | — | 1,263 | — | 1,263 | (28) | 1,235 | |
| Distribution | — | — | 986 | 986 | — | 986 | |
| Other revenues |
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 intersegment revenues from 'Management and franchising' totaled $58. This figure represents revenues generated from transactions between different segments of Caption By Hyatt's operations. In this case, it reflects the revenues that the 'Management and franchising' segment earned from other internal segments within the company.
For a prospective Caption By Hyatt franchisee, understanding intersegment revenues is important as it provides insight into how the different parts of the company interact financially. While intersegment revenues do not directly impact the franchisee's revenues or expenses, they offer a broader view of the company's financial structure and the role of the 'Management and franchising' segment within the larger organization. This can help franchisees assess the stability and interconnectedness of Caption By Hyatt's various business units.
It's worth noting that intersegment revenues are typically eliminated when Caption By Hyatt consolidates its financial statements, as these transactions occur within the company itself. However, analyzing these figures at the segment level can provide a more detailed understanding of each segment's contribution to the overall business and its relationships with other segments.