What were the total base management fees for the 'Management and franchising' segment of Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
strative expenses assist us in comparing our performance over various reporting periods on a consistent basis because it removes from our operating results the impact of items that do not reflect our core operations, both on a segment and consolidated basis.
The following tables present revenues disaggregated by the nature of the product or service and by segment:
| Year Ended December 31, 2024 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Management and franchising | Owned and leased | Distribution | Segment Total | Eliminations | Total | ||||||
| Base management fees | $ | 432 | $ | — | $ | — | $ | 432 | $ | (33) $ | 399 |
| Incentive management fees | 252 | — | — | 252 | (10) | 242 | |||||
| Franchise and other fees | 465 | — | — | 465 | (7) | 458 | |||||
| Gross fees | 1,149 | — | — | 1,149 | (50) | 1,099 | |||||
| Rooms and packages | — | 777 |
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 base management fees for the 'Management and franchising' segment were detailed in the financial statements. In 2024, the base management fees totaled $432. In 2023, these fees amounted to $414, and in 2022, they were $356. These fees are a component of the gross fees collected by Caption By Hyatt.
Base management fees are typically calculated as a percentage of gross revenues. These fees compensate Caption By Hyatt for providing the hotel access to its intellectual property. The financial statements also include other revenue streams such as incentive management fees, franchise and other fees, revenues from owned and leased properties, distribution revenues, and other revenues, providing a comprehensive overview of Caption By Hyatt's financial performance across various segments.
The 'Management and franchising' segment represents a significant part of Caption By Hyatt's revenue, and understanding the base management fees is crucial for prospective franchisees. These fees, along with incentive and franchise fees, contribute to the overall financial health of the company. The consistent reporting of these fees over the three-year period allows potential franchisees to assess the stability and growth of this revenue stream.
It is important to note that the figures provided are gross amounts, and there are eliminations and contra revenues that affect the final total revenues. Franchisees should consider these factors when evaluating the financial performance of Caption By Hyatt. Additionally, revenues for reimbursed costs, which are not included in the base management fees, represent a substantial portion of the total revenues, indicating the importance of system-wide services provided by Caption By Hyatt.