What were the total operating lease expenses for Caption By Hyatt in 2024?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
ts of income during the year ended December 31, 2022. The operating results and financial position of this hotel prior to the sale remain within our owned and leased segment.
8. LEASES
Lessee
A summary of operating lease expenses, net of insignificant sublease income, was as follows:
| | Year Ended December 31,
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 total operating lease expenses for the year 2024 were $74 million. This figure represents the sum of minimum rentals ($45 million) and contingent rentals ($29 million) incurred by Caption By Hyatt during that year.
For a prospective Caption By Hyatt franchisee, understanding these operating lease expenses is crucial. Lease expenses can significantly impact a franchisee's profitability, especially if the lease terms are unfavorable. Knowing the historical lease expenses of the franchisor can provide a benchmark, although a franchisee's actual expenses will depend on their specific location and lease agreement.
It's important to note that these figures reflect the operating lease expenses for the entire Caption By Hyatt system, not just individual franchised locations. A franchisee should carefully review their own lease terms and conduct thorough due diligence to project their own operating lease expenses accurately. Factors such as location, property size, and lease negotiation skills can all influence the final amount.