As of December 31, 2024, does Crowne Plaza have any further commitment to invest in Groups360 LLC?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
a 12.6% share of Groups360 LLC ("Groups360"), a joint venture formed to operate a comprehensive meetings and events marketplace for people planning meetings, events and group travel, and hoteliers. The Company contributed a further $1.0 million and $3.0 million alongside other investors as part of capital calls during 2024 and 2023 respectively.
Ongoing changes in the investment structure have changed the Company's investment share to 12.0%. The investment, which had a net book value of $4.0 million and $5.0 million at December 31, 2024 and 2023, respectively, is accounted for under the equity method of accounting. The Company has recognized its proportionate share of losses of $(2.0) million, $(2.5) million and $(3.0) million within 'System Fund and reimbursable expenses' in the consolidated statements of net income for the years ended December 31, 2024, 2023 and 2022, respectively. Additionally, a gain of $2.3 million arising from a change in investment structure was recognized in 'System Fund and reimbursable expenses' in the year ended December 31, 2022. The Company has no further commitment to invest in Groups360 as at December 31, 2024.
Notes to Consolidated Financial Statements (continued)
**10.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, as of December 31, 2024, the company has no further commitment to invest in Groups360. However, Crowne Plaza initially contributed $10 million for a 12.6% share of Groups360 LLC in August 2019. Groups360 LLC is a joint venture designed to operate a comprehensive meetings and events marketplace for those planning meetings, events, group travel, and hoteliers. The company then contributed an additional $1 million during 2024 and $3 million during 2023 alongside other investors as part of capital calls.
Ongoing changes in the investment structure have altered the company's investment share to 12.0%. The investment is accounted for under the equity method of accounting, with a net book value of $4.0 million as of December 31, 2024, and $5.0 million as of December 31, 2023. The company has recognized its proportionate share of losses of $(2.0) million, $(2.5) million and $(3.0) million within 'System Fund and reimbursable expenses' in the consolidated statements of net income for the years ended December 31, 2024, 2023 and 2022, respectively. Additionally, a gain of $2.3 million arising from a change in investment structure was recognized in 'System Fund and reimbursable expenses' in the year ended December 31, 2022.
For a prospective franchisee, this indicates that Crowne Plaza has already made its planned investments in Groups360 LLC and is not obligated to provide further funding as of the end of 2024. This may provide some reassurance regarding the company's financial commitments and strategic focus. However, it is important to monitor the performance of Groups360 LLC, as Crowne Plaza's investment is subject to market risks and the success of the joint venture. Franchisees may want to inquire about the long-term strategy for Groups360 and its potential impact on the Crowne Plaza brand.