Does the Crowne Plaza financial statement include a report from independent auditors?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Report of Independent Auditors
To the Management of Six Continents Hotels, Inc.
Opinion
We have audited the accompanying consolidated financial statements of Six Continents Hotels, Inc. and its subsidiaries (the "Company"), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of net income, of comprehensive income, of changes in parent's investment and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the "consolidated financial statements").
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date the consolidated financial statements are available to be issued.
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the financial statements of Six Continents Hotels, Inc., which includes Crowne Plaza, are accompanied by a report from independent auditors. This report expresses the auditors' opinion on the fairness of the presentation of the company's financial position, results of operations, and cash flows as of December 31, 2024 and 2023, in accordance with accounting principles generally accepted in the United States of America. The auditors state they conducted their audit in accordance with auditing standards generally accepted in the United States of America (US GAAS).
The report outlines the responsibilities of both the management and the auditors in the preparation and audit of the consolidated financial statements. Management is responsible for the fair presentation of the financial statements and for designing and maintaining internal controls. The auditors are responsible for expressing an opinion on the financial statements based on their audit. The auditors also believe that the audit evidence they have obtained is sufficient and appropriate to provide a basis for their audit opinion.
The inclusion of an independent auditor's report is a standard practice that provides assurance to potential investors and franchisees regarding the credibility and reliability of the financial statements. It indicates that an objective third party has reviewed the financial statements and believes they are presented fairly. This is a positive sign for prospective Crowne Plaza franchisees, as it suggests that the financial information provided is transparent and has been vetted by an independent expert.