What is the maturity date of the underlying loan for the largest Crowne Plaza loan guarantee?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
d:1) | (i) also the fair value of the deferred compensation plan liabilities.
The level 3 investment was an addition during the prior year and the increase in 2024 reflects a further addition. There were no material transfers into and out of Level 3 during the year and there has been no change to the fair value.
Notes to Consolidated Financial Statements (continued)
15. Performance guarantees
From time to time, the Company will grant a performance guarantee to encourage property owners to enter into a management agreement. The Company has two outstanding guarantees at December 31, 2024 (three at December 31,
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the company may provide loan guarantees to facilitate third-party ownership of hotels under franchise or management agreements. As of December 31, 2024, the total guarantees in place were $30.7 million. The largest single guarantee was $21.3 million, and the underlying loan for this guarantee matures in 2029.
This information is relevant for prospective Crowne Plaza franchisees because it shows that the company is willing to provide financial support to hotel owners in certain situations. However, it is important to note that these guarantees are not always in place, and the likelihood of a payment under any of the guarantees is currently considered to be not probable.
If a franchisee is considering obtaining a loan to finance the purchase of a Crowne Plaza hotel, they may want to inquire whether the company is willing to provide a loan guarantee. It is also important to understand the terms and conditions of any such guarantee, including the amount of the guarantee, the maturity date of the underlying loan, and any covenants that may be in place.