What was the net value of property and equipment for Crowne Plaza as of December 31, 2024?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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2. Credit Losses Related to Receivables
Change in expected credit loss allowance (in thousands):
| December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Beginning balance in allowance for credit losses | $ | 44,963 | $ | 52,355 |
| Current period charge (release) for expected credit losses | 9,170 | (1,988) | ||
| Current period charge (release) to System Fund | 4,658 | (1,608) | ||
| Write-offs charged against allowance | (4,231) | (4,127) | ||
| Foreign exchang |
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the net value of property and equipment was $431,771 as of December 31, 2024. This figure represents the value of the company's owned hotels, related furnishings, and capitalized software, calculated by subtracting accumulated depreciation and impairment from the original cost. In comparison, the net value of property and equipment as of December 31, 2023, was $493,445.
The FDD also provides a breakdown of the components contributing to the total property and equipment value. As of December 31, 2024, land was valued at $6,105, buildings and improvements at $64,941, furniture, fixtures, and equipment (including computer software) at $930,042, and assets held under finance leases at $182,851. The total value before deductions was $1,183,939. Accumulated depreciation and impairment were reported as $752,168, resulting in the net property and equipment value of $431,771.
For a prospective franchisee, understanding these figures provides insight into the tangible assets Crowne Plaza possesses and how their value is assessed. The depreciation expense, which was $32.8 million for the year ended December 31, 2024, indicates the rate at which these assets are losing value. Monitoring these values over time can help franchisees understand the financial health and investment strategies of Crowne Plaza. Additionally, the finance lease on the InterContinental Hotel in Boston, with capitalized assets of $116.7 million net of accumulated amortization at the end of 2024, demonstrates the scale of some of Crowne Plaza's real estate holdings.