What was the reported value of land owned by Crowne Plaza as of December 31, 2024?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 exchange differences and other | (1,103) | 331 |
| The ending balance in the allowance for credit losses | $ 53,457 | $ 44,963 |
| 2024 | 2023 | |
| Land | $ 6,105 | $ 13,771 |
| Building and improvements | 64,941 | 65,074 |
| Furniture, fixtures, and equipment (including computer | ||
| software) | 930,042 | 932,519 |
| Assets held under finance leases | 182,851 | 182,851 |
| 1,183,939 | 1,194,215 | |
| Less accumulated depreciation and impairment | (752,168) | (700,770) |
| Property and equipment, net | $ 431,771 | $ 493,445 |
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the reported value of land owned by the company as of December 31, 2024, was $6,105,000. This figure is part of the property and equipment holdings, which are carried at cost less accumulated depreciation and impairment.
When evaluating this figure, prospective franchisees should consider that this represents the book value of land owned directly by Crowne Plaza, not the value of land associated with franchised locations. Franchisees typically either lease their premises or own the land and building themselves. This number reflects the financial position of the company itself.
It's also worth noting the change in land value from the previous year. As of December 31, 2023, the land value was $13,771,000, indicating a decrease of over 50% in the reported land value year-over-year. This could be due to various factors such as sales of land, revaluation, or accounting adjustments. A potential franchisee might want to inquire about the reasons for this significant change to fully understand the company's asset management strategies.