What is the term in years used in the Crowne Plaza valuation model?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT E1-1
EXHIBIT E1 LIST OF FRANCHISEES OPERATING AS OF DECEMBER 31, 2024
| Binomial | and Finnerty | |
|---|---|---|
| 2024 valuation model | ||
| Weighted-average share price (British pence) | 8,364.5 | 7,940.0 |
Crowne Plaza FDD - 4-15-25 (198)
| - | 4.20% | |
|---|---|---|
| Risk-free interest rate | ||
| Volatility(i) | - | 26.0% |
| Term (years) | 2.5 | 3.0 |
| 2023 valuation model | ||
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the term used in the 2022 valuation model is 2.6 to 2.8 years. For the 2023 valuation model, the term is 2.5 to 3.0 years.
This information is relevant to prospective franchisees as it provides insight into the financial models Crowne Plaza uses for valuation purposes. The term in years is a critical input in these models, influencing the present value calculations and overall financial assessments.
Understanding the term used in these valuation models can help franchisees better assess the financial viability and potential return on investment of a Crowne Plaza franchise. It is important to note that these terms may vary depending on the specific model and year, as seen in the difference between the 2022 and 2023 models.