Under what circumstances does Delta Hotels By Marriott evaluate an intangible asset for impairment?

We evaluate an intangible asset for impairment when changes in circumstances indicate that we may not be able to recover the carrying value; for example, when there are material adverse changes in projected revenues or expenses, significant under performance relative to historical or projected operating results, or significant negative industry or economic trends. If indicators of impairment are identified, we test the intangible asset for impairment by comparing its carrying value to the consideration that we expect to receive in the future and that we have received but have not recognized as revenue, in exchange for the goods or services to which the asset relates ("the future consideration"), less the costs that relate directly to providing those goods or services and that have not been recognized as expenses. If the comparison indicates that the carrying value of the asset is less than the future consideration less the related expenses, we recognize an impairment loss for the difference. No impairment charges have been recorded during the years ended December 31, 2024, 2023, or 2022.

Source: Item 7 — Franchisor reserves the right to challenge the applicability of any law that declares provisions in the Agreement void or unenforceable. (FDD pages 288–363)