What was the amortization expense for Embassy Suites in 2023?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
including the activity during the years ended December 31, 2024, 2023 and 2022, see Note 8: Related Party Transactions.
See notes to financial statements.
Hilton Franchise Holding LLC Statements of Cash Flows (in thousands)
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Operating Activities: | ||||||
| Net income | $ | 1,487,571 | $ | 1,372,281 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the amortization expense for the year ended December 31, 2023, was $414. This expense reflects the cost of intangible assets, such as franchise rights, that Embassy Suites has expensed over their useful life.
Amortization is a standard accounting practice that allows Embassy Suites to spread the cost of these assets over the period they contribute to revenue generation. For a prospective franchisee, understanding the amortization expense can provide insight into the financial management and accounting practices of the franchise system.
It's important to note that this figure represents the amortization expense recognized by Embassy Suites at the corporate level. Individual franchisees may also have their own amortization expenses related to assets they acquire for their specific locations. Reviewing the complete financial statements and related notes in the FDD can offer a more comprehensive understanding of Embassy Suites's financial performance.