What was the amount distributed to Hilton affiliates from Embassy Suites retained earnings in 2023?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
hin twelve months from the date of the balance sheet recorded as current assets. These amounts are classified as other receivables due from Hilton affiliates. Amounts due from Hilton affiliates that are not expected to be repaid are reflected as a component of member's equity.
During the years ended December 31, 2024, 2023 and 2022, we settled $1.5 billion, $1.4 billion and $1.55 billion of other receivables due from Hilton affiliates, respectively, and simultaneously distributed $1.5 billion, $1.4 billion and $1.55 billion of our retained earnings to Parent, respec
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, during the year ended December 31, 2023, Embassy Suites distributed $1.4 billion of its retained earnings to its parent company, Hilton. This distribution was made simultaneously with the settlement of $1.4 billion of other receivables due from Hilton affiliates.
These transactions are part of Hilton's centralized cash management system, where intercompany balances are maintained with Hilton affiliates. The settlement of receivables and distribution of retained earnings are presented as operating and financing activities, respectively, in Embassy Suites's statements of cash flows.
For a prospective Embassy Suites franchisee, this indicates the scale of financial transactions between Embassy Suites and its parent company. While this specific transaction doesn't directly impact day-to-day franchise operations, it provides insight into the financial structure and relationship between Embassy Suites and Hilton.