What was the net income for Embassy Suites in 2024?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
05 | | 616,454 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | $ 1,269,897 | $ | 1,183,147 |
See notes to financial statements.
Hilton Franchise Holding LLC Statements of Comprehensive Income and Member's Equity (in thousands)
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise royalty fees | $ 1,434,453 | $ 1,331,169 | $ 1,184,827 |
| Franchise sales and change of ownership fees | 49,340 | 43,294 | 39,881 |
| Franchise termination fees and other | 18,276 | 2,434 | 4,757 |
| Total revenues | 1,502,069 | 1,376,897 | 1,229,465 |
| Expenses | |||
| Operating expenses | 1,354 | 861 | 529 |
| Provision for (recovery of) credit losses | 6,248 | 4,430 | (2,483) |
| Amortization expense | 3,751 | 414 | 410 |
| Total expenses | 11,353 | 5,705 | (1,544) |
| Operating income |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the net income for the year 2024 was $1,487,571. This figure represents the profit Embassy Suites retained after deducting all expenses, including operating expenses, amortization, and foreign tax expenses, from its total revenues. This net income is a key indicator of the brand's financial performance and profitability during that period.
In addition to net income, the FDD provides a breakdown of Embassy Suites's revenues and expenses. Total revenues for 2024 amounted to $1,502,069, comprising franchise royalty fees ($1,434,453), franchise sales and change of ownership fees ($49,340), and franchise termination fees and other income ($18,276). Total expenses for the same year were $11,353, including operating expenses ($1,354), provision for credit losses ($6,248), and amortization expense ($3,751). These figures offer a comprehensive view of the brand's financial activities and the various factors contributing to its net income.
Prospective franchisees should consider the net income and its components when evaluating the financial viability of an Embassy Suites franchise. While a positive net income is generally favorable, it's essential to analyze the trends over multiple years (2022 and 2023 are also provided) and understand the factors that influence revenue and expenses. Furthermore, understanding the relationship between revenue streams like royalty fees and expenses such as operating costs and amortization can help potential franchisees assess the brand's financial stability and growth potential.