What was the net income for the Embassy Suites franchise 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 | 1,490,716 | 1,371,192 | 1,231,009 |
| Non-operating income (loss), net | (2,733) | 1,217 | 2,503 |
| Income before taxes | 1,487,983 | 1,372,409 | 1,233,512 |
| Foreign tax expense | (412) | (128) | (70) |
| Net income | 1,487,571 | 1,372,281 | 1,233,442 |
| Other comprehensive income: | |||
| Currency translation adjustment | 28 | 1 | 6 |
| Total other comprehensive income | 28 | 1 | 6 |
| Comprehensive income | $ 1,487,599 | $ 1,372,282 | $ 1,233,448 |
| Member's equity, beginning of year(1) | $ 616,454 | $ 662,063 | $ 998,579 |
| Comprehensive income | 1,487,599 | 1,372,282 |
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, credit losses, amortization, and foreign tax expenses, from its total revenues. Total revenues include franchise royalty fees, franchise sales and change of ownership fees, and franchise termination fees.
It is important to note that this net income is specifically for the Embassy Suites franchise operations and does not reflect the overall financial performance of Hilton or its other brands. The financial statement provides a clear picture of the revenue streams and expenses associated with the Embassy Suites franchise system. This information is useful for potential franchisees to understand the financial health and profitability of the franchise.
Prospective franchisees should review the complete financial statements and consult with a financial advisor to fully understand the implications of these figures. While the net income provides a snapshot of profitability, it's crucial to consider other factors such as cash flow, capital expenditures, and potential liabilities before making an investment decision. Understanding the components of revenue and expenses can help franchisees assess the potential return on investment and manage their own franchise operations effectively.