What was the total amount of current intercompany payables for Embassy Suites as of December 31, 2024?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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Hilton Franchise Holding LLC Balance Sheets (in thousands)
| December 31, | |||
|---|---|---|---|
| 2024 | 2023 | ||
| ASSETS | |||
| Current Assets: | |||
| Cash | $ 317 | $ | 5,348 |
| Accounts receivable, net of allowance for credit losses of $10,411 and $7,339 | 135,970 | 127,999 | |
| Due from Hilton affiliates related to franchise deposits | 18,498 | 18,885 | |
| Financing receivables, net of allowance for credit losses of $3,375 and $383 | 11,438 | 19,683 | |
| Other receivables due from Hilton affiliates | 703,943 | 768,478 | |
| Other | 2,346 | 77 | |
| Total current assets | 872,512 | 940,470 | |
| Non-current Assets: | |||
| Franchise contracts, net | 392,748 | 238,533 | |
| Financing receivables, net of allowance for credit losses of $412 and $367 | 4,626 | 4,140 | |
| Other | 11 | 4 | |
| Total non-current assets | 397,385 | 242,677 | |
| TOTAL ASSETS | $ 1,269,897 | $ | 1,183,147 |
| LIABILITIES AND MEMBER'S EQUITY | |||
| Current Liabilities: | |||
| Franchise deposits | $ 18,498 | $ | 18,885 |
| Current intercompany payables | 89,994 | — | |
| Current portion of deferred revenues | 41,598 | 37,811 | |
| Current franchise contract acquisition costs payable | 17,120 | 9,041 | |
| Other | 400 | 395 | |
| Total current liabilities | 167,610 | 66,132 | |
| Deferred revenues | 517,282 | 486,418 | |
| Franchise contract acquisition costs payable | 8,000 | 8,575 | |
| Other | — | 5,568 | |
| Total liabilities | 692,892 | 566,693 | |
| Commitments and contingencies - see Note 7 | |||
| Member's Equity: | |||
| Contributed capital | 310,000 | 310,000 | |
| Retained earning |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the total amount of current intercompany payables as of December 31, 2024, was $89,994. This figure represents the amount Embassy Suites owes to its affiliated companies (Hilton affiliates) within a year.
Intercompany payables often arise from centralized cash management systems or shared services within a larger corporate structure like Hilton. These payables reflect transactions between Embassy Suites and its affiliates, such as payments for services, goods, or the acquisition of assets.
For a prospective franchisee, understanding intercompany payables is crucial because it sheds light on the financial relationships between Embassy Suites and its parent company, Hilton. Significant intercompany transactions could indicate the level of financial integration and potential dependencies. Additionally, changes in intercompany payables over time, as indicated by the change of $4,690 during 2024, can reflect shifts in these relationships or the volume of transactions between Embassy Suites and its affiliates. Franchisees should seek clarification from Embassy Suites regarding the nature and terms of these intercompany transactions to fully assess their potential impact on the franchise's financial performance.