What were the total expenses for Embassy Suites in 2022?
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 total expenses for the year 2022 were $-1,544. This figure is derived from the financial statements provided in Item 21 of the FDD.
It's important to note that this is a negative number. The expenses include operating expenses of $529, provision for (recovery of) credit losses of $-2,483, and amortization expense of $410. The total expenses are calculated to be $-1,544.
Prospective franchisees should carefully review the financial statements and consult with a financial advisor to understand the implications of these expenses and how they might affect the profitability of an Embassy Suites franchise. Understanding the nature of these expenses and their impact on the overall financial performance of the franchise is crucial for making an informed investment decision.