What was the total value of Embassy Suites' current assets as of December 31, 2023?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, the company's total current assets as of December 31, 2023, were valued at $940,470. This figure represents the sum of Embassy Suites's liquid assets and those expected to be converted into cash within one year. These assets include cash, accounts receivable, amounts due from Hilton affiliates related to franchise deposits, financing receivables, other receivables due from Hilton affiliates, and other miscellaneous current assets.
Understanding the composition of these current assets is crucial for prospective franchisees. For instance, a significant portion of these assets consists of receivables from Hilton affiliates, indicating a close financial relationship between Embassy Suites and its parent company. The FDD also notes allowances for credit losses on accounts receivable and financing receivables, suggesting that Embassy Suites accounts for potential uncollectible amounts.
For a potential Embassy Suites franchisee, this information provides a snapshot of the brand's short-term financial health and liquidity. Reviewing the trend in current assets over time, in conjunction with current liabilities, can offer insights into the company's ability to meet its short-term obligations. It is also important to understand the nature of the 'other receivables due from Hilton affiliates' and the terms of their settlement, as these intercompany transactions can significantly impact Embassy Suites's cash flow.