What was the total value of Embassy Suites' liabilities 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 liabilities as of December 31, 2024, were $692,892. This figure represents the sum of all current liabilities, deferred revenues, franchise contract acquisition costs payable, and other liabilities that Embassy Suites is obligated to pay.
Specifically, the current liabilities totaled $167,610, which includes items like franchise deposits of $18,498, current intercompany payables of $89,994, the current portion of deferred revenues amounting to $41,598, current franchise contract acquisition costs payable of $17,120, and other current liabilities of $400. Additionally, Embassy Suites had deferred revenues of $517,282 and franchise contract acquisition costs payable of $8,000.
For a prospective franchisee, understanding the liabilities of the franchisor can provide insight into the financial stability and obligations of the company. A high level of liabilities may indicate a higher risk, while a manageable level suggests a more stable financial foundation. Reviewing these figures in comparison to previous years and industry benchmarks can offer a more comprehensive understanding of Embassy Suites's financial health.