What was the amount of amortization expense for Embassy Suites By Hilton in 2023?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | Net Carrying Value | 392,748 | | Contract acquisition costs | $ 287,958 | $ | (54,374) $ | | 233,584 | | | Costs to obtain contracts | 7,256 | | (2,307) | | 4,949 | | | | $ 295,214 | $ | (56,681) $ | | 238,533 | | Amortization of our franchise contracts was as follows:
| | 2024 | 2023 | 2022 | |--------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the amortization expense recognized by Embassy Suites By Hilton in 2023 was $414,000. This figure reflects the expense recognized specifically as 'amortization expense' and does not include amounts recognized as a reduction of franchise royalty fees.
Amortization is the process of spreading out the cost of an intangible asset over its useful life. For a franchisee, understanding the franchisor's amortization expense can provide insight into how the franchisor accounts for its intangible assets, such as franchise contracts. This can be useful for comparing the franchisor's financial practices with those of other franchise systems.
It's important to note that this figure represents only the amortization expense recognized as such in Embassy Suites By Hilton's financial statements. A prospective franchisee should review the complete financial statements and notes to fully understand the franchisor's accounting practices and financial performance.