What financial statements are included in Exhibit C for Embassy Suites By Hilton?

According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, Exhibit C includes the audited consolidated balance sheets as of December 31, 2024, and 2023. It also contains the consolidated statements of operations and member's capital and cash flows for the years ended December 31, 2024, 2023, and 2022. The exhibit further includes related notes to these consolidated financial statements.

These financial statements provide a comprehensive overview of Embassy Suites By Hilton's financial performance and position over the stated periods. A prospective franchisee can use these statements to assess the financial stability and profitability of the franchisor. The balance sheets show the company's assets, liabilities, and equity at specific points in time, while the statements of operations detail revenues and expenses over the years. The cash flow statements illustrate how the company generated and used cash during those years.

The inclusion of audited financial statements indicates that an independent auditor has reviewed the figures and provided an opinion on their fairness and accuracy. This adds a level of credibility and assurance for potential investors. The notes to the financial statements provide additional details and explanations of the figures presented, which can be crucial for a full understanding of the company's financial condition.

For a prospective Embassy Suites By Hilton franchisee, reviewing these financial statements is a critical step in the due diligence process. It allows them to evaluate the franchisor's financial health, identify any potential risks or liabilities, and make an informed decision about investing in the franchise. They should pay close attention to trends in revenue, expenses, and cash flow, as well as any significant changes or unusual items disclosed in the notes.