Where can I find the Statements of Cash Flows in the Embassy Suites By Hilton FDD?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached as Exhibit C are our audited consolidated balance sheets as of December 31, 2024 and 2023, the related consolidated statements of operations and member's capital and cash flows for the years ended December 31, 2024, 2023, and 2022, and the related notes to the consolidated financial statements.
EXHIBIT C
Hilton Franchise Holding LLC Financial Statements For the years ended December 31, 2024, 2023 and 2022
See notes to financial statements.
Hilton Franchise Holding LLC Statements of Cash Flows (in thousands)
2024 2023 2022 Operating Activities: Net income $ 1,487,571 $ 1,372,281 $ Adjustments to reconcile net income to net cash provided by operating activities: Amortization of contract acquisition costs 16,053 12,897 Amortization expense 3,751 414 Franchise contract acquisition costs, net of refunds (81,063) (37,185) Changes in operating assets and liabilities: Accounts receivable, net (7,971) (5,787) Other receivables due from Hilton affiliates 64,535 30,383 Other current assets (2,269) (54) Other current liabilities 5 10 Change in other non-current assets (7) 85 Change in deferred revenues 34,651 46,130 Change in other long-term liabilities (5,568) 5,405 Decrease (increase) in due from Hilton affiliates related to franchise deposits 387 (73) 2,707 Increase (decrease) in franchise deposits (387) 73 (2,707) Change in current intercompany payables 4,690 — — Other 2,382 (1,470) (1,412) Net cash provided by operating activities 1,516,760 1,423,109 1,569,887 Investing Activities: Acquisition of franchise contract intangible assets (85,304) — Payments received on financing receivables 5,254 — Net cash used in investing activities (80,050) — Financing Activities: Issuance of short-term note 85,304 — — Distribution of retained earnings to Hilton affiliates (1,500,000) (1,400,000) (1,550,000) Increase in due from Hilton affiliates (27,048) (17,891) (19,964) Net cash used in financing activities (1,441,744) (1,417,891) (1,569,964) Effect of exchange rate changes on cash 3 31 Net increase (decrease) in cash (5,031) 5,249 Cash, beginning of year 5,348 99 Cash, end of year $ 317 $ 5,348 $ Year Ended December 31, 1,233,442 11,972 410 (41,991) (8,139) 335,087 (23) (1,542) (3) 42,148 (62) — — — (3) (80) 179 99
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 Embassy Suites By Hilton FDD, the Statements of Cash Flows can be found in Exhibit C. Item 21 states that Exhibit C includes the audited consolidated balance sheets as of December 31, 2024, and 2023, the related consolidated statements of operations and member's capital and cash flows for the years ended December 31, 2024, 2023, and 2022, and the related notes to the consolidated financial statements.
Specifically, the Hilton Franchise Holding LLC Statements of Cash Flows are provided in thousands of U.S. dollars. The document includes cash flow statements for the years 2022, 2023 and 2024. These statements detail the cash flows from operating, investing, and financing activities, as well as the effect of exchange rate changes on cash. For example, net cash provided by operating activities was $1,516,760,000 in 2024, $1,423,109,000 in 2023 and $1,569,887,000 in 2022.
For a prospective Embassy Suites By Hilton franchisee, the statements of cash flows provide insight into how the company generates and uses cash. Reviewing these statements can help a franchisee understand the financial health and stability of Embassy Suites By Hilton, as well as how it manages its cash resources. Understanding these cash flows can be crucial in assessing the financial viability and potential risks associated with investing in an Embassy Suites By Hilton franchise.