What was the member's equity at the end of 2024 for Embassy Suites By Hilton?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
ming of the audit, significant audit findings, and certain internal control related matters that we identified during the audits.
Tysons Corner, Virginia
March 18, 2025
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 e |
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 total member's equity at the end of 2024 was $577,005. This figure is derived from several components, including contributed capital of $310,000, retained earnings of $528,936, a deduction for amounts due from Hilton affiliates of ($261,959), and accumulated other comprehensive income of $28.
Member's equity represents the ownership interest of Hilton Franchise Holding LLC in the company's assets after deducting liabilities. It is a key indicator of the company's financial health and stability. For a prospective Embassy Suites By Hilton franchisee, a strong member's equity suggests that the company has a solid financial foundation. This can be reassuring, as it implies that Embassy Suites By Hilton is capable of supporting its franchisees and managing its own financial obligations.
However, it's important to note that a significant portion of Embassy Suites By Hilton's equity is tied to transactions with Hilton affiliates, as indicated by the 'Due from Hilton affiliates' component. These intercompany balances arise from Hilton's centralized cash management system. While these related-party transactions are a normal part of Embassy Suites By Hilton's operations, prospective franchisees should understand how these transactions could potentially impact the financial performance and stability of the franchise system. Reviewing the notes to the financial statements, particularly Note 8, provides additional context on these related-party transactions and their impact on member's equity.
Overall, the member's equity provides a snapshot of Embassy Suites By Hilton's financial structure and its relationship with its parent company, Hilton. While the figure itself is a positive indicator, prospective franchisees should conduct thorough due diligence to understand the underlying components and related-party transactions that contribute to the overall equity position.