What was the total amount of operating expenses for Embassy Suites By Hilton in 2024?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| 577,005 | | 616,454 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | $ 1,269,897 | $ | 1,183,147 |
See notes to financial statements.
Hilton Franchise Holding LLC Statements of Comprehensive Income and Member's Equity (in thousands)
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Revenues | ||||||
| Franchise royalty fees | $ 1,434,453 | $ | 1,331,169 | $ | 1,184,827 | |
| Franchise sales and change of ownership fees | 49,340 | 43,294 | 39,881 | |||
| Franchise termination fees and other | 18,276 | 2,434 | 4,757 | |||
| Total revenues | 1,502,069 | 1,376,897 | 1,229,465 | |||
| Expenses | ||||||
| Operating expenses | 1,354 | 861 | 529 | |||
| Provision for (recovery of) credit losses | 6,248 | 4,430 | (2,483) | |||
| Amortization expense | 3,751 | 414 | 410 | |||
| Total expenses | 11,353 | 5,705 | (1,544) | |||
| Operating income | 1,490,716 | 1,371,192 | 1,231,009 | |||
| Non-operating income (loss), net | (2,733) | 1,217 | 2,503 | |||
| Income before taxes | 1,487,983 | 1,372,409 | 1,233,512 | |||
| Foreign tax expense | (412) | (128) | (70) | |||
| Net income | 1,487,571 | 1,372,281 | 1,233,442 | |||
| Other comprehensive income: | ||||||
| Currency translation adjustment | 28 | 1 | 6 | |||
| Total other comprehensive income | 28 | 1 | 6 | |||
| Comprehensive income | $ 1,487,599 | $ | 1,372,282 | $ | 1,233,448 | |
| Member's equity, beginning of year(1) | $ 616,454 | $ | 662,063 | $ | 998,579 | |
| Comprehensive income | 1,487,599 | 1,372,282 | 1,233,448 |
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 operating expenses for the year 2024 were $1,354. This figure is part of the broader financial overview presented in the financial statements. It is important to note that this is just one line item within the total expenses, which also includes provisions for credit losses and amortization expenses.
For a prospective franchisee, understanding the operating expenses of Embassy Suites By Hilton is crucial for assessing the financial health and profitability of the franchise. While $1,354 is the specific operating expenses, the total expenses amounted to $11,353 in 2024. This number, in conjunction with revenue figures, helps determine the operating income, which was $1,490,716 for the same year.
It's essential to consider these figures in the context of the overall financial performance of Embassy Suites By Hilton. Factors such as revenue streams from franchise royalty fees, franchise sales, and other fees contribute to the total revenue, which was $1,502,069 in 2024. By analyzing these financial metrics, potential franchisees can gain a clearer picture of the financial stability and potential returns of investing in an Embassy Suites By Hilton franchise.