What were the total franchise royalty fees 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 total franchise royalty fees for the year ending December 31, 2024, were $1,434,453. This figure represents the income Embassy Suites By Hilton earned from its franchisees in royalty payments during that year. Royalty fees are a standard component of franchise agreements, typically calculated as a percentage of gross sales. These fees are crucial for the franchisor as they support ongoing services, brand development, and the overall franchise system.
In addition to the franchise royalty fees, Embassy Suites By Hilton also generated revenue from other sources related to franchising. Franchise sales and change of ownership fees amounted to $49,340, while franchise termination fees and other related income totaled $18,276 in 2024. These additional fees contribute to the overall financial performance of the franchise system.
It's important to note that Embassy Suites By Hilton also recognizes a reduction of franchise royalty fees related to amortization of contract acquisition costs. In 2024, this reduction amounted to $16,053. This accounting practice can affect the net revenue recognized from franchise royalties, and prospective franchisees should understand how these reductions are accounted for in the financial statements.