What was the total value of liabilities for Embassy Suites By Hilton as of December 31, 2023?
Embassy_Suites_By_Hilton Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, | |||
|---|---|---|---|
| 2024 | 2023 | ||
| 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 |
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 liabilities as of December 31, 2023, were $566,693. This figure represents the sum of all current liabilities, deferred revenues, franchise contract acquisition costs payable, and other liabilities.
Specifically, the current liabilities totaled $66,132 and included franchise deposits of $18,885, a current portion of deferred revenues of $37,811, current franchise contract acquisition costs payable of $9,041, and other current liabilities of $395. In addition to current liabilities, Embassy Suites By Hilton had deferred revenues of $486,418, franchise contract acquisition costs payable of $8,575, and other liabilities of $5,568, contributing to the overall total liabilities.
Understanding the composition and magnitude of these liabilities is crucial for prospective franchisees. It provides insight into the financial obligations Embassy Suites By Hilton has, which can affect its financial stability and ability to support its franchisees. Reviewing the notes to the financial statements, particularly Note 7 regarding commitments and contingencies, offers further context on potential liabilities not explicitly listed but which could impact the company's financial health.