What was the depreciation and amortization of software expense for Even Hotels in 2024 (in thousands)?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
credit losses | $ | 53,457 | $ | 44,963 |
3. Property and Equipment
Property and equipment which includes the hotels owned by the Company, related furnishings and capitalized software, is carried at cost less accumulated depreciation and impairment (if applicable), and consisted of the following at December 31, 2024 and 2023 (in thousands):
| | December 31 | | | | |--------------------------------------------------------|-------------|-----------|----|-----------| | | 2024 | | | 2023 | | Land | $ | 6,105 | $ | 13,771 | | Building and improvements | | 64,941 | | 65,074 | | Furniture, fixtures, and equipment (including computer | | | | | | software) | | 930,042 | | 932,519 | | Assets held under finance leases | | 182,851 1,183,939 | | 182,851 1,194,215 | | Less accumulated depreciation and impairment | | (752,168) | | (700,770) | | Property and equipment, net | $ | 431,771 | $ | 493,445 | Notes to Consolidated Financial Statements (continued)
3. Property and Equipment (continued)
Total depreciation and amortization expense was $32.8 million, $33.9 million and $36.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. Software amortization included in this expense for the years ended December 31, 2024, 2023 and 2022, was $17.0 million,
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the depreciation and amortization of software expense for the year ending December 31, 2024, was $32.8 million. This figure reflects the expense recognized for the use of software assets over their estimated useful lives.
For a prospective Even Hotels franchisee, understanding depreciation and amortization is crucial because it represents a non-cash expense that impacts the overall profitability of the franchise. While it doesn't involve an immediate cash outflow, it reflects the reduction in value of the software assets used to operate the business.
The FDD also notes that software amortization for the years ended December 31, 2023 and 2022, was $18.4 million and $21.9 million, respectively. This information can be useful for comparison and trend analysis, allowing potential franchisees to assess how software expenses have changed over time. Additionally, the document mentions that capitalized internal-use software had a net book value of $240.5 million as of December 31, 2024, and $290.9 million as of December 31, 2023, indicating the value of software assets Even Hotels uses.
It is important to note that these figures pertain to the overall financial statements of Even Hotels and may not directly reflect the specific software expenses a franchisee will incur. However, it provides insight into the company's investment in software and how these assets are accounted for, which can be a factor in assessing the technological infrastructure and support available to franchisees.