What were the general and administrative expenses for Even Hotels in 2022 (in thousands)?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
y, no such opinion is expressed.
- x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Atlanta, Georgia April 15, 2025
Consolidated Balance Sheets
(In Thousands)
| 2024 | 2023 | 2022 |
|---|
Consolidated Statements of Net Income (In Thousands)
| Year Ended December 31 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 Revised ¹ | 2022 Revised ¹ | |||
| Revenues | |||||
| Fee business | $ | 896,837 | $ 869,949 | $ | 808,297 |
| Hotel operations | 92,579 | 88,417 | 78,787 | ||
| Other | 339,236 | 304,264 | 264,377 | ||
| System Fund and reimbursable revenues | 2,425,248 | 2,280,490 | 1,880,587 | ||
| Total revenues | 3,753,900 | 3,543,120 | 3,032,048 | ||
| Operating expenses | |||||
| Bad debt expense (release) (Note 2) | 9,170 | (1,988) | (3,495) | ||
| Property and other taxes, insurance and leases | 25,576 | 46,084 | 49,435 | ||
| Maintenance and repairs | 51,344 | 59,588 | 48,991 | ||
| General and administrative expenses | 574,738 | 563,909 | 414,334 | ||
| Other hotel operations | 9,038 | 7,798 | 7,397 | ||
| Mark-up cost charged by affiliated companies | 12,904 | 16,240 | 12,684 | ||
| Allocation of expenses to affiliated companies | (155,437) | (168,690) | (134,560) | ||
| Depreciation and amortization of software | 32,766 | 33,911 | 36,042 | ||
| Amortization of finite-lived intangible assets | 4,636 | 5,734 | 5,088 | ||
| Impairment loss |
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the general and administrative expenses for the year ended December 31, 2022, were $414,334 (in thousands). This figure represents the costs associated with the overall management and administration of the Even Hotels franchise system. These expenses do not include costs directly related to hotel operations or the System Fund.
General and administrative expenses typically include items such as salaries for corporate staff, office expenses, legal and accounting fees, and other overhead costs necessary to run the franchise system. For a prospective franchisee, understanding this figure provides insight into the operational costs incurred by Even Hotels as a franchisor. It's important to note that these expenses are distinct from the costs a franchisee will incur in operating their individual Even Hotels location.
Franchisees should consider the franchisor's general and administrative expenses in the context of the overall financial health and stability of the franchise system. A significant increase in these expenses from year to year could indicate potential financial challenges or strategic shifts within the organization. Conversely, stable or decreasing expenses might suggest efficient management and cost control. Reviewing these figures over several years, as presented in the FDD, can provide a more comprehensive understanding of the franchisor's financial management practices.
It is also important for potential franchisees to compare Even Hotels' general and administrative expenses with those of other franchise systems in the hospitality industry to benchmark efficiency and cost management. While this number provides a glimpse into the franchisor's operational costs, prospective franchisees should focus on the expenses and fees they will be directly responsible for as outlined elsewhere in the FDD.