What were the other hotel operations expenses for Even Hotels in 2022 (in thousands)?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | 2,466 | – | – |
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the expenses for other hotel operations in 2022 were $7,397,000. This figure represents costs beyond the typical expenses such as property taxes, insurance, maintenance, and administrative costs. For a prospective franchisee, understanding this number is crucial as it reflects the cost of running the hotel's operations, which can impact the profitability of the franchise.
These 'other' hotel operation expenses can include a variety of costs specific to the hotel's day-to-day activities. Franchisees should seek clarification from Even Hotels about what specific costs are included in this category to better understand and forecast their potential expenses. This will allow for more accurate financial planning and budgeting.
It's important to note that these figures are based on past performance and may not be indicative of future results. Factors such as changes in market conditions, competition, and the franchisee's management skills can all impact actual expenses. Therefore, while this information provides a useful benchmark, prospective franchisees should conduct their own due diligence and consult with financial advisors to assess the potential financial viability of an Even Hotels franchise.