What were the other hotel operations expenses for Even Hotels in 2024 (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 | – | – | ||
| System Fund and reimbursable expenses | 2,506,056 | 2,267,068 | 1,988,196 | ||
| Total operating expenses | 3,073,257 | 2,829,654 | 2,424,112 |
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the other hotel operations expenses for the year ending December 31, 2024, amounted to $9,038,000. This figure is part of the broader category of operating expenses, which totaled $3,073,257,000 for the same period. These expenses are a component of the overall financial performance of Even Hotels, influencing its operating income.
For a prospective franchisee, understanding these operational expenses is crucial. It provides insight into the day-to-day costs associated with running an Even Hotels franchise. The "Other hotel operations" category likely includes various miscellaneous expenses not covered in other line items such as property taxes, maintenance, or administrative costs. Knowing the specific components of this category would allow a franchisee to better forecast their potential profitability and manage their expenses effectively.
It's also beneficial to compare these figures with previous years to identify trends and potential areas of concern. For instance, the FDD indicates that other hotel operations expenses were $7,798,000 in 2023 and $7,397,000 in 2022. The increase in 2024 suggests a potential upward trend in these costs, which a franchisee should investigate further to understand the underlying reasons and potential impact on their investment. Reviewing these expenses over time helps in assessing the financial stability and operational efficiency of Even Hotels.