What was the interest cost for Even Hotels in 2024, 2023, and 2022?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
As described in Note 3, the Company has a finance lease on the InterContinental Hotel in Boston, Massachusetts. The lease commenced on August 1, 2006, with the first lease payment due on August 1, 2007. Interest expense of $23.2 million, $23.0 million and $22.9 million was incurred for the years ended December 31, 2024, 2023 and 2022, respectively. Accrued interest of $78.4 million and $76.3 million is included within 'finance lease obligations' on the consolidated balance sheets as of December 31, 2024 and 2023, respectively.
| Year Ended December 31 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 Revised ¹ | 2022 Revised ¹ | |||
| Interest expense – external | (25,746) | (24,680) | (25,519) | ||
| Interest income from affiliates, net | 287,364 | 252,394 | 141,160 | ||
| Interest income – external | 10,840 | 3,546 | 2,567 |
| 2024 | 2023 2022 | 2024 2023 2022 | |
|---|---|---|---|
| Interest cost | 1,517 | 1,656 1,058 | 593 628 405 |
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, interest expenses are detailed in Item 23. In 2024, Even Hotels incurred interest expenses of $23.2 million related to a finance lease on the InterContinental Hotel in Boston, Massachusetts. In 2023, the interest expense for the same lease was $23.0 million, and in 2022, it was $22.9 million. The lease commenced on August 1, 2006, with the first payment due on August 1, 2007. As of December 31, 2024, accrued interest of $78.4 million was included within 'finance lease obligations,' with $76.3 million reported for December 31, 2023.
Additionally, the FDD lists 'Interest expense – external' as ($25,746) for 2024, ($24,680) for 2023, and ($25,519) for 2022. These figures represent external interest expenses. There is also a line item for 'Interest income from affiliates, net' which shows income of $287,364 in 2024, $252,394 in 2023, and $141,160 in 2022. Furthermore, 'Interest income – external' is listed as $10,840 for 2024, $3,546 for 2023, and $2,567 for 2022.
Another section of Item 23 lists 'Interest cost' as $1,517 for 2024, $1,656 for 2023, and $1,058 for 2022. It is important to note that there are multiple categories of interest expenses and income reported, including those related to the finance lease, external interest, and transactions with affiliates. A prospective franchisee should carefully review these different categories to understand the overall interest-related financial activities of Even Hotels.