What were the maintenance and repairs 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 | 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 | ||
| Operating income | 680,643 | 713,466 | 607 |
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the maintenance and repairs expenses for the year ended December 31, 2022, were $48,991. This figure is expressed in thousands of dollars, meaning the actual expense was $48,991,000.
Maintenance and repair costs are a standard operating expense for any hotel franchise, covering the upkeep and repair of the physical property, including rooms, common areas, and equipment. These expenses can fluctuate based on the age of the property, the quality of construction, and the level of preventative maintenance performed. Higher maintenance and repair costs can impact the profitability of an Even Hotels franchise, so understanding these historical expenses can help a franchisee project future costs.
Prospective franchisees should carefully consider these expenses when evaluating the financial viability of an Even Hotels franchise. It would be prudent to inquire about the specific factors that contributed to the maintenance and repair expenses in 2022 and to understand how Even Hotels manages and budgets for these costs across its franchised locations. This information can provide a more detailed understanding of potential financial obligations.