What was the net income for Even Hotels as of December 31, 2023?
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 net income as of December 31, 2023, was $760,670. This figure is derived from the consolidated statements of net income. It's important to note that this net income is part of a larger financial picture that includes revenues, operating expenses, interest income, and other financial activities.
Understanding the components that contribute to net income is crucial for prospective franchisees. For Even Hotels, these include fee business, hotel operations, and system fund revenues, offset by various operating expenses such as bad debt, property taxes, maintenance, and general administrative costs. The document also details interest income from affiliates and external sources, gains or losses on securities, and foreign transaction gains or losses, all of which factor into the final net income figure.
Potential franchisees should consider this net income in the context of the overall financial health of Even Hotels. While a positive net income is generally a good sign, it's essential to analyze the trends over multiple years and understand the factors driving these results. Reviewing the detailed breakdown of revenues and expenses can provide insights into the sustainability and potential growth of the franchise system.
Furthermore, it is important for prospective franchisees to consult with a financial advisor to fully understand the implications of these financial statements. A comprehensive analysis should also include a review of the notes to the consolidated financial statements, which provide additional details on items such as income taxes, investments in unconsolidated entities, and related-party transactions, all of which can impact the financial performance of Even Hotels.