What were the property and other taxes, insurance and leases 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 |
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the expenses for property and other taxes, insurance, and leases totaled $49,435,000 in 2022. This figure is part of the operating expenses reported in the consolidated statements of net income. For a prospective franchisee, this indicates the scale of expenses Even Hotels incurs related to property, taxes, insurance, and leases across its operations.
It's important to note that this number reflects expenses at the corporate level and may not directly translate to the costs a franchisee will face. Franchisees should conduct their own due diligence to estimate these costs for their specific location, considering factors such as local tax rates, insurance premiums, and lease terms. Understanding these expenses is crucial for developing an accurate financial model and assessing the profitability of an Even Hotels franchise.
Furthermore, the FDD indicates that operating lease costs are included within this category of property and other taxes, insurance, and leases. This implies that a portion of the $49,435,000 consists of lease payments for real estate and equipment used by Even Hotels. Franchisees should be aware of how lease costs are accounted for and how they might impact their own financial statements. Reviewing the notes to the consolidated financial statements, particularly Note 6 regarding leases, can provide additional context.
In summary, while the $49,435,000 figure provides a general benchmark, prospective Even Hotels franchisees must research and budget for their own specific property-related expenses, considering factors such as location, lease terms, and insurance requirements. Consulting with experienced financial advisors and conducting thorough market research are essential steps in this process.