What was the total amount of Even Hotels' receivables from affiliates in the earlier year presented in the table?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
flected in franchise royalty fees (see Note 3). All amounts due to or from affiliates, other than a line of credit from an affiliate (see Note 5), are non-interest-bearing and have no stated maturity date.
Net payables to affiliates included in the balance sheets are $202.6 million and $148.7 million at December 31, 2024 and 2023, respectively. These current amounts are of a working capital nature. Receivables from affiliates are considered to be fully recoverable on the basis of the Group's creditworthiness (see Note 5).
An affiliated company has made commitments to pay key money on behalf of the Company. During the years ended December 31, 2024, 2023 and 2022, contract assets, net of disposals, totaling $40.3 million, $24.9 million and $33.0 million, res
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, as of December 31, 2023, the amount receivable from affiliates was $702.1 million. This figure represents the amount remaining receivable from Six Continents Hotels, Inc., which includes interest receivable. The line of credit facility from which this receivable arises is currently $1.0 billion with a maturity date of 31 March 2027 and accrues interest at the IRS applicable federal interest rate compounded monthly.
In 2023, Even Hotels recognized $27.8 million as interest income on this line of credit. There were no related fees and costs incurred on the line of credit in any of the years. On the maturity date, the entire outstanding principal balance, together with all accrued and unpaid interest, are due and payable in full.
For a prospective franchisee, this indicates that Even Hotels has significant financial interactions with its affiliates, particularly through a substantial line of credit. While the receivables are considered fully recoverable, the franchisee should be aware of the reliance on affiliated entities for financial transactions and the potential impact of these relationships on the overall financial health of the company. Understanding the terms and conditions of the line of credit and the nature of the transactions with affiliates is crucial for assessing the financial stability of Even Hotels.