What was the amount of loyalty revenue for Hawthorn Suites By Wyndham in 2022?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
ered the entity's primary beneficiary. The Company consolidates those VIEs for which it has determined that it is the primary beneficiary. The Company will consolidate an entity not deemed a VIE upon a determination that it has a controlling financial interest. For entities where the Company does not have a controlling financial interest, the investments in such entities are classified as available-for-sale securities or accounted for using the equity method, as appropriate.
Use of Estimates and Assumptions
The preparation of the Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in the Consolidated Financial Statements and accompanying notes. Although these estimates and assumptions are based on the Company's knowledge of current events and actions it may undertake in the future, actual results may ultimately differ from estimates and assumptions.
Revenue Recognition
The principal source of revenues from franchising hotels is ongoing royalty, marketing and reservation fees, which are typically a percentage of gross room revenues of each franchised hotel. For a more detailed description of revenue recognition see Note 3 - Revenue Recognition.
Loyalty Program
The Company operates the Wyndham Rewards loyalty program. Loyalty members primarily accumulate points by staying in hotels operated under one of the Company's brands. Wyndham Rewards members may also accumulate points by purchasing everyday services and products with their Wyndham Rewards co-branded credit card.
The Company earns revenue from these programs (i) when a member stays at a participating hotel or club resort or vacation rental from a fee charged by the Company to the property owner or manager, which is based upon a percentage of room revenues generated from such stay which the Company recognizes, net of redemptions, over time based upon loyalty point redemption patterns, including an estimate of loyalty points that will expire or will never be redeemed, and (ii) based upon a percentage of the member's spending on the Wyndham Rewards co
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Hawthorn Suites By Wyndham discusses revenues earned from the Wyndham Rewards loyalty program. This program allows members to accumulate points primarily by staying at hotels operated under the company's brands. Members can also earn points through purchases made with their Wyndham Rewards co-branded credit card.
Hawthorn Suites By Wyndham earns revenue from the loyalty program through fees charged to property owners or managers when a member stays at their participating hotel, club resort, or vacation rental. The fee is a percentage of the room revenues generated from the stay. Additionally, revenue is earned based on a percentage of member spending on the Wyndham Rewards co-branded credit cards, paid to the company by a third-party issuing bank.
The document mentions that the recorded liability related to the program totals $105 million and $117 million as of December 31, 2024 and 2023, respectively. However, the excerpt does not specifically state the amount of loyalty revenue earned by Hawthorn Suites By Wyndham in 2022.
To get the specific loyalty revenue figure for 2022, a prospective franchisee should ask Hawthorn Suites By Wyndham directly for this information. Understanding the historical trends in loyalty program revenue can be crucial in assessing the potential financial performance of a Hawthorn Suites By Wyndham franchise.