What was the balance as of December 31, 2023 for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
s, 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)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the recorded liability related to the Wyndham Rewards loyalty program totaled $117 million as of December 31, 2023. This liability reflects the estimated future redemption costs associated with loyalty points earned by members.
Of this $117 million, $75 million was included in accrued expenses and other current liabilities on the company's Consolidated Balance Sheets. The remaining $42 million was categorized under other non-current liabilities.
For a prospective Hawthorn Suites By Wyndham franchisee, this indicates the financial obligations Wyndham Hotels & Resorts has related to its loyalty program. Understanding these liabilities can provide insight into the potential long-term financial health and stability of the overall Wyndham system, which Hawthorn Suites By Wyndham is a part of.