What were the net revenues for Hawthorn Suites By Wyndham as of December 31, 2023?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
legal and tax-related costs.
Gain on Asset Sale, Net
In March 2022, the Company completed the sale of its Wyndham Grand Bonnet Creek Resort for gross proceeds of $21 million ($118 million, net of transaction costs) and recognized a $35 million gain, net of transaction costs, for the year ended December 31, 2022. Such amounts were attributable to the Company's hotel management business and were reported within gain on asset sale, net on the Consolidated Statement of Income. Additionally, the Company entered into a 20 year franchise agreement with the buyer.
In May 2022, the Company completed the sale of its Wyndham Grand Rio Mar Resort for
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 company recorded license fees from its former parent company in the amount of $90 million during 2023. Additionally, the company recorded revenues of $15 million during 2023 for activities associated with the Wyndham Rewards program. The company also recorded license fees from a former affiliate of $7 million during 2023. These fees are recorded within license and other fees on the Consolidated Statements of Income.
These figures represent specific revenue streams related to licensing, loyalty programs, and affiliate fees, not the overall net revenue for Hawthorn Suites By Wyndham. A prospective franchisee should understand that these revenue figures reflect specific aspects of the company's financial performance related to its relationships with its parent company, loyalty program, and affiliates.
It is important to note that these revenue streams may not directly correlate with the revenues generated by individual Hawthorn Suites By Wyndham franchised locations. Franchisees should focus on understanding how these corporate-level revenues support the brand and its services, and how their own location's revenue will be generated through room rentals and other services offered directly to customers.