What was the number of stock options granted for Hawthorn Suites By Wyndham in 2024?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has a stock-based compensation plan available to grant non-qualified stock options, incentive stock options, stock-settled appreciation rights ("SSARs"), RSUs, performance-vesting restricted stock units ("PSUs") and/or other stock-based awards to key employees and non-employee directors. Under the Amended and Restated Wyndham Hotels & Resorts, Inc. 2018 Equity and Incentive Plan ("Stock Plan"), which originally became effective on May 14, 2018 and was amended and restated on November 20, 2024, a maximum of 10.0 million shares of common stock may be awarded. As of December 31, 2024, 4.4 million shares remained available.
During 2024, the Company granted incentive equity awards totaling $36 million to key employees and senior officers in the form of RSUs. The RSUs generally vest ratably over a period of four years based on continuous service. Additionally, the Company approved incentive equity awards to key employees and senior officers in the form of PSUs with a maximum grant value of $18 million. The PSUs generally cliff vest on the third anniversary of the grant date based on continuous service with the number of shares earned (0% to 200% of the target award) dependent upon the extent to which the Company achieves certain performance metrics.
The fair value of stock options granted by the Company were estimated on the date of the grant using the Black-Scholes option-pricing model with the relevant assumptions outlined in the table below. Expected volatility is based on both historical and implied volatilities of the stock of comparable companies over the estimated expected life of the options. The expected life represents the period of time the options are expected to be outstanding. The risk-free interest rate is based on yields on U.S. Treasury strips with a maturity similar to the estimated expected life of the options. The projected dividend yield was based on the Company's anticipated annual dividend divided by the price of the Company's stock on the date of the grant.
Source: Item 23 — RECEIPTS (FDD pages 92–402)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Hawthorn Suites By Wyndham's parent company, Wyndham Hotels & Resorts, Inc., has a stock-based compensation plan. This plan allows for the granting of non-qualified stock options, incentive stock options, stock-settled appreciation rights (SSARs), restricted stock units (RSUs), performance-vesting restricted stock units (PSUs), and other stock-based awards to key employees and non-employee directors. The Stock Plan, which was amended and restated on November 20, 2024, originally became effective on May 14, 2018.
Under this plan, a maximum of 10.0 million shares of common stock may be awarded. As of December 31, 2024, 4.4 million shares remained available for future grants. In 2024, the company granted incentive equity awards totaling $36 million to key employees and senior officers in the form of RSUs. These RSUs generally vest ratably over a period of four years based on continuous service. Additionally, incentive equity awards in the form of PSUs were approved for key employees and senior officers, with a maximum grant value of $18 million. These PSUs generally cliff vest on the third anniversary of the grant date, with the number of shares earned (ranging from 0% to 200% of the target award) dependent upon the company's achievement of certain performance metrics.
While the document mentions the granting of RSUs and PSUs, it does not specify the exact number of stock options granted during 2024. The document does mention that the fair value of stock options are estimated using the Black-Scholes option-pricing model. The expected volatility is based on historical and implied volatilities of comparable companies, while the risk-free interest rate is based on yields on U.S. Treasury strips.
A prospective Hawthorn Suites By Wyndham franchisee should note that the information provided pertains to the equity awards granted to key employees and senior officers of the parent company, Wyndham Hotels & Resorts, Inc., and not directly to franchisees. For further clarification on the specific number of stock options granted in 2024, a prospective franchisee should consider asking the franchisor for more detailed information regarding the stock option grants and the criteria used for determining eligibility and vesting schedules.