What were the total current liabilities for Hawthorn Suites By Wyndham at the end of 2024?
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 company recorded a liability of $105 million as of December 31, 2024, related to its loyalty program. This liability represents the estimated future redemption costs associated with loyalty points earned by members.
Of this total liability, $65 million was included in accrued expenses and other current liabilities on the company's Consolidated Balance Sheets as of December 31, 2024. The remaining $40 million was categorized as other non-current liabilities.
This breakdown indicates that a significant portion of the loyalty program liability is expected to be settled within the next year (current liabilities), while the remainder is anticipated to be redeemed over a longer period (non-current liabilities). For a prospective Hawthorn Suites By Wyndham franchisee, this information provides insight into the financial obligations associated with the Wyndham Rewards program and how these obligations are classified on the company's balance sheet.