What was the weighted-average discount rate for finance leases for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Weighted-average remaining lease term | ||
| Operating leases | 3.3 years | 3.6 years |
| Finance leases | 0 | 5.7 years |
| Weighted-average discount rate | ||
| Operating leases | 5.4 % | 4.9 % |
| Finance leases | 4.5 % | 4.3 % |
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 weighted-average discount rate for finance leases was 4.5% as of December 31, 2024, and 4.3% as of December 31, 2023. This information is part of the financial data presented in the FDD.
For a prospective franchisee, understanding the discount rate applied to finance leases can be important if they plan to lease property or equipment rather than purchase it outright. The discount rate reflects the cost of borrowing and can impact the overall financial obligations of the lease. A higher discount rate would translate to higher lease payments over the term of the lease.
It's worth noting that the weighted-average remaining lease term for finance leases was 0 as of December 31, 2024, indicating that Hawthorn Suites By Wyndham may have purchased the property for its corporate headquarters. This detail provides additional context to the finance lease information presented in the FDD. Franchisees should consult with financial advisors to fully understand the implications of finance leases and discount rates on their investment.