What was the accumulated amortization for Springhill Suites By Marriott related to contracts in 2024?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
s:
| 2024 | 2023 | |
|---|---|---|
| Costs incurred to obtain contracts with customers | $ 31,016 | $ 30,858 |
| Other contract intangibles | 1,764 | 1,764 |
| $ 32,780 | $ 32,622 | |
| Accumulated amortization | (11,143) | (9,782) |
| $ 21,637 | $ 22,840 |
We capitalize only incremental costs that Marriott incurs on our behalf to acquire franchise and license agreements, which we reimburse through a related party payable. We record these costs incurred to obtain contracts with customers within the "Intangible assets, net" caption of our Balance Sheets. We amortize these costs on a straight-line basis over the initial term of the underlying agreements, ranging from 10 to 30 years, in the "Contract investment amortization" and "Cost reimbursement revenue" captions of our Income Statements.
In 2019, the Company recorded intangible assets of $1,764 related to its Parent's acquisition of its partner's remaining interest in a joint venture. The related franchise contracts have a weightedaverage term of 24 years. We amortize the acquired intangible assets on a straight-line basis over the remaining term of the underlying agreements and record the expense in the "Amortization and depreciation expense" caption of our Income
Source: Item 17 — , "Renewal, Termination, Transfer, and Dispute Resolution," is amended by the addition of the following paragraph(s) at the conclusion of the Item: (FDD pages 285–553)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Springhill Suites By Marriott capitalizes incremental costs incurred to acquire franchise and license agreements, which are then reimbursed through a related party payable. These costs are recorded as "Intangible assets, net" on the balance sheets and amortized on a straight-line basis over the initial term of the agreements, which range from 10 to 30 years. The amortization expense is reflected in the "Contract investment amortization" caption of the income statements.
The FDD states that in 2019, the company recorded intangible assets of $1,764 (in thousands) related to its Parent's acquisition of its partner's remaining interest in a joint venture, with a weighted-average term of 24 years. These acquired intangible assets are amortized on a straight-line basis, and the expense is recorded in the "Amortization and depreciation expense" caption of the income statements. The company derecognized previously capitalized costs of $3,105 (in thousands) incurred to obtain these contracts.
However, the 2025 Franchise Disclosure Document does not explicitly state the accumulated amortization related to contracts for Springhill Suites By Marriott as of December 31, 2024. While it mentions the accounting policies and provides some figures related to intangible assets and amortization, the specific accumulated amount for 2024 is not disclosed. A prospective franchisee would need to request this specific financial information from the franchisor to fully understand the amortization expenses associated with franchise contracts.