factual

What is excluded from the calculation of 'room night revenue' for Springhill Suites By Marriott?

Springhill_Suites_By_Marriott Franchise · 2025 FDD

Answer from 2025 FDD Document

"Room night revenue" means the total per-room fees and charges invoiced to the guest at the time a reservation is made (including resort fees, destination fees, and mandatory surcharges for facilities invoiced at the time of booking), regardless of whether the booking is subsequently cancelled. "Room night revenue" excludes sales, tax, value added tax, or similar taxes on such revenue.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 118–124)

What This Means (2025 FDD)

According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, 'room night revenue' is defined as the total per-room fees and charges invoiced to the guest at the time a reservation is made. This includes resort fees, destination fees, and mandatory surcharges for facilities invoiced at the time of booking, regardless of whether the booking is subsequently cancelled.

However, the calculation of 'room night revenue' for Springhill Suites By Marriott specifically excludes sales tax, value-added tax, or similar taxes on such revenue. This means that when Springhill Suites By Marriott calculates the percentage of revenue coming from different reservation channels, they only consider the base fees and charges, not the taxes collected on those amounts.

For a prospective franchisee, this definition is important because it provides clarity on how revenue is measured and reported. Understanding what is included and excluded from 'room night revenue' allows franchisees to accurately assess their financial performance and compare it against the performance of other Springhill Suites By Marriott locations. It also ensures consistency in financial reporting across the franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.