What was the total value of intangible assets, net, for Springhill Suites By Marriott 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 records costs incurred to obtain contracts with customers within the "Intangible assets, net" caption of their Balance Sheets. These costs are incremental costs that Marriott incurs on behalf of the franchise to acquire franchise and license agreements, which are then reimbursed through a related party payable. These costs are amortized on a straight-line basis over the initial term of the underlying agreements, which range from 10 to 30 years. This amortization is reflected in the "Contract investment amortization" and "Cost reimbursement revenue" captions of their Income Statements.
The FDD mentions 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. These franchise contracts have a weighted-average term of 24 years, and the acquired intangible assets are amortized on a straight-line basis over the remaining term of the agreements. The expense is recorded in the "Amortization and depreciation expense" caption of the Income Statements. The company derecognized $3,105 (in thousands) of previously capitalized costs incurred to obtain these contracts. The estimated aggregate amortization expense for each of the next five fiscal years through December 31, 2029, will be approximately $67 (in thousands).
While the FDD describes how Springhill Suites By Marriott accounts for intangible assets, it does not provide the total value of intangible assets, net, as of December 31, 2024. A prospective franchisee would need to consult the complete financial statements, which are not included in the provided excerpts, or directly ask the franchisor for this specific figure to understand the company's financial position regarding intangible assets.