What accounting standard was used for the AutoClerk acquisition by Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
On February 15, 2019, the Company entered into and closed a definitive Share Sale and Purchase Agreement with WorldHotels Holdings, LLC ("WH Holdings") and ALHI Holdings, LLC ("ALHI") to purchase 100% of the outstanding shares of BV Acquisitions X GmbH from WH Holdings (thereby also acquiring BV Acquisitions' approximately 98% ownership of the outstanding shares of WorldHotels Aktiengesellschaft ("WH")), and assumed certain rights and obligations of ALHI. During 2020, the Company acquired the remaining approximately 2% ownership of the outstanding shares of WH and now owns 100% of the outstanding shares. The WorldHotels Acquisition was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the acquisition of WorldHotels was accounted for using ASC Topic 805, Business Combinations. While the document mentions the acquisition of AutoClerk by Best Western International, it does not explicitly state the accounting standard used for this specific acquisition. AutoClerk, Inc. provides property management services.
Given that the FDD specifies the accounting standard used for the WorldHotels acquisition but omits this detail for AutoClerk, it's possible that a different standard was applied, or the information was deemed less relevant for disclosure. It is also possible that the accounting standard was the same, but the franchisor chose not to disclose it.
A prospective Surestay Hotel By Best Western franchisee who is interested in the financial details of the AutoClerk acquisition should consider asking the franchisor directly about the accounting standard used. This information can provide a better understanding of how the acquisition was handled from an accounting perspective and its potential impact on the company's financials.