How does Surestay Hotel By Best Western amortize leasehold improvements?

According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, leasehold improvements are amortized using the straight-line method. This means the cost of the improvements is evenly spread out over a specific period.

For Surestay Hotel By Best Western, the amortization period is determined by whichever is shorter: the term of the lease or the estimated useful life of the assets. For example, if a franchisee makes improvements to a leased property with a 10-year lease term, but the estimated useful life of those improvements is 15 years, the amortization will occur over the 10-year lease term. Conversely, if the lease term is 15 years and the useful life is 10 years, the amortization period will be 10 years.

This approach to amortization allows Surestay Hotel By Best Western to systematically allocate the cost of leasehold improvements over the period they provide benefit, aligning expenses with revenues. Prospective franchisees should understand these accounting practices, as they impact the financial statements and reported profitability of their Surestay Hotel By Best Western franchise.