What was the change in accounts receivable for Surestay Hotel By Best Western in 2023 (in thousands)?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
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Consolidated Statements of Financial Position
| (in thousands) | 2023 | 2022 | |
|---|---|---|---|
| ASSETS | |||
| CURRENT ASSETS: | |||
| Cash and cash equivalents | $ 161,159 | $ 239,426 | |
| Restricted cash | 12,194 | 11,089 | |
| Short-term investments | 15,939 | 16,396 | |
| Accounts receivable, principally from Members, net | 61,858 | 72,182 | |
| Prepaid expense |
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 accounts receivable, principally from Members, net, decreased from $72,182,000 in 2022 to $61,858,000 in 2023. This represents a decrease of $10,324,000 in accounts receivable from 2022 to 2023.
Accounts receivable represents money owed to Surestay Hotel By Best Western by its members, franchisees, and licensees, primarily from fees, services, and product sales. A decrease in accounts receivable could indicate several factors, such as improved collection efforts, a decrease in sales on credit, or changes in the payment behavior of members.
For a prospective Surestay Hotel By Best Western franchisee, this information provides insight into the financial health and revenue collection efficiency of the company. Monitoring trends in accounts receivable can help assess the stability of the revenue stream and the effectiveness of the company's financial management practices. A significant decrease, as seen here, warrants further investigation to understand the underlying causes and potential implications for franchisees.