What were the total expenses for Surestay Hotel By Best Western for the year 2022?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
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Consolidated Statements of Revenues and Expenses
| (in thousands) | 2023 | Years Ended November 30, 2022 | |
|---|---|---|---|
| REVENUES: | |||
| Fees, dues and assessments | $ 293,536 | $ 276,766 | |
| Program revenues | 180,273 | 165,915 | |
| Other revenues | 62,787 | 51,199 | |
| TOTAL REVENUES | 536,596 | 493,880 | |
| EXPENSES: | |||
| Compensation, taxes and benefits | 197,303 | 175,005 | |
| Advertising and promotion | 121,415 | 105,950 | |
| Depreciation and amortization | 18,162 | 14,748 | |
| General and administrative | 88,222 | 77,477 | |
| Program cost of sales | 19,540 | 16,531 | |
| TOTAL EXPENSES | 444,642 | 389,711 | |
| Net realized and unrealized gains (losses) on investments | 12,414 | (1,391) | |
| Interest and dividend income, and interest expense, net | 12,150 | 2,160 | |
| Excess of revenues over expenses before income taxes | 116,518 | 104,938 | |
| Income tax provision | (27,498) | (17,169) | |
| Excess of revenues over expenses | 89,020 | 87,769 | |
| Excess of expenses over revenues | |||
| attributable to non-controlling interests | 299 | 310 | |
| EXCESS OF REVENUES OVER EXP |
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 total expenses for the year ended November 30, 2022, were $389.71 million. This figure encompasses several categories of expenses, providing a comprehensive view of the company's financial activities.
The expenses include compensation, taxes, and benefits, which amounted to $175.005 million. Advertising and promotion expenses totaled $105.950 million, reflecting the company's investment in marketing and brand awareness. Depreciation and amortization expenses were $14.748 million, indicating the cost of using assets over time. General and administrative expenses accounted for $77.477 million, covering the costs of managing the company's operations. Lastly, the program cost of sales was $16.531 million, representing the direct costs associated with the company's programs.
Prospective franchisees should consider these expenses when evaluating the financial health and stability of Surestay Hotel By Best Western. Understanding the breakdown of these expenses can help franchisees assess the resources allocated to various aspects of the business, such as marketing, employee compensation, and administrative functions. This information is crucial for making informed decisions about the potential profitability and sustainability of a Surestay Hotel By Best Western franchise.