From which geographic locations does The Standardx's Owned and leased segment primarily derive its earnings?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Owned and leased—This segment derives its earnings from owned and leased hotel properties located predominantly in the United States but also in certain international locations, and for purposes of segment Adjusted EBITDA, includes our pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA, based on our ownership percentage of each venture. Adjusted EBITDA includes intercompany management fee expenses paid to our management and franchising segment, which are eliminated in consolidation. Intersegment revenues relate to promotional award redemptions earned by our owned and leased hotels related to our co-branded credit card programs and are eliminated in consolidation.
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the Owned and leased segment primarily generates its earnings from hotel properties. These properties are predominantly located in the United States, but also include certain international locations. Additionally, the segment's Adjusted EBITDA incorporates The Standardx's pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA, based on the company's ownership percentage in each venture. This indicates that earnings are not solely derived from direct ownership or lease of properties but also from investments in other hospitality ventures.
For a prospective franchisee, this information highlights that The Standardx's revenue streams are diversified geographically, with a strong base in the United States and some international exposure. The inclusion of unconsolidated ventures in the Adjusted EBITDA suggests that The Standardx strategically invests in other hospitality businesses to expand its reach and profitability. Understanding the geographic distribution of these owned and leased properties, as well as the nature and location of the unconsolidated ventures, would be crucial for assessing the stability and growth potential of this segment.
While the FDD specifies that the Owned and leased segment operates predominantly in the United States with some international presence, it does not provide a detailed breakdown of the specific countries or regions where these international properties are located. A prospective franchisee should inquire about the specific geographic locations of these international properties and unconsolidated ventures to gain a clearer understanding of the segment's international operations and associated risks and opportunities. This information would be valuable in evaluating the overall financial health and strategic direction of The Standardx.