What is included in the Adjusted EBITDA for The Standardx's 'Owned and leased' segment?
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, primarily 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 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the 'Owned and leased' segment's Adjusted EBITDA includes earnings from owned and leased hotel properties, predominantly in the United States but also in certain international locations. It also incorporates The Standardx's pro rata share of unconsolidated hospitality ventures' Adjusted EBITDA, primarily based on the ownership percentage of each venture.
Specifically, the Adjusted EBITDA includes intercompany management fee expenses paid to the management and franchising segment, which are then eliminated during consolidation. Additionally, intersegment revenues related to promotional award redemptions earned by the owned and leased hotels from co-branded credit card programs are included, but these are also eliminated in consolidation.
For a prospective franchisee, this means that the reported Adjusted EBITDA for the 'Owned and leased' segment reflects the financial performance of the hotels The Standardx owns or leases, adjusted for certain internal transactions and shared ventures. Understanding these components is crucial for assessing the overall profitability and operational efficiency of this segment, as it provides insight into how intercompany transactions and shared ventures impact the segment's financial results.