For The Standardx, what is included in the Adjusted EBITDA for the 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, primarily 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, mainly based on the company's ownership percentage in 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 also eliminated in consolidation.
For a prospective franchisee, understanding these components of Adjusted EBITDA is crucial for assessing the financial performance and profitability of The Standardx's owned and leased hotel operations. It provides insight into how intercompany transactions and promotional activities impact the segment's earnings, and how these are accounted for in the overall financial reporting.