What is included in the owned and leased revenues for The Standardx?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Owned and leased revenues—Owned and leased revenues are derived from room rentals and services provided at our owned and leased hotels.
We present revenues net of sales, occupancy, and other taxes.
Taxes collected on behalf of, and remitted to, governmental taxing authorities are excluded from the transaction price of the underlying products and services.
Rental income recognized in owned and leased revenues on our consolidated statements of income was follows:
We provide room rentals and other services to our guests, including, but not limited to, food and beverage, spa, laundry, and parking. These products and services each represent individual performance obligations, and in exchange for these services, we receive fixed amounts based on published rates or negotiated contracts. Payment is due in full at the time the services are rendered or the goods are provided. If a guest enters into a package including multiple goods or services, the fixed price is allocated to each distinct good or service based on the standalone selling price for each item. Revenues are recognized over time when we transfer control of the good or service to the customer. Room rental revenues are recognized on a daily basis as the guest occupies the room, and revenues related to other products and services are recognized when the product or service is provided to the guest.
The operating results and financial position of this hotel prior to the sale remain within our owned and leased segment.
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, owned and leased revenues are generated from room rentals and services offered at hotels that The Standardx owns or leases. These services include, but are not limited to, food and beverage, spa treatments, laundry services, and parking facilities. The document specifies that these various products and services each constitute individual performance obligations. In return for these services, The Standardx receives fixed payments based on published rates or negotiated contracts. Payment is expected in full when the services are rendered or the goods are provided. If a guest purchases a package that includes multiple goods or services, the fixed price is allocated to each distinct item based on its standalone selling price.
The revenues are recognized over time as The Standardx transfers control of the goods or services to the customer. Specifically, room rental revenues are recognized daily as the guest occupies the room. Revenues from other products and services are recognized when the product is provided or the service is rendered to the guest. The Standardx presents revenues net of sales, occupancy, and other taxes, and taxes collected on behalf of governmental taxing authorities are excluded from the transaction price of the underlying products and services.
Additionally, The Standardx leases retail space at some of its owned hotels, and rental income recognized from these leases is included in owned and leased revenues. The rental payments are primarily fixed, with some variable payments based on a contractual percentage of revenues. During the year ended December 31, 2024, The Standardx sold Hyatt Regency Orlando and an adjacent undeveloped land parcel for $723 million. The operating results and financial position of this hotel prior to the sale are included within The Standardx's owned and leased segment.