What was included in the pre-tax gain recognized by The Standardx from the sale of Park Hyatt Zurich?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Hyatt Zurich to an unrelated third party and accounted for the transaction as an asset disposition. We received proceeds of CHF 220 million (approximately $244 million), net of closing costs and proration adjustments, and issued a CHF 41 million (approximately $45 million) secured financing receivable with an initial maturity date of five years (see Note 6). Upon sale, we entered into a long-term management agreement for the property. The sale resulted in a $257 million pre-tax gain, including the reclassification of $6 million of currency translation gains from accumulated other comprehensive loss (see Note 16), which was recognized in gains (losses) on sales of real estate and other on our consolidated statements of income during the year ended December 31, 2024. The operating results and financial position of this hotel prior to the sale remain within our owned and leased segment.
Hyatt Regency San Antonio Riverwalk—During the year ended December 31,
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the sale of Park Hyatt Zurich during the year ended December 31, 2024, resulted in a $257 million pre-tax gain. This gain was recognized in gains (losses) on sales of real estate and other on The Standardx's consolidated statements of income.
Included in this $257 million pre-tax gain was the reclassification of $6 million of currency translation gains from accumulated other comprehensive loss. This reclassification is detailed in Note 16 of The Standardx's financial statements. The sale itself was accounted for as an asset disposition, with proceeds of CHF 220 million (approximately $244 million) received, net of closing costs and proration adjustments.
Additionally, The Standardx issued a CHF 41 million (approximately $45 million) secured financing receivable with an initial maturity date of five years as part of the transaction. Despite the sale, The Standardx entered into a long-term management agreement for the property, and the operating results and financial position of the hotel prior to the sale remain within The Standardx's owned and leased segment.