How does The Standardx present revenues from owned and leased hotels?
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.
Room rentals and other services provided at owned and leased hotels
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.
Hotels commonly enter into arrangements with online travel agencies, trade associations, and other entities. As part of these arrangements, we may pay the other party a commission or rebate based on the revenues generated through that channel. We recognize revenues gross or net of rebates and commissions depending on the terms of each contract.
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, revenues from owned and leased hotels are derived from room rentals and services provided at these hotels. These revenues are presented net of sales, occupancy, and other taxes. The taxes collected on behalf of governmental taxing authorities are excluded from the transaction price of the underlying products and services. This means that the reported revenue figures do not include taxes that The Standardx collects and remits to the government.
The Standardx provides room rentals and other services such as food and beverage, spa, laundry, and parking to guests at owned and leased hotels. Each of these services represents individual performance obligations. In exchange for these services, The Standardx receives fixed amounts based on published rates or negotiated contracts, with payment due 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.
Revenues are recognized over time as The Standardx transfers control of the good or service to the customer. Room rental revenues are recognized daily as the guest occupies the room, while revenues from other products and services are recognized when the product or service is provided. This approach ensures that revenue recognition aligns with the delivery of services and goods to the customer.
Additionally, The Standardx may enter into arrangements with online travel agencies, trade associations, and other entities, potentially paying commissions or rebates based on the revenues generated through those channels. The Standardx recognizes revenues either gross or net of these rebates and commissions, depending on the specific terms of each contract. This indicates that the reported revenue can be influenced by these arrangements, and the accounting treatment depends on whether The Standardx is acting as the principal or agent in the transaction.