What was the pre-tax loss recognized by The Standardx from the sale of Hyatt Regency O'Hare Chicago?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
sold Hyatt Regency O'Hare Chicago to an unrelated third party and accounted for the transaction as an asset disposition. We received $11 million of proceeds, net of closing costs and proration adjustments, issued a $20 million secured financing receivable with a maturity date of five years (see Note 6), and committed to loan up to $45 million for a future renovation. Upon sale, we entered into a long-term franchise agreement for the property. The sale resulted in a $5 million pre-tax loss, 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 Orlando—During the year ended December 31, 2024, we sold
Source: Item 23 — Receipts (FDD pages 85–132)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company recognized a pre-tax loss of $5 million from the sale of the Hyatt Regency O'Hare Chicago during the year ended December 31, 2024. The Standardx sold the hotel to an unrelated third party and accounted for the transaction as an asset disposition.
In addition to receiving $11 million in proceeds (net of closing costs and proration adjustments), The Standardx issued a $20 million secured financing receivable with a maturity date of five years and committed to loan up to $45 million for a future renovation. Upon the sale, The Standardx entered into a long-term franchise agreement for the property.
This loss was recognized in gains (losses) on sales of real estate and other on The Standardx's consolidated statements of income. The operating results and financial position of the hotel prior to the sale remain within The Standardx's owned and leased segment.