What specific financial measures does The Standardx's CODM use to evaluate performance?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
Our CODM evaluates performance based on gross fee revenues, owned and leased revenues, distribution revenues, other revenues, and Adjusted EBITDA. Our CODM uses these measures to evaluate trends and assess segment operating performance as compared to our industry and competitors in order to determine how to allocate resources to each segment. Significant segment expenses include Adjusted general and administrative expenses, owned and leased expenses, and distribution expenses. Our CODM does not evaluate our operating segments using discrete asset information.
We define Adjusted EBITDA as net income (loss) attributable to Hyatt Hotels Corporation plus net income (loss) attributable to noncontrolling interests and our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA based on our ownership percentage of each owned and leased venture, adjusted to exclude Contra revenue; revenues for reimbursed costs; stock-based compensation expense; transaction and integration costs; depreciation and amortization; reimbursed costs that we intend to recover over the long term; equity earnings (losses) from unconsolidated hospitality ventures; interest expense; gains (losses) on sales of real estate and other; asset impairments; other income (loss), net; and benefit (provision) for income taxes.
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the company's Chief Operating Decision Maker (CODM) uses specific financial measures to evaluate performance. The CODM, who is the President and Chief Executive Officer, assesses performance based on gross fee revenues, owned and leased revenues, distribution revenues, other revenues, and Adjusted EBITDA. These metrics are used to evaluate trends and assess segment operating performance relative to the industry and competitors. This evaluation helps the CODM determine how to allocate resources to each segment of The Standardx's business.
Significant segment expenses considered by The Standardx's CODM include Adjusted general and administrative expenses, owned and leased expenses, and distribution expenses. However, the CODM does not evaluate operating segments using discrete asset information. This means that while revenues and certain expenses are closely monitored, the specific assets within each segment are not a primary focus of performance evaluation.
Adjusted EBITDA is defined as net income (loss) attributable to Hyatt Hotels Corporation plus net income (loss) attributable to noncontrolling interests and our pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA based on our ownership percentage of each owned and leased venture, adjusted to exclude Contra revenue; revenues for reimbursed costs; stock-based compensation expense; transaction and integration costs; depreciation and amortization; reimbursed costs that we intend to recover over the long term; equity earnings (losses) from unconsolidated hospitality ventures; interest expense; gains (losses) on sales of real estate and other; asset impairments; other income (loss), net; and benefit (provision) for income taxes. This comprehensive definition ensures that the Adjusted EBITDA provides a clear and consistent measure of core operational performance, aiding in comparability and management decision-making.