What was the amount of accrued compensation for Sonesta Select Sonesta Essential as of December 31, 2024?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
matters that we identified during the audit.
March 24, 2025
RED LION HOTELS CORPORATION CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 13,316 | $ | 37,753 |
| Accounts receivable, net | 9,258 | 7,259 | ||
| Notes receivable, net | 40 | 42 | ||
| Prepaid expenses and other current assets | 4,592 | 3,441 | ||
| Total current assets | 27,206 | 48,495 | ||
| Property and equipment, net | 1,178 | 816 | ||
| Intangible assets, net | 20,884 | 21,153 | ||
| Operating lease right of use assets | 1,686 | 2,131 | ||
| Goodwill | 19,680 | 19,680 | ||
| Other long term as sets | 30,308 | 12,324 | ||
| Total assets | $ | 100,942 | $ | 104,599 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 1,481 | $ | 1,915 |
| Accrued compensation | 4,202 | 3,745 | ||
| Accrued expenses and other current liabilities | 868 | 1,631 | ||
| Operating lease liabilities | 581 | 595 | ||
| Total current liabilities | 7,132 | 7,886 | ||
| Long term liabilities: | ||||
| Operating lease liabilities, net of current portion | 1,218 | 1,680 | ||
| Due to related parties | 7,234 | 8,768 | ||
| Deferred income taxes | 235 | 235 | ||
| Loyalty program | 139 | - | ||
| Other long-term liabilities | 6,753 | 4,886 | ||
| Total long term liabilities | 15,579 | 15,569 | ||
| Total liabilities | 22,711 | 23,455 | ||
| Commitments and contingencies (Note 8) | ||||
| Shareholders' Equity: | ||||
| Common shares, $0.01 par value; |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the accrued compensation as of December 31, 2024, was $4,202. This figure represents the amount of compensation that Sonesta Select Sonesta Essential owed to its employees or related parties but had not yet paid out by the end of the fiscal year. Accrued compensation is a current liability, meaning it is expected to be paid within one year.
For a prospective franchisee, understanding the accrued compensation can provide insights into the company's short-term financial obligations. It reflects the company's practices regarding employee payments and any outstanding compensation-related liabilities. A higher accrued compensation might indicate a delay in payments or a different compensation structure, while a lower amount could suggest prompt payment practices.
It's important to note that this figure is just one component of the overall financial health of Sonesta Select Sonesta Essential. Franchisees should consider this number in conjunction with other financial metrics, such as accounts payable, total current liabilities, and overall profitability, to gain a comprehensive understanding of the company's financial standing. Reviewing these figures over multiple years, as presented in the table, can also reveal trends and patterns in Sonesta Select Sonesta Essential's financial management.