What were the capital expenditures for Sonesta Select Sonesta Essential in 2022?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
31, 2024 | 25,464,899 | $ 255 | $ 87,652 | $ (9,676) | $ 78,231 | |
RED LION HOTELS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
| (uoriai 5 ili tilousanus | December 31, | |||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | (Restated) | 2022 | |||
| Cash flows from operating activities: | ||||||
| Net income (loss) | $ | (2,913) | $ | 1,477 | $ | (3,186) |
| Adjustments to reconcile net loss to cash provided by (used in) operating activities: | ||||||
| Depreciation and amortization | 489 | 1,691 | 3,506 | |||
| Amortization of key money and contract costs | 1,514 | 396 | 7 | |||
| Amortization of contract liabilities | 192 | 1,497 | 713 | |||
| Deferred income taxes | - | 1 | 1 | |||
| Provision (Recovery) of doubtful accounts | 1,112 | (1,819) | 654 | |||
| Other income (expense), net | - | - | 846 | |||
| Loss (gain) on sale of hotel | 153 | (160) | - | |||
| Change in current assets and liabilities | ||||||
| Accounts receivable, net | (3,111) | (942) | (50) | |||
| Prepaid expenses and other current assets | (706) | (414) | (541) | |||
| Other long term assets | (19,498) | (9,440) | (1,007) | |||
| Accounts payable | (434) | (436) | (682) | |||
| Loyalty program liability | 139 | - | - | |||
| Accrued compensation, accrued expenses, and other liabilities | 893 | (2,777) | 3,600 | |||
| Net cash provided by (used in) operating activities | (22,170) | (10,926) | 3,861 | |||
| Cash flows from investing activities: | ||||||
| Capital expenditures | (735) | (433) | (358) | |||
| Proceeds from sale of hotel | - | 550 | - | |||
| Merger purchase price adjustment | - | - | (264) | |||
| Disbursement of notes receivable | (12) | - | - | |||
| Collection of notes receivable | 14 | 39 | 54 | |||
| Cash transfers from (to) parent for centralized cash management | 38,264 | (3,245) | ||||
| Net cash provided by (used in) investing activities | (733) | 38,420 | (3,813) | |||
| Cash flows from financing activities: | ||||||
| Cash transfers from (to) parent for centralized cash management | (1,534) | 8,768 | ||||
| Net cash provided by (used in) financing activities | (1,534) | - | 8,768 | |||
| Change in cash and cash equivalents: | ||||||
| Net increase (decrease) in cash and cash equivalents | (24,437) | 36,262 | 48 | |||
| Cash |
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 capital expenditures for the company in 2022 were $358. This figure represents the investments made by Sonesta Select Sonesta Essential in its property and equipment during that year.
Capital expenditures are important for maintaining and upgrading facilities, which can impact the guest experience and the overall profitability of a franchise. For a prospective franchisee, understanding the level of capital expenditures required can help in financial planning and assessing the long-term viability of the investment.
It's worth noting that this figure reflects the capital expenditures of the company itself, RLH Corporation, and may not directly represent the capital expenditure requirements for an individual Sonesta Select Sonesta Essential franchise. Franchisees should consult with the franchisor to understand the specific capital expenditure expectations for their location, including any required renovations or upgrades.