What was the cash and cash equivalents at the beginning of the period for Sonesta Select Sonesta Essential in 2023?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
nesota Franchise Act, Minn. Stat. §§ 80C.01 et seq, governs the parties' franchise relationship, the following shall apply:
Any general release provided for hereunder shall not apply to any liability under the Minnesota Franchise Act.
If your Hotel is located in Washington or if you are a resident of Washington, the following shall apply:
Any general release provided for hereunder shall not apply with respect to claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
[Signature Page Follows]
IN WITNESS WHEREOF, the parties hereto have executed and delivered this release on the date set forth next to their respective signatures.
SONESTA RL HOTELS FRANCHISING INC.
| (dollars in thousands) | |||||
|---|---|---|---|---|---|
| 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 central |
Source: Item 23 — RECEIPTS (FDD pages 84–261)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the cash and cash equivalents at the beginning of the period in 2023 was $1,491,000. This figure represents the amount of readily available cash and cash equivalents the company had at the start of that year.
This information is useful for potential franchisees as it provides insight into the financial health and liquidity of Sonesta Select Sonesta Essential. A higher cash balance at the beginning of the period could indicate stronger financial stability.
However, it is important to consider this figure in conjunction with other financial data, such as cash flow from operations, investing, and financing activities, to get a comprehensive understanding of the company's financial performance. Reviewing trends over multiple years, like the provided data for 2022, 2023, and 2024, offers a more complete picture of Sonesta Select Sonesta Essential's financial management and stability.