What was the change in prepaid expenses and other current assets 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, ac |
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 change in prepaid expenses and other current assets in 2022 was a decrease of $541. This figure is part of the broader "Change in current assets and liabilities" section within the cash flow statement. Prepaid expenses and other current assets consist primarily of prepaid insurance, prepaid maintenance contracts, short-term key money, and short-term contract assets.
For a prospective Sonesta Select Sonesta Essential franchisee, this indicates the extent to which these specific types of expenses impacted the overall cash flow from operating activities during that year. A decrease in prepaid expenses and other current assets suggests that the company used more of these prepaid resources than it acquired during the year, which could be due to various factors such as changes in insurance policies, maintenance schedules, or contract terms.
It is important to note that this is just one line item in the financial statements and should be considered in the context of the overall financial health and performance of Sonesta Select Sonesta Essential. Reviewing trends over multiple years, as presented in the table, provides a more comprehensive understanding of how these expenses impact the company's financials. Additionally, comparing these figures to industry benchmarks can help a franchisee assess whether these changes are typical or indicative of specific issues within the company.