What is the estimated useful life for furniture and fixtures for Sonesta Select Sonesta Essential?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
| Asset Description | 2 | 2024 | 2 | 023 | Estimated Useful Lives |
|---|---|---|---|---|---|
| Building improvements | 610 | 641 | Up to 40 years | ||
| Furniture and fixtures | 528 | 892 | Up to 10 years |
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 estimated useful life for furniture and fixtures is up to 10 years. This means that for accounting purposes, Sonesta Select Sonesta Essential depreciates these assets over a 10-year period.
For a prospective franchisee, this is relevant for understanding the long-term capital expenditure requirements. Furniture and fixtures represent a significant investment when setting up or renovating a Sonesta Select Sonesta Essential hotel. Knowing the depreciation timeline allows franchisees to plan for future replacements and upgrades, as well as understand how these assets will impact their financial statements.
The depreciation of furniture and fixtures is a standard accounting practice in the hotel industry. The 10-year timeframe provides a reasonable period for recovering the cost of these assets, balancing the need for periodic upgrades to maintain brand standards and guest satisfaction. Franchisees should factor this depreciation schedule into their long-term financial projections and capital expenditure planning.