What was the loss (gain) on sale of hotel for Sonesta Select Sonesta Essential in 2023 (restated)?
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 |
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 loss (gain) on the sale of a hotel in 2023 (restated) was a gain of $160 thousand. This figure is part of the Consolidated Statements of Comprehensive Income (Loss). This gain is recognized within "Gain on sale of assets".
In 2023, Sonesta Select Sonesta Essential disposed of a hotel located in Baltimore, MD. The company received $8,589 in cash from the buyer, with $550 going to the company and the remainder deposited by Sonesta into a central concentration account to be applied to the Due from related parties balance.
The gain or loss on the sale of assets can fluctuate depending on the specific circumstances of each transaction. Factors influencing this can include the book value of the asset, the sale price, and any related transaction costs. For a prospective franchisee, it's important to understand how these gains or losses are accounted for, as they can impact the overall financial performance of Sonesta Select Sonesta Essential.