How much was the depreciation and amortization 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) |
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 depreciation and amortization expenses for the year ending December 31, 2023 (restated) totaled $1,691,000. This figure is part of the adjustments made to reconcile net loss to cash provided by (used in) operating activities within the statement of cash flows. It's important to note that the financial statements for 2023 have been restated to correct errors within the statement of cash flows, specifically related to key money disbursements.
Depreciation and amortization are non-cash expenses that reflect the reduction in value of Sonesta Select Sonesta Essential's assets over time. Depreciation applies to tangible assets like property and equipment, while amortization applies to intangible assets. These expenses are significant because they impact the company's reported net income and cash flow from operating activities.
For a prospective franchisee, understanding these figures is crucial as they provide insight into the financial health and operational efficiency of Sonesta Select Sonesta Essential. The restatement of financial statements highlights the importance of due diligence and careful review of financial records. Franchisees should consult with financial advisors to fully understand the implications of these expenses and restatements on their investment.