What was the net loss for Sonesta Select Sonesta Essential in 2024?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the net loss for the year ended December 31, 2024, was approximately $2.913 million. This information is derived from the Consolidated Statements of Comprehensive Income (Loss). This loss contrasts with a net income of $1.477 million in 2023, and a net loss of $3.186 million in 2022.

This net loss figure is important for prospective franchisees as it provides insight into the overall financial performance of Red Lion Hotels Corporation, the parent company of Sonesta Select Sonesta Essential. While the financial statements reflect the performance of the parent company, understanding these trends can help potential franchisees assess the financial stability and potential risks associated with investing in a Sonesta Select Sonesta Essential franchise. It's crucial to consider these figures in conjunction with other financial metrics and qualitative factors.

Furthermore, the Consolidated Statements of Shareholders' Equity also reflect this net loss. The balance at December 31, 2023, was $81.144 million, which decreased by the net loss of $2.913 million, resulting in a balance of $78.231 million at December 31, 2024. This indicates a reduction in the company's overall equity position due to the reported loss. A potential franchisee should investigate the reasons behind the net loss and understand how Sonesta Select Sonesta Essential plans to address these financial challenges to ensure long-term sustainability and profitability for its franchisees.

It is important for prospective franchisees to consult with financial advisors and conduct thorough due diligence to fully understand the financial implications of investing in a Sonesta Select Sonesta Essential franchise, considering both the brand's performance and the broader economic factors that may influence its future financial health.