What was the net value of property and equipment for Sonesta Select Sonesta Essential in 2024?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
consolidated financial statements.
4. Property and Equipment
Property and equipment used in continuing operations is summarized as follows (in thousands):
| 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 | ||
| Landscaping and land improvements | 4 | 25 | Lesser of useful life or remaining lease term | ||
| Const |
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 net value of property and equipment as of December 31, 2024, was $1,178,000. This figure represents the original cost of the property and equipment, less any accumulated depreciation. In comparison, the net value of property and equipment at the end of 2023 was $816,000.
Property and equipment typically include items such as building improvements, furniture, fixtures, and landscaping. These assets are essential for the operation of Sonesta Select Sonesta Essential hotels. The FDD also notes depreciation expense for property and equipment was $0.2 million for the year ended December 31, 2024.
The increase in net property and equipment value from 2023 to 2024 could be due to additional investments in these assets or a slower rate of depreciation compared to the previous year. Prospective franchisees should consider these figures in the context of the overall financial health and investment strategy of Sonesta Select Sonesta Essential.