What was the total 'Shareholders' Equity' for Sonesta Select Sonesta Essential as of December 31, 2024?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
matters that we identified during the audit.
March 24, 2025
RED LION HOTELS CORPORATION CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 13,316 | $ | 37,753 |
| Accounts receivable, net | 9,258 | 7,259 | ||
| Notes receivable, net | 40 | 42 | ||
| Prepaid expenses and other current assets | 4,592 | 3,441 | ||
| Total current assets | 27,206 | 48,495 | ||
| Property and equipment, net | 1,178 | 816 | ||
| Intangible assets, net | 20,884 | 21,153 | ||
| Operating lease right of use assets | 1,686 | 2,131 | ||
| Goodwill | 19,680 | 19,680 | ||
| Other long term as sets | 30,308 | 12,324 | ||
| Total assets | $ | 100,942 | $ | 104,599 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 1,481 | $ | 1,915 |
| Accrued compensation | 4,202 | 3,745 | ||
| Accrued expenses and other current liabilities | 868 | 1,631 | ||
| Operating lease liabilities | 581 | 595 | ||
| Total current liabilities | 7,132 | 7,886 | ||
| Long term liabilities: | ||||
| Operating lease liabilities, net of current portion | 1,218 | 1,680 | ||
| Due to related parties | 7,234 | 8,768 | ||
| Deferred income taxes | 235 | 235 | ||
| Loyalty program | 139 | - | ||
| Other long-term liabilities | 6,753 | 4,886 | ||
| Total long term liabilities | 15,579 | 15,569 | ||
| Total liabilities | 22,711 | 23,455 | ||
| Commitments and contingencies (Note 8) | ||||
| Shareholders' Equity: | ||||
| Common shares, $0.01 par value; 50,000,000 shares authorized, | ||||
| 25,464,899 issued and outstanding | 255 | 255 | ||
| Additional paid in capital | 87,652 | 87,652 | ||
| Accumulated de |
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 total shareholders' equity as of December 31, 2024, was $78,231. This figure represents the net worth of Red Lion Hotels Corporation (RLHC), the parent company of Sonesta Select Sonesta Essential, from the perspective of its shareholders. It is calculated by subtracting total liabilities from total assets.
Shareholders' equity consists of several components, including common shares, additional paid-in capital, and accumulated deficit. As of December 31, 2024, the breakdown includes common shares valued at $255, additional paid-in capital of $87,652, and an accumulated deficit of $9,676. The common shares reflect the par value of the company's stock, while additional paid-in capital represents the amount investors paid above the par value for those shares. The accumulated deficit is the total of all net losses the company has incurred over its lifetime, which reduces the overall equity.
It is important to note that the financial statements provided are for Red Lion Hotels Corporation (RLHC) and its subsidiaries, not specifically for Sonesta Select Sonesta Essential. However, since RLHC wholly owns Sonesta Select Sonesta Essential, these figures provide insight into the financial health of the parent company, which can affect the stability and resources available to support its franchise system. Prospective franchisees should review these figures carefully to assess the financial strength of the overall organization.
Potential franchisees should also consider the trend in shareholders' equity. The FDD indicates that the total shareholders' equity decreased from $81,144 in 2023 to $78,231 in 2024. This decrease is primarily due to an increase in the accumulated deficit, which reflects net losses incurred during the year. While a single year's decline does not necessarily indicate a long-term problem, prospective franchisees should inquire about the reasons for the loss and the company's plans to improve profitability and restore equity.