What was the amortization of contract liabilities for Sonesta Simply Suites in 2022?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| (dollars in thousands) | ||||
|---|---|---|---|---|
| 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 |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the amortization of contract liabilities in 2022 was $713,000. This figure is part of the cash flow from operating activities reported in the financial statements.
Amortization of contract liabilities represents the systematic reduction of the deferred revenue or obligations that Sonesta Simply Suites has to provide services in the future. This non-cash expense reflects the recognition of revenue as the services are rendered over the contract period. For potential franchisees, understanding this figure provides insight into the financial management and revenue recognition practices of Sonesta Simply Suites.
It's important to note that these figures are in thousands of dollars, as indicated in the table. Reviewing these historical trends can help a prospective franchisee understand the financial stability and operational cash flow management within the Sonesta Simply Suites franchise system.