What was the amortization of contract liabilities for Sonesta Simply Suites in 2024?
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 |
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 2024 was $192,000. This figure is part of the cash flow from operating activities reported in the document.
Amortization of contract liabilities represents the systematic reduction of the deferred revenue balance recognized as revenue over the contract term. For a Sonesta Simply Suites franchisee, this indicates the amount of previously deferred revenue that the company recognized as earned revenue during the 2024 fiscal year. This metric provides insight into the revenue recognition pattern and the financial performance of Sonesta Simply Suites.
Prospective franchisees should note that this is just one element of the overall financial picture. It's important to review the complete financial statements and understand all the factors that contribute to the company's financial health. Understanding the amortization schedule and the underlying contracts that generate these liabilities can provide a more comprehensive view of the company's revenue streams and obligations.