What is the amortization of contract liabilities reported for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
899 | $ 255 | $ 87,652 | $ (9,676) | $ 78,231 |
RED LION HOTELS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
| Tolking from printing activities: Net income (loss) ( 20, 10) $ 1, 107 $ ( 3, 10) Adjustments to reconcile net loss to cash provided by (used in) operating activities: $ 1, 100 $ 3, 30 Propreciation and amoritation 1,514 3, 60 3, 70 Amoritation of key money and contract costs 1,514 3, 60 7 Amoritation of contract liabilities 1,912 1,912 1,912 Peberferd income taxes 1,912 1,912 1,912 Other for (expense), net 1,912 1,912 1,912 Designion sale of hotel 1,913 4,912 1,912 Account general trabilities 1,913 4,912 1,912 Accounting term assets and liabilities 1,914 4,912 1,912 Accounting term assets and propriate passes and other current assets 1,914 4,912 4,912 Accounting term assets and liabilities 3,134 4,912 4,912 Account propriate principal tradities 1,243 4,52 4,52 Account propriate principal tradities 3,134 4,52 | Decembe | ember 31, | r 31, | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net income (loss) $ (2,913) $ 1,477 $ (3,186) Adjustments to reconcile net loss to cash provided by (used in) operating activities: 489 1,691 3,506 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 1,112 (1,819) 654 Other income (expense), net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the amortization of contract liabilities is detailed in the financial statements. For the year ended December 31, 2024, the amortization of contract liabilities was $192. For the year ended December 31, 2023, the amortization of contract liabilities was $1,497. For the year ended December 31, 2022, the amortization of contract liabilities was $713.
Amortization of contract liabilities represents the systematic reduction of the value of liabilities associated with franchise contracts over the contract period. This accounting practice reflects how Sonesta Simply Suites recognizes revenue and expenses related to its franchise agreements. The amounts amortized each year can vary based on the number, size, and terms of the franchise contracts in place.
For a prospective Sonesta Simply Suites franchisee, understanding these figures is crucial for assessing the financial health and stability of the franchisor. It provides insight into how the franchisor manages its contractual obligations and recognizes revenue over time. Reviewing these trends over multiple years can help potential franchisees evaluate the consistency and predictability of the franchisor's financial performance.
It is important to note that these figures are part of a larger set of financial statements and should be analyzed in conjunction with other financial data, such as revenue, expenses, and assets, to gain a comprehensive understanding of Sonesta Simply Suites's financial position. Prospective franchisees should consult with a financial advisor to fully interpret these statements and assess the financial risks and opportunities associated with investing in a Sonesta Simply Suites franchise.