What were the capital expenditures 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 | |
| Deferred income taxes | - | 1 | 1 | |
| Provision (Recovery) of doubtful accounts | 1,112 | ( 1,819) | 654 | |
| Other income (expense), net | - | - | 846 | |
| Loss (gain) on sale of hotel | 153 | ( 160) | - | |
| Change in current assets and liabilities | ||||
| Accounts receivable, net | ( 3,111) | ( 942) | ( 50) | |
| Prepaid expenses and other current assets | ( 706) | ( 414) | (541) | |
| Other long term assets | ( 19,498) | ( 9,440) | ( 1,007) | |
| Accounts payable | ( 434) | ( 436) | (682) | |
| Loyalty program liability | 139 | - | - | |
| Accrued compensation, accrued expenses, and other liabilities | 893 | ( 2,777) | 3,600 | |
| Net cash provided by (used in) operating activities | ( 22,170) | ( 10,926) | 3,861 | |
| Cash flows from investing activities: | ||||
| Capital expenditures | ( 735) | ( 433) | (358) | |
| Proceeds from sale of hotel | - | 550 | - | |
| Merger purchase price adjustment | - | - | (264) | |
| Disbursement of notes receivable | ( 12) | - | - | |
| Collection of notes receivable | 14 | 39 | 54 | |
| Cash transfers from (to) parent for centralized cash management | - | 38,264 | (3,245) | |
| Net cash provided by (used in) investing activities | ( 733) | 38,420 | (3,813) | |
| Cash flows from financing activities: | ||||
| Cash transfers from (to) parent for centralized cash management | ( 1,534) | 8,768 | - | |
| Net cash provided by (used in) financing activities | ( 1,534) | 8,768 | - | |
| Change in cash and cash equivalents: | ||||
| Net increase (decrease) in cash and cash equivalents | (24,437) | 36,262 |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the capital expenditures for 2024 were $(735) thousand. This indicates that Sonesta Simply Suites spent $735,000 on capital expenditures during the year.
Capital expenditures typically include investments in long-term assets such as property, equipment, and other items used to generate income. For a potential franchisee, this figure provides insight into the brand's investment activities. It is important to note that this number reflects capital expenditures at the corporate level and may not directly represent the investment requirements for an individual franchise location.
A prospective franchisee should consider this information in conjunction with other financial data provided in the FDD to assess the overall financial health and investment strategy of Sonesta Simply Suites. Understanding the types of capital expenditures made by the company can also help a franchisee anticipate potential future investments or upgrades that may be required at their own location.