What was the change in accrued compensation, accrued expenses, and other 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 | |
| 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 | 48 | |
| Cash and cash equivalents at beginning of period | 37,753 | 1,491 | 1,443 | |
| Cash and cash equivalents at end of period | $ 13,316 | $ 37,753 | $ 1,491 | |
| 2024 | 2023 | 2022 | ||
| Supplemental cash flow information: | ||||
| Cash paid for income taxes | $ 102 | $ - | $ 1 38 |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, in 2024, the accrued compensation, accrued expenses, and other liabilities increased by $893,000, while in 2023 (restated), these liabilities decreased by $2,777,000. In 2022, there was an increase of $3,600,000.
This data reflects the changes in Sonesta Simply Suites' short-term financial obligations. Accrued compensation represents salaries, wages, and bonuses owed to employees but not yet paid. Accrued expenses are costs incurred but not yet invoiced or paid, such as utilities or rent. Other liabilities can include items like deferred revenue or short-term loans. Monitoring these figures can provide insights into the company's operational efficiency and financial management.
The increase of $893,000 in 2024 suggests that Sonesta Simply Suites may have increased its spending on compensation or other operational costs, or it could indicate a delay in payments. The decrease of $2,777,000 in 2023 could mean the company reduced its outstanding obligations or made significant payments during that year. The $3,600,000 increase in 2022 could be due to increased expenses or delayed payments.
Prospective franchisees should consider these trends in conjunction with other financial data to assess the financial health and stability of Sonesta Simply Suites. Understanding the reasons behind these changes can provide a more comprehensive view of the company's financial practices and potential risks or opportunities for franchisees.