What was the depreciation and amortization 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 |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the depreciation and amortization for 2022 was $3,506,000. This figure represents the non-cash expense recognized by Sonesta Simply Suites to allocate the cost of its tangible assets (depreciation) and intangible assets (amortization) over their useful lives during that year.
For a prospective franchisee, understanding depreciation and amortization is crucial for assessing the overall financial health and profitability of Sonesta Simply Suites. While these are non-cash expenses, they reflect the consumption of assets and can impact net income, which is a key metric for evaluating the company's performance. A higher depreciation and amortization expense can reduce taxable income, potentially lowering tax liabilities.
It's important to note that this figure is part of the broader cash flow statement, which provides insights into how Sonesta Simply Suites manages its cash. Franchisees should analyze these figures in conjunction with other financial data to gain a comprehensive understanding of the company's financial performance and stability. Reviewing trends in depreciation and amortization over several years can also reveal how the company is investing in and managing its assets.