How does the 'Designion sale of hotel' impact the asset base of 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 liabilit
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the term 'Designion sale of hotel' appears within a table, but without context, it's impossible to determine the impact on the asset base of Sonesta Simply Suites. The table includes line items such as 'Net income (loss)', 'Adjustments to reconcile net loss to cash provided by (used in) operating activities', 'Depreciation and amortization', and several accounting terms. The table presents financial data for different periods, but the specific meaning and implications of 'Designion sale of hotel' are not defined.
Without additional information, it is unclear what 'Designion' refers to or how the sale of a hotel under this designation affects Sonesta Simply Suites' financial statements. The table seems to be part of a reconciliation of net income to cash flow, suggesting that the 'Designion sale of hotel' is an adjustment made in this process. However, the exact nature of this adjustment and its impact on the overall financial health of Sonesta Simply Suites cannot be determined from the provided excerpt.
A prospective franchisee should request clarification from Sonesta Simply Suites regarding the term 'Designion sale of hotel.' Specifically, they should ask for details about what 'Designion' means in this context, the circumstances under which such sales occur, and how these sales are accounted for in the company's financial statements. Understanding this entry is crucial for assessing the true financial performance and stability of Sonesta Simply Suites.