What was the income tax (expense) benefit for Sonesta Simply Suites in 2022 (in thousands)?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ands):
| Dece | ember 31, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Total | $ (2,776) | $ | 1,581 | $ (2,749) |
For the periods during 2024, 2023, and 2022, our provisions for U.S., state, and foreign income taxes, if any
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the income tax (expense) benefit for 2022 was reported. The consolidated financial statements show that the income tax expense for the year ended December 31, 2022, was an expense of $437 thousand.
This figure reflects the provision for U.S., state, and foreign income taxes during that period. It is important to note that this is an expense, indicated by the parentheses, meaning it negatively impacted the net income for that year.
A prospective franchisee should understand that this figure is part of the overall financial performance of Red Lion Hotels Corporation, which owns Sonesta Simply Suites. While this specific number might not directly impact the day-to-day operations of a single franchised location, it provides insight into the financial health and tax strategy of the parent company, which can indirectly affect the support and resources available to franchisees.