What are Level 2 inputs for Sonesta Simply Suites' fair value measurements?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, Level 2 inputs for fair value measurements include quoted prices for similar assets and liabilities in active markets. They also include quoted prices for identical or similar assets or liabilities in markets that are not active.
Level 2 inputs also consist of inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves. These inputs can also be derived principally from or corroborated by observable market data through correlation or other means, referred to as market corroborated inputs.
These Level 2 inputs are used by Sonesta Simply Suites to measure the fair value of its assets and liabilities, providing a more detailed and market-driven valuation than Level 3 inputs, which rely on unobservable data and internal assumptions.