What was the loss (gain) on sale of hotel 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 |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the loss on the sale of a hotel in 2024 was $153,000. This figure is part of the cash flow statement, specifically within the adjustments to reconcile net loss to cash provided by (used in) operating activities.
This number reflects a financial loss incurred by Sonesta Simply Suites from selling a hotel during that year. In contrast, the FDD shows a gain of $160,000 in 2023. These gains or losses can arise from various factors, such as the sale price relative to the book value of the hotel, market conditions at the time of sale, and strategic decisions regarding the portfolio of owned or managed properties.
A prospective franchisee should consider these figures as part of their broader due diligence. Understanding the circumstances behind such gains or losses, and the overall financial strategy of Sonesta Simply Suites, can provide valuable insight into the stability and management of the brand. It's essential to evaluate these numbers in the context of the company's overall financial performance and strategic objectives.