How much was the depreciation and amortization 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 |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the depreciation and amortization expenses for 2024 were $489,000. This figure is part of the cash flow statement, which reconciles net income to cash flow from operations. Depreciation and amortization are non-cash expenses, meaning they reduce net income without involving an actual outflow of cash.
For a prospective Sonesta Simply Suites franchisee, understanding depreciation and amortization is crucial for assessing the true profitability and cash-generating ability of the business. While net income might show a loss, the cash flow from operations could be more favorable when these non-cash expenses are added back. This is a common practice in financial analysis to get a clearer picture of the company's financial health.
It's also important to note that the 2023 figures have been restated, suggesting potential changes in accounting practices or corrections of previous financial statements. Franchisees should inquire about the reasons for these restatements to fully understand the financial history and trends of Sonesta Simply Suites. Reviewing several years of financial data, including 2022, 2023, and 2024, provides a more comprehensive view of the brand's financial performance and stability.