What was the net value of intangible assets for Sonesta Simply Suites as of December 31, 2023?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------|--| | | 1100 | | | | | | | )2) $ | 4,282 | | | 28) | 72 | | | 30) | 4,354 16,530 | | | 30) $ | 20,884 | | | )( | 002) $ 28) 030) $ | | | )(3 | | | | | December 31, 2023 | | | | | | | | | | |--------------------------------------------------|-------------------|----|-----------|-----|--------|--|--|--|--|--| | Anna Dana tata | Cont | | ımulated | | | | | | | | | Asset Description | Cost Amortization | | rtization | Net | | | | | | | | Amortizable intangible assets: | | | | | | | | | | | | Agreements with franchisees | $ 5,184 | $ | (666) | $ | 4,518 | | | | | | | Carrying value of brand names (finite lives) | 200 | | (94) | | 106 | | | | | | | Total amortizable intangible assets | 5,384 | | (760) | | 4,624 | |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the net value of intangible assets as of December 31, 2023, was $21,153. This figure represents the value of assets that are not physical, such as brand names and agreements with franchisees, after accounting for accumulated amortization. These intangible assets are a component of the overall assets of RLH Corporation, which owns Sonesta Simply Suites.
The intangible assets are further broken down into amortizable and non-amortizable assets. Amortizable intangible assets include agreements with franchisees, which had a net value of $4,518, and brand names with finite lives, valued at $106. Non-amortizable intangible assets, specifically brand names with indefinite lives, were valued at $16,529. The total amortizable intangible assets amounted to $4,624.
For a prospective Sonesta Simply Suites franchisee, understanding the composition and valuation of these intangible assets is crucial. The value of brand names, both finite and indefinite, reflects the strength and recognition of the Sonesta Simply Suites brand, which can impact the franchisee's ability to attract customers. The agreements with franchisees represent the value derived from the existing franchise network. These figures provide insight into the overall financial health and brand equity of Sonesta Simply Suites, which can influence a franchisee's investment decision and expected returns.