When did the Sonesta Simply Suites operating lease for office space in Denver, CO expire?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease information (as lessee): During part of 2023 and as of December 31, 2022, we leased office space in Denver, CO under an operating lease that expired in November 2023. Additionally, we were the lessee on ground leases for two hotels. subject to operating leases with unrelated third parties in Seattle, WA and Kalispell, MT, respectively, that expired in February 2024 and expires in 2028, respectively. These leases generally contain fixed contractual rent changes and certain of the leases provide for operating expense reimbursements. We recognize rental expense on leases that contain fixed contractual rent changes on a straight line basis over the terms of the respective leases.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, the company leased office space in Denver, CO under an operating lease that expired in November 2023. The document also mentions that during part of 2023 and as of December 31, 2022, they were leasing this office space.
In addition to the Denver office space, Sonesta Simply Suites was the lessee on ground leases for two hotels, one in Seattle, WA, and another in Kalispell, MT. These leases were subject to operating leases with unrelated third parties. The Seattle lease expired in February 2024, while the Kalispell lease is set to expire in 2028.
These leases generally include fixed contractual rent changes, and some provide for operating expense reimbursements. Sonesta Simply Suites recognizes rental expenses on leases with fixed contractual rent changes on a straight-line basis over the terms of the respective leases. This means that the total cost of the lease is divided evenly over the lease term for accounting purposes, regardless of when the actual payments are made.