What was the reported net property and equipment value for Sonesta Simply Suites in 2023?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
on our consolidated financial statements.
4. Property and Equipment
Property and equipment used in continuing operations is summarized as follows (in thousands):
| Asset Description | 2024 | 2023 | Estimated Useful Lives |
|---|---|---|---|
| Building improvements | 610 | 641 | Up to 40 years |
| Furniture and fixtures | 528 | 892 | Up to 10 years |
| Landscaping and land improvements | 4 | 25 | Lesser of useful life or remaining l |
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 property and equipment value reported for 2023 was $816,000. This figure represents the value of the company's physical assets, such as building improvements, furniture, and landscaping, after accounting for accumulated depreciation. These assets are essential for the operation of Sonesta Simply Suites hotels.
For a prospective franchisee, understanding the net property and equipment value can provide insights into the company's investment in its physical infrastructure. It also reflects the depreciation strategy employed by the company, which can impact profitability and tax liabilities. The FDD also lists the estimated useful lives for building improvements (up to 40 years) and furniture and fixtures (up to 10 years), which are important considerations for long-term financial planning.
It's important to note that these figures are presented in thousands of dollars, as indicated in the FDD. Therefore, the reported value of $816 represents $816,000. Reviewing these figures in the context of the company's overall financial health, as detailed in the financial statements, is crucial for making informed investment decisions. Additionally, potential franchisees should compare these values with industry benchmarks to assess the relative efficiency and asset management practices of Sonesta Simply Suites.