What was the total amount for hotel leases for Sonesta Simply Suites as of December 31, 2022?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the total amount for hotel leases as of December 31, 2022, was $590,000. This figure represents the rental expenses, excluding amounts paid for real estate taxes or other building operations, recorded for hotel leases during that year.

It is important to note that this amount reflects expenses related to ground leases for two hotels, one in Seattle, WA, and another in Kalispell, MT. The Seattle lease expired in February 2024, while the Kalispell lease is set to expire in 2028. These leases typically include fixed contractual rent changes and may involve reimbursements for operating expenses.

Prospective franchisees should understand that these figures are specific to the franchisor, Red Lion Hotels Corporation (RLHC), and not necessarily indicative of the lease expenses a franchisee might incur. A franchisee's lease expenses will depend on factors such as location, lease terms, and the size of the property. Franchisees should conduct their own due diligence and consult with financial advisors to project their potential lease obligations accurately.

The FDD also mentions that rental expenses for office space leases and hotel leases are included in general, administrative, and other expenses in the consolidated statements of comprehensive income (loss). This means that the $590,000 figure is part of a larger category of expenses, and franchisees should review the complete financial statements for a comprehensive understanding of the franchisor's expenses.