What was the total amount of Sonesta Simply Suites' lease liabilities at December 31, 2024?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ified during the audit.
March 24, 2025
RED LION HOTELS CORPORATION CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share data)
| December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 13,316 | $ | 37,753 | |
| Accounts receivable, net | 9,258 | 7,259 | |||
| Notes receivable, net | 40 | 42 | |||
| Prepaid expenses and other current assets | 4,592 | 3,441 | |||
| Total current assets | 27,206 | 48,495 | |||
| Property and equipment, net | 1,178 | 816 | |||
| Intangible assets, net | 20,884 | 21,153 | |||
| Operating lease right of use assets | 1,686 | 2,131 | |||
| Goodwill | 19,680 | 19,680 | |||
| Other long term assets | 30,308 | 12,324 | |||
| Total assets | $ | 100,942 | $ | 104,599 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ | 1,481 | $ | 1,915 | |
| Accrued compensation | 4,202 | 3,745 | |||
| Accrued expenses and other current liabilities | 868 | 1,631 | |||
| Operating lease liabilities | 581 | 595 | |||
| Total current liabilities | 7,132 | 7,886 | |||
| Long term liabilities: | |||||
| Operating lease liabilities, net of current portion | 1,218 | 1,680 | |||
| Due to related parties | 7,234 | 8,768 | |||
| Deferred income taxes | 235 | 235 | |||
| Loyalty program | 139 | - | |||
| Other long-term liabilities | 6,753 | 4,886 | |||
| Total long term liabilities | 15,579 | 15,569 | |||
| Total liabilities | 22,711 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the company's total lease liabilities are divided into current and long-term portions. As of December 31, 2024, the current operating lease liabilities totaled $581,000, while the long-term operating lease liabilities, net of the current portion, amounted to $1,218,000.
Combining these figures, the total operating lease liabilities for Sonesta Simply Suites as of December 31, 2024, were $1,799,000. This amount represents the company's obligations under its operating leases, which are recognized on the consolidated balance sheets.
Prospective franchisees should understand how these lease liabilities might affect the overall financial health and stability of Sonesta Simply Suites. While these liabilities reflect future obligations, they are a normal part of business operations involving leased properties and assets. Franchisees may want to inquire about the nature of these leases and how they are managed by the company.