What was the total amount for office leases for Sonesta Simply Suites as of December 31, 2023?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
the terms of the respective leases. We recorded rental expenses, excluding amounts paid for real estate taxes or other building operations, as follows (in thousands):
| Yea | r Ende | d Decembe | er 31, |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the total for office leases as of December 31, 2023, was a negative $402,000. This figure represents rental expenses, excluding amounts paid for real estate taxes or other building operations.
The negative value indicates that Sonesta Simply Suites received income under subleases that exceeded their direct rental expenses for office space during that period. This could be due to subleasing a portion of their office space to other businesses, resulting in a net income from their leasing activities.
For a prospective franchisee, this information provides insight into how Sonesta Simply Suites manages its own operational costs. While this specific figure relates to the franchisor's office leases, it demonstrates their approach to financial management and potential revenue generation through subleasing. It is important to note that this does not directly impact the franchisee's costs, but it can be indicative of the overall financial health and strategies of the company.