According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the total shareholders' equity as of December 31, 2022, was $79,667. This figure represents the net worth of Red Lion Hotels Corporation (RLHC) attributable to its shareholders at that specific point in time. It is calculated by subtracting total liabilities from total assets, reflecting the residual value of the company if all assets were sold and all debts were paid.

For a prospective Sonesta Simply Suites franchisee, this number provides insight into the financial stability and overall capitalization of RLHC, the parent company. A higher shareholders' equity generally indicates a stronger financial position, suggesting that the company has a solid foundation to support its operations and growth. However, it is essential to consider this figure in conjunction with other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's financial health.

The provided table also shows the changes in shareholders' equity over several years. The balance at December 31, 2021, was $82,853, which decreased to $79,667 by December 31, 2022, due to a net loss of $3,186. It then increased to $81,144 by December 31, 2023, due to a net income of $1,477, and subsequently decreased to $78,231 by December 31, 2024, due to a net loss of $2,913. These fluctuations reflect the company's profitability and its impact on the overall equity position.

It is important to note that RLHC is wholly owned by Sonesta International Hotels Corporation. Therefore, the financial performance of RLHC directly impacts Sonesta International Hotels Corporation. Prospective franchisees should review the complete audited financial statements, including the balance sheets, income statements, and cash flow statements, along with the accompanying notes, to assess the financial condition and performance of RLHC and, by extension, Sonesta Simply Suites.