What was the total value of current liabilities for Sonesta Simply Suites as of December 31, 2023?
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 | 23,455 | |||
| Commitments and contingencies (Note 8) | |||||
| Shareholders' Equity: | |||||
| Common shares, $0.01 par value; |
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 current liabilities as of December 31, 2023, were $7,886.
This figure represents the sum of Sonesta Simply Suites's short-term financial obligations, including accounts payable, accrued compensation, accrued expenses and other current liabilities, and operating lease liabilities, all due within one year. For a prospective franchisee, understanding the franchisor's current liabilities is crucial as it provides insight into their short-term financial health and ability to meet immediate obligations.
A high level of current liabilities relative to current assets could indicate potential liquidity issues for Sonesta Simply Suites. However, without additional context or comparison to industry benchmarks, it's difficult to assess the full implications of this figure. Franchisees should consider this information in conjunction with other financial metrics and industry data to evaluate the overall financial stability of Sonesta Simply Suites.