What is the trend in 'Designion sale of hotel' for Sonesta Simply Suites over the years presented?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
----------|------|-------| | | ount | | | | ount | | | | Financial assets: | | | | | | | | | Notes receivable | $ 40 | $ | 40 | $ | 42 | $ | 42 |
11. Dispositions
In 2023, the Company disposed the hotel located in Baltimore, MD. Sonesta received cash of $8,589 from the buyer, of which, $550 was received by the Company. The remainder of cash was deposited by Sonesta into the central concentration account and applied to the Due from related parties balance. The disposition resulted in a gain of $160 for the Company which is recognized within "Gain on sale of assets" within our Consolidated Statements of Comprehensive Income (Loss).
On February 29, 2024, the lease for a hotel the Company managed and owned operations for in Seattle, WA expired and was not renewed. All capital improvements that were not
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Sonesta Simply Suites' parent company, Red Lion Hotels Corporation, had the following activity regarding hotel dispositions: In 2023, they disposed of a hotel in Baltimore, MD, receiving $8,589 in cash from the buyer, with $550 being received by the company and the remainder deposited by Sonesta into a central account. This resulted in a gain of $160 for the company. In 2024, the lease for a hotel in Seattle, WA, which the company managed and owned operations for, expired and was not renewed, resulting in a loss of $153 due to the non-fully depreciated capital improvements.
These figures reflect activity by Red Lion Hotels Corporation (RLHC), the parent company of Sonesta Simply Suites, and not necessarily the performance of the Sonesta Simply Suites brand itself. The sale of the Baltimore hotel in 2023 generated a gain, while the lease expiration in Seattle in 2024 resulted in a loss. These transactions are part of the overall financial activities of RLHC and may not directly reflect the typical operations of a franchised Sonesta Simply Suites location.
For a prospective franchisee, this information provides insight into the types of transactions and financial events that the parent company engages in, which can impact the overall financial health and stability of the organization. While these specific transactions may not directly affect the day-to-day operations of a franchised Sonesta Simply Suites, understanding the financial activities of the parent company can help franchisees assess the long-term viability and support they can expect from the franchisor.