What is the trend in 'Propreciation and amoritation' for Sonesta Simply Suites over the years presented?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------|---------------------------------------------------------------------------------------|---------|------------|------|------------|-------|---------|--|--| | Net income (loss) $ (2,913) $ 1,477 $ (3,186) Adjustments to reconcile net loss to cash provided by (used in) operating activities: 489 1,691 3,506 Depreciation and amortization 489 1,691 3,506 Amortization of key money and contract costs 1,514 396 7 Amortization of contract liabilities 192 1,497 713 Deferred income taxes 1,112 (1,819) 654 Other income (expense), net 2 1 9 486 Other income (expense), net 3,111 (942) (50 Change in current assets and liabilities (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts receivable, net (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts payable (2,132) | | | 2024 | 2023 | (Restated) | | 2022 | | | | Adjustments to reconcile net loss to eash provided by (used in) operating activities: 489 1,691 3,506 Depreciation and amorization 1,514 396 7 Amortization of Centract liabilities 192 1,497 713 Deferred income taxes - 1 1 Other income (expense), net - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities (3,111) (942) (50) Accounts receivable, net (3,111) (942) (50) Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts program liability 139 - - Accrued compensation, accrued expenses, and other liabilities 893 (2,777) 3,600 Net cash provided by (used in) operating activities (735) (433) (588) Proceeds from sa
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the depreciation and amortization expenses have fluctuated over the three years presented. In 2022, the depreciation and amortization was $3,506. This figure decreased significantly in 2023 to $1,691. Then, in 2024, the depreciation and amortization decreased slightly to $489.
Depreciation and amortization are accounting methods used to allocate the cost of tangible assets (like buildings and equipment) and intangible assets (like patents or trademarks) over their useful lives. A higher depreciation and amortization expense can reduce a company's taxable income, while lower expenses can increase it. These figures are important for prospective franchisees to understand the financial management and asset utilization of Sonesta Simply Suites.
For a potential Sonesta Simply Suites franchisee, understanding these trends in depreciation and amortization can offer insights into how the company manages its assets and investments over time. It's important to note that these figures reflect the overall financial activities of RLH Corporation, the parent company, and may not directly represent the financial performance of an individual Sonesta Simply Suites franchise. Franchisees should consult with financial advisors to understand the implications of these trends for their specific investment.