Where were the two hotels for which Sonesta Simply Suites was the lessee on ground leases?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease information (as lessee): During part of 2023 and as of December 31, 2022, we leased office space in Denver, CO under an operating lease that expired in November 2023. Additionally, we were the lessee on ground leases for two hotels. subject to operating leases with unrelated third parties in Seattle, WA and Kalispell, MT, respectively, that expired in February 2024 and expires in 2028, respectively. These leases generally contain fixed contractual rent changes and certain of the leases provide for operating expense reimbursements. We recognize rental expense on leases that contain fixed contractual rent changes on a straight line basis over the terms of the respective leases.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, during part of 2023 and as of December 31, 2022, Sonesta Simply Suites was the lessee on ground leases for two hotels. These hotels were located in Seattle, WA and Kalispell, MT. The lease for the Seattle location expired in February 2024, while the lease for the Kalispell location expires in 2028.
These leases are operating leases with unrelated third parties. The leases generally contain fixed contractual rent changes, and some provide for operating expense reimbursements. Sonesta Simply Suites recognizes rental expense on leases with fixed contractual rent changes on a straight-line basis over the terms of the respective leases.
For a potential Sonesta Simply Suites franchisee, this information provides insight into the company's leasing practices and financial obligations. Understanding the terms and locations of these leases can help franchisees assess the company's financial health and stability. It also demonstrates Sonesta Simply Suites's experience with lease agreements, which may be relevant if a franchisee is considering leasing property for their own location.