S
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
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|
SECURITIES EXCHANGE ACT OF 1934
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||
For the Quarterly period ended March 31, 2011
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||
OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
|
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SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from
|
to
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NEW YORK
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13-5648107
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(State or other jurisdiction or incorporation or organization)
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(I.R.S. Employer Identification No.)
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617-421-5400
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(Registrant’s telephone number, including area code)
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(Former name, former address and former fiscal year,
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if changed since last report)
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Yes S
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No o
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Yes o
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No o
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Yes o
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No S
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Page
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||
Certifications by the Company’s Chief Executive Officers and Vice President and Treasurer, as required by Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended.
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||
Certification by Company Officers required by 18 U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of 2002).
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(in thousands)
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||||||||
March 31, 2011
|
December 31, 2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 14,529 | $ | 24,162 | ||||
Restricted cash
|
2,500 | 2,500 | ||||||
Accounts and notes receivable:
|
||||||||
Trade, less allowance of $1,093 ($1,103 at December 31, 2010) for doubtful accounts
|
4,730 | 3,759 | ||||||
Other, including current portion of long-term receivables and advances
|
612 | 741 | ||||||
Total accounts and notes receivable
|
5,342 | 4,500 | ||||||
Inventories
|
892 | 958 | ||||||
Current deferred tax assets
|
1,796 | 1,262 | ||||||
Prepaid expenses and other current assets
|
2,614 | 2,020 | ||||||
Total current assets
|
27,673 | 35,402 | ||||||
Restricted cash
|
2,757 | 2,757 | ||||||
Long-term receivables and advances
|
4,177 | 4,342 | ||||||
Property and equipment, at cost:
|
||||||||
Land and land improvements
|
3,202 | 3,202 | ||||||
Buildings
|
29,666 | 29,666 | ||||||
Furniture and equipment
|
29,505 | 28,544 | ||||||
Leasehold improvements
|
9,408 | 9,401 | ||||||
Projects in progress
|
5,147 | 2,205 | ||||||
76,928 | 73,018 | |||||||
Less accumulated depreciation and amortization
|
35,005 | 33,597 | ||||||
Net property and equipment
|
41,923 | 39,421 | ||||||
Other long-term assets
|
3,541 | 4,268 | ||||||
$ | 80,071 | $ | 86,190 | |||||
(in thousands)
|
||||||||
March 31, 2011
|
December 31, 2010
|
|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$ | 686 | $ | 676 | ||||
Accounts payable
|
3,340 | 3,868 | ||||||
Advance deposits
|
1,679 | 1,224 | ||||||
Accrued liabilities:
|
||||||||
Salaries and wages
|
1,666 | 2,147 | ||||||
Rentals
|
1,460 | 5,195 | ||||||
Interest
|
208 | 209 | ||||||
Pension and other employee benefits
|
1,676 | 1,512 | ||||||
Interest rate swap
|
1,423 | 1,691 | ||||||
Income taxes
|
691 | 580 | ||||||
Other
|
1,796 | 1,190 | ||||||
Total accrued liabilities
|
8,920 | 12,524 | ||||||
Total current liabilities
|
14,625 | 18,292 | ||||||
Long-term debt
|
37,205 | 37,378 | ||||||
Pension liability, non-current
|
6,339 | 6,781 | ||||||
Other non-current liabilities
|
940 | 931 | ||||||
Deferred tax liabilities
|
158 | 220 | ||||||
Commitments and contingencies (see Note 8)
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock:
|
||||||||
Class A, $.80 par value
|
||||||||
Authorized--10,000 shares
|
||||||||
Issued – 6,102 shares at stated value
|
4,882 | 4,882 | ||||||
Retained earnings
|
31,386 | 33,340 | ||||||
Treasury shares – 2,404, at cost
|
(12,053 | ) | (12,053 | ) | ||||
Accumulated other comprehensive loss
|
(3,411 | ) | (3,581 | ) | ||||
Total stockholders’ equity
|
20,804 | 22,588 | ||||||
$ | 80,071 | $ | 86,190 | |||||
Three Months Ended
March 31
|
||||||||
2011
|
2010
|
|||||||
Revenues:
|
||||||||
Rooms
|
$ | 11,311 | $ | 8,190 | ||||
Food and beverage
|
5,159 | 4,114 | ||||||
Management, license and service fees
|
680 | 1,403 | ||||||
Parking, telephone and other
|
913 | 1,055 | ||||||
18,063 | 14,762 | |||||||
Other revenues from managed and affiliated properties
|
178 | 1,370 | ||||||
Total revenues
|
18,241 | 16,132 | ||||||
Costs and expenses:
|
||||||||
Costs and operating expenses
|
8,909 | 7,313 | ||||||
Advertising and promotion
|
1,991 | 1,562 | ||||||
Administrative and general
|
3,450 | 3,075 | ||||||
Human resources
|
372 | 280 | ||||||
Maintenance
|
943 | 878 | ||||||
Rentals
|
2,332 | 1,145 | ||||||
Property taxes
|
419 | 280 | ||||||
Depreciation and amortization
|
1,498 | 1,380 | ||||||
19,914 | 15,913 | |||||||
Other expenses from managed and affiliated properties
|
178 | 1,370 | ||||||
Total costs and expenses
|
20,092 | 17,283 | ||||||
Operating loss
|
(1,851 | ) | (1,151 | ) | ||||
Other income (deductions):
|
||||||||
Interest expense
|
(681 | ) | (567 | ) | ||||
Interest income
|
33 | 60 | ||||||
Foreign exchange gain (loss)
|
6 | (5 | ) | |||||
Gain (loss) on sales of assets
|
2 | (4 | ) | |||||
(640 | ) | (516 | ) | |||||
Loss before income tax benefit
|
(2,491 | ) | (1,667 | ) | ||||
Income tax benefit
|
(537 | ) | (475 | ) | ||||
Net loss
|
(1,954 | ) | (1,192 | ) | ||||
Retained earnings at beginning of period
|
33,340 | 35,734 | ||||||
Retained earnings at end of period
|
$ | 31,386 | $ | 34,542 | ||||
Net loss per share of common stock
|
$ | (0.53 | ) | $ | (0.32 | ) | ||
Weighted average number of shares outstanding
|
3,698 | 3,698 |
(in thousands)
|
||||||||
Three Months Ended March 31
|
||||||||
2011
|
2010
|
|||||||
Cash used for operating activities
|
||||||||
Net loss
|
$ | (1,954 | ) | $ | (1,192 | ) | ||
Adjustments to reconcile net loss to net cash used for operating activities
|
||||||||
Depreciation and amortization
|
1,514 | 1,415 | ||||||
Provision for doubtful accounts
|
(11 | ) | 4 | |||||
Deferred federal and state tax benefit
|
(695 | ) | (726 | ) | ||||
Loss (gain) on sales of assets
|
(2 | ) | 4 | |||||
Changes in assets and liabilities
|
||||||||
Accounts and notes receivable
|
(408 | ) | 29 | |||||
Inventories
|
66 | 20 | ||||||
Prepaid expenses and other
|
(622 | ) | (39 | ) | ||||
Accounts payable
|
(158 | ) | (21 | ) | ||||
Advance deposits
|
455 | 189 | ||||||
Accrued liabilities
|
(3,742 | ) | (2,365 | ) | ||||
Cash used for operating activities
|
(5,557 | ) | (2,682 | ) | ||||
Cash used for investing activities
|
||||||||
Expenditures for property and equipment
|
(3,585 | ) | (585 | ) | ||||
Payments received on long-term receivables and advances
|
76 | 340 | ||||||
Proceeds from sales of assets
|
17 | 7 | ||||||
New loans and advances
|
(51 | ) | (958 | ) | ||||
Cash used for investing activities
|
(3,543 | ) | (1,196 | ) | ||||
Cash used for financing activities
|
||||||||
Proceeds from issuance of long-term debt
|
-- | 32,000 | ||||||
Cost of financing
|
-- | (399 | ) | |||||
Payments on refinancing of long-term debt
|
-- | (31,644 | ) | |||||
Restricted cash
|
-- | (5,000 | ) | |||||
Scheduled payments on long term debt
|
(163 | ) | (195 | ) | ||||
Cash dividends paid
|
(370 | ) | -- | |||||
Cash used for financing activities
|
(533 | ) | (5,238 | ) | ||||
Net decrease in cash
|
(9,633 | ) | (9,116 | ) | ||||
Cash and cash equivalents at beginning of period
|
24,162 | 35,557 | ||||||
Cash and cash equivalents at end of period
|
$ | 14,529 | $ | 26,441 |
|
Supplemental Schedule of Interest and Income Taxes Paid
|
1.
|
Basis of Presentation
|
2.
|
Purchase of Sonesta Bayfront Hotel Coconut Grove
|
For the three months ended
March 31, 2010
|
||||||||||||||||
Sonesta
|
Sonesta Bayfront Hotel
|
Pro Forma Adjustments
|
Pro Forma as Adjusted
|
|||||||||||||
Revenues
|
$ | 14,762 | $ | 3,393 | $ | -- | $ | 18,155 | ||||||||
Other revenues from managed hotels
|
1,370 | -- | (1,144 | ) | 226 | |||||||||||
Total Revenues
|
$ | 16,132 | $ | 3,393 | $ | (1,144 | ) | $ | 18,381 | |||||||
Net income (loss)
|
$ | (1,192 | ) | $ | 542 | $ | (326 | ) | $ | (976 | ) |
March 31,
2010
|
||||
Reduction in other revenues from managed hotels
|
$ | (1,144 | ) | |
Reduction in other expenses from managed hotels
|
1,144 | |||
Increase in depreciation and amortization
|
(138 | ) | ||
Increase in interest expense
|
(104 | ) | ||
Income tax expense on additional profit of $300,000
|
(84 | ) | ||
Proforma adjustment
|
$ | (326 | ) |
(in thousands)
|
||||||||
March 31,2011
|
December 31,2010
|
|||||||
Sharm El Sheikh, Egypt (a)
|
$ | 638 | $ | 647 | ||||
Sharm El Sheikh, Egypt (b)
|
433 | 433 | ||||||
Luxor, Egypt (c)
|
856 | 822 | ||||||
Sint Maarten, Netherlands Antilles (d)
|
758 | 802 | ||||||
New Orleans, Louisiana (e)
|
335 | 353 | ||||||
Other
|
1,610 | 1,813 | ||||||
Total long-term receivables and advances
|
4,630 | 4,870 | ||||||
Less: current portion
|
453 | 528 | ||||||
Net long-term receivables and advances
|
$ | 4,177 | $ | 4,342 |
(a)
|
This loan was made in January 2008 to the owners of Sonesta Beach Hotel Sharm El Sheikh and Sonesta Club Sharm El Sheikh by converting receivables for fees and expenses into a five-year loan, payable in monthly installments, starting in January 2008. The Company is accounting for this loan using an effective interest rate of 6.5%. Monthly payments of $28,820 on this loan are due directly from the hotels and deducted from distributions of profits to the owner of these managed hotels. No payments were received during the months of February and March 2011.
|
(b)
|
This loan, in the original amount of $500,000, was made in January 2010 to the owner of Sonesta Beach Resort Sharm El Sheikh. The interest rate is 5.25%. The original three year term was extended by five months in December 2010. Monthly payments of principal and interest of $15,075 commenced in February 2010, and the last payment will be due in June 2013. No payments were received during the first 4 months of 2011.
|
(c)
|
These loans, in the original amount of $1,363,000, were made in August 2009 to the owner of Sonesta St. George Hotel Luxor and Sonesta St. George I Cruise Ship, which are both managed by the Company. The loans consisted of cash advances of $500,000, and the conversion of receivables for fees and expenses due to the Company totaling $863,000. The Company made these loans to assist the owner with the financing of improvements to the Sonesta St. George Hotel Luxor, which included additional guest rooms and meeting/function space. The interest rate is 5.25%. Monthly payments of interest and principal are $80,000, and the last payment is due August 2011. No payments were received during the first 4 months of 2011.
|
d)
|
During 2010, the Company loaned $1,000,000 to the owners of two hotels in Sint Maarten, to which the Company licenses the use of its name. At the same time, the license agreements for these hotels were extended until December 2019, with a mutual cancellation option beginning in May 2015. The proceeds were used to fund improvements at both of the properties. The loans are being repaid in 10 annual payments of $100,000, the first of which was due on March 31, 2011. Interest is due quarterly and will be based on LIBOR plus a surcharge based on increases in room revenues from year to year. The maximum surcharge is 1.5% per annum. The Company is accounting for this loan using an effective interest rate of 6% and has discounted the loan accordingly. The discount has been recorded as an other long-term asset and is being amortized over the remaining term of the license agreements.
|
(e)
|
This loan, in the original amount of $394,000, was made in connection with the sale by the Company in May 2010 of a laundry facility in New Orleans, Louisiana. The interest rate is 5%. Monthly payments for interest and principal are $7,435, and the final payment is due in May 2015.
|
(in thousands)
|
||||||||
March 31,2011
|
December 31,2010
|
|||||||
Charterhouse of Cambridge Trust and Sonesta of
Massachusetts, Inc.:
|
||||||||
First mortgage note (a)
|
$ | 31,464 | $ | 31,598 | ||||
Sonesta Coconut Grove, Inc.:
|
||||||||
First mortgage note (b)
|
$ | 6,427 | 6,456 | |||||
Subtotal
|
37,891 | 38,054 | ||||||
Less: current portion
|
686 | 676 | ||||||
Total long-term debt
|
$ | 37,205 | $ | 37,378 |
5.
|
Hotel Costs and Operating Expenses
|
(in thousands)
|
||||||||
Three Months Ended March 31
|
||||||||
2011
|
2010
|
|||||||
Direct departmental costs
|
||||||||
Rooms
|
$ | 3,135 | $ | 2,435 | ||||
Food and beverage
|
4,582 | 3,610 | ||||||
Heat, light and power
|
617 | 618 | ||||||
Other
|
575 | 650 | ||||||
$ | 8,909 | $ | 7,313 |
6.
|
Segment Information
|
(in thousands)
|
||||||||||||||||||||
Royal Sonesta Boston
|
Royal Sonesta New Orleans
|
Sonesta Bayfront Coconut Grove
|
Management Activities
|
Consolidated
|
||||||||||||||||
Revenues
|
$ | 3,814 | $ | 10,010 | $ | 3,559 | $ | 680 | $ | 18,063 | ||||||||||
Other revenues from managed and affiliated properties
|
- | - | - | 178 | 178 | |||||||||||||||
Total revenues
|
3,814 | 10,010 | 3,559 | 858 | 18,241 | |||||||||||||||
Operating income (loss) before depreciation & amortization expense
|
(1,135 | ) | 1,746 | 377 | (1,341 | ) | (353 | ) | ||||||||||||
Depreciation & amortization
|
(629 | ) | (658 | ) | (144 | ) | (67 | ) | (1,498 | ) | ||||||||||
Net interest income (expense)
|
(525 | ) | 1 | (156 | ) | 32 | (648 | ) | ||||||||||||
Other income
|
- | - | - | 8 | 8 | |||||||||||||||
Segment pre-tax profit (loss)
|
(2,289 | ) | 1,089 | 77 | (1,368 | ) | (2,491 | ) | ||||||||||||
Segment assets
|
29,491 | 18,105 | 10,361 | 22,114 | 80,071 | |||||||||||||||
Segment capital additions
|
3,192 | 264 | 75 | 54 | 3,585 |
(in thousands)
|
||||||||||||||||||||
Royal Sonesta Boston
|
Royal Sonesta New Orleans
|
Sonesta Bayfront Coconut Grove
|
Management Activities
|
Consolidated
|
||||||||||||||||
Revenues
|
$ | 3,728 | $ | 9,631 | $ | - | $ | 1,403 | $ | 14,762 | ||||||||||
Other revenues from managed and affiliated properties
|
- | - | - | 1,370 | 1,370 | |||||||||||||||
Total revenues
|
3,728 | 9,631 | - | 2,773 | 16,132 | |||||||||||||||
Operating income (loss) before depreciation & amortization expense
|
(809 | ) | 1,853 | - | (815 | ) | 229 | |||||||||||||
Depreciation & amortization
|
(596 | ) | (717 | ) | - | (67 | ) | (1,380 | ) | |||||||||||
Net interest income (expense)
|
(568 | ) | 2 | - | 59 | (507 | ) | |||||||||||||
Other deductions
|
- | - | - | (9 | ) | (9 | ) | |||||||||||||
Segment pre-tax profit (loss)
|
(1,973 | ) | 1,138 | - | (832 | ) | (1,667 | ) | ||||||||||||
Segment assets
|
25,774 | 17,222 | - | 33,892 | 76,888 | |||||||||||||||
Segment capital additions
|
224 | 285 | - | 76 | 585 |
(in thousands)
|
||||||||
2011
|
2010
|
|||||||
Management fee revenues
|
$ | - - | $ | 755 | ||||
Franchise fee revenues
|
353 | 325 | ||||||
Other management revenues
|
327 | 323 | ||||||
Subtotal
|
680 | 1,403 | ||||||
Other revenues from managed and affiliated properties
|
178 | 1,370 | ||||||
Total revenues Managed Activities
|
$ | 858 | $ | 2,773 |
7.
|
Comprehensive Income (Loss)
|
(in thousands)
|
||||||||
Three Months ended March 31
|
||||||||
2011
|
2010
|
|||||||
Net loss
|
$ | (1,954 | ) | $ | (1,192 | ) | ||
Unrealized gain (loss) on interest rate swap, net of tax benefit of $98 (tax provision of $272 in 2010)
|
$ | 170 | $ | (470 | ) | |||
Comprehensive loss
|
$ | (1,784 | ) | $ | (1,662 | ) |
8.
|
Loss per Share
|
Three months ended
March 31
|
||||||||
2011
|
2010
|
|||||||
Numerator:
|
||||||||
Loss from operations
|
$ | (1,954 | ) | $ | (1,192 | ) | ||
Denominator:
|
||||||||
Weighted average number of shares outstanding
|
3,698 | 3,698 | ||||||
Loss per share of common stock
|
$ | (0.53 | ) | $ | (0.32 | ) |
9.
|
Pension Plan
|
(in thousands)
|
||||||||
Three Months ended March 31
|
||||||||
2011
|
2010
|
|||||||
Interest cost
|
$ | 403 | $ | 405 | ||||
Expected return on assets
|
(437 | ) | (414 | ) | ||||
Recognized actuarial loss
|
57 | 41 | ||||||
Net expense included in the consolidated statements of operations
|
$ | 23 | $ | 32 |
10.
|
Derivative Financial Instruments
|
(in thousands)
|
||||||||
Liability Derivatives
|
||||||||
March 31, 2011
|
December 31, 2010
|
|||||||
Derivatives designated as hedging instruments:
|
||||||||
Interest rate swap – cash flow hedge
|
$ | 1,423 | $ | 1,691 | ||||
Total derivatives designated as hedging instruments
|
$ | 1,423 | $ | 1,691 | ||||
Derivatives not designated as hedging instruments:
|
$ | -- | $ | -- | ||||
Total derivatives
|
$ | 1,423 | $ | 1,691 |
Pre-tax Income (Loss) Recognized in OCI on Derivative (Effective Portion)
|
Amount Reclassified from Accumulated OCI into Income
|
||||||||||||||||
Derivatives in Cash Flow Hedging Relationships
|
2011
|
2010
|
Location of Amount Reclassified from Accumulated OCI into Income
|
2011
|
2010
|
||||||||||||
Interest rate swap
|
$ | 268 | $ | (742 | ) |
Interest expense
|
$ | -- | $ | -- | |||||||
__
|
__
|
||||||||||||||||
Total
|
$ | 268 | $ | (742 | ) |
Total
|
$ | -- | $ | -- |
11.
|
Fair Value Measurements
|
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
|
Significant Observable Inputs
|
Significant Unobservable Inputs
|
Balance as of March 31, 2011
|
|||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
Money market mutual funds
|
$ | 9,789 | $ | -- | $ | -- | $ | 9,789 | ||||||||
Interest rate swap
|
$ | -- | $ | (1,423 | ) | $ | -- | $ | (1,423 | ) | ||||||
Fair Value Measurements at Reporting Date Using:
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
|
Significant Observable Inputs
|
Significant Unobservable Inputs
|
Balance as of December 31, 2010
|
|||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
Money market mutual funds
|
$ | 17,283 | $ | -- | $ | -- | $ | 17,283 | ||||||||
Interest rate swap
|
$ | -- | $ | (1,691 | ) | $ | -- | $ | (1,691 | ) |
TOTAL REVENUES
(in thousands)
|
||||||||||||
NO. OF
ROOMS
|
2011
|
2010
|
||||||||||
Royal Sonesta Hotel Boston
|
400 | $ | 3,814 | $ | 3,728 | |||||||
Royal Sonesta Hotel New Orleans
|
500 | 10,010 | 9,631 | |||||||||
Sonesta Bayfront Hotel Coconut Grove
|
200 | 3,559 | -- | |||||||||
Management and service fees and other revenues
|
680 | 1,403 | ||||||||||
Total revenues, excluding other revenues from managed and affiliated properties
|
$ | 18,063 | $ | 14,762 |
OPERATING INCOME (LOSS)
(in thousands)
|
||||||||
2011
|
2010
|
|||||||
Royal Sonesta Hotel Boston
|
$ | (1,764 | ) | $ | (1,406 | ) | ||
Royal Sonesta Hotel New Orleans
|
1,088 | 1,136 | ||||||
Sonesta Bayfront Hotel Coconut Grove
|
233 | -- | ||||||
Operating loss from hotels after management and service fees
|
(443 | ) | (270 | ) | ||||
Management activities and other
|
(1,408 | ) | (881 | ) | ||||
Operating loss
|
$ | (1,851 | ) | $ | (1,151 | ) |
SONESTA INTERNATIONAL HOTELS CORPORATION
|
||
By:
|
/s/ Boy van Riel
|
|
Boy van Riel
|
||
Vice President and Treasurer
|
||
(Authorized to sign on behalf of the Registrant as Principal Financial Officer)
|
||
Date: May 12, 2011
|
I, Boy van Riel, certify that:
|
1.
|
I have reviewed this Report on Form 10-Q for the quarter ended March 31, 2011 of Sonesta International Hotels Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of registrant’s Board Directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 12, 2011
|
/s/ Boy van Riel
Name: Boy van Riel
Title: Vice President and Treasurer
|
I, Peter J. Sonnabend, certify that:
|
1.
|
I have reviewed this Report on Form 10-Q for the quarter ended March 31, 2011 of Sonesta International Hotels Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of registrant’s Board Directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 12, 2011
|
/s/ Peter J. Sonnabend
Name: Peter J. Sonnabend
Title: Executive Chairman of the Board
|
I, Stephanie Sonnabend, certify that:
|
1.
|
I have reviewed this Report on Form 10-Q for the quarter ended March 31, 2011 of Sonesta International Hotels Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the Audit Committee of registrant’s Board Directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 12, 2011
|
/s/ Stephanie Sonnabend
Name: Stephanie Sonnabend
Title: Chief Executive Officer and President
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Boston, May 12, 2011
|
||
By:
|
/s/ Peter J. Sonnabend
|
|
Name: Peter J. Sonnabend
|
||
Title: Executive Chairman of the Board
|
||
By:
|
/s/ Stephanie Sonnabend
|
|
Name: Stephanie Sonnabend
|
||
Title: Chief Executive Officer and President
|
||
By:
|
/s/ Boy van Riel
|
|
Name: Boy van Riel
|
||
Title: Vice President and Treasurer
|