What is the current Brand Promotion Fee for a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Brand Promotion Fee. You agree to pay, in the same manner as the Royalty, a brand promotion fee (the "Brand Promotion Fee").
Currently, the Brand Promotion Fee is 3.5% of your Hotel's Gross Rooms Revenue.
However, we have the right, at any time and on notice to you, to increase the Brand Promotion Fee, provided that the Brand Promotion Fee shall not exceed 4.5% of your Hotel's Gross Rooms Revenue.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, franchisees must pay a brand promotion fee. Currently, this fee is 3.5% of the hotel's Gross Rooms Revenue. This fee is paid in the same manner as the royalty fee.
However, Sonesta Select Sonesta Essential retains the right to increase the Brand Promotion Fee at any time, provided they give notice to the franchisee. The maximum Brand Promotion Fee cannot exceed 4.5% of the hotel's Gross Rooms Revenue.
This means that a prospective Sonesta Select Sonesta Essential franchisee should budget for a Brand Promotion Fee of 3.5% of Gross Rooms Revenue, but also be aware that this fee could increase up to 4.5% with notice from the company. Franchisees should factor this potential increase into their financial projections and business planning.