What is the estimated onboarding cost for a Sonesta Select Sonesta Essential franchise?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
SELECT (Note 1) – 125 ROOMS**
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $65,000 | $65,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| Onboarding | $5,000 | $5,000 | Lump sum | As arranged | Us |
| Administration Fee | |||||
| (Note 3) | |||||
| YOUR ESTIMATED INITIAL INVESTMENT | |||||
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Revenue Management System Installation (Note 4) | $1,500 to $10,000 | $1,500 to $10,000 | As arranged | Before opening your Hotel | Us |
| CRS to PMS Interface and Tokenization Set Up Fee (Note 5) | $650 to $1,745 | $650 to $1,745 | Lump sum | Upon your signing of the Franchise Agreement | Us |
| IT Implementation Services Fee (Note 6) | $0 to $20,000 | $0 to $20,000 | As arranged | Before opening your Hotel | Us |
| Property Management System Installation Fee (Note 7) | $20,000 to $35,000 | $20,000 to $35,000 | As arranged | Before opening your Hotel | Suppliers |
| Ancillary System Hardware, Network, Administration (Note 8) | $5,000 to $25,000 | $15,000 to $25,000 | As arranged | Before opening your Hotel | Suppli |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SELECT (Note 1) – 125 ROOMS (FDD pages 36–46)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the onboarding fee for a Sonesta Select branded hotel is $5,000, while for a Sonesta Essential branded hotel, it is $2,500. This fee is paid in a lump sum and is arranged to be paid to Sonesta Select Sonesta Essential.
For a Sonesta Select-branded hotel, the initial fee is $65,000, assuming the hotel has 125 guest rooms and pays the minimum initial fee. For a Sonesta Essential-branded hotel, the initial fee is $45,000, assuming the hotel has 80 guest rooms and pays the minimum initial fee. If acquiring an existing branded hotel, a reduced onboarding administration fee of $2,000 is required.
Prospective franchisees should note that these onboarding fees are in addition to other initial investment costs, such as the initial fee, revenue management system installation, IT implementation services, and property management system installation. These costs can vary widely based on factors like the size and location of the hotel, the complexity of the systems being installed, and whether it is a new construction or a conversion. Franchisees should carefully review the estimated initial investment table and notes in the FDD to understand all potential costs and payment terms.