Can a Sonesta Select Sonesta Essential franchisee face competition from other franchisees?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
The market for your services will depend on your Hotel's location, size, and the nature of your services (e.g., whether your Hotel is suited for guests on frequent business travel, traveling sports teams, and so on). Our franchisees seek customers and business referrals from the local community and typically solicit business from tour and travel groups, on a local, regional, and national level. Business and leisure travelers, meeting planners and attendees, and organizers of and attendees of social functions make up the primary market of Sonesta Select and Sonesta Essential customers. In general, you will compete with national hotel and motel chains and independently operated local hotels and food outlets offering similar types of hotel rooms and food and beverage services to the same clientele. In addition to competing with hotels that offer
services comparable to the Brand Hotels, you also may compete with lodging designed to serve particular segments of the market and to fill particular lodging demands (such as Vrbo and Airbnb).
Source: Item 12 — TERRITORY (FDD pages 64–65)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, a franchisee may face competition from other hotel chains, independent hotels, and alternative lodging options. The FDD indicates that franchisees will generally compete with national hotel and motel chains, independently operated local hotels, and food outlets that offer similar services. Additionally, franchisees may face competition from lodging options like Vrbo and Airbnb. The document does not specify whether franchisees will face competition from other Sonesta Select Sonesta Essential franchisees. Therefore, it is important for a prospective franchisee to ask Sonesta Select Sonesta Essential about the potential for competition from other franchisees in their desired market area.