How must Sonesta Select Sonesta Essential franchisees connect to third-party distribution channels?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
hrough their websites. If at any time hotel guests pay for stays booked at your Hotel through those websites directly, we have the right (but not the obligation) to collect revenues paid to the OTAs on your behalf, and if collected remit the revenue to you less any amounts owed to us.
- (2) You must connect to all third-parties distribution channels through our Central Reservation System, unless such third-party does not directly or indirectly offer interfaces to the Central Reservation System. You otherwise may not bypass our Central Reservation System by connecting such third-party distribution channel to your Property Management System or otherwise. You must maintain rates and inventory in the Central Reservation System on a rolling 12-month basis. If you fail to maintain rates and inventory on a rolling 12-month basis, you will be given seven (7) days' written notice to do so, after which, we will extend your
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Sonesta Select Sonesta Essential FDD, franchisees are required to connect to all third-party distribution channels through Sonesta Select Sonesta Essential's Central Reservation System (CRS). The only exception to this rule is if a third-party does not offer interfaces to the CRS directly or indirectly. In this case, the franchisee may be exempt from using the CRS for that specific third-party. Franchisees are prohibited from bypassing the CRS by connecting a third-party distribution channel directly to their Property Management System (PMS) or through any other method.
Sonesta Select Sonesta Essential requires franchisees to maintain rates and inventory in the CRS on a rolling 12-month basis. If a franchisee fails to do so, they will receive a written notice and seven days to correct the issue. If the franchisee does not comply, Sonesta Select Sonesta Essential will extend the rates on their behalf. The first time a franchisee fails to maintain rates and inventory, they will be charged a fee of $250, which is subject to Fee Adjustments. Repeated occurrences may result in additional fees.
This policy ensures that Sonesta Select Sonesta Essential maintains control over its brand's distribution and pricing strategies across all channels. By mandating the use of the CRS, Sonesta Select Sonesta Essential can ensure consistent information and availability, which is crucial for managing customer expectations and maximizing revenue. The fees associated with non-compliance incentivize franchisees to keep their information up-to-date, further supporting the integrity of the distribution system.