factual

How are Guest Rooms defined for a Sonesta Select Sonesta Essential hotel?

Sonesta_Select_Sonesta_Essential Franchise · 2025 FDD

Answer from 2025 FDD Document

"Guest Room" means each rentable unit in your Hotel generally used for overnight guest accommodations, the entrance to which is controlled by the same key. Adjacent Guest Rooms with

connecting doors that can be rented as separate units are considered separate Guest Rooms. The initial number of approved Guest Rooms is identified on Exhibit A.

Source: Item 22 — CONTRACTS (FDD page 84)

What This Means (2025 FDD)

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, a Guest Room is defined as each rentable unit in the hotel that is generally used for overnight guest accommodations and has an entrance controlled by the same key. The document specifies that adjacent Guest Rooms with connecting doors that can be rented as separate units are considered separate Guest Rooms.

This definition is important because the initial franchise fee for both Sonesta Select and Sonesta Essential hotels is calculated based on the number of Guest Rooms. For a Sonesta Select-branded hotel, the initial fee is the greater of $65,000 or $500 per Guest Room. For a Sonesta Essential-branded hotel, it is the greater of $45,000 or $500 per Guest Room. Therefore, accurately determining the number of Guest Rooms is crucial for calculating the initial investment.

The initial number of approved Guest Rooms is identified on Exhibit A of the Franchise Agreement. This exhibit likely outlines the specific details of the hotel being franchised, including the number of rooms that meet the definition of a Guest Room. Prospective franchisees should carefully review Exhibit A to confirm the number of Guest Rooms and ensure it aligns with their understanding and expectations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.