Does the Incentive from Sonesta Select Sonesta Essential bear interest?

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the incentive provided by Sonesta Select Sonesta Essential to assist with the development or conversion of a hotel does not bear interest. The incentive is a financial contribution that Sonesta Select Sonesta Essential may offer, at its discretion, for hotels new to the Sonesta brand.

The amount of the incentive typically ranges from $4,000 to $7,000 per guest room for a Sonesta Select-branded hotel, or from $3,000 to $8,000 per guest room for a Sonesta Essential-branded hotel. To receive the incentive, the franchisee must sign a development incentive promissory note.

The incentive does not have to be repaid unless the Franchise Agreement is terminated before its expiration date or a transfer occurs. For each year the hotel is open, the repayable amount is reduced by an equal annual percentage based on the term of the Franchise Agreement. However, the incentive bears no interest.