What is the initial fee for a Sonesta Essential branded hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
ou will pay to us, as damages for failure to open on time and not as a penalty, our then-current Opening Date rescheduling fee (currently up to $5,000).
3. FEES.
A. Initial Fee. You must pay us at the time of your execution of this Agreement a nonrefundable initial fee in the amount of: (i) for a Sonesta Select -branded hotel, the greater of $65,000 or $500 per Guest Room (defined below), or (ii) for a Sonesta Essential -branded hotel, the greater of $45,000 or $500 per Guest Room (the "Initial Fee"). The Initial Fee must be paid to us by cashier's check, bank certified check, wire transfer, ACH, or credit card.
"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.
- B. Onboarding Administration Fee. You will pay us an onboarding administration fee of $5,000 for a Sonesta Select -branded hotel or $2,500 for a Sonesta Essential -branded hotel (or, if you are acquiring an existing Brand Hotel, a reduced fee of $2,500 for Sonesta Select -branded hotels and $2,000 for Sonesta Essent
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the initial fee for a Sonesta Essential branded hotel is the greater of $45,000 or $500 per guest room. This fee is payable upon execution of the franchise agreement and is non-refundable. The fee can be paid via cashier's check, bank certified check, wire transfer, ACH, or credit card.
For a prospective franchisee, this means the upfront investment will vary depending on the size of the hotel. For example, a hotel with 100 guest rooms would require an initial fee of $50,000 (100 rooms x $500/room), while a hotel with 75 guest rooms would require the minimum initial fee of $45,000, as 75 rooms x $500/room = $37,500, which is less than the minimum. It is important to note that this fee is non-refundable, regardless of whether the hotel opens or the agreement is terminated.
In addition to the initial franchise fee, Sonesta Select Sonesta Essential also charges an onboarding administration fee. For a Sonesta Essential branded hotel, this fee is $2,500, but it is reduced to $2,000 if you are acquiring an existing Brand Hotel. This fee covers the onboarding services provided by Sonesta Select Sonesta Essential in connection with opening the hotel under the Designated Brand Concept and is due during or immediately after the onboarding process.