factual

What loyalty programs are Sonesta Select Sonesta Essential hotels required to participate in?

Sonesta_Select_Sonesta_Essential Franchise · 2025 FDD

Answer from 2025 FDD Document

eriodically

modify or discontinue the Sonesta Travel Pass program or any other loyalty program that we designate. You must participate in and honor the terms of any and all loyalty, discount, or other promotional program applicable to Brand Hotels and pay all applicable fees or charges associated with such programs (including any fees assessed by us and our affiliates, room discounts given to guests, or rewards provided to guests, that are applicable to your Hotel) that we and our affiliates offer to the public on your behalf and any room rate quoted to any guest at the time the guest makes an advance reservation. You must take all action necessary to participate in any loyalty program and you must grant us and our affiliates all necessary rights in and to any photographs, video and/or other marketing materials used in connection with any loyalty programs.

Time between Signing your Franchise Agreement and Opening your Hotel

If you are converting your existing hotel into a Brand Hotel, the typical length of time between signing your Franchise Agreement and opening your Hotel as a Brand Hotel is expected to be 60 to 180 days. Factors that may affect this typical time period include your ability to: install equipment, fixtures, furniture, and signage that comply with Brand Standards; recruit competent staff; and complete any required renovation work, including any PIP that we issue (including obtaining any requisite building permits, certificates of occupancy, and local licenses, as applicable). If your Hotel is a new construction, we require that you commence construction (start pouring the foundation) within 12 months of the date your Franchise Agreement is signed and open your Hotel as a Brand Hotel within 18 months of commencing construction.

Source: Item 11 — **FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 52–64)

What This Means (2025 FDD)

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, franchisees must participate in any loyalty programs the company designates. Currently, Sonesta Select Sonesta Essential hotels participate in the "Sonesta Travel Pass" program.

Franchisees are obligated to adhere to the terms of these loyalty programs, including offering any applicable discounts or rewards to guests. They must also pay all associated fees, which may include fees assessed by Sonesta Select Sonesta Essential and its affiliates, discounts given to guests, or rewards provided to guests. The franchisee must also grant Sonesta Select Sonesta Essential and its affiliates the rights to use any marketing materials related to the hotel in connection with these loyalty programs.

Sonesta Select Sonesta Essential charges franchisees a loyalty program fee for participation in the Sonesta Travel Pass program. This fee is 3% of the hotel's qualified revenue generated through guests participating in the program. However, the document states that Sonesta Select Sonesta Essential may increase this fee up to 4.5% of the hotel's qualified revenue. Company-owned and company-managed hotels may pay the loyalty program fee at a different rate, and not all franchised Network Hotels pay a uniform loyalty program fee.

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.