What is the method of payment for furniture, fixtures, and equipment for a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
SELECT (Note 1) – 125 ROOMS**
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $65,000 | $65,000 | Lump sum | Upon your signing of the Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SELECT (Note 1) – 125 ROOMS (FDD pages 36–46)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the method of payment for furniture, fixtures, and equipment is "as arranged." Payment is due "as arranged" and is to be made to suppliers.
For a new construction Sonesta Select hotel with 125 rooms, the estimated cost for furniture, fixtures, and equipment ranges from $1,940,625 to $2,587,500. For a conversion, the estimated cost is $646,875 to $1,552,500. These figures represent a significant investment for franchisees.
The "as arranged" payment method indicates that the specific payment terms will need to be negotiated between the franchisee and the suppliers. This could include options such as financing, installment payments, or other customized arrangements. Prospective franchisees should carefully consider these costs and payment terms when evaluating the financial feasibility of opening a Sonesta Select Sonesta Essential hotel.