To whom are the operating supplies and equipment costs paid 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 Agreem |
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 costs for operating supplies and equipment, which range from $62,100 to $155,250 for conversions and $258,750 to $382,950 for new construction, are paid to suppliers. These costs are paid as arranged and as arranged before opening.
These operating supplies and equipment include guest room items like in-room amenities and other brand-standard-related items, as well as brand-defining elements for guest rooms and common areas. The specific amount spent will depend on the mix of bed and room types within the Sonesta Select Sonesta Essential hotel.
Prospective franchisees should carefully consider these costs and payment terms when planning their initial investment. Understanding the factors that influence the range of expenses, such as the type of hotel (conversion versus new construction) and the specific mix of room types, is crucial for accurate budgeting and financial forecasting.