What does the PIP for a converted Sonesta Select Sonesta Essential hotel detail?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are converting an existing hotel into a Brand Hotel, you will sign the Conversion Rider, attached as Exhibit D-1 to the Franchise Agreement. We will provide written specifications for necessary upgrading, renovation, construction and furnishing of your Hotel (the "Renovation Work") in the form of a PIP, which will be included in the Conversion Rider. The PIP details required Renovation Work and alterations for compliance with the Brand Standards, as well as the required start date and completion date of such Renovation Work. Prior to commencing the Renovation Work, you must obtain all necessary insurance, including builder's risk, and all permits and certifications required for lawful renovation of your Hotel, including zoning, access, sign, building permits, consents, and licenses.
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, if you are converting an existing hotel into a Sonesta Select Sonesta Essential branded hotel, you will receive a written Property Improvement Plan (PIP) as part of the Conversion Rider (Exhibit D-1 to the Franchise Agreement). The PIP outlines the specific renovation work and alterations needed to ensure the hotel complies with Sonesta Select Sonesta Essential's brand standards. This includes details on the required start date and completion date for the renovation work.
Prior to starting any renovation work, franchisees must secure all necessary insurance, including builder's risk insurance. Additionally, they must obtain all required permits and certifications for the lawful renovation of the hotel. This includes zoning permits, access permits, sign permits, building permits, consents, and licenses.
Essentially, the PIP serves as a detailed roadmap for bringing an existing hotel up to Sonesta Select Sonesta Essential's brand standards, ensuring consistency and quality across all franchised locations. Franchisees need to carefully review the PIP and understand the scope of work, associated costs, and required timelines to ensure a smooth conversion process.