What does the PIP Fee cover for a Sonesta Select Sonesta Essential franchise conversion?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
- Note 10 If you are converting your hotel to a Brand Hotel, the PIP will set forth a list of all items you must perform prior to the opening of your Hotel (or within some other timeframe stated in the PIP) to convert your property to a Brand Hotel in accordance with the Brand Standards.
The PIP Fee covers the cost of preparing or verifying completion of that PIP.
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, if you are converting your hotel to a Sonesta Select Sonesta Essential branded hotel, you will be subject to a Property Improvement Plan (PIP). The PIP will outline all the items you must complete before opening your hotel, or within a timeframe specified in the PIP, to convert your property to meet the brand standards.
The PIP Fee, which is listed as $5,000 for a conversion, covers the cost of preparing or verifying the completion of the PIP. This fee is a lump sum payment due before you sign the Franchise Agreement.
If the Sonesta Select Sonesta Essential franchisee fails the initial PIP inspection, Sonesta Select Sonesta Essential may require a reinspection, which will incur an additional PIP reinspection fee ranging from $0 to $5,000. This fee is paid to Sonesta Select Sonesta Essential as incurred.