What is the process for changing the Management Company for a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
You must obtain our prior written consent to any change of the Management Company or if you wish to engage a Management Company after the Effective Date, which consent may be withheld in our sole discretion, and will be subject to the proposed Management Company demonstrating the capability to manage your Hotel pursuant to this Agreement and the Brand Standards.
In the event we approve a change in the Management Company, the new Management Company must execute the Management Company Joinder to this Agreement.
You are solely responsible for the management, direction, and control of your Hotel, regardless of whether you retain a Management Company. We reserve the right to revoke our approval of the
Management Company if, in our discretion, the Management Company fails to remain qualified to manage your Hotel. The management agreement between you and the Management Company shall be subject and subordinate to this Agreement and, in the event of any conflict between the management agreement and this Agreement, the controlling contract shall be this Agreement.
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 FDD, changing the Management Company for a Sonesta Select Sonesta Essential hotel requires prior written consent from Sonesta Select Sonesta Essential, which may be withheld at their discretion. The proposed new Management Company must demonstrate the capability to manage the hotel according to the Franchise Agreement and Brand Standards.
If Sonesta Select Sonesta Essential approves the change, the new Management Company must execute the Management Company Joinder to the Franchise Agreement, binding them to the agreement's terms as if they were the franchisee. This makes the new Management Company jointly and severally liable for the franchisee's obligations, except for the actual payments of amounts due to third parties, Sonesta Select Sonesta Essential's affiliates, or under the Franchise Agreement.
The franchisee remains solely responsible for the management, direction, and control of their hotel, even with a Management Company in place. Sonesta Select Sonesta Essential reserves the right to revoke approval of the Management Company if it fails to remain qualified to manage the hotel. The management agreement between the franchisee and the Management Company is subordinate to the Franchise Agreement; in case of conflict, the Franchise Agreement prevails.