What is the required procedure for adding guest rooms to a Sonesta Select Sonesta Essential hotel?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
r proceeding is initiated. You acknowledge that this Section 3.I is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, your Hotel.
- J. Room Addition Fee. If you add or construct additional Guest Rooms at your Hotel at any time after you sign this Agreement, you will pay us a nonrefundable fee equal to the greater of $500 per additional Guest Room or $5,000 (the "Room Addition Fee"). You must pay the Room Addition Fee to us when you submit an application for our approval to add any Guest Rooms to your Hotel, and you must submit that applicatio
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, if a franchisee wants to add or construct additional guest rooms to their Sonesta Select Sonesta Essential hotel after signing the Franchise Agreement, they must first submit an application to Sonesta Select Sonesta Essential for approval before entering into any agreements to add the rooms. Along with the application, the franchisee must pay a nonrefundable Room Addition Fee. This fee is the greater of $500 per additional guest room or $5,000.
Sonesta Select Sonesta Essential may also require the franchisee to modernize, rehabilitate, or upgrade the hotel as a condition of approving the application. This requirement is subject to Section 8.G of the Franchise Agreement, which likely outlines the specifics of required upgrades and modernization.
This process ensures that any expansion aligns with Sonesta Select Sonesta Essential's brand standards and maintains the quality and consistency of its hotels. The Room Addition Fee compensates Sonesta Select Sonesta Essential for the additional support and resources required to oversee the expansion and ensure it meets their standards. Prospective franchisees should carefully consider these requirements and costs when planning for potential future expansions of their hotels.