factual

What is the Revenue Management System for Sonesta Select Sonesta Essential?

Sonesta_Select_Sonesta_Essential Franchise · 2025 FDD

Answer from 2025 FDD Document

Local Sales Solution 3 Base fee starts at $1,900 per month (applies only if you opt into this program). Additional features are available for additional fees.
Sales Technology Platform (Annual Fee) 4 $5,000 per year, payable on a quarterly installment basis without proration for partial calendar quarters
Sales Technology Platform (Monthly Fee) 4 $150 per month
Guest Relations Fee 4 $25 to $125 per issue
Operations Insights 4 Up to $150 per month
Online Review Response Fee 4 $39 to $150 per response (if not responded to within 72 hours)
Quality Assurance Inspections 4 Up to $2,500 for the first inspection each year; up to $4,000 for the first re-inspection upon your failed inspection; up to $5,000 for any additional re inspections due to your persistent failed inspections, or for inspections resulting from guest satisfaction deficiencies.
Revenue Management for Hire 4 $995 to $2,500 per month, depending on number of Guest Rooms and market (required for the first year following the Opening Date, and thereafter if you do not have a dedicated revenue manager).

Source: Item 22 — CONTRACTS (FDD page 84)

What This Means (2025 FDD)

According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, franchisees are required to participate in Sonesta Select Sonesta Essential's revenue management program for hire for the first year after opening their hotel. The fees for this program range from $995 to $2,500 per month, depending on the number of guest rooms and the market. After the first year, franchisees have the option to either continue participating in the revenue management program for hire or employ a full-time certified revenue manager who meets Sonesta Select Sonesta Essential's qualifications, including training in the revenue management system. The monthly fee for the Revenue Management System is $6.44 per Guest Room. The cost for Revenue Management System Training ranges from $500 to $8,950, depending on the system selected and whether the training is done on-site or virtually.

This requirement ensures that new franchisees benefit from Sonesta Select Sonesta Essential's expertise in revenue management during the critical initial phase of operation. The initial mandatory participation helps standardize revenue optimization strategies across all franchised locations. After the first year, the flexibility to hire a certified revenue manager provides franchisees with more control over their operations, allowing them to tailor their revenue management approach to their specific market conditions, potentially reducing costs if a suitable in-house manager can be found.

The ongoing monthly fee of $6.44 per guest room for the Revenue Management System indicates a continuous cost associated with utilizing Sonesta Select Sonesta Essential's technology platform for revenue optimization. The wide range in training costs, from $500 to $8,950, suggests that there are different tiers or levels of training available, possibly depending on the complexity of the system or the depth of knowledge required. Franchisees should inquire about the specific systems and training options available to understand the full scope of these costs and ensure they are adequately prepared to manage revenue effectively.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.