What is the Third-Party Distribution Program for Sonesta Select Sonesta Essential hotels?
Sonesta_Select_Sonesta_Essential Franchise · 2025 FDDAnswer from 2025 FDD Document
twork Hotel assistance services. We periodically may modify the services provided by the help desks. Requests for certain support may incur a fee, the amount of which will be determined and agreed by you and us prior to initiation of such support.
G. Third-Party Distribution Program.
- (1) We have entered into agreements with intermediaries for various distribution channels, pursuant to which such distribution channels and online travel agencies ("OTAs") (which may include Agoda | Priceline, Booking.com, Hotwire, Expedia, and other third party intermediaries providing travel products for sale electronically to travel agents, corporations, meeting planners, and consumers) will offer your hotel room inventory through their websites including, in some cases, rooms at loyalty program member rates (the "Third-Party Distribution Program"). You must participate in the Third-Party Distribution Program, under the terms and conditions we negotiate, including pricing terms, using only those channels that we designate for Brand Hotels. You must provide us with information we may request to facilitate your participation with the Third-Party Distribution Program or the Franchise System Website (as defined in Section 9.B). You are responsible for the payment of all reservation fees, including third-party booking fees, global distribution system ("GDS") fees, and fees associated with the central reservation office (call center) and Central Reservation System, in connection with stays booked at your Hotel through their websites. If at any time hotel guests pay for stays booked at your Hotel through those websites directly, we have the right (but not the obligation) to collect revenues paid to the OTAs on your behalf, and if collected remit the revenue to you less any amounts owed to us.
- (2) You must connect to all third-parties distribution channels through our Central Reservation System, unless such third-party does not directly or indirectly offer interfaces to the Central Reservation System. You otherwise may not bypass our Central Reservation System by connecting such third-party distribution channel to your Property Management System or otherwise. You must maintain rates and inventory in the Central Reservation System on a rolling 12-month basis. If you fail to maintain rates and inventory on a rolling 12-month basis, you will be given seven (7) days' written notice to do so, after which, we will extend your
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Sonesta Select Sonesta Essential's 2025 Franchise Disclosure Document, the Third-Party Distribution Program involves agreements with intermediaries for various distribution channels, including online travel agencies (OTAs) such as Agoda | Priceline, Booking.com, Hotwire, and Expedia. These channels offer the franchisee's hotel room inventory through their websites, sometimes at loyalty program member rates. Participation in this program is mandatory for franchisees, and they must adhere to the terms and conditions negotiated by Sonesta Select Sonesta Essential, including pricing. Franchisees are required to provide any information requested by Sonesta Select Sonesta Essential to facilitate their participation in the program or the Franchise System Website.
As a franchisee, you are responsible for paying all reservation fees, including third-party booking fees, global distribution system (GDS) fees, and fees associated with the central reservation office (call center) and Central Reservation System, for stays booked through these websites. If guests directly pay the OTAs for their stays, Sonesta Select Sonesta Essential has the right, but not the obligation, to collect those revenues from the OTAs on your behalf and remit the revenue to you, minus any amounts owed to them.
Furthermore, franchisees must connect to all third-party distribution channels through Sonesta Select Sonesta Essential's Central Reservation System, unless the third-party does not offer direct or indirect interfaces to the system. Bypassing the Central Reservation System by connecting the third-party distribution channel to the Property Management System is prohibited. Franchisees are also required to maintain rates and inventory in the Central Reservation System on a rolling 12-month basis. Failure to do so will result in a seven-day written notice to comply. Upon the first written notice for failing to maintain rates and inventory, a fee of $250, subject to Fee Adjustments, will be charged. Repeated occurrences may result in additional fees.