Can Sonesta Simply Suites become publicly traded?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Red Lion Hotels Corporation ("RLH Corporation," "RLHC," "RLH", "we," "our," "us," or "company") is engaged, through its subsidiaries, in the franchising and ownership of hotels of its proprietary brands, including the following brands that are being actively sold in the United States and Canada: The Royal Sonesta Hotels, The James Hotels, Classico Collection by Sonesta, MOD A Sonesta Collection, Sonesta Hotels and Resorts, Sonesta Select Hotels, Sonesta Essential Hotels, Sonesta ES Suites, Sonesta Simply Suites, Red Lion Hotels, Inns & Suites by Sonesta, Signature Inn by Sonesta, Americas Best Value Inn by Sonesta, Canadas Best Value Inn by Sonesta and Knights Inn. As of December 31, 2024, our system for all our brands included 834 franchised and licensed hotels and 1 company owned and operated hotel. RLH Corporation is wholly owned by Sonesta International Hotels Corporation ("Sonesta").
Source: Item 12 — TERRITORY (FDD pages 60–62)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document does not directly address whether a Sonesta Simply Suites franchise can be publicly traded. However, the document does state that Red Lion Hotels Corporation (RLHC) is engaged in the franchising and ownership of hotels, including Sonesta Simply Suites, and that RLHC is wholly owned by Sonesta International Hotels Corporation. This corporate structure suggests that individual Sonesta Simply Suites franchises are not directly traded on public stock exchanges.
Item 20 of the FDD includes information on current and former franchisees, indicating that contact information may be disclosed to other buyers when a franchisee leaves the system. This suggests a process for transferring ownership of a franchise, but not necessarily through public trading.
To determine if a Sonesta Simply Suites franchise can be publicly traded, a prospective franchisee should seek clarification from the franchisor, Sonesta RL Hotels Franchising Inc. Specifically, they should inquire about the possibility of incorporating their franchise business and offering shares to the public, and whether there are any restrictions or requirements related to the ownership structure of a Sonesta Simply Suites franchise.