How is the 'Chain Scale Index' figure determined for Sonesta Simply Suites Brand Hotels?

According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the 'Chain Scale Index' measures the performance of Brand Hotels in relation to the performance of the Brand Hotels' US Industry Chain Scale segment in the areas of ADR (Average Daily Rate), Occupancy and RevPAR (Revenue per Available Room). This data is defined and compiled by Smith Travel Research ("STR"), a third-party industry research company. STR determines chain scale segments primarily according to average room rates, with independent hotels grouped separately from chain hotels.

To calculate the Index figure, Sonesta Simply Suites divides the performance data of its Brand Hotels by the performance data of the aggregated grouping and then multiplies the result by 100. This calculation provides a standardized measure that allows for comparison against industry benchmarks.

For a prospective franchisee, understanding the Chain Scale Index is crucial because it provides insight into how well Sonesta Simply Suites hotels are performing compared to their peers in the industry. A higher index suggests stronger performance relative to the competitive set, while a lower index may indicate areas needing improvement. This information can be valuable in assessing the potential profitability and competitiveness of a Sonesta Simply Suites franchise.