What does the 'Chain Scale Index' measure for Sonesta Simply Suites Brand Hotels?

According to Sonesta Simply Suites's 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 measurement 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, differentiating between independent and chain hotels.

To calculate the Chain Scale Index, 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 way to compare the performance of Sonesta Simply Suites hotels against their competitive set within the broader industry.

For a prospective franchisee, understanding the Chain Scale Index is crucial because it offers insights into how well Sonesta Simply Suites hotels are performing compared to their peers. A higher index suggests that Sonesta Simply Suites hotels are outperforming their segment in terms of ADR, Occupancy, and RevPAR, which could indicate a stronger market position and potentially higher profitability. Conversely, a lower index might signal areas where the hotels are underperforming and require improvement. This information can help franchisees assess the potential of a Sonesta Simply Suites franchise and identify strategies to enhance their hotel's performance.