What data is provided in Part A regarding Sonesta Simply Suites hotels?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
In Part A, we provide the ADR, Occupancy, RevPAR, and Contribution data (each defined below) for (a) the Company-Owned Hotels, (b) the Franchised Brand Hotels, and (c) the combination of the Company-Owned Hotels and the Franchised Brand Hotels. See Tables 1, 2, and 3.
TABLE 2
ADR, OCCUPANCY, REVPAR AND CONTRIBUTION OF 12 FRANCHISED HOTELS FOR 2024
| Franchised Hotels | Average | Median | Range | No. and % of Hotels that Met or Exceeded Average |
|---|---|---|---|---|
| ADR | $68.54 | $62.70 | $45.08 to $107.58 | 4 (33.3%) |
| Occupancy | 70.6% | 72.2% | 53.5% to 94.0% | 7 (58.3%) |
| RevPAR | $48.37 | $41.31 | $28.74 to $87.86 | 4 (33.3%) |
| Contribution | 63.6% | 54.9% | 39.5% to 82.6% | 5 (41.7%) |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 70–74)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Part A of Item 19 provides financial performance representations based on data from 2024. This includes the ADR (Average Daily Rate), Occupancy, RevPAR (Revenue Per Available Room), and Contribution data for company-owned hotels, franchised hotels, and a combination of both. These metrics are detailed in Tables 1, 2, and 3. Specifically, Table 1 contains data for 50 company-owned hotels, while Table 2 presents data for 12 franchised hotels. Table 3 combines the data from both company-owned and franchised hotels, totaling 62 hotels.
The FDD defines key terms used in the financial performance representations. ADR is calculated by dividing Gross Rooms Revenue by the total number of paid rooms occupied. Occupancy is the total paid rooms occupied divided by total available rooms. RevPAR is Gross Rooms Revenue divided by total available rooms. Contribution is the net rooms revenue from reservations made through various channels, excluding direct hotel bookings. These metrics help to evaluate the pricing, utilization, and revenue generation of Sonesta Simply Suites hotels.
The franchisor also provides data on the average, median, and range for ADR, Occupancy, RevPAR, and Contribution. For instance, the average ADR for franchised hotels was $68.54, with a median of $62.70 and a range from $45.08 to $107.58. The average occupancy for franchised hotels was 70.6%, with a median of 72.2% and a range from 53.5% to 94.0%. The average RevPAR was $48.37, with a median of $41.31 and a range from $28.74 to $87.86. The average Contribution was 63.6%, with a median of 54.9% and a range from 39.5% to 82.6%.
It is important to note that the FDD explicitly states that individual results may vary, and there is no assurance that a franchisee will earn as much as the figures presented. The data is based on information received from independent franchisees and their contractually required reports of gross revenue or that they reported to Smith Travel Research. Prospective franchisees should carefully review these financial performance representations and consider factors such as location, market conditions, and operating expenses when evaluating the potential profitability of a Sonesta Simply Suites franchise.