How does Sonesta Simply Suites define a 'Guest Room' for the purpose of calculating the initial fee?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
"Guest Room" means each rentable unit in your Hotel generally used for overnight guest accommodations, the entrance to which is controlled by the same key. Adjacent Guest Rooms with connecting doors that can be rented as separate units are considered separate Guest Rooms. The initial number of approved Guest Rooms will be identified on Exhibit A to the Franchise Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 23–25)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the definition of a 'Guest Room' is important because the initial franchise fee is calculated based on the number of guest rooms in the hotel. The initial fee is the greater of $50,000 or $400 per Guest Room.
For the purpose of calculating the initial fee, Sonesta Simply Suites defines a 'Guest Room' as each rentable unit in the hotel that is generally used for overnight guest accommodations and has an entrance controlled by a single key. This means that each room available for rent to guests counts towards the total number of guest rooms used to calculate the initial fee.
Additionally, the definition clarifies that adjacent guest rooms with connecting doors that can be rented as separate units are considered separate Guest Rooms. This distinction is important for hotels with connecting rooms, as each rentable unit will be counted individually. The initial number of approved Guest Rooms will be specified in Exhibit A of the Franchise Agreement, providing clarity on the exact number used for fee calculation.