What is the estimated high-end insurance cost for a Sonesta Simply Suites conversion in Florida?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
ady have most of the specified minimum insurance. For Brand Hotels located in Florida, we estimate the high end of the estimate to be $60,775 for conversions and $192,963 for new constructions due
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SIMPLY SUITES (Note 1) – 100 ROOMS (FDD pages 36–42)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the estimated high-end insurance cost for a conversion hotel located in Florida is $60,775. This higher estimate is attributed to increased local costs and expenses specific to Florida.
The FDD notes that franchisees must secure and maintain insurance that meets Sonesta Simply Suites' specifications, including minimum amounts, insurer ratings, and required endorsements. These insurance requirements are detailed in the Brand Manual or other written communication from the company.
The document also clarifies that insurance premiums can vary significantly based on factors such as location, hotel size, number of employees, the insurance carrier, the franchisee's creditworthiness, market conditions, and the type of coverage purchased. The low-end insurance estimate for a conversion assumes that the franchisee already possesses most of the minimum required insurance coverage.