factual

What is excluded from the 'Contribution' calculation for Sonesta Simply Suites Brand Hotels?

Sonesta_Simply_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

  • "Contribution" means the net rooms revenue from reservations made at the relevant Brand Hotels through our CRS; OTAs and GDS; our brand website; our call center; our Global Sales Department; our guest recognition program; and all other sources, excluding reservations made directly with a Brand Hotel.

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, the "Contribution" calculation excludes reservations made directly with a Brand Hotel. The "Contribution" includes net rooms revenue from reservations made through various channels such as the CRS (Central Reservation System), OTAs (Online Travel Agencies) and GDS (Global Distribution Systems), the brand website, the call center, the Global Sales Department, the guest recognition program, and all other sources.

This means that the "Contribution" metric is focused on measuring the effectiveness of Sonesta Simply Suites's centralized booking and marketing efforts in driving revenue to the hotels. It provides a view of how well the brand's systems are performing in attracting guests and generating bookings through channels managed at the corporate level.

For a prospective franchisee, this definition is important because it clarifies what revenue streams are being evaluated in the financial performance representations. By excluding direct bookings, the "Contribution" metric gives a clearer picture of the value that the Sonesta Simply Suites brand and its systems bring to the hotel, separate from the franchisee's own local marketing and sales efforts. This allows franchisees to assess the potential return on investment from the franchise's booking infrastructure.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.