What fees are Sonesta Simply Suites franchisees responsible for regarding reservations?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Booking Fees and Commissions; Other Fees. You are responsible for the payment of all booking fees, reservation fees, and commissions incurred in connection with the operation of your Hotel, whether payable directly to a third-party or advanced by us to such third-party and billed to you.
D. Loyalty Program. We and our affiliates may administer and manage loyalty programs that will provide participating guests of your Hotel with certain rewards or benefits when staying at your Hotel. Such loyalty programs may apply specifically for Brand Hotels or to any or all Network Hotels. Currently, Brand Hotels participate in our loyalty program referred to as Sonesta Travel Pass. We and our affiliates may modify or discontinue any loyalty program at any time at our and their sole discretion. You must participate in and honor the terms of any and all loyalty, discount, or other promotional program applicable to Brand Hotels and pay all applicable fees or charges associated with such programs (including any fees assessed by us and our affiliates, room discounts given to guests, or rewards provided to guests, that are applicable to your Hotel) that we and our affiliates offer to the public on your behalf and any room rate quoted to any guest at the time the guest makes an advance reservation.
We charge a loyalty program fee for your participation in the Sonesta Travel Pass program in the amount of 2.5% of your Hotel's Qualified Revenue (defined below) from guests participating in the Sonesta Travel Pass program, payable at the same time and in the same manner as Royalty Fees. We reserve the right, at any time, upon notice to you, to increase the loyalty program fee; provided, that the loyalty program fee that we impose shall not exceed 4.5% of your Hotel's Qualified Revenue. Company-owned and company-managed Brand Hotels may pay the loyalty program fee at a different rate, and not all franchised Network Hotels pay a uniform loyalty program fee. "Qualified Revenue" includes (a) Qualifying Rates (defined below), and (b) at our discretion, any other items charged to the loyalty program member not defined in subsection (a). "Qualifying Rates" include: (1) non-discounted rates; (2) standard corporate rates; (3) leisure rates; (4) government rates; (5) corporate and negotiated rates; (6) conference and meeting rates; and (7) individual hotel contract rates.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, franchisees are responsible for various fees associated with hotel operations and reservations. These include booking fees, reservation fees, and commissions incurred in connection with the operation of their Hotel, whether payable directly to a third-party or advanced by Sonesta Simply Suites to such third-party and billed to the franchisee. The specific amounts and details of these fees are outlined in Schedule 3.H, which is subject to change.
Franchisees must also participate in and honor the terms of any loyalty, discount, or other promotional programs applicable to Brand Hotels. This includes paying all applicable fees or charges associated with such programs, such as fees assessed by Sonesta Simply Suites and its affiliates, room discounts given to guests, or rewards provided to guests that are applicable to the franchisee's Hotel. These programs may apply specifically to Brand Hotels or to any or all Network Hotels.
Additionally, Sonesta Simply Suites franchisees are required to pay a loyalty program fee for participation in the Sonesta Travel Pass program. This fee is 2.5% of the Hotel's Qualified Revenue from guests participating in the Sonesta Travel Pass program, payable at the same time and in the same manner as Royalty Fees. Sonesta Simply Suites reserves the right to increase the loyalty program fee, but it will not exceed 4.5% of the Hotel's Qualified Revenue. Qualified Revenue includes Qualifying Rates, such as non-discounted rates, standard corporate rates, leisure rates, government rates, corporate and negotiated rates, conference and meeting rates, and individual hotel contract rates.