Is a Sonesta Simply Suites franchisee required to participate in the Third-Party Distribution Program?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
long as the equipment and supplies meet Brand Standards.
You must use the booking engine we designate, participate in all booking programs we designate through the booking engine, and may not use any other booking engine for your Hotel. We have entered into agreements with intermediaries for various distribution channels, pursuant
to which such distribution channels and online travel agencies ("OTAs") (which may include Agoda | Priceline, Booking.com, Hotwire, Expedia, and other third party intermediaries providing travel products for sale electronically to travel agents, corporations, meeting planners, and consumers) will offer your hotel room inventory through their websites including, in some cases, rooms at loyalty program member rates (the "Third-Party Distribution Program").
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 42–46)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees are required to participate in the Third-Party Distribution Program. This program involves the distribution of hotel room inventory through various online channels, including online travel agencies (OTAs) such as Agoda | Priceline, Booking.com, Hotwire, and Expedia.
Participation in the Third-Party Distribution Program means that Sonesta Simply Suites franchisees must allow their hotel rooms to be offered through these third-party websites, potentially including rooms at loyalty program member rates. The FDD specifies that franchisees must use only those channels that Sonesta Simply Suites designates for Brand Hotels.
This requirement ensures brand consistency and broad market reach for Sonesta Simply Suites. However, franchisees should be aware that using these channels may involve associated fees or commissions charged by the third-party intermediaries, which could affect their revenue. Franchisees should clarify with Sonesta Simply Suites which specific channels they are required to use and understand the cost structure associated with each channel.