What is the Groups, Meetings, and Events fee based on for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Fee | Current Applicable Fees |
|---|---|---|
| (Subject to Change) | ||
| Travel Agency Commission Settlement Fee 4 | Up to $0.85 per transaction | |
| Groups, Meetings, and Events1, 4 | 3% on consumed master folio per group | |
| Direct Connect Fee 4 | $1.75 per transaction | |
| Brand.com 4 | $1.75 per transaction | |
| Internet Distribution System (IDS) Fee 4 | $4.00 per transaction | |
| Voice Reservation Service with Auto Attendant Fee 4 | $4.00 per call | |
| Global Distribution Systems (GDS) Fee 4 | $10.50 per transaction | |
| TMC and Consortia Fees 4 | 3.25% of gross revenue generated from bookings consumed through travel agencies (“Consumed Revenue”) | |
| Ignite Booking Program (Annual Fee) 4 | $500 per year (or $800 per year if integrated with Delphi Sales System), payable on a calendar year basis without proration for partial calendar years | |
| Ignite Booking Program (Monthly Fee) 4 | 7% on consumed master folio per group | |
| Business Pass Booking Program 4 | Not currently charged, but anticipated to be $350 per year, payable on a calendar year basis without proration for partial calendar years |
Source: Item 23 — RECEIPTS (FDD pages 80–246)
What This Means (2025 FDD)
According to the 2025 FDD, Sonesta Simply Suites charges a Groups, Meetings, and Events fee. This fee is calculated as 3% of the consumed master folio per group. In simpler terms, this means that if a group books rooms and uses other services at the hotel, Sonesta Simply Suites will collect 3% of the total amount spent by that group.
For a prospective franchisee, this fee represents an ongoing expense that will impact their revenue. It is important to factor this percentage into financial projections and pricing strategies for group bookings. Understanding how this fee is applied and collected is crucial for managing the financial performance of the franchise.
It's also worth noting that the FDD indicates that this fee is subject to change, so franchisees should stay informed about any potential adjustments to this percentage. Additionally, the FDD lists other fees related to booking programs, such as the Ignite Booking Program, which has both annual and monthly fees based on consumed master folio per group, highlighting the importance of carefully reviewing all applicable fees associated with group bookings.