How is the Guest Room Addition Fee calculated for a Sonesta Simply Suites franchise?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a Guest Room Addition Fee is required if a franchisee adds or constructs additional guest rooms at their hotel after signing the Franchise Agreement. This fee is calculated as the greater of $400 per additional guest room or a flat $5,000.

For a prospective Sonesta Simply Suites franchisee, this means that if they plan to expand their hotel by adding more rooms in the future, they need to budget for this potential fee. For example, if a franchisee adds 10 new guest rooms, the fee would be $5,000 (since 10 rooms x $400/room = $4,000, which is less than $5,000). However, if they add 20 new guest rooms, the fee would be $8,000 (20 rooms x $400/room), as this exceeds the $5,000 minimum.

The Guest Room Addition Fee is due when the franchisee submits an application to add guest rooms. This upfront cost should be considered carefully when evaluating expansion plans, as it directly impacts the profitability and return on investment for any additional construction or renovation projects undertaken to increase the number of rooms at the Sonesta Simply Suites location.

It is important for potential franchisees to factor this fee into their long-term financial projections and business plans, especially if they anticipate future expansion. Understanding the calculation and payment timing of this fee is crucial for making informed decisions about the growth and development of their Sonesta Simply Suites franchise.