How is a 'Guest Room' defined for a Sonesta Simply Suites franchise agreement?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a 'Guest Room' is defined as each rentable unit in the hotel that is generally used for overnight guest accommodations and has an entrance controlled by the same key. The document clarifies that adjacent guest rooms with connecting doors that can be rented separately are considered separate guest rooms.

This definition is important because the initial franchise fee for a Sonesta Simply Suites franchise is calculated based on the number of guest rooms. The franchisee must pay a non-refundable initial fee of $50,000 or $400 per guest room, whichever is greater. The number of approved guest rooms is identified in Exhibit A of the Franchise Agreement.

For a prospective franchisee, understanding this definition is crucial for accurately calculating the initial franchise fee and assessing the overall investment required. It ensures clarity on how rentable units are counted, especially in cases where connecting rooms might be present. This also helps in verifying the number of guest rooms approved by Sonesta Simply Suites, as stated in Exhibit A, to avoid any discrepancies in fee calculations.