What is included in 'Gross Rooms Revenue' for Sonesta Simply Suites Brand Hotels?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Gross Rooms Revenue" means all revenue attributable to or payable for rental of Guest Rooms at a Brand Hotel, whether from cash, check, credit and debit card, barter exchange, trade credit, or other credit transactions, whether or not collected, including guaranteed no-show revenue, revenue calculated on reservations cancelled outside of the Brand Hotel's cancellation policy or outside of the reservation channel in which it was
made, any proceeds actually received from any business interruption or similar insurance applicable to the loss of revenue due to the non-availability of Guest Rooms, and any miscellaneous fees charged to all guests regardless of the accounting treatment of such fees, net of chargebacks from credit card issuers. Excluded from Gross Rooms Revenue are separate charges to guests for food and beverage (including room service); vending machine receipts; actual telephone charges for calls made from a guest room; key forfeitures and entertainment (including internet fees and commissions); allowances for any Guest Room rebates and overcharges; gratuities to employees or service charges levied in lieu of such gratuities, which are payable to employees; and applicable federal, state and local sales, occupancy and use taxes collected from guests.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 70–74)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, "Gross Rooms Revenue" encompasses all revenue derived from guest room rentals at a Sonesta Simply Suites hotel. This includes payments made via cash, check, credit and debit cards, barter exchange, trade credit, or other credit transactions, regardless of whether the revenue has actually been collected. It also incorporates guaranteed no-show revenue and revenue from reservations canceled outside the hotel's cancellation policy or the reservation channel used.
Additionally, "Gross Rooms Revenue" includes any proceeds received from business interruption insurance related to the loss of revenue due to guest room unavailability. It also covers miscellaneous fees charged to all guests, irrespective of their accounting treatment, but it is net of chargebacks from credit card issuers.
However, the following are excluded from "Gross Rooms Revenue": separate charges for food and beverage (including room service), vending machine receipts, actual telephone charges for calls made from guest rooms, key forfeitures, entertainment (including internet fees and commissions), allowances for guest room rebates and overcharges, gratuities to employees or service charges levied in lieu of gratuities payable to employees, and applicable federal, state, and local sales, occupancy, and use taxes collected from guests.