How is the median and range of ADR calculated for Sonesta Simply Suites Brand Hotels?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The following terms used in Part A and Part B of this Item 19 are defined as follows:
- "ADR" for Brand Hotels, in the aggregate, represents Gross Rooms Revenue in the relevant Brand Hotels divided by the total number of paid rooms occupied by hotel guests in those Brand Hotels.
To determine the median and the range the ADR was calculated on a per Brand Hotel basis instead of aggregated amongst all Brand Hotels.
We use ADR as a measure of room pricing in our system of hotels.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 70–74)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the median and range of ADR (Average Daily Rate) are calculated on a per Brand Hotel basis, rather than aggregating the data across all Brand Hotels. ADR represents the Gross Rooms Revenue in the relevant Brand Hotels divided by the total number of paid rooms occupied by hotel guests in those Brand Hotels. This approach provides a more granular view of pricing performance for individual hotels within the Sonesta Simply Suites system.
For franchised hotels, the median ADR is $62.70, with a range from $45.08 to $107.58. For company-owned hotels, the median ADR is $83.55, with a range from $61.40 to $197.91. When combining both company-owned and franchised hotels, the median ADR is $79.19, with a range from $45.08 to $197.91. These figures offer prospective franchisees insight into the potential variability in room rates across different Sonesta Simply Suites locations.
This method of calculation is important for franchisees to understand because it reflects the pricing strategy and revenue management at the individual hotel level. Factors such as location, market demand, and competitive landscape can significantly influence ADR. By understanding the range and median ADR, franchisees can better assess the potential revenue generation of their specific location and develop targeted pricing strategies to optimize occupancy and revenue. It's also important to note that Sonesta Simply Suites will make available written substantiation of the data used in preparing this Item 19 upon reasonable request, allowing franchisees to verify the data presented.