How is the median and range of RevPAR calculated for Sonesta Simply Suites Brand Hotels?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- "RevPAR" for Brand Hotels, in the aggregate, represents Gross Rooms Revenue in the relevant Brand Hotels divided by total available rooms in those Brand Hotels.
To determine the median and the range, the RevPAR was calculated on a per Brand Hotel basis instead of aggregated amongst all Brand Hotels.
We use RevPAR as a measure of performance yield 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's 2025 Franchise Disclosure Document, RevPAR, or Revenue Per Available Room, is a key performance indicator. For Brand Hotels in the aggregate, RevPAR represents Gross Rooms Revenue in the relevant Brand Hotels divided by total available rooms in those Brand Hotels. Gross Rooms Revenue includes all revenue attributable to or payable for rental of Guest Rooms at a Brand Hotel. Total available rooms represents the number of Guest Rooms available multiplied by the number of days in the reported period.
To determine the median and the range of RevPAR, Sonesta Simply Suites calculates RevPAR on a per Brand Hotel basis instead of aggregating the data across all Brand Hotels. This approach provides a more accurate representation of individual hotel performance within the system. The median represents the midpoint of RevPAR values, while the range indicates the lowest and highest RevPAR values achieved by individual hotels.
This method of calculation is used for both company-owned and franchised Sonesta Simply Suites hotels. The FDD includes tables showing the average, median, and range of RevPAR for company-owned hotels, franchised hotels, and the combination of both. For example, for franchised hotels, the median RevPAR was $41.31, with a range from $28.74 to $87.86. For company-owned hotels, the median RevPAR was $57.59, with a range from $36.93 to $139.48. For the combination of company-owned and franchised hotels, the median RevPAR was $53.65, with a range from $28.74 to $139.48.
Prospective franchisees should understand these calculations to evaluate the potential financial performance of a Sonesta Simply Suites franchise. Reviewing the median and range provides insights into the variability of RevPAR across different hotels and helps in assessing the potential risks and rewards of investing in a franchise. Franchisees should also consider factors such as location, market conditions, and management expertise, which can influence a hotel's RevPAR performance.