For a new construction Sonesta Simply Suites, do the estimated costs include back-of-house equipment?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 17 – For new construction, these estimates include costs for public spaces and Guest Rooms, but do not include kitchen equipment, back-of-house equipment, or pools, as those will be highly variable by Hotel and building.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SIMPLY SUITES (Note 1) – 100 ROOMS (FDD pages 36–42)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the estimated initial investment costs for new construction do not include back-of-house equipment. Note 17 clarifies that for new construction, the estimates cover costs for public spaces and guest rooms but specifically exclude kitchen equipment, back-of-house equipment, or pools. The reason for this exclusion is that these costs can vary significantly depending on the specific hotel and building design.
For a prospective franchisee, this means that the initial investment range of $9,954,950 to $16,413,220, as detailed in the table, does not account for back-of-house equipment. Franchisees need to consider these additional costs when planning their budget. The cost of furniture, fixtures, and equipment for new construction is estimated to be between $1,552,500 and $2,587,500, but this figure excludes back-of-house items.
Given the variability in these costs, it is crucial for potential Sonesta Simply Suites franchisees to conduct thorough research and obtain detailed quotes for kitchen and back-of-house equipment specific to their planned hotel. Understanding these costs upfront will help in creating a more accurate financial projection and avoiding unexpected expenses during the construction phase. Franchisees should discuss these costs with the franchisor to better understand typical requirements and potential vendors.