For a new construction Sonesta Simply Suites, do the estimated costs include kitchen equipment?

According to the 2025 Sonesta Simply Suites FDD, the estimated initial investment costs for new construction do not include kitchen equipment. Note 17 of Item 7 clarifies that the estimates for new construction cover costs for public spaces and guest rooms, but specifically exclude kitchen equipment, back-of-house equipment, and pools. The reason for this exclusion is that these costs can vary significantly depending on the specific hotel and building.

For a prospective Sonesta Simply Suites franchisee, this means that the initial investment range of $9,954,950 to $16,413,220 for new construction, as detailed in Item 7, does not account for the costs associated with equipping a kitchen. Franchisees need to consider and budget separately for these items. The FDD provides a detailed breakdown of various other expenses, such as the initial fee of $50,000, revenue management system installation ranging from $1,500 to $10,000, and construction and improvement costs ranging from $6,986,250 to $10,996,875, but kitchen equipment is not within these estimates.

Given the exclusion of kitchen equipment costs from the initial investment estimates, it is crucial for potential franchisees to conduct thorough due diligence to determine the specific costs for their Sonesta Simply Suites location. This would involve obtaining detailed quotes from suppliers for all necessary kitchen equipment, back-of-house equipment, and potentially pool-related items. Understanding these costs upfront is essential for accurate financial planning and to avoid unexpected expenses during the development phase. Franchisees should discuss these costs with Sonesta Simply Suites to get a better understanding of what is needed for their specific location.