What does 'Occupancy' represent in the aggregate for Sonesta Simply Suites Brand Hotels?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, 'Occupancy' for Brand Hotels, when considered in the aggregate, is defined as the total number of paid rooms occupied in the relevant Brand Hotels divided by the total number of available rooms in those Brand Hotels. This calculation provides a broad overview of how well the hotels in the Sonesta Simply Suites system are utilizing their capacity.

Sonesta Simply Suites uses average occupancy as a metric to gauge the utilization of capacity within its hotel system. This means that the occupancy rate reflects the proportion of available rooms that are actually generating revenue by being occupied by guests. A higher occupancy rate generally indicates more efficient use of resources and potentially higher profitability for the hotels.

It's important to note that while the aggregate occupancy provides an overview, the median and range of occupancy are calculated on a per Brand Hotel basis rather than aggregated across all Brand Hotels. This distinction is crucial because it allows for a more granular understanding of individual hotel performance, mitigating the impact of outliers and providing a more accurate representation of typical occupancy levels within the Sonesta Simply Suites system. Prospective franchisees should pay close attention to both the aggregate and individual hotel occupancy data to assess the potential revenue generation and stability of a Sonesta Simply Suites franchise.