Is participation in the Third-Party Distribution Program mandatory for Sonesta Simply Suites franchisees?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
s, meeting planners. and consumers) will offer your hotel room inventory through their websites including, in some cases, rooms at loyalty program member rates (the "Third-Party Distribution Program"). You must participate in the Third-Party Distribution Program, under the terms and conditions we negotiate, including pricing terms, using only those channels that we designate for Brand Hotels. You must provide us with information we may request to facilitate your participation with the Third-Party Distribution Program or the Franchise System Website (as defined in Section 9.B). You are responsible for the payment of all reservation fees, including third-party booking fees, global distribution system ("GDS") fees, and fees associated with the central reservation office (call center) and Central Reservation System, in connection with stays booked at your Hotel through their websites. If at any time hotel quests pay for stays booked at your Hotel through those websites directly, we have the right (but not the obligation) to collect revenues paid to the OTAs on your behalf, and if collected remit the revenue to you less any amounts owed to us.
- (2) You must connect to all third-parties distribution channels through our Central Reservation System, unless such third-party does not directly or indirectly offer interfaces to the Central Reservation System. You otherwise may not bypass our Central Reservation System by connecting such third-party distribution channel to your Property Management System or otherwise. You must maintain rates and inventory in the Central Reservation System on a rolling 12-month basis. If you fail to maintain rates and inventory on a rolling 12-month basis, you will be given seven (7) days' written notice to do so, after which, we will extend your rates on your behalf. Upon our first written notice to you for failing to maintain ra
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, participation in the Third-Party Distribution Program is mandatory for franchisees. Sonesta Simply Suites has agreements with intermediaries, including online travel agencies (OTAs) like Agoda | Priceline, Booking.com, Hotwire, and Expedia, to offer hotel room inventory through their websites.
Franchisees are required to participate in this program under the terms and conditions negotiated by Sonesta Simply Suites, including pricing terms, and must use only the channels designated by Sonesta Simply Suites for Brand Hotels. Franchisees must also provide any information requested by Sonesta Simply Suites to facilitate participation in the Third-Party Distribution Program or the Franchise System Website.
The franchisee is responsible for the payment of all reservation fees, including third-party booking fees, global distribution system (GDS) fees, and fees associated with the central reservation office (call center) and Central Reservation System, for stays booked through these websites. Additionally, franchisees must connect to all third-party distribution channels through Sonesta Simply Suites's Central Reservation System, unless the third party does not offer interfaces to the Central Reservation System. Bypassing the Central Reservation System is not allowed, and franchisees must maintain rates and inventory in the Central Reservation System on a rolling 12-month basis.
Failure to maintain rates and inventory on a rolling 12-month basis will result in a written notice, and a fee of $250 (subject to Fee Adjustments) will be charged upon the first notice. Repeated occurrences may result in additional fees. If hotel guests pay for stays booked through these websites directly, Sonesta Simply Suites has the right to collect revenues paid to the OTAs on the franchisee's behalf and remit the revenue to the franchisee, less any amounts owed to Sonesta Simply Suites.