What is a PIP, and how is it developed for a Sonesta Simply Suites conversion?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Property Improvement Plan. You or your Principal and the Management Company, if applicable as provided under Section 8.D, will meet with us to conduct an initial inspection of the Premises and develop a property improvement plan (the "PIP") of improvements required to meet Brand Standards. We may assign you a project manager or onboarding specialist. The PIP is attached as Exhibit D-1(A) to the Franchise Agreement and is incorporated herein by reference. On or prior to the Renovation Work Completion Date (as defined below), you will cause the renovation and construction work required in the PIP (the "Renovation Work") to be completed. You agree, at your expense, to (1) obtain any and all required zoning changes, planning consents, building, utility, sign and business permits and licenses, liquor license and any other consents, permits and licenses necessary to lawfully open and operate your Hotel; (2) construct all required improvements in compliance with the PIP and any other construction plans and specifications approved by us; (3) decorate your Hotel in compliance with plans and specifications approved by us; and (4) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services. You agree to use the vendor(s) we select, if any (which may include us or our affiliates), for design, engineering, construction management and purchasing services in connection with the conversion of your Hotel.
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- Plans and Designs. You must submit to us your plans, layouts, specifications, and drawings for your Hotel (collectively, the "Plans"), and your plans, layouts, specifications, and drawings for the proposed furnishings, fixtures, equipment and décor of your Hotel (collectively, the "Designs") with respect to the Renovation Work. We may supply you with representative prototype guest room and public area plans and schematic building plans as a guide for preparation of the Plans and Designs. Our approval of such Plans and Designs does not warrant the depth of our analysis or assume any responsibility for the efficacy of the Plans and Designs, or the resulting Renovation Work. You acknowledge and agree that you will not rely upon any approval we may provide you for the Plans or Designs for any purpose whatsoever except compliance with our then prevailing Brand Standards.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, a Property Improvement Plan (PIP) outlines the required improvements for a location to meet the brand's standards. For franchisees converting an existing hotel to a Sonesta Simply Suites, the franchisee, along with their Principal and Management Company (if applicable), will meet with Sonesta Simply Suites representatives to conduct an initial inspection of the premises. This inspection is the basis for developing the PIP. Sonesta Simply Suites may assign a project manager or onboarding specialist to assist with this process. The PIP itself is attached as Exhibit D-1(A) to the Franchise Agreement.
The franchisee is responsible for completing all renovation and construction work outlined in the PIP by the Renovation Work Completion Date. This includes obtaining necessary zoning changes, permits, and licenses to lawfully operate the hotel. The franchisee must also construct all required improvements in compliance with the PIP and any other construction plans and specifications approved by Sonesta Simply Suites. Additionally, the franchisee is responsible for decorating the hotel according to the brand's approved plans and specifications and obtaining all customary contractors' sworn statements and lien waivers.
Sonesta Simply Suites may require the franchisee to use specific vendors for design, engineering, construction management, and purchasing services related to the conversion. Franchisees must submit their plans, layouts, specifications, and drawings for the hotel, including furnishings, fixtures, equipment, and décor, for approval. Sonesta Simply Suites may provide prototype guest room and public area plans as a guide. However, the FDD notes that Sonesta Simply Suites' approval of these plans does not warrant their efficacy or assume responsibility for the resulting renovation work, and franchisees should not rely on this approval for any purpose other than compliance with brand standards.