What is the purpose of the third-party fees collected by Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
F. Third-Party Fees. We periodically may require you to pay us fees due from you to third parties, which we will collect on behalf of such third parties and remit to such third parties.
H. Booking Fees and Commissions; Other Fees. You are responsible for the payment of all booking fees, reservation fees, and commissions incurred in connection with the operation of your Hotel, whether payable directly to a third-party or advanced by us to such third-party and billed to you.
We have entered into agreements with intermediaries for various distribution channels, pursuant to which such distribution channels and online travel agencies ("OTAs") (which may include Agoda | Priceline, Booking.com, Hotwire, Expedia, and other third party intermediaries providing travel products for sale electronically to travel agents, corporations, 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 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.
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to the 2025 Sonesta Simply Suites Franchise Disclosure Document, Sonesta Simply Suites periodically may require franchisees to pay fees that are due to third parties. Sonesta Simply Suites collects these fees on behalf of the third parties and then remits the payments to them.
Additionally, franchisees are responsible for the payment of all booking fees, reservation fees, and commissions incurred in connection with the operation of their Hotel, whether payable directly to a third-party or advanced by Sonesta Simply Suites to such third-party and billed to the franchisee.
Sonesta Simply Suites has agreements with intermediaries for various distribution channels, including online travel agencies (OTAs) like Agoda, Priceline, Booking.com, Hotwire, and Expedia. These channels offer the hotel room inventory through their websites, sometimes at loyalty program member rates, as part of the Third-Party Distribution Program. Franchisees must participate in this program under the terms and conditions negotiated by Sonesta Simply Suites, using only the channels designated for Brand Hotels. Franchisees are responsible for reservation fees, including third-party booking fees and global distribution system (GDS) fees, for stays booked through these websites. Sonesta Simply Suites can 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.