What is the range of insurance costs for a new construction Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount Conversion | New Construction | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Insurance (Note | $4,600 to | $44,149 to | As arranged | As arranged | Insurer |
| 23) | $27,335 | $88,438 |
- Note 23 You must procure and maintain, at your expense, insurance of the types and in the minimum amounts we specify, whether in the Brand Manual or otherwise in writing.
This insurance must be with insurers having minimum ratings we specify, name as additional insureds the parties we specify, and carry the endorsements and notice requirements we specify, whether in the Brand Manual or otherwise in writing.
Insurance premiums vary widely by reason of location, size of hotel, number of employees, insurance carrier, your creditworthiness, market conditions, and type of coverage purchased and are difficult to estimate.
For Brand Hotels located in Florida, we estimate the high end of the estimate to be $60,775 for conversions and $192,963 for new constructions due to higher local costs and expenses in that state.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT SONESTA SIMPLY SUITES (Note 1) – 100 ROOMS (FDD pages 36–42)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, the estimated initial investment for insurance for a new construction is between $44,149 and $88,438. These costs are paid to the insurer and are arranged between the franchisee and the insurance provider.
The FDD also notes several factors that can influence insurance premiums. These include the hotel's location and size, the number of employees, the insurance carrier, the franchisee's creditworthiness, market conditions, and the type of coverage purchased. These factors make it difficult to provide a precise estimate.
For Sonesta Simply Suites hotels located in Florida, the high end of the insurance estimate is $192,963 for new constructions. This higher cost is attributed to increased local costs and expenses within the state. Prospective franchisees should carefully consider these potential variations and obtain detailed insurance quotes specific to their location and business circumstances.