What revenues are excluded from the Gross Rooms Revenue calculation for a Sonesta Simply Suites?

According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, Gross Rooms Revenue is a key figure used to calculate royalty and brand promotion fees. However, certain revenues are specifically excluded from this calculation, which can impact the amount a franchisee owes.

Excluded revenues include separate charges to guests for food and beverage, including room service, vending machine receipts, and actual telephone charges for calls made from a guest room. Additionally, key forfeitures, entertainment charges (including Internet fees and commissions), allowances for Guest Room rebates and overcharges, and gratuities to employees or service charges levied in lieu of gratuities payable to employees are also excluded. Finally, applicable federal, state, and local sales, occupancy, and use taxes collected from guests are not included in Gross Rooms Revenue.

Understanding these exclusions is crucial for Sonesta Simply Suites franchisees as it directly affects the calculation of their royalty and brand promotion fee obligations. By excluding these specific revenue streams, the franchise agreement aims to provide a more accurate reflection of revenue generated solely from room rentals, ensuring that franchisees are not charged fees on revenues from other services or taxes collected.