What does 'RevPAR' represent in the aggregate for Sonesta Simply Suites Brand Hotels?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
l basis instead of aggregated amongst all Brand Hotels. We use average occupancy as a measure of the utilization of capacity in our system of hotels.
- "RevPAR" for Brand Hotels, in the aggregate, represents Gross Rooms Revenue in the relevant Brand Hotels divided by total available rooms in those Brand Hotels. To determine the median and the range, the RevPAR was calculated on a per Brand Hotel basis instead of aggregated amongst all Brand Hotels. We use RevPAR as a measure of performance yield in our system of hotels.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 70–74)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, RevPAR, in the aggregate, represents the Gross Rooms Revenue in the relevant Brand Hotels divided by the total available rooms in those Brand Hotels. Sonesta Simply Suites uses RevPAR as a measure of performance yield in their system of hotels.
To determine the median and the range, the RevPAR was calculated on a per Brand Hotel basis instead of aggregated amongst all Brand Hotels. This means that while the aggregate RevPAR provides an overall performance metric, individual hotel performance may vary, and the median and range offer a better understanding of this variability.
For a prospective Sonesta Simply Suites franchisee, understanding RevPAR is crucial because it directly reflects the revenue-generating efficiency of the hotel. A higher RevPAR indicates better performance, driven by a combination of occupancy and room rates. Monitoring and optimizing RevPAR is essential for maximizing profitability and ensuring the long-term success of the franchise. The FDD also states that Sonesta Simply Suites will make available written substantiation of the data used in preparing this Item 19 upon reasonable request.