What is the Room Addition Fee for Sonesta Simply Suites, and how is it calculated?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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acknowledge that this Section 3.I is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, your Hotel.
- J. Room Addition Fee. If you add or construct additional Guest Rooms at your Hotel at any time after you sign this Agreement, you will pay us a nonrefundable fee equal to the greater of $400 per additional Guest Room or $5,000 (the "Room Addition Fee"). You must pay the Room Addition Fee to us when you submit an application for our approval to add any Guest Rooms to your Hotel, and you must submit that application to us before you enter into any agreement to add a
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, a franchisee must pay a Room Addition Fee if they add or construct additional guest rooms at their hotel after signing the Franchise Agreement. This fee is nonrefundable and is calculated as the greater of $400 per additional guest room or $5,000.
The Room Addition Fee must be paid when the franchisee submits an application for approval to add guest rooms, and this application must be submitted before entering into any agreement to add rooms. This implies that franchisees need to factor in this cost when planning any expansion or renovation projects that increase the number of rentable rooms.
Sonesta Simply Suites may also require the franchisee to modernize, rehabilitate, or upgrade the hotel as a condition of approving the application to add guest rooms, according to Section 8.G of the Franchise Agreement. This means that the total cost of adding rooms could be significantly higher than just the Room Addition Fee itself, as it may trigger additional required investments in the property.