Through what system must Sonesta Simply Suites franchisees connect to all third-party distribution channels?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
l 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.
- (2) You must connect to all third-parties distribution channels through our Central Reservation System, unless such third-party does not directly or indirectly offer interfaces to the Central Reservation System. You otherwise may not bypass our Central Reservation System by connecting such third-party distribution channel to your Property Management System or otherwise. You must maintain rates and inventory in the Central Reservation System on a rolling 12-month basis. If you fail to maintain rates and inventory on a rolling 12-month basis, you will be given seven (7) days' written notice to do so, after which, we will extend your rates on your behalf. Upon our first written notice to you for failing to maintain ra
Source: Item 22 — CONTRACTS (FDD pages 79–80)
What This Means (2025 FDD)
According to Sonesta Simply Suites's 2025 Franchise Disclosure Document, franchisees must connect to all third-party distribution channels through the brand's Central Reservation System. This requirement ensures that Sonesta Simply Suites maintains control over its brand standards and pricing strategies across all booking platforms. The only exception to this rule is if a third-party channel does not offer interfaces to the Central Reservation System.
For a prospective franchisee, this means they cannot independently manage connections with online travel agencies (OTAs) or other distribution channels via their own Property Management System (PMS). Instead, all rate and inventory updates must be managed through Sonesta Simply Suites's Central Reservation System on a rolling 12-month basis. Failure to comply with this requirement can result in a written notice and a fee of $250 for the first occurrence, with additional fees for repeated occurrences.
This centralized approach allows Sonesta Simply Suites to maintain consistent branding and service levels across all booking platforms, which can enhance customer satisfaction and brand loyalty. However, it also means that franchisees have less direct control over their distribution strategies and must rely on the franchisor's system for managing their online presence. Franchisees are responsible for all reservation fees, including third-party booking fees, global distribution system fees, and fees associated with the central reservation office and Central Reservation System.
The FDD states that franchisees must provide Sonesta Simply Suites with all required information about their hotel, such as hotel description, address, inventory, and amenities, to maintain an updated and accurate profile in the central reservations system. Franchisees also authorize Sonesta Simply Suites to access their room rates, inventory, and other hotel information necessary to offer the services. This collaborative approach ensures that the Central Reservation System remains accurate and up-to-date, which is crucial for effective distribution and revenue management.