What is the Third-Party Distribution Program for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
y modify the services provided by the help desks. Requests for certain support may incur a fee, the amount of which will be determined and agreed by you and us prior to initiation of such support.
G. Third-Party Distribution Program.
- We have entered into agreements with intermediaries for various distribution channels, pursuant to which such distribution channels and online travel agencies ("OTAs") (which may include Agoda | Priceline, Booking.com, Hotwire, Expedia, and other third party intermediaries providing travel products for sale electronically to travel agents, corporations, meeting planners. and consumers) will offer your hotel room inventory through their websites including, in some cases, rooms at loyalty program member rates (the "Third-Party Distribution Program"). You must participate in the Third-Party Distribution Program, under the terms and conditions we negotiate, including pricing terms, using only those channels that we designate for Brand Hotels. You must provide us with information we may request to facilitate your participation with the Third-Party Distribution Program or the Franchise System Website (as defined in Section 9.B). You are responsible for the payment of all reservation fees, including third-party booking fees, global distribution system ("GDS") fees, and fees associated with the central reservation office (call center) and Central Reservation System, in connection with stays booked at your Hotel through their websites. If at any time hotel quests pay for stays booked at your Hotel 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' 2025 Franchise Disclosure Document, the Third-Party Distribution Program involves agreements with intermediaries for various distribution channels, including online travel agencies (OTAs). These OTAs, which may include entities like Agoda | Priceline, Booking.com, Hotwire, and Expedia, offer hotel room inventory through their websites, sometimes including rooms at loyalty program member rates.
As a Sonesta Simply Suites franchisee, participation in this program is mandatory under the terms and conditions negotiated by Sonesta Simply Suites, including pricing terms, using only the channels designated for Brand Hotels. Franchisees must provide any information requested by Sonesta Simply Suites to facilitate participation in the Third-Party Distribution Program or the Franchise System Website.
The franchisee is responsible for the payment of all reservation fees, including third-party booking fees, global distribution system (GDS) fees, and fees associated with the central reservation office (call center) and Central Reservation System, for stays booked through these websites. Sonesta Simply Suites retains the right to collect revenues paid to the OTAs on the franchisee's behalf and remit the revenue, less any amounts owed to them, if hotel guests directly pay for stays booked through these websites. Franchisees must connect to all third-party distribution channels through Sonesta Simply Suites' Central Reservation System, and are prohibited from bypassing this system by connecting the third-party distribution channel to their Property Management System. Franchisees must maintain rates and inventory in the Central Reservation System on a rolling 12-month basis, and failure to do so may result in a fee of $250 (subject to Fee Adjustments) after a seven-day written notice. Repeated occurrences may incur additional fees.