About Sonesta RL Hotels Franchise
The James is an upper upscale full-service hotel franchise offering luxury boutique hotel services under the service mark The James and related proprietary marks.
Franchisees operate hotels that cater to business and leisure travelers, meeting planners and attendees, and organizers of social functions.
Hotels provide high-quality lodging with full-service amenities including food and beverage operations, restaurants, bars, lounges, banquet and catering services, spa and salon operations, fitness centers, and meeting and event spaces.
Sonesta RL Hotels Franchise Cost & Fees
Minimum Investment
$1.7M
Average Investment
$50.8M
Maximum Investment
$99.9M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | Greater of $75,000 or $500 per Guest Room | One-time payment upon signing |
| Royalty Fee | 5% of Gross Rooms Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3.5% of Gross Rooms Revenue (may increase to 4.5%) | National brand fund |
| Total Investment Range | $1,728,482 – $99,911,224 | Includes build-out, inventory, working capital |
The investment range of $1.7M–$99.9M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Rooms Revenue) and marketing fee (3.5% of Gross Rooms Revenue (may increase to 4.5%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee (250 rooms) | $125,000 | $125,000 |
| Onboarding Administration Fee | $5,000 | $5,000 |
| Revenue Management System Installation | $1,500 | $10,000 |
| CRS to PMS Interface and Tokenization Set Up Fee | $650 | $1,745 |
| IT Implementation Services Fee | $0 | $52,000 |
| Property Management System Installation Fee | $20,000 | $35,000 |
| Ancillary System Hardware, Network, Administration | $10,000 | $40,000 |
| Sales Technology Platform Implementation Costs | $0 | $28,986 |
| PIP Fee (conversion only) | $0 | $5,000 |
| PIP Reinspection Fee (conversion only) | $0 | $5,000 |
| Custom Architecture & Design Review | $15,000 | $35,000 |
| Initial Brand Training Fee and Reimbursement of Expenses | $5,000 | $7,500 |
| Initial Training Expenses | $1,000 | $2,000 |
| Real Estate, Legal and Title Expenses | $0 | $0 |
| Construction and Improvement Costs | $310,500 | $77,625,000 |
| Permits and Licenses | $51,750 | $931,500 |
| Furniture, Fixtures, and Equipment | $155,250 | $10,867,500 |
| Operating Supplies and Equipment | $77,625 | $3,234,375 |
| Contingencies | $308,000 | $3,000,000 |
| Lender Comfort Letter Fee | $2,000 | $2,000 |
| Initial Operations, Pre-Opening Expenses, Marketing and Advertising | $62,500 | $250,000 |
| Signage | $25,000 | $156,250 |
| Insurance | $5,750 | $509,150 |
| Branded Landing Page Installation | $1,000 | $10,000 |
| Guest Wi-Fi and In-Room Entertainment Installation | $10,118 | $314,868 |
| RFID Key System | $0 | $175,000 |
| Phone System | $0 | $80,000 |
| Restaurant Point of Sale (POS) | $0 | $100,000 |
| Photography Expenses | $5,000 | $5,000 |
| Construction Start Date Extension Fee | $0 | $5,000 |
| Low Voltage | $0 | $550,000 |
| Additional Funds (first 3 months) | $525,839 | $1,753,350 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Equal to the Initial Fee (greater of $75,000 or $500 per Guest Room) |
| Renewal Fee | Equal to the Initial Fee (greater of $75,000 or $500 per Guest Room) |
| Technology Fee | $9.00 per Guest Room per month |
| Audit Fee | Cost of audit including attorneys, accountants, and travel expenses (if underreported by 2%+ or failure to provide reports) |
| Loyalty Program Fee | 4.5% of Qualified Revenue |
| Reservation Fees | $1.75 to $10.50 per reservation |
| Travel Agency Commission Settlement Fee | Up to $0.85 per transaction |
| Groups, Meetings, and Events Fee | 5% on consumed master folio per group |
| TMC and Consortia Fees | 3.25% of Consumed Revenue |
| Ignite Booking Program Annual Fee | $500 per year ($800 if integrated with Delphi) |
| Ignite Booking Program Monthly Fee | 7% on consumed master folio per group |
| Corporate Transient and Consortia Account Support | $1,355 to $2,200 per year |
| Guest Relations Fee | $25 to $125 per issue |
| Operations Insights | Up to $150 per month |
| Online Review Response Fee | $39 to $150 per response |
| Quality Assurance Annual Inspection | Up to $2,500 per year plus travel |
| Brand Conference Fee | $250 per month |
| Non-Compliance Fee | 1% of Gross Rooms Revenue per month |
| Late Payment Charge | Lesser of 1.5% per month or maximum rate permitted by law |
| Revenue Management For Hire | $995 to $2,500 per month |
| Revenue Management System | $10.68 per Guest Room per month |
| Market Intelligence | $295 per month |
| AHLA Fee | $4.50 per room per year |
| Insurance Non-Compliance | $500 per month plus reimbursement |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 4 days |
| Classroom Training | 0 hours |
| On-the-Job Training | 18 to 33 hours |
| Training Location | Virtual or on-site at Hotel, or another location designated by franchisor |
| Additional Training | Ongoing training courses may be required (up to 2 courses or 3 business days per calendar year, plus Brand Conference every 24 months). In-person/on-site ongoing training: $2,000/day plus travel. Virtual ad-hoc: $200/hour. Revenue Manager Certification Training: $500 to $8,950 per user. Revenue Management For Hire program required for first year after opening. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | No exclusive territory. In special circumstances, franchisor may grant a limited exclusive area (typically 2-mile radius) for 3-5 years. |
| Description | Franchisees receive a non-exclusive license to operate at a specified location. Franchisor and affiliates retain all rights to establish Brand Hotels, Network Hotels, and other businesses anywhere, including near the franchisee's Hotel. Franchisor may also acquire or affiliate with competitive businesses. No mechanism exists for resolving conflicts between Network Hotels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | One additional 20-year term |
| Renewal Fee | Equal to the Initial Fee (greater of $75,000 or $500 per Guest Room) |
| Renewal Conditions | Must give notice 9-12 months before expiration; must have substantially complied during term with no more than 3 default notices; must be in full compliance at time of notice and renewal; must remodel Hotel to current Brand Standards; must sign then-current franchise agreement (which may differ materially); must pay renewal fee; franchisee and owners must sign general release |
| Transfer Fee | Equal to the Initial Fee (greater of $75,000 or $500 per Guest Room); no transfer fee if transfer to spouse following spouse's death |
| Transfer Conditions | Must be current on all payments and reports; no violations in 60-day period before request; transferee cannot be in Competitive Business; transferee must complete training; transferee must sign then-current franchise agreement; must complete PIP within 120 days; must pay transfer fee; must sign general release; franchisor has right of first refusal (30-day exercise period) |
| Termination for Cause | 30 days to cure operational defaults; immediate termination for non-curable defaults including failure to pay within 10 days of notice, bankruptcy/insolvency, failure to open by Opening Date, abandonment, contesting Marks, felony conviction, fraud, unauthorized transfer, becoming a Competitive Business, repeated noncompliance (same violation within 24 months or 3+ breaches in 12 months) |
| Non-Compete Period | During the term of the franchise only (no post-term non-compete) |
| Non-Compete Details | During the term, franchisee, owners, and immediate family members may not have direct or indirect ownership interest in a Competitive Business (except less than 5% of publicly traded stock), perform services for a Competitive Business, or use the Franchise System for any other business. Competitive Business means any entity that owns a competing hotel brand, grants franchises for a competing brand, or provides services to such entities (excludes franchisees of competitive brands, multi-brand management companies, and passive investors). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee is not required to participate personally in direct operation, though it is recommended. Hotel must be managed by a full-time General Manager meeting franchisor's minimum qualifications. Franchisee may engage an approved Management Company. If franchisee is a legal entity, a Principal with at least 25% ownership interest and CEO-equivalent authority must be designated. |
| Required Suppliers | Franchisees must purchase from Approved Suppliers when designated, including signage, FF&E, OS&E, food products, booking engine, PMS, RMS, CRS, and other brand-standard items. There may be only one Approved Supplier for certain items. Franchisor reserves right to designate itself or affiliates as Approved Suppliers. |
| Supply Restrictions | 30-50% of required purchases for new construction, 20-25% for conversions, and 15-20% for ongoing operations must be from approved suppliers or meet franchisor specifications. Franchisees may request approval of alternative suppliers in writing; approval typically takes 30 days. |
| Franchisor Revenue from Suppliers | RLHC received $66,472 and SRLHF received $41,198 from vendors in 2024 based on Network Hotel purchases. SRLHF derived $12,613,798 (27% of SRLHF's revenue of $47,107,963) from purchases of goods and services by franchisees and licensees. Volume-based allowances generally range from 1% to 4% of net or gross sales. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Franchisor may offer development incentives (key money) of $4,000 to $9,000 per Guest Room to assist with development or conversion. Incentive does not need to be repaid unless the Franchise Agreement is terminated before expiration or a transfer occurs. The repayable amount reduces annually by an equal percentage based on the term (e.g., 1/20th per year for a 20-year term). Incentive bears no interest unless repayable and not paid when due, at which point 18% per annum applies. No other direct or indirect financing is offered. |
Sonesta RL Hotels Franchise Earnings — Item 19
Sonesta RL Hotels does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Sonesta RL Hotels does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Sonesta RL Hotels Litigation & Risk Flags
4 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sonesta RL Hotels System Growth
Total Units
0
Franchised
0
Company-Owned
0
Sonesta RL Hotels currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 15 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$51.1M
Net Income
$-2,913,000
Total Assets
$100.9M
Audited by Deloitte & Touche LLP for year ending December 31.
Sonesta RL Hotels Franchise — FAQ
The total investment to open a Sonesta RL Hotels franchise ranges from $1,728,482 to $99,911,224, per their Franchise Disclosure Document. This includes the initial franchise fee of Greater of $75,000 or $500 per Guest Room. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sonesta RL Hotels charges a royalty fee of 5% of Gross Rooms Revenue of gross sales, plus a 3.5% of Gross Rooms Revenue (may increase to 4.5%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sonesta RL Hotels Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sonesta RL Hotels to ensure you have the most up-to-date version.
Sonesta RL Hotels does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Sonesta RL Hotels has been franchising since 2022. The FDD shows an investment range of $1,728,482-$99,911,224, a 5% of Gross Rooms Revenue royalty, and no Item 19 earnings disclosure. There are 4 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is Greater of $75,000 or $500 per Guest Room and the total investment ranges from $1,728,482 to $99,911,224 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sonesta RL Hotels and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sonesta RL Hotels or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com