About Sonesta Simply Suites Franchise
Sonesta Simply Suites is an extended stay hotel franchise that has been offering franchise opportunities since 2021, backed by Sonesta International Hotels Corporation.
The brand caters to travelers who need comfortable, apartment style accommodations for longer stays, including business travelers on assignment, families in transition, and guests relocating to new areas.
The franchise fee is $50,000.
Sonesta Simply Suites Franchise Cost & Fees
Minimum Investment
$868K
Average Investment
$8.2M
Maximum Investment
$15.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | 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 up to 4.5%) | National brand fund |
| Total Investment Range | $867,950 – $15,572,250 | Includes build-out, inventory, working capital |
The investment range of $868K–$15.6M 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 up to 4.5%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Fee (Note 2) | $50,000 | $50,000 |
| Onboarding Administration Fee (Note 3) | $5,000 | $5,000 |
| Revenue Management System Installation (Note 4) | $1,250 | $8,900 |
| Revenue Management System Training (Note 4) | $0 | $8,950 |
| IT Implementation Services Fee (Note 5) | $0 | $0 |
| Property Management System Hardware & Installation Fee (Note 6) | $15,000 | $25,000 |
| Ancillary System Hardware, Network, Administration (Note 7) | $20,000 | $90,000 |
| Sales Technology Platform Implementation Costs (Note 8) | $12,735 | $20,000 |
| PIP Fee (Note 9) | $0 | $0 |
| PIP Reinspection Fee (Note 10) | $0 | $0 |
| Custom Architecture & Design Review (Note 11) | $0 | $25,000 |
| Initial Brand Training Fee and Reimbursement of Expenses (Note 12) | $2,500 | $5,000 |
| Initial Training Expenses (Note 13) | $1,000 | $2,000 |
| Real Estate, Legal and Title Expenses (Note 14) | $0 | $0 |
| Construction and Improvement Costs (Note 15) | $6,750,000 | $10,625,000 |
| Permits and Licenses (Note 16) | $40,000 | $500,000 |
| Furniture, Fixtures, and Equipment (Note 17) | $1,500,000 | $2,500,000 |
| Operating Supplies and Equipment (Note 18) | $200,000 | $400,000 |
| Contingencies (Note 19) | $270,000 | $425,000 |
| Lender Comfort Letter Fee (Note 20) | $2,000 | $2,000 |
| Initial Operations, Pre-Opening Expenses, Marketing and Advertising Expenses (Note 21) | $50,000 | $150,000 |
| Signage (Note 22) | $25,000 | $100,000 |
| Insurance (Note 23) | $33,958 | $42,400 |
| Branded Landing Page Installation (Note 24) | $1,000 | $10,000 |
| Guest Wi-Fi and In-Room Entertainment Installation (Note 25) | $98,000 | $118,000 |
| Photography Expenses (Note 26) | $5,000 | $5,000 |
| Construction Start Date Extension Fee (Note 27) | $0 | $5,000 |
| Additional Funds (during the first 3 months of operation) (Note 28) | $300,000 | $450,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The then-current Initial Fee |
| Renewal Fee | The then-current Initial Fee |
| Technology Fee | $9.00 per Guest Room per month |
| Audit Fee | Cost of audit, including attorneys’ fees, court costs, and non-legal fees |
| Loyalty Program | 2.5% of Qualified Room Revenue |
| Reservation Fees | $1.75 to $9.50 per reservation |
| Travel Agency Commissions | 10% of TAC Consumed Revenue |
| Travel Agency Commission Settlement Fee | Currently up to $0.85 per transaction |
| Meetings and Events Commission | 3% on consumed master folio per group |
| Travel Management Company (“TMC”) and Consortia Fees | $3.50 per room night |
| Corporate Account Support Subscription and Services | $112.91 to $183.33 per month |
| Guest Relations Program | $25 to $125 per issue |
| Operations Insights | $125 per month |
| Online Review Response Fee | $39 to $150 per response |
| Quality Assurance Annual Inspection | $2,000 once per year, plus travel, lodging, and meals; additional $4,000 plus travel, lodging, and meals for re-inspection |
| Quality Assurance and Guest Satisfaction Deficiency Remediation | Up to $5,000 per occurrence, plus travel, lodging, and meals |
| Brand Conference Fee | $100 per month (covers one attendee); $695 per additional attendee |
| Ongoing Training Fees | In-person/on-site: $2,000/day, plus travel costs and expenses; Virtual Ad-Hoc: $200 per hour of training |
| Non-Compliance Fee | 1% of Gross Rooms Revenue per month of non-compliance |
| Late Payment Charge | Lesser of 1.5% per month or the maximum rate permitted by applicable law |
| Reactivation Fee | Lesser of 25% of past due balances or $2,000 |
| Insurance | Currently $500 per month, plus reimbursement for all premiums, costs, and expenses |
| Taxes | Varies |
| Indemnification | Varies |
| Administrative Fee for Lender Comfort or Other Requests | $2,000 per lender comfort letter and up to $5,000 per other request, plus additional costs |
| PIP Fee (ongoing) | $5,000 per PIP |
| PIP Reinspection Fee (ongoing) | $5,000 per occurrence |
| Photography Expenses (ongoing) | Up to $5,000 |
| Custom Architecture & Design Review (ongoing) | Up to $25,000 |
| Default Remedies | Reimbursement for all costs and expenses incurred to remedy default |
| Lost Revenue Damages | Calculated formula based on remaining term, royalty/BPF percentages, and average monthly Gross Rooms Revenue |
| Pre-Opening Damages | $3,600 per Guest Room |
| Unauthorized Opening Damages | $5,000 per day, plus costs |
| Failure to De-Identify Damages | $500 per day, plus expenses |
| Revenue Management For Hire | $995 to $2,500 per month |
| Revenue Management System (ongoing) | $4.18 per Guest Room per month |
| Market Intelligence | $250 per month |
| American Hotel & Lodging Association Fee (“AHLA”) | $4.50 per room per year |
| Reservation System Maintenance Fee: Future Rate and Inventory | $250 – 1st occurrence, $500 – 2nd occurrence, $1,000 – per occurrence thereafter |
| Reservation System Maintenance Fee: Central Reservation System Services | $150 per occurrence |
| Alternative Payment Fee | $25 processing fee per paper check, 3% processing fee for credit card payment |
| Guest Room Addition Fee | Greater of $400 per additional Guest Room or $5,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 4 days |
| Classroom Training | 0 hours |
| On-the-Job Training | 16-30 hours |
| Training Location | Virtually or at a location we designate |
| Additional Training | Ongoing brand training is conducted in-person/on-site or virtual ad hoc, with fees of $2,000/day plus travel expenses for in-person, or $200/hour for virtual. Hotel Representatives and/or experienced employees may be required to attend various training courses periodically. A Brand Conference is held no less frequently than every 18 months, which general managers or management company representatives must attend annually. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Specified location |
| Description | Franchisees are granted a non-exclusive license to operate Brand Hotels at a specified location and will not receive an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by the franchisor or its affiliates. The franchisor retains the right to engage in any activities, including establishing and operating Brand Hotels or other similar businesses, anywhere in the world. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | One additional 20-year term |
| Renewal Fee | The then-current Initial Fee |
| Renewal Conditions | To qualify for a successor franchise, the franchisee must: give timely notice of election to renew; have substantially complied with the Franchise Agreement during its term and not received four or more default notices; be in full compliance with the Franchise Agreement and all Brand Standards at the time of notice and commencement of the new term; maintain possession of the Hotel premises and remodel as necessary to comply with current Brand Standards; transition to a different brand concept if required; correct any deficiencies before renewal; sign the then-current franchise agreement and ancillary agreements; pay the renewal fee; and sign a general release. |
| Transfer Fee | The then-current Initial Fee |
| Transfer Conditions | Franchisor approval is required for any transfer. Conditions include: all Royalty and Brand Promotion Fund contributions and other amounts owed must be paid, and all required reports and statements submitted; no violations of the Franchise Agreement or other agreements within 60 days prior to and during the transfer period, and no termination notice received; transferee and its owners must not have ownership interest in or perform services for a Competitive Business; all requested information/documents about the transfer and transferee must be provided; transferee must complete required training; landlord must consent to transfer/sublease; transferee must sign the then-current franchise agreement and related documents; transferee must meet current franchisee qualifications; payment of transfer fee (unless to spouse upon death); franchisee and owners must sign a general release; and franchisee/owners must cease identifying as current/former franchisee. |
| Termination for Cause | The franchisor may terminate the Franchise Agreement if the franchisee or its guarantors violate the Franchise Agreement (subject to state law). Non-curable defaults include failure to pay amounts due within 10 days of notice, bankruptcy, insolvency, failure to discharge judgments over $100,000, loss of possession of the Hotel, failure to complete renovation/construction work by deadlines, failure to open the Hotel by the Opening Date, abandonment of Hotel operations for five consecutive days, contesting franchisor's ownership of Marks, dissolving/liquidating the entity, felony conviction of owners, concealing revenue/false records, dishonest/unethical conduct, unauthorized use of Confidential Information, failure to pay taxes, becoming a Competitive Business, unauthorized transfer, failure to maintain required insurance, failure to obtain/maintain licenses, information adversely reflecting on franchisor's reputation, imminent danger to public health/safety, violation of laws/regulations not corrected within 72 hours, or repeated non-compliance. |
| Non-Compete Period | During the term of the Franchise Agreement |
| Non-Compete Details | During the term, the franchisee, its owners, and their immediate family members may not have a direct or indirect interest (except for less than 5% equity in publicly traded companies) in a Competitive Business, perform services for a Competitive Business, or use/duplicate the Franchise System or Brand Standards for any other business. A 'Competitive Business' is defined as any entity that owns, franchises, or provides services to a hotel brand or trade name that, in the franchisor's judgment, competes with Brand Hotels or Network Hotels. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisees are not required to personally participate in the direct operation of their Hotel, though it is recommended. If not personally managed, a franchisor-approved management company must be hired. One Hotel Representative must complete initial training. The franchisee is at all times responsible for the management, direction, and control of the Hotel. Principals (25% or more ownership and voting power) must have chief executive officer authority. |
| Required Suppliers | Most equipment and supplies must meet Brand Standards; some must be purchased from an Approved Supplier, and in some cases, only one Approved Supplier. This includes most FF&E, OS&E, and food products. Franchisees must use the designated booking engine. |
| Supply Restrictions | Franchisees must strictly comply with all Brand Standards for appearance, function, and performance, including FF&E, OS&E, décor, layout, signage, advertising materials, uniforms, photography, logoed items, guest room amenities, consumable inventories, food and beverage services, wireless high-speed internet access, in-room entertainment, Computer System (CRS, PMS, RMS), insurance, telephone, and security items. The franchisor may designate sole or approved suppliers for certain items and services. |
| Franchisor Revenue from Suppliers | In 2022, RLHC received $5,075 from vendors based on purchases by all Network Hotels. SRLHF derived $11,781,850 (29.1% of its revenue) from purchases of goods and services by franchisees and licensees of all Network Brands. Allowances from Approved Suppliers generally range from 1% to 4% of net or gross sales on items like FF&E, operating/maintenance equipment, merchant processing, services, and food and beverage products. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer financial incentives (between $2,000 and $7,600 per Guest Room) to new Sonesta brand hotels to assist with development or conversion. These incentives are provided via a development incentive promissory note. The amount does not need to be repaid unless the Franchise Agreement is terminated early or a transfer occurs. The repayable amount is reduced annually by an equal percentage based on the term of the Franchise Agreement. If the incentive becomes repayable and is not paid, it accrues interest at 18% per annum or the highest legal rate. No security interest is required, but owners with 20% or more ownership must personally guarantee the obligations under the Incentive Note. |
Sonesta Simply Suites Franchise Earnings — Item 19
Average Revenue
$59.7
Median Revenue
$54.56
Revenue Range
$31.55 – $101.81
Sample Size
61 units
Past financial performance does not guarantee future results. Individual results will vary.
Sonesta Simply Suites Litigation & Risk Flags
2 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 Simply Suites System Growth
Total Units
62
Franchised
11
Company-Owned
51
Sonesta Simply Suites currently operates 11 franchised locations and 51 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 61 |
| 2021 | 4 | 0 | 65 |
| 2022 | 11 | 9 | 62 |
Transfers: 0 | Closures: 9
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$54.0M
Net Income
$-3,186,000
Total Assets
$95.8M
Audited by Deloitte & Touche LLP for year ending December 31.
Sonesta Simply Suites Franchise — FAQ
The total investment to open a Sonesta Simply Suites franchise ranges from $867,950 to $15,572,250, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sonesta Simply Suites charges a royalty fee of 5% of Gross Rooms Revenue of gross sales, plus a 3.5% of Gross Rooms Revenue (may increase up to 4.5%) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sonesta Simply Suites 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 Simply Suites to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Sonesta Simply Suites franchise owners report average revenue of $59.7 and median revenue of $54.56. This is based on a sample of 61 units. Past performance does not guarantee future results.
Sonesta Simply Suites has been franchising since 2021. The FDD shows an investment range of $867,950-$15,572,250, a 5% of Gross Rooms Revenue royalty, and includes an Item 19 earnings disclosure. There are 2 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 $50,000 and the total investment ranges from $867,950 to $15,572,250 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 Simply Suites 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 Simply Suites or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com