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Sonesta ES Suites Franchise Cost, Revenue & Review 2026

LodgingMAFranchising since 2021
CAverageAverage45/100Editorial grade from public filings; not investment advice.
Investment
$982K – $8.8M
Disclosed sales
partial, no system average
SBA charge-off
Limited · 12 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-02386FDD 2026Data QualityExcellent81%
Manager-run OKNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

Sonesta ES Suites is an all-suite extended-stay hotel franchise with kitchen suites for longer stays. Franchisees own and operate individual properties, running suites, housekeeping, and revenue management on Sonesta's systems.

FranchiseVerdict summary · 2026

A Sonesta ES Suites franchise requires a total initial investment of $982K – $8.8M, including a $65K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.

Overview

Investment
$982K – $8.8M
24th pct Lodging
Avg gross sales
N/A
Incl. company outletsProjection
Royalty
5.0%
3rd pct Lodging
Units
73
41st pct Lodging
SBA charge-off
N/A

Quick verdict · Lodging · color = vs category peers

Total Investment
$982K – $8.8M
Median $8.9M
below median ↓, better than category
Franchise Fee
$65K
Median $50K
above median ↑, worse than category
Liquid Capital Req'd
$401K – $503K
Median $312K
above median ↑, worse than category
Avg Revenue
Partial, no system average
No system average in Item 19
Royalty Rate
5.0%
Median 5.0%
near median
Ongoing Fees
17.5% of rev
Median 8.5%
above median ↑, worse than category
SBA Charge-Off Rate
Limited · 12 loans
Limited SBA coverage: 12 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
System Size
73 units
Median 60 units
above median ↑, better than category
Turnover Rate
10.2%
Median 0.7%
above median ↑, worse than category
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Optional
Can hire a manager
Litigation
23 cases
Review carefully

Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $982K – $8.8M including a $65K franchise fee, 5.0% ongoing royalty.
  • RETURNSItem 19 discloses hotel-industry ADR/Occupancy/RevPAR/Contribution metrics rather than gross sales figures; no avg_gross_sales/median_gross_sales figure applicable.
  • RISKVerdict C (Average), verdict score 45/100 (higher is better).
  • GROWTHNegative: net -5 franchised outlets in the latest year (1 opened, 6 closed); 3 signed but not yet open (Item 20).
  • FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
Sonesta RL Hotels Franchising Inc.
Parent company
Red Lion Hotels Corporation (RLHC)
FDD Item 1, page 8 of the 2026 FDD
Ultimate parent
Sonesta Holdco Corporation
FDD Item 1, page 9 of the 2026 FDD
CEO title
Co-President
Keith Pierce
Incorporated in
Washington
HQ
400 Centre Street, Newton, Massachusetts 02458
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$58.5M
vs $51.1M prior year
Management churn noted
Frequent turnover
Item 2 disclosed frequent executive changes

Same owner · FDD Item 1, page 9

6 other brands on this site name Sonesta Holdco Corporation as parent or ultimate parent in their own FDD.

Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
Keith Pierce
Headquarters
MA
Founded
1986
FDD year
2026
States available
23

Can you afford it, and what does the money buy?

Entry cost runs 45% below the typical lodging franchise.

Total investment (Item 7)$982K – $8.8MCited, not corroborated — printed on page 39 of the 2026 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$65,000Verified — printed on page 21 of the 2026 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty5.0%Cited, not corroborated — printed on page 24 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Ad fund3.5%Cited, not corroborated — printed on page 24 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$401K – $503K

Source: FDD 2026 · Items 5–7

Full Item 7 breakdown32 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
Initial Fee$65K$65K
Onboarding Administration Fee$5K$5K
Revenue Management System Installation$2K$10K
CRS to PMS Interface and Tokenization Set Up Fee$650$4K
IT Implementation Services Fee$0$20K
Property Management System Installation Fee$9K$15K
Ancillary System Hardware, Network, Administration$5K$25K
Sales Technology Platform Implementation Costs$2K$2K
PIP Fee$5K$5K
PIP Reinspection Fee$0$5K
Custom Architecture & Design Review$5K$15K
Initial Brand Training Fee and Reimbursement of Expenses$2K$4K
Initial Training Expenses$1K$2K
Real Estate, Legal and Title Expenses——
Construction and Improvement Costs$104K$3.0M
Permits, Licenses, Plans, Etc.$50K$300K
Furniture, Fixtures, and Equipment$50K$3.2M
Operating Supplies and Equipment$64K$106K
Contingencies$50K$661K
Lender Comfort Letter Fee$2K$2K
Total initial investment$982K$8.8M

Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$982K – $8.8M
Top 40% of category vs category
Liquid capital req'd
$401K – $503K
Middle of category vs category
Franchise fee
$65K
Top 40% of category vs category
Royalty
5.0%
typical 6–8%
Ad fund
3.5%
typical 3–5%
Total fee load
17.5%
vs 9–13% typical

Ongoing fees · Item 6

Sonesta ES Suites: Item 6 recurring fees
FeeAmount
Royalty5.0% of gross sales
Marketing / ad fund3.5% of gross sales
Technology fee$9
Training fee$2K
Transfer fee$65K
Renewal fee$65K
Inventory (initial)$64K – $106K
Total fee load17.5% of rev

What do units actually make?

Avg gross salesNot extracted
Median gross salesNot extracted
Item 19 typeADR, Occupancy, RevPAR, an…
Sample size16

Source: FDD 2026 · Item 19

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

No Item 19 revenue figure for Sonesta ES Suites is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.

Returns model · single-unit ROIC

What would one Sonesta ES Suites unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearnot set
Item 19 not disclosed. Enter your own revenue assumption
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $982K–$8.8M (midpoint used)
FDD reports $401K–$503K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$5.3M
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2026 FDD

Financial Performance

Item 19 discloses hotel-industry ADR/Occupancy/RevPAR/Contribution metrics rather than gross sales figures; no avg_gross_sales/median_gross_sales figure applicable.

Includes company-owned outlets

An occupancy metric, not unit revenue

Item 19 type
ADR, Occupancy, RevPAR, and Contribution
Sample size
16
vs category median 98 · small
Source filing
FDD 2026
The FDD edition these figures were read from
Transparency
4 / 10
vs category median 0 / 10 · above
Gross sales rank
No comparison data
Investment cost rank24th
Lower investment ranks lower (better)
Royalty rate rank3th
Lower royalty = lower percentile (better)
Unit count rank41th
vs Lodging peers
Risk score rank75th
Lower risk = lower percentile (better)

Compared against 175 Lodging brands

Showing the headline figures — all 142 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Fee burden

Total ongoing fee load of 17.5% — above the Lodging median of 8.5%.

Disclosure

Item 19 reports ADR, Occupancy, RevPAR, and Contribution rather than annual gross sales, so unit revenue is not directly comparable.

Multi-unit rate

Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Lodging medians

How Sonesta ES Suites Compares

Metric
Sonesta ES Suites
Category median
vs median
Investment
$4.9M
$8.9Mmiddle half $1.2M–$18.3M · n=96
Below median, better than category
Revenue
N/A
$1.4Mmiddle half $1.0M–$1.8M · n=2
N/A
Unit Count
73
60middle half 6–245 · n=126
Above median, better than category

Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units73Verified — printed on page 76 of the 2026 FDD (Item 20), and the table's own arithmetic closes on it three ways.
Turnover rate10.2% (caution)

Source: FDD 2026 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
73
Opened
1
Last reporting year
Closed
6
Terminated
0
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Turnover rate
10.2%
Company-owned
14
Corporate units in the system
% franchised
81%
vs corporate-owned
Multi-unit owners
5.0%

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Reacquired
0
Franchisor bought back
Signed, not yet open
3
0.04 per open outlet · Item 20 Table 5
Projected new
3
Franchisor's next-year forecast
Transfer rate
2.7%
Owners selling to other franchisees
Ceased ops
8.2%
Units that stopped operating
Opened1
Closed6
Terminated0

Last reporting year only, multi-year history not disclosed in this brand's FDD.

Item 20 · 23 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 23 states
No contacts on file

States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.

Where the owners are · Item 20 owner list

52 current owners across 23 states.

  • CA 8
  • TX 7
  • FL 4
  • AZ 3
  • GA 3
  • LA 3
  • NC 3
  • OH 3
  • AL 2
  • IL 2
  • NY 2
  • CO 1
  • +11 more states

Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

Total loans
12
Loan volume
$60.8M
Median loan
$5.0M
50th percentile
Charge-off rate
Limited · 12 loans
Limited SBA coverage: 12 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units

Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated

Repayment rate (PIF)
Limited · 12 loans
5-yr charge-off
Limited · 12 loans
Loans approved 2021+
Active lenders
7
Defaults
0
Typical loan rate
8.8%
avg rate to borrowers
Franchised industry avg
6.3%
n=9,970 loans
Jobs supported
203
0.5 per loan
Lender concentration
22%
top lender's share

Borrower mix: 0% went to startups / new businesses, 100% to established operators

Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.

Top lenders financing Sonesta ES Suites franchisees

Metro City Bank2 loans—
American Bank2 loans—
Port 51 Lending LLC1 loans—

Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Total loans
3
Loan volume
$15.8M
Charge-off rate
N/A
Jobs created
93

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Sonesta ES Suites from SBA 7(a) FOIA data.

Principal loss rate
0.0%
Avg SBA guarantee
75%
Avg interest rate
8.75%
Lender concentration
22.2%
Job velocity
0.5 per $100K
NAICS benchmark
7.6%
NAICS 721110
Jobs supported
203

Top SBA lendersTop lender holds 22% of loans

#LenderLoansVolumeDefault %
1Metro City Bank2$10.0MN/A
2American Bank2$10.0MN/A
3Port 51 Lending LLC1$5.0MN/A
4GBank1$5.0MN/A
5Millennium Bank1$5.0MN/A
6Open Bank1$5.0MN/A
7Bank of Hope1$5.0MN/A

Geographic failure vector

StateLoansDefaultsRate
GAGeorgia30--
ALAlabama20--
OHOhio20--
ILIllinois10--
TXTexas10--

SBA 7(a) lending trend

2024
3
2025
4
2026
2

Borrower profile

Existing (2+ yr)6 (67%)
Ownership change3 (33%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

What could kill this investment?

SBA charge-offLimited · 12 loans
Verdict score45/100 (higher is better)
Litigation23 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

CAverage45Verdict score 45/100

Hotel franchisor with 15 litigation matters (mostly concluded merger-securities and franchisee collection suits, 6 pending 2025) against a 73-unit system, plus a negative net income of -$7.69M on $58.5M revenue. Bankruptcy disclosed is only an affiliate (Office Properties Income Trust), not the franchisor. Net worth is healthy at $70.5M and financials audited.

High confidence±4 pts
4149

Bankruptcy (Item 4)

Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s

Office Properties Income Trust and certain subsidiaries filed voluntary Chapter 11 bankruptcy petition 25-90530 in United States Bankruptcy Court of Texas (Houston) on October 30, 2025. Principal place of business: Two Newton Place, 255 Washington Street, Suite 300, Newton, Massachusetts 02458-1634.

Audited financials (Item 21)

Yes · Deloitte & Touche LLP

Franchisor revenue (Item 21)

Yr 1: $58.5MYr 2: $51.1MNon-royalty: $5.5M

Franchisor entity revenue (not unit-level)

ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: Yes
  • Kickbacks from required suppliers: Yes
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes
  • Can negotiate own supplier terms: No

Score breakdown · what drove the 45 / 100 verdict

  1. 01HIGHlitigation_count=15 vs 73 units, 6 pending
  2. 02MINORfranchisor_net_income=-$7,693,000
  3. 03MINORaffiliate Chapter 11 (Office Properties Income Trust), not franchisor
  4. 04MEDnet worth $70.5M, audited, Item 19 disclosed

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 142 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail23 matters · Item 3

Litigation cases

The franchisor

Concluded (7)

  • Red Lion Hotels Franchising, Inc. v. Minnesota Hospitality, Inc.

    settled

    Brought against a franchisee · filed 2019-02-22 · U.S. District Court for the Eastern District of Washington · Case No. 2:19-cv-00061

    “Red Lion Hotels Franchising, Inc. v. Minnesota Hospitality, Inc., Case No. 2:19-cv-00061 (U.S. District Court for the Eastern District of Washington). On February 22, 2019, SRLHF filed a lawsuit against defendant, the guarantor of a former franchisee, for breach of its guarantee”Page 20 of the 2026 FDD, Item 3

    Outcome:“On October 7, 2019, defendant and SRLHF entered into a settlement and release agreement in which defendant and SRLHF agreed to mutually release one another from certain claims and the defendant agreed to pay SRLHF $150,000 and execute a confession of judgment.”

  • Red Lion Hotels Franchising, Inc. v. Remo Polselli

    dismissed

    Brought against a franchisee · filed 2019-03-14 · U.S. District Court for the Eastern District of Washington · Case No. 2:19-cv-00082

    “Red Lion Hotels Franchising, Inc. v. Remo Polselli, Case No. 2:19-cv-00082 (U.S. District Court for the Eastern District of Washington). On March 14, 2019, SRLHF filed a lawsuit against defendant, the guarantor of a former franchisee, for breach of its guarantee”Page 19 of the 2026 FDD, Item 3

    Outcome:“On October 9, 2020, the court granted the parties’ stipulated motion and entered an Order of Dismissal without Prejudice, dismissing all of the parties’ claims without prejudice.”

  • Linger Chu and His-Hsieh Chu v. Jim Tang, Red Lion Hotels Franchising, Inc. and Does 1-100

    settled

    Brought by a franchisee · filed 2018-06-28 · Superior Court of the State of California, County of Los Angeles · Case No. BC712103

    “Linger Chu and His-Hsieh Chu v. Jim Tang, Red Lion Hotels Franchising, Inc. and Does 1-100, Case No. BC712103 (Superior Court of the State of California, County of Los Angeles). On June 28, 2018, plaintiffs filed a lawsuit against SRLHF and third parties for intentional misrepresentation, negligent misrepresentation, and declaratory relief”Page 19 of the 2026 FDD, Item 3

    Outcome:“On March 28, 2019, the plaintiffs and SRLHF entered into a Settlement and Release Agreement in which the plaintiffs and SRLHF agreed to mutually release one another from all claims and the plaintiffs agreed to pay SRLHF $250,000 and execute a confession of judgment.”

  • Radisson Hotels International, Inc. v. Red Lion Hotels Corporation d/b/a RLH Corporation, and Red Lion Hotels Franchising, Inc.

    settled

    Third-party plaintiff · filed 2018-09-26 · U.S. District Court for the Eastern District of Washington · Case No. 2:18-cv-00303

    “Radisson Hotels International, Inc. v. Red Lion Hotels Corporation d/b/a RLH Corporation, and Red Lion Hotels Franchising, Inc., Case No. 2:18-cv-00303 (U.S. District Court for the Eastern District of Washington). On September 26, 2018, plaintiff, which is a competitor of RLHC and SRLHF, filed a lawsuit against RLHC and SRLHF for tortious interference with franchise license agreements”Page 18 of the 2026 FDD, Item 3

    Outcome:“On August 25, 2021, plaintiff, RLHC and SRLHF entered into a Settlement Agreement and Release in which plaintiff, on the one hand, and RLHC and SRLHF, on the other hand, agreed to mutually release one another from all claims, and, without admitting any liability,”

  • Red Lion Hotels Franchising, Inc. v. Ghazanfar Khan, et al.

    settled

    Brought against a franchisee · filed 2017-03-13 · U.S. District Court for the Eastern District of Washington · Case No. 2:17-cv-00094, Case No. 2:17-cv-00155

    “Red Lion Hotels Franchising, Inc. v. Ghazanfar Khan, et al., Case No. 2:17-cv-00094, Case No. 2:17-cv-00155 (U.S. District Court for the Eastern District of Washington). On March 13, 2017, SRLHF filed a lawsuit against two former franchisees and their guarantors for trademark infringement, false designation of origin and breach of contract”Page 19 of the 2026 FDD, Item 3

    Outcome:“On December 28, 2018, the parties entered into a Confidential Settlement and Mutual Release Agreement in which the parties agreed to mutually release each other from all claims, defendants paid to SRLHF $500,000, and defendants agreed to immediately cease all use of our proprietary service marks and trademarks.”

  • Red Lion Hotels Franchising, Inc. v. JS Three Star Investment Inc.

    settled

    Brought against a franchisee · filed 2016 · District Court of the 422nd Judicial District, Kaufman County, Texas · Case No. 96777-422

    “Red Lion Hotels Franchising, Inc. v. JS Three Star Investment Inc., Case No. 96777-422 (District Court of the 422nd Judicial District, Kaufman County, Texas). In December 2016, SRLHF filed a lawsuit against a former franchisee for failure to pay its account, unjust enrichment and breach of contract”Page 20 of the 2026 FDD, Item 3

    Outcome:“On December 11, 2017, the parties entered into a confidential settlement agreement in which the”

  • Red Lion Hotels Franchising, Inc. v. Kumar and Sadikila Vemulapalli

    settled

    Brought against a franchisee · filed 2016-05-12 · Superior Court of Washington, County of Spokane · Case No. 16-2-01814-3

    “Red Lion Hotels Franchising, Inc. v. Kumar and Sadikila Vemulapalli, Case No. 16-2- 01814-3 (Superior Court of Washington, County of Spokane). On May 12, 2016, SRLHF filed a complaint against guarantors of a former franchisee seeking to enforce their personal guaranty of a franchise agreement.”Page 20 of the 2026 FDD, Item 3

    Outcome:“On December 18, 2018, the parties entered into a Settlement and Release Agreement in which the parties agreed to mutually release each other from all claims and defendants agreed to pay SRLHF $80,000.”

Status not stated in the filing (6)

  • Sonesta RL Hotels Franchising Inc. v. Bliss Investment LLC and Dr. Chandrakant Shah

    Brought against a franchisee · filed 2025-01-15 · United States District Court for the District of Massachusetts · Civil Action No. 1:25-cv-10112-PGL

    “Sonesta RL Hotels Franchising Inc. v. Bliss Investment LLC and Dr. Chandrakant Shah, Civil Action No. 1:25-cv-10112-PGL, Filed January 15, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. Gonzales WS Hospitality LLC and Sal Bhatty

    Brought against a franchisee · filed 2025-07-11 · United States District Court for the District of Massachusetts · Civil Action No. 1:25-cv-11973-ADB

    “Sonesta RL Hotels Franchising Inc. v. Gonzales WS Hospitality LLC and Sal Bhatty, Civil Action No. 1:25-cv-11973-ADB, Filed July 11, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. Grain Valley Hospitality, LLC and Riteshkumar Patel

    Brought against a franchisee · filed 2025-12-31 · United States District Court for the District of Colorado · Civil Action No. 1:25-cv-04233

    “Sonesta RL Hotels Franchising Inc. v. Grain Valley Hospitality, LLC and Riteshkumar Patel, Civil Action No. 1:25-cv-04233, Filed December 31, 2025 (United States District Court for the District of Colorado)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. MSDS MGT, Inc., Mohkam Sing Bath, and Harjinder Sharma

    Brought against a franchisee · filed 2025-05-20 · United States District Court for the District of Massachusetts · Civil Action No. 1:25-cv-11428

    “Sonesta RL Hotels Franchising Inc. v. MSDS MGT, Inc., Mohkam Sing Bath, and Harjinder Sharma, Civil Action No. 1:25-cv-11428, Filed May 20, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. Pardeshi LLC

    Brought against a franchisee · filed 2025-10-24 · United States District Court for the District of Massachusetts · Civil Action No. 1:25-cv-13137

    “Sonesta RL Hotels Franchising Inc. v. Pardeshi LLC, Civil Action No. 1:25-cv-13137, Filed October 24, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3
  • Sonesta RL Hotels Franchising Inc. v. SIGMM LLC, Mark Gregson, and Peggy Gregson

    Brought against a franchisee · filed 2025-04-15 · United States District Court for the District of Massachusetts · Civil Action No. 1:25-cv-10954-AK

    “Sonesta RL Hotels Franchising Inc. v. SIGMM LLC, Mark Gregson, and Peggy Gregson, Civil Action No. 1:25-cv-10954-AK, Filed April 15, 2025 (United States District Court for the District of Massachusetts)”Page 21 of the 2026 FDD, Item 3

Parent, affiliates and predecessor

Concluded (2)

  • Van Cleave v. Red Lion Hotels Corporation, et al.

    dismissed

    Third-party plaintiff · Red Lion Hotels Corporation ("RLHC"), our parent, and the members of its board · filed 2021-02-09 · U.S. District Court for the District of Delaware · Case No. 1:21-cv-00177

    “Van Cleave v. Red Lion Hotels Corporation, et al., Case No. 1:21-cv-00177, Filed February 9, 2021 (U.S. District Court for the District of Delaware)”Page 18 of the 2026 FDD, Item 3

    Outcome:“As of March 31, 2021, the plaintiffs in each of these eight lawsuits voluntarily dismissed their respective claims, and on September 8, 2021, the parties entered into an agreement that provided for a mutual release of claims and for RLHC to pay the plaintiffs’ attorneys an aggregate amount of $240,000 in fees.”

  • Red Lion Hotels Corporation v. Tiya Hospitality, LLC

    settled

    Brought against a franchisee · Red Lion Hotels Corporation ("RLHC"), our parent · filed 2017 · Circuit Court of Jefferson County, Alabama · Case No. CV-2017-902126.00

    “Red Lion Hotels Corporation v. Tiya Hospitality, LLC, Case No. CV-2017-902126.00 (Circuit Court of Jefferson County, Alabama). In May 2017, RLHC filed a lawsuit against a former brand member for failure to pay amounts due and breach of contract for failure to pay amounts due.”Page 20 of the 2026 FDD, Item 3

    Outcome:“The parties entered into a Confidential Mutual Release and Settlement Agreement on February 19, 2018, under which defendant paid to RLHC $10,500 and the parties agreed to mutually release each other from all claims.”

This list shows 15 of the 23 matters Item 3 discloses; the rest are in the filing.

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 17.5% of sales (royalty + ad fund), before rent and labor.

Initial term20 yrs
Renewal term20 yrs
TerritoryNone (caution)
Initial training33 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term20 years
Renewal term20 years
Allowed renewalsℹ1
Protected territoryNo
Exclusive territoryℹNo
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Right of first refusalℹNo
Transfer requires consentYes
Termination notice30 days
Mandatory arbitrationYes
Arbitration locationNewton, Massachusetts
Jury trial waiverYes
Governing lawMassachusetts
Litigation count23

Items 10, 11

Training & Operations

Classroom training
33 hrs
On-the-job training
0 hrs
Training location
On-site and corporate
Ongoing training
Required
Site selection
Franchisee (franchisor does not assist with site selection)
Franchisor financing
Offered
Item 10
POS system
Shift4 (integration required)
Operating tech stack

Items 5 & 11

Franchisor Support

✗Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: Shift4 (integration required)

Item 20 · call current owners

Franchisee Contacts

53 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 53 contacts · $49
Free preview
(623) 866-••••AZ
Unlock all 53 contacts
(650) 837-••••CA
(602) 469-••••AZ
(503) 688-••••OR
(610) 317-••••PA

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Sonesta ES Suites franchise?

The total investment to open a Sonesta ES Suites franchise ranges from $982K – $8.8M, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do Sonesta ES Suites franchise owners earn?

Item 19 of the Sonesta ES Suites FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.

Who owns Sonesta ES Suites?

Sonesta ES Suites is franchised by Sonesta RL Hotels Franchising Inc.. Its parent company is Red Lion Hotels Corporation (RLHC). The ultimate parent named in the FDD is Sonesta Holdco Corporation. Source: FDD Item 1, 2026 filing.

What is Item 19 in the Sonesta ES Suites FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Sonesta ES Suites FDD and qualifies whose outlets they describe.

What is Sonesta ES Suites's franchise failure rate?

SBA 7(a) loan charge-off data is not available for Sonesta ES Suites (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.

How many Sonesta ES Suites franchise locations are there?

As of their most recent FDD filing, Sonesta ES Suites has 73 total units in the United States, including 59 franchised units and 14 company-owned units. 1 new units were opened in the latest reporting year.

Is Sonesta ES Suites a good franchise to buy?

FranchiseVerdict rates Sonesta ES Suites as a C-grade franchise with a verdict score of 45 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.

Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.

For franchisors

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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.