Sonesta ES Suites
Formerly known as RLH Corporation
Bottom line
- Total investment $982K – $26.4M including a $65K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $127/year (median $115).
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
- 23 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Sonesta ES Suites unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
Sonesta ES Suites franchisees operate extended-stay hotel properties (typically 120–300+ rooms) targeting business travelers and relocating families with weekly/monthly lease models. Day-to-day operations include housekeeping, front desk management, maintenance, revenue management, guest services, and compliance with Sonesta's brand standards across food service, cleanliness, and loyalty program integration.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 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).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sonesta ES Suites presents material risk due to undisclosed profitability, active multi-front litigation, unprotected territories, and aggressive growth that may indicate market saturation rather than franchise strength.
Score breakdown · what drove the 59 / 100 rating
- 01MINORNo average net income disclosure (Item 19) prevents ROI validation on $981k–$26.4M investment range
- 02HIGHMultiple active litigation streams (stockholder class-actions, competitor lawsuits, breach/collection suits) indicate operational and legal instability
- 03MINORUnprotected territory creates direct competition risk; 136% YoY unit growth suggests oversaturation potential
- 04MED5% royalty on gross rooms revenue (not profit) compounds cash flow pressure if occupancy declines
- 05MINOR72-unit base system with explosive 136% growth rate is unsustainable and suggests quality control/support strain
- 06HIGHPost-2021 Sonesta merger integration appears incomplete given ongoing stockholder litigation and unclear synergies
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
61 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sonesta ES Suites · FDD (2026) PDF