Sonesta Simply Suites Franchise Cost, Revenue & Review 2026
- Investment
- $14.0M – $19.2M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (3)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sonesta Simply Suites is a select-service, extended-stay hotel franchise built for longer stays. Franchisees develop and operate the properties, managing housekeeping, front desk, and revenue under Sonesta brand standards.
FranchiseVerdict summary · 2026
A Sonesta Simply Suites franchise requires a total initial investment of $14.0M – $19.2M, including a $50K 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: B (Above 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: partial✓ 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
- $14.0M – $19.2M
- 52nd pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 67
- 39th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
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 $14.0M – $19.2M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSItem 19 reports RevPAR, ADR, Occupancy, and Contribution rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 48/100 (higher is better).
- GROWTHPositive: net +40 franchised outlets in the latest year (42 opened, 2 closed) (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
- Ultimate parent
- Sonesta International Hotels Corporation / Sonesta Holdco Corporation
- Predecessor
- Red Lion Hotels Franchising, Inc. (formerly Vance Hotels, Inc.)
- Prior franchisor entity
- CEO title
- Co-President and Co-Chief Executive Officer
- Keith Pierce and Jeffrey Leer
- 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
Same owner · FDD Item 1
6 other brands on this site name Sonesta International Hotels Corporation / Sonesta Holdco Corporation as parent or ultimate parent in their own FDD.
- Classico Collection By SonestaC
- MOD A Sonesta CollectionC
- Signature InnC
- Sonesta ES SuitesC
- Sonesta Hotels and Resorts / Royal SonestaC
- Sonesta Select / Sonesta EssentialB
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 and Jeffrey Leer
- Headquarters
- MA
- Founded
- 1986
- FDD year
- 2026
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 87% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $301K | $453K |
| Equipment, build-out, other | $13.7M | $18.7M |
| Total initial investment | $14.0M | $19.2M |
Source: Sonesta Simply Suites 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $14.0M – $19.2M
- Middle of category vs category
- Liquid capital req'd
- $301K – $453K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- 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
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $9 |
| Transfer fee | $50K |
| Renewal fee | $50K |
| Total fee load | 17.5% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Sonesta Simply 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 Simply Suites unit return on the cash you put in?
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.
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.
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 reports RevPAR, ADR, Occupancy, and Contribution rather than annual gross sales, so unit revenue is not directly comparable. We omit it from rankings.
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 RevPAR, ADR, Occupancy, and Contribution rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 307.1% CAGR over 3 years across 67 units — operators are staying and new ones are joining.
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 Simply Suites Compares
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?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 67
- Opened
- 42
- Last reporting year
- Closed
- 2
- Turnover rate
- 3.0%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 85%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
Last fiscal year · Item 20 exits and transfers
- Transferred
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 23 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
23
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $15.0M
- Median loan
- $5.0M
- 50th percentile
- Charge-off rate
- Under 10 loans (3)
- Insufficient SBA coverage: 3 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (3)
- 5-yr charge-off
- Under 10 loans (3)
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
67-unit lodging system with 20 litigation matters (8 concluded merger suits, 6 pending collection suits). Financials are parent-level (-$7.69M net income, $70.5M net worth); disclosed bankruptcy is affiliate Office Properties Income Trust, not the franchisor. Audited with Item 19.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Includes 8 concluded merger-related stockholder suits (settled, $240,000 in attorneys' fees paid), several concluded lawsuits with former franchisees/guarantors and a competitor (settlements ranging $10,500 to $500,000), and 6 pending suits filed by SRLHF against former franchisees/guarantors to collect unpaid amounts and liquidated damages.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
In re: Office Properties Income Trust, et al., Bankruptcy Petition: 25-90530 (United States Bankruptcy Court of Texas (Houston)). On October 30, 2025, Office Properties Income Trust and certain of its subsidiaries (“Debtors”), entities for which certain of our officers and directors have management responsibility, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements are for Red Lion Hotels Corporation (parent) on a consolidated basis, not solely for the Sonesta Simply Suites brand.
ⓘ 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
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 48 / 100 verdict
- 01HIGHlitigation_count=20, 6 pending
- 02MINORaffiliate Chapter 11, not franchisor
- 03MEDaudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 17.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 30 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 50 miles of franchisor's then-current principal place of business (currently Newton, Massachusetts) |
| Jury trial waiver | Yes |
| Governing law | Massachusetts |
| Litigation count | 22 |
View Item 3 litigation summary
Includes 8 concluded merger-related stockholder suits (settled, $240,000 in attorneys' fees paid), several concluded lawsuits with former franchisees/guarantors and a competitor (settlements ranging $10,500 to $500,000), and 6 pending suits filed by SRLHF against former franchisees/guarantors to collect unpaid amounts and liquidated damages.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
- POS system
- Shift4
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Shift4
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sonesta Simply Suites franchise?
The total investment to open a Sonesta Simply Suites franchise ranges from $14.0M – $19.2M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sonesta Simply Suites franchise owners earn?
Item 19 of the Sonesta Simply 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 Simply Suites?
Sonesta Simply Suites is franchised by Sonesta RL Hotels Franchising Inc.. Its parent company is Red Lion Hotels Corporation. The ultimate parent named in the FDD is Sonesta International Hotels Corporation / Sonesta Holdco Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sonesta Simply 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 Simply Suites FDD and qualifies whose outlets they describe.
What is Sonesta Simply Suites's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sonesta Simply 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 Simply Suites franchise locations are there?
As of their most recent FDD filing, Sonesta Simply Suites has 67 total units in the United States, including 57 franchised units and 10 company-owned units. 42 new units were opened in the latest reporting year.
Is Sonesta Simply Suites a good franchise to buy?
FranchiseVerdict rates Sonesta Simply Suites as a B-grade franchise with a verdict score of 48 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.