Sonesta Hotels and Resorts and Royal Sonesta FDD – Franchise Information, Costs and Fees
Type of Business
The franchise offered in this disclosure document is for the rights to operate either a Sonesta Hotels and Resorts-branded hotel or a Royal Sonesta-branded hotel.
Corporate Information
Sonesta RL Hotels Franchising Inc. is a corporation formed in the State of Washington on December 24, 1986, as Vance Hotels, Inc. On September 19, 2005, they changed their name to Red Lion Hotels Franchising Inc., and, on September 23, 2021, they subsequently changed their name to Sonesta RL Hotels Franchising Inc. Their principal business address is 400 Centre Street, Newton, Massachusetts 02458; however, they or their parent, Red Lion Hotels Corporation may provide certain support services to Brand Hotels from their offices at 315 East Robinson Street, Orlando, Florida 32801. Their parent corporation was incorporated in the State of Washington on April 25, 1978, and changed its name from WestCoast Hospitality Corporation to Red Lion Hotels Corporation on September 19, 2005 and redomiciled as a Maryland corporation on March 31, 2021. They have offered franchises under the marks since September 2021and under the Royal Sonesta Marks since October 2022.
Investment
The total investment necessary to open a newly constructed 250-room Sonesta Hotels and Resorts-branded hotel is estimated to range between $58,055,378 to $97,207,674. These amounts include $169,989 to $251,595 that must be paid to the franchisor. The total investment necessary to convert a 250-room existing hotel directly into a Sonesta Hotels and Resorts-branded hotel is estimated to range between $1,686,832 to $19,970,099. These amounts include $164,989 to $246,595 that must be paid to the franchisor.
The total investment necessary to open a newly constructed 250-room Royal Sonesta- branded hotel is estimated to range between $60,216,785 to $99,911,224. These amounts include $169,989 to $251,595 that must be paid to the franchisor. The total investment necessary to convert a 250- room existing hotel directly into a Royal Sonesta-branded hotel is estimated to range between $1,728,482 to $27,967,312. These amounts include $164,989 to $246,595 that must be paid to the franchisor.
