Sonesta Hotels Launches Franchising Program

Sonesta International Hotels, one of the oldest hotel chains, is the newest to offer franchising in the U.S. The Boston-based upper upscale brand has licensed properties internationally for more than 30 years but recently issued disclosure documents required to franchise in most states.

Philip Silberstein, Sonesta’s executive vice president of development, believes the brand’s reputation as a top-tier brand that delivers “superior RevPar performance” will attract owners of upscale properties to Sonesta. In 2008, the brand posted an average RevPAR of $129.42 for its U.S. hotels with a RevPAR index of 111.4 percent. In addition, it says the Sonesta distribution and marketing system delivered an average of 45.5 percent of room revenue to its domestic properties.

“We believe we have a franchise program that will resonate in the marketplace,” says Silberstein. “Our standard franchise agreement has a franchisee termination right with no termination fees; and Sonesta capital contributions in the form of key money may be available to prospective franchisees who qualify.”

The Sonesta system has 27 properties, including six cruise ships on the Nile. U.S. hotels are in Boston, Miami and New Orleans. New hotels are under development in Chile, Costa Rica, Peru, Mexico and Miami.


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