MOD A Sonesta Collection FDD – Franchise Information, Costs and Fees
Type of Business
The franchise offered in this disclosure document is for the rights to operate a MOD A Sonesta Collection-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. 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.
Investment
The total investment necessary to open a newly constructed 250-room MOD A Sonesta Collection-branded hotel is estimated to range between $55,411,052 to $92,756,986. These amounts include $138,250 to $188,450 that must be paid to the franchisor. The total investment necessary to convert a 250-room existing hotel into a MOD A Sonesta Collection-branded hotel is estimated to range between $8,234,250 to $13,703,986. These amounts include $143,250 to $235,450 that must be paid to the franchisor.
