Established
1986
Franchise Units
78
Minimum Investment
$7,000,000
Franchise Fee
$75,000
Total Investment Range
$15,000,000
Home Based
No
Description
The Sonesta ES Suites franchise represents a strong investment opportunity within the U.S. extended-stay hospitality segment. Designed to meet the needs of long-term travelers, the brand focuses on comfort, functionality, and value—making it especially attractive to business travelers, relocating families, healthcare professionals, project-based workers, and leisure guests who prefer spacious, apartment-style accommodations.
Each Sonesta ES Suites property features large suites with fully equipped kitchens, separate living and sleeping areas, complimentary breakfast, fitness facilities, and guest-centric amenities that encourage longer stays and repeat visits. This operating model helps franchise owners benefit from higher average length of stay, lower guest turnover, and more predictable occupancy compared to traditional short-stay hotels.
Why Invest in This Franchise?
Investing in a Sonesta ES Suites franchise provides several advantages:
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Consistent demand from extended-stay segments such as corporate travelers, medical professionals, construction teams, and relocation clients
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Apartment-style suites that command longer stays and improve guest satisfaction
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Reduced housekeeping frequency compared to nightly-stay hotels, improving operating margins
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Strong brand recognition within the U.S. lodging industry
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Flexible development options suitable for urban, suburban, and secondary markets
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Greater resilience during economic cycles due to stable long-stay demand
Background
Brand Name: Sonesta ES Suites
Industry Category: Hospitality / Extended-Stay Hotels
Established Year: 1986
Founders & Ownership:
Sonesta ES Suites operates under the ownership of Sonesta, one of the largest hotel groups in the United States, with a broad portfolio of hotel brands across multiple segments.
Brand Journey & Company History:
Sonesta has expanded rapidly through strategic acquisitions and brand development. The ES Suites concept was strengthened to deliver residential-style comfort combined with consistent hotel service standards. Over time, the brand has built a reputation for reliability, space, and value within the extended-stay category.
Franchise Active Units (USA): 78
Market Presence in the USA:
Properties are typically located near business districts, hospitals, airports, universities, and suburban commercial corridors—areas that generate steady extended-stay traffic throughout the year.
Support Training
Franchisees receive comprehensive support throughout the lifecycle of the business.
Pre-Launch Support:
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Market analysis and site selection assistance
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Design standards, construction guidance, and brand approvals
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Support with licensing, compliance, and pre-opening planning
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Staffing models and operational budgeting
Training & Operational Support:
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Structured training programs for owners, managers, and staff
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Standard operating procedures covering all hotel functions
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Revenue management tools and pricing strategies
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Performance reviews and operational audits
Marketing & Sales Support:
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National brand marketing initiatives
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Central reservation systems and distribution channels
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Corporate, government, and long-stay sales strategies
Ongoing Support:
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Dedicated franchise support teams
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Ongoing performance benchmarking
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Technology upgrades and system improvements
Ideal Candidate
A Sonesta ES Suites franchise is well suited for:
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Experienced hotel owners or real estate investors
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Multi-unit operators seeking portfolio expansion
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Entrepreneurs with hospitality, asset management, or operations backgrounds
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Investors with strong capitalization and long-term growth objectives
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Owners targeting suburban, secondary, or emerging U.S. markets
While hospitality experience is helpful, it is not mandatory due to the structured systems and ongoing support provided.
Financial Detail
| Cost Head | Estimated Range (USD) |
|---|---|
| Initial Franchise Fee | $75,000 – $100,000 |
| Total Initial Investment | $7,000,000 – $15,000,000+ |
| Land Acquisition / Lease | $1,000,000 – $3,500,000 |
| Construction / Conversion Cost | $3,500,000 – $8,000,000 |
| Furniture, Fixtures & Equipment (FF&E) | $750,000 – $1,500,000 |
| Technology & Systems | $100,000 – $250,000 |
| Pre-Opening & Launch Marketing | $75,000 – $150,000 |
| Working Capital (3–6 months) | $300,000 – $700,000 |
| Royalty Fee | 5% – 6% of gross room revenue |
| Marketing / Brand Fund Fee | 2% – 3% of gross revenue |
| Estimated Break-Even Period | 3 – 5 Years |
| Expected ROI | 12% – 18% annually |
| Primary Revenue Streams | Room Revenue, Long-Stay Contracts, Corporate & Government Bookings |
