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SONESTA INTERNATIONAL HOTELS Corp. recently launched Sonesta Essential, a new upper-midscale select-service brand. The company now offers 15 brands. Sonesta Essential is meant to offer easier new builds and conversions with modest brand standards, limited food and beverage requirements and simplified conversion processes, according to the company. "Sonesta Essential is a fresh, new brand carefully designed by Sonesta to deliver a core selection of services compared with other hospitality experiences," said Brian Quinn, Sonesta chief development officer. "With tremendous demand in the select-service category, we are confident that Sonesta Essential will become a leading brand in an exciting, timely and relevant segment." The first two Sonesta Essential hotels will be a franchise in Vacaville, California, which is set to open in late spring 2023, and a managed property in Chattanooga, Tennessee, which will be converted from a Sonesta Select in the fall of 2023.

SONESTA INTERNATIONAL HOTELS will franchise 114 hotels it currently manages, following their sale by Service Properties Trust or SVC. The Massachusetts-based REIT plans to sell 14,925 keys across 28 states for $850 million in 2025 to repay debt. The trust plans to sell 31 Sonesta Select, 44 Sonesta ES Suites and 39 Sonesta Simply Suites, which will convert from Sonesta-managed to franchised properties upon sale. Following the deal, Sonesta will manage 39 full-service, 14 extended-stay and six select-service hotels owned by SVC, which will retain a 34 percent stake in Sonesta, SVC said in a statement. "Given the slow recovery of our hotel portfolio, along with our capital improvement program and deteriorating leverage metrics, we believe it is prudent to reduce the distribution to increase SVC's liquidity and enhance financial flexibility," said Todd Hargreaves, SVC's president and chief investment officer. "The reduction from the previous level will preserve about $127 million in liquidity annually. We also plan to sell 114 hotels to generate additional liquidity and focus the Sonesta portfolio on full-service and select focused-service hotels. These sales are expected to reduce capital expenditures and leverage, improve portfolio performance, and position the portfolio for the long term."

SONESTA INTERNATIONAL HOTELS Corp. executed approximately 15 franchise agreements, adding more than 1,900 keys in the first quarter of 2024. These new franchise hotels span Sonesta's brands, including The James, Sonesta ES Suites, Sonesta Essential, Americas Best Value Inn, Red Lion Hotels, Red Lion Inn & Suites, and Sonesta Hotels & Resorts, Sonesta said in a statement. "The 15 signed franchise agreements during the first quarter underscore Sonesta's momentum as we welcome new owners into our growing portfolio and expand our market presence," said Keith Pierce, Sonesta's executive vice president and the president of franchise and development. "With a fast, friendly, and flexible approach and a seamless conversion process for our franchisees, we expect continued growth throughout 2024." These agreements highlight Sonesta's appeal as a conversion option compared to larger competitors, the statement added. The company said hotel owners are attracted to the company's focus on maximizing ROI through property rebranding. It offers owners various options across upper upscale, lifestyle, upscale, midscale, extended-stay and premium economy segments.

Sonesta Essential Des Moines is now open in Des Moines, Iowa. The 150-room, upper-midscale property is owned by Bhavik Shah. The hotel is close to the Iowa State Capitol, Des Moines International Airport, Drake University and Iowa State Fairgrounds, Sonesta said in a statement. "The opening of Sonesta Essential Des Moines continues the momentum of our newest brand," said Keith Pierce, Sonesta's executive vice president and president of franchise and development. "At Sonesta, relationships are at the core of our growth strategy as we expand our footprint and grow the Sonesta Essential brand through both new and repeat owners." Sonesta Essential incorporates upgraded bedding as a core element of its distinct sleep program, the statement added.

Sonesta Essential Junction City is now open in Junction City, Kansas. The 119-room upper-midscale property is owned by Tapan Parekh. The hotel is near the Konza Prairie Research Natural Area, Geary State Fishing Lake and Wildlife Area, and Milford Nature Center & Fish Hatchery, Sonesta said in a statement. Junction City is known for its proximity to Fort Riley, the Buffalo Soldier Memorial, and agritourism attractions. "We are excited to expand our Sonesta Essential brand with the addition of Sonesta Essential Junction City," said Keith Pierce, Sonesta's executive vice president and president of franchise and development. "Sonesta Essential has quickly become Sonesta's fastest-growing brand, and this opening continues the brand's momentum following its launch in January 2023." The new Sonesta Essential is near the Spring Valley Historic Site, South Park Junction City and the U.S. Cavalry Museum. It features a fitness center, the statement said.

Sonesta Essential Hotels Overland Park is now open in Overland Park, Kansas. The 82-room upper-midscale property is owned by Mihir Patel. The hotel is near Overland Park Convention Center, Oak Park Mall, the Museum at PrairieFire and the Nerman Museum of Contemporary Art, Sonesta said in a statement. "Sonesta is proud to open the second Sonesta Essential Hotel in Greater Kansas City," said Keith Pierce, Sonesta's executive vice president and president of franchise and development. "Since its debut in early 2023, Sonesta Essential Hotels has excelled as the portfolio's fastest-growing brand. With our owner-centric approach, Sonesta prides itself on creating brands to fill market gaps and meet demand from consumers and owners alike."

SONESTA INTERNATIONAL HOTELS introduced a 2 percent rebate program for franchisees using its procurement system with Sonesta-contracted suppliers through the Avendra program and other contracts. Also, the company recently signed 19 franchise agreements across six of its 13 brands, adding more than 1,600 keys to its pipeline. "With our owner-centric approach at Sonesta, we believe in fostering strong, transparent relationships with our franchisees," said Keith Pierce, Sonesta's executive vice president and president of franchise and development. "Our procurement incentive program demonstrates our commitment to providing exceptional value and support to our owners. By offering to sponsor the technology and provide a significant financial benefit, we not only enhance our competitive edge but also can help our franchisees succeed and provide more reasons to grow with us." Sonesta will pay this incentive quarterly as a credit on franchise fee statements, the statement said. Additionally, franchisees will receive a free mobile purchasing app to identify and purchase cost-saving products from Avendra and other key suppliers. The company will cover the cost of the EPRO technology, ensuring franchisees access tools without financial strain.

Sonesta International Hotels Corp.'s Red Lion Inn & Suites in Elk Grove, Illinois. The 47-room mid-scale property is owned by Mahesh Chaudhari. "The opening of the Red Lion Inn & Suites Elk Grove is a testament to the brand's renewed growth nationwide," said Keith Pierce, Sonesta's executive vice president and president of franchise and Development. "This is the third Red Lion Inn & Suites location to open in 2024, underscoring how Sonesta continues to meet consumer demand for midscale properties with openings in secondary and tertiary markets." Sonesta said that guests at Red Lion Inn & Suites Illinois can earn or redeem points through the Sonesta Travel Pass loyalty program. Sonesta is the 8th largest hotel company, with approximately 1,100 properties totaling 100,000 guest rooms across 15 brands in eight countries, according to STR.

Sonesta Essential La Porte is now open in La Porte, Texas. The 84-room upper-midscale property is owned by Hinesh Patel. The hotel is near Sylvan Beach Park and historical sites such as the San Jacinto Museum and Battlefield, the final battle of the Texas Revolution. Amenities include an indoor pool and fitness center, and it is pet-friendly. "The growth of the Sonesta Essential brand continues with the opening of Sonesta Essential La Porte, which is the brand's sixth location in Texas," said Keith Pierce, Sonesta's executive vice president and president franchise and development. "Focused on providing just the essentials, this brand has seen immediate success with its appeal to both owners and guests alike."

Sonesta Essential Columbus is now open in Columbus, Georgia. The 88-room property at Veterans Court is owned by Kamlesh Halvawala. "Sonesta Essential Columbus demonstrates our growing franchising capabilities and commitment to expanding our brand nationwide," said Keith Pierce, Sonesta's executive vice president and president of franchise and development. "The opening underscores our focus on delivering a strong guest experience while expanding the brand's footprint. As the fastest-growing brand in our portfolio, we're proud to offer franchisees a proven investment opportunity." The hotel is near the Springer Opera House, Chattahoochee RiverWalk, The Columbus Museum, the Columbus Georgia Convention & Trade Center, and Fort Moore. It features an outdoor swimming pool and a fitness center.

Kimberly Midkiff is now director of franchise development and the assurance and marketing program for hihotels by Hospitality International. Prior to that, she was the vice president of development for Sonesta and Red Lion Hotels Corp. Previously, Midkiff was director of sales and operations for JDH Developers, a hospitality real estate firm, according to company. Based in Lakemont, Georgia, she will be responsible for the growth of hihotels' Scottish Inns, Red Carpet Inn, Master Hosts Inns, Downtowner Inns and Passport Inn brands in the Southeast. According to the company, she will provide sales and marketing support and training to franchisees in the area as part of the Assurance & Marketing Program.