Sonesta to Offer U.S. Hotel Franchising for First Time to Keep Growth on Fast Track
Photo Credit: Sonesta International Hotels Corp. is on track to beef up its already accelerated growth track thanks to a new franchising platform. Sonesta International Hotels Corp.
Skift Take
Failed deals between a Boston real estate owner and Marriott and IHG as well as the Red Lion parent company acquisition gave Sonesta an early leg up in its growth ambition. Now comes the hard part: organic growth.
One of the fastest-growing hotel companies in the U.S. now has a tool to expand even further.
Sonesta International Hotels Corp. debuted Tuesday its Sonesta Franchising platform, a growth vehicle that will enable the company to franchise in the U.S. four of its brands: Sonesta Hotels & Resorts, Sonesta ES Suites, Sonesta Select, and Sonesta Simply Suites. The ability to franchise was one of the driving factors behind Sonesta’s $90 million RLH Corp. acquisition earlier this year.
Boston-based Sonesta’s acquisition of the company behind brands like Red Lion Hotels and GuestHouse Extended Stay fueled its 1,400-percent growth from the roughly 80-hotel portfolio it had in August 2020. The combined company now has around 1,200 franchised and managed hotels. This latest development opens the door for many more.
“There has been a lot of consolidation in the hospitality business. Obviously, [there was] one big one and a lot of other competitors that have bought brands here an
