About Hotel Franchise
Hotel RL is a lifestyle hotel franchise within the Sonesta Hotels family, offering a modern, design forward hospitality experience that blends comfortable accommodations with vibrant social spaces.
The brand emphasizes community, creativity, and local culture, creating hotels that serve as gathering places for both guests and neighborhood residents.
The initial franchise fee is $50,000.
Hotel Franchise Cost & Fees
Minimum Investment
$1.4M
Average Investment
$2.8M
Maximum Investment
$4.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | N/A | Ongoing; paid monthly |
| Marketing/Ad Fund | $40,000 | National brand fund |
| Total Investment Range | $1,351,345 – $4,292,945 | Includes build-out, inventory, working capital |
The investment range of $1.4M–$4.3M reflects variability in build-out costs, store size, lease terms, and market.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| PIP Fee (Note 3) | $1,000 | $1,000 |
| PMS Interface and Tokenization Set Up Fee (Note 4) | $445 | $445 |
| System Installation Fee (Note 5) | $28,000 | $38,500 |
| Initial Onboarding and Brand Training Fee and Expenses (Note 6) | $6,500 | $7,500 |
| Improvement Costs | $16,970,000 | $18,000,000 |
| Permits, Plans, Architectural/ Engineering Fees, Testing and Contingency | $4,000,000 | $6,500,000 |
| Furniture, Fixtures and Equipment (Note 10) | $211,150 | $4,841,000 |
| Minimum Computer Costs – Central Reservations workstation costs (if applicable) (Note 11) | $87,500 | $260,000 |
| Wireless HighSpeed Internet Access with branded landing page (Note 12) | $1,000 | $10,000 |
| Organizational Expense (Note 13) | $50,000 | $300,000 |
| Initial Operations, Pre- Opening Expenses, Marketing and Advertising Expenses (Note 14) | $40,000 | $2,000,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Technology Fee | $20 |
| Audit Fee | $1,200 |
| Monthly Program Fee | $8,333.33 |
| RevPak | $20 |
| Corporate Account Support Subscription and Services | $1,800 |
| Meetings and Events | 5% on consumed master folio per group |
| Travel Management Company (“TMC”) and Consortia Fees | $3.50 |
| Travel Agency Commission Settlement Fee | $0.85 |
| Guest Relations Program | $25 |
| Online Review Response Fee | $39 |
| Quality Assurance and Guest Satisfaction Deficiency Remediation | $5,000 |
| Booking Fees | $2.75 |
| Brand Conference Fee | $100 |
| Initial Onboarding / Brand Training Fee | $5,000 |
| Ongoing Training Fee | $1,500 |
| Late Payment Charge | Lesser of 1.5% per month or the maximum rate permitted by applicable law |
| Reactivation Fee | $2,000 |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | Franchise Agreement is non-renewable. |
| Termination for Cause | We can terminate if you fail to satisfy any obligations under the Franchise Agreement or any attachment to it. |
Hotel Franchise Earnings — Item 19
Hotel does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Hotel does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Hotel Litigation & Risk Flags
Clean Litigation RecordHotel has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Hotel System Growth
Total Units
6
Franchised
6
Company-Owned
0
Hotel currently operates 6 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 6 | ||
| 2020 | 6 |
Hotel Franchise — FAQ
The total investment to open a Hotel franchise ranges from $1,351,345 to $4,292,945, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Hotel charges a royalty fee of N/A of gross sales, plus a $40,000 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Hotel Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Hotel to ensure you have the most up-to-date version.
Hotel does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Hotel has been offering franchise opportunities. The FDD shows an investment range of $1,351,345-$4,292,945, a N/A royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $1,351,345 to $4,292,945 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Hotel and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Hotel or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com