Sonesta International Hotels Corporation Expands its Portfolio with 65 New Franchise Agreements in 2023

Sonesta International Hotels Corporation, currently ranked as the eighth largest hotel company in the U.S., has achieved a significant milestone in its expansion strategy. In a year-end update, the company announced the execution of 65 new franchise agreements in 2023. This expansion spans twelve of its seventeen diverse brands, adding an impressive total of 5,697 new rooms to its portfolio.

The company is riding a wave of positive momentum into 2024, following the successful launch of Sonesta Franchising in the U.S. in 2021. This strategic move marked the introduction of three new brands, further diversifying its offerings. The James and two Sonesta Collection brands, Classico and Mod, represent the latest additions to Sonesta’s brand family.

Classico, positioned as an upper-midscale brand, has garnered attention for its emphasis on local cuisine, distinctive offerings, and unique interior design. The Z Ocean Hotel in Miami, Florida, stands as the inaugural property under the Classico brand. Meanwhile, Mod, an upscale brand, is characterized by its focus on flexibility and eclectic design, with Hotel 11 in Calgary, Alberta, Canada, being its first representative.

Keith Pierce, Executive Vice President and President of Franchise & Development at Sonesta, attributes the company’s 2023 success to its robust franchise development strategy and a strong commitment to enhancing its capabilities and deepening franchisee relationships. “Last year’s launch of four new brands set the stage for continued expansion across various segments in 2024,” Pierce stated.

Sonesta’s growth trajectory is expected to maintain its upward trend as the company capitalizes on its agile business model. With a streamlined process that can turn around applications to execution in just 30 days, Sonesta offers a compelling proposition for conversions. This flexibility is a key factor in the company’s ability to attract new franchise agreements.

With approximately 1,200 properties and over 100,000 guest rooms across its seventeen brands, Sonesta’s global presence spans eight countries. This expansion signifies not only growth in numbers but also in the diversity of offerings, catering to a wide range of preferences and needs in the hospitality sector. As Sonesta continues to evolve, it remains poised to solidify its position as a leader in the global hotel industry.