MOD A Sonesta Collection

MOD A Sonesta Collection

Information based on 2024 FDD

Lodging & Hospitality · Hotels, Resorts

Investment min
$2M
Total: $2M–$19M
Avg gross revenue
N/A
Unit-level, 2024
Franchise fee
$125K
Per current disclosure
Royalty
5%
of gross revenue
Locations
Franchising since 2023

Description

What is MOD A Sonesta Collection?

MOD A Sonesta Collection represents an exciting new venture in the hospitality industry, bringing a fresh perspective to modern hotel management and guest experiences. As a 2023 addition to the prestigious Sonesta family, MOD combines contemporary design aesthetics with exceptional service standards to create a distinctive lodging experience.

The brand caters to both business and leisure travelers who seek sophisticated, design-forward accommodations without compromising on comfort or convenience. Each MOD property is thoughtfully crafted to reflect its local surroundings while maintaining consistent brand standards that guests can trust.

What sets MOD apart is its innovative approach to hospitality, incorporating smart technology, sustainable practices, and customizable guest experiences. The properties feature modern amenities, flexible spaces for work and relaxation, and carefully curated local partnerships that help guests connect with their destination.

As a franchise opportunity, MOD A Sonesta Collection offers entrepreneurs the chance to be part of an emerging brand while benefiting from Sonesta's established reputation and comprehensive support system. Franchisees receive extensive training, ongoing operational guidance, and access to sophisticated marketing and reservation systems.

The brand's focus on creating unique, location-specific experiences while maintaining consistent service excellence makes it an attractive option for investors looking to enter the upscale hospitality market. With its fresh approach to modern hospitality and backing from an established hospitality leader, MOD A Sonesta Collection is positioned to make a significant impact in the evolving lodging industry.
  • Backed by Sonesta's established hospitality expertise
  • Flexible investment model accommodating diverse property formats
  • First-mover advantage in emerging franchise concept
  • Modern brand positioning for contemporary travelers
  • Comprehensive franchisor support from proven hospitality company
  • Scalable platform with multi-unit development potential

Location Analysis

Where MOD A Sonesta Collection wins

MOD A Sonesta Collection represents a new entry into the hospitality market, launching in 2023 with an emerging presence in the competitive hotel and resort sector. As a fresh franchise concept in its initial launch phase, MOD presents both unique opportunities and challenges for potential franchisees. The brand's positioning as part of the Sonesta Collection suggests a focus on delivering upscale, lifestyle-oriented hospitality experiences.

While historical performance data is not yet available, the hotel sector shows promising growth potential in secondary and tertiary markets, particularly those with strong business travel, tourism, or emerging tech hubs. Ideal locations for MOD properties would likely include areas with high disposable income, strong corporate presence, and proximity to airports or major attractions.

Successful franchise locations will require careful consideration of factors including local ADR (Average Daily Rate) potential, RevPAR (Revenue Per Available Room) projections, and market competition from established brands. Key demographic indicators should include median household income above $75,000, population growth rates exceeding 2% annually, and robust commercial development activity.

Potential franchisees should focus on markets with limited upscale lifestyle hotel options, particularly in growing metropolitan areas or popular vacation destinations. Early adopters have the opportunity to secure prime locations and establish strong market positions before the brand's expansion accelerates.
Total US locations
N/A
Franchise units
N/A
Corporate locations
0
Avg. sq. footage
N/A
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Financial Analysis

The numbers behind MOD A Sonesta Collection

Avg gross revenueN/A
Investment range$1,666,160 – $18,544,730
Investment midpoint$10,105,445
Brand fund2.5%
Royalty5%
Franchise fee$125,000
Min. net worth
Min. liquid capital
MOD A Sonesta Collection requires an investment ranging from $1.7 million to $18.5 million, presenting a unique positioning within the hotel franchise market. The minimum investment sits well below the subsector average of $8.4-$9.3 million, while the maximum extends significantly above, suggesting diverse property formats from select-service to full-service luxury accommodations across different market tiers.

As a newly launched franchise concept in 2023, MOD represents Sonesta's latest hospitality innovation, though it currently operates with zero active units and no established revenue performance data. This startup phase presents both pioneering opportunities and inherent risks for initial franchisees entering an unproven system. The franchise enters a competitive landscape with 109 existing hotel franchises in the subsector.

The wide investment range accommodates various investor profiles, from smaller boutique hotel developers to large-scale hospitality investment groups. However, the lack of operational history requires thorough evaluation of franchisor support systems and market positioning strategies.

Ideal candidates should possess substantial hospitality experience and adequate liquid capital, likely requiring $2-4 million depending on property scope. The hotel management complexity demands either direct industry expertise or professional management partnerships.

Prospective investors must conduct comprehensive due diligence given the franchise's startup status, carefully reviewing territory rights, support infrastructure, and development timelines before commitment.
Did you know? Starting a MOD A Sonesta Collection franchise, which brings boutique luxury hospitality to discerning travelers, requires a total investment ranging from $1,666,160 to $18,544,730 including the $125,000 franchise fee, with costs varying significantly based on your hotel's location, size, and local market conditions.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$2M–$19M
Most common
$1,666,160
Minimum
$10,105,445
Midpoint
$18,544,730
Maximum

Per FDD Item 7, total initial investment ranges from $1,666,160 to $18,544,730. The midpoint $10,105,445 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for MOD A Sonesta Collection's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a MOD A Sonesta Collection franchise typically ranges between $1,666,160.00 and $18,544,730.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

MOD A Sonesta Collection
MOD A Sonesta Collection
N/A avg revenue · 0+ US franchises

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