Sonesta Announces Unprecedented 26% Franchise Net Unit Growth in 2025

Growth Propelled by Global Franchise Expansion and Strategic Portfolio Transitions

Newton, MA (January 27, 2026) – Sonesta International Hotels (Sonesta), the 8^th largest hotel company in the U.S., today announced it has achieved a record 26% franchise net unit growth (NUG) in 2025. This milestone highlights Sonesta’s rapid expansion since the company began franchise operations in 2021 and cements its reputation within the industry as a franchise-first and “Asset-Right” powerhouse.

The 26% growth in rooms was driven by global organic franchise growth as well as the sale of 112 SVC properties encumbered with long term Sonesta franchise agreements.

“2025 was a transformative year for Sonesta,” said Keith Pierce, Sonesta’s Executive Vice President and President of Franchise & Development. “26% net unit growth is a testament to the trust our owners place in the Sonesta brand family. Our focus on being ‘fast, friendly, and flexible’ has allowed us to expand at a rapid rate and continue to provide a compelling value proposition with strong underlying commercial engines.”

“Reaching 26% net unit growth further proves that our franchisee-friendly approach is resonating with the development community,” said Phil Hugh, Sonesta’s Chief Development Officer. “Sonesta operates under a relationship-first framework, and this approach has bolstered our growth and made Sonesta the clear choice for owners looking to grow their portfolio in a highly competitive market.”

In late 2021, Sonesta RL Hotels Franchising Inc. launched four Sonesta-branded hotel concepts in the U.S., complete with a comprehensive platform of franchise services, hotel operations, and franchise support. Building on this momentum, 2023 marked another milestone with the introduction of four new brands: The James, Sonesta Essential Hotels, and two soft brands – Classico Collection by Sonesta and MOD Collection by Sonesta. In 2024, Sonesta expanded its reach by introducing the “by Sonesta” endorser branding to the Red Lion portfolio, further reinforcing its commitment to strategic growth and innovation.

Sonesta’s diverse portfolio of 13 distinct brands provides owners and developers with a range of options across the upper-upscale, lifestyle, upscale, midscale, extended-stay, and economy segments. With a focus on strategic growth, an owner-first approach, available market opportunities, and direct access to its leadership team, Sonesta stands out as an attractive partner for developers seeking flexibility and innovation in hospitality.