Sonesta International Hotels Corporation 401(k) Review & Grade
Sonesta International Hotels Corporation and Subsidiaries 401(k) Plan
Newton, MAAccommodation & Food Services6,693 active participantsPlan year 2024
Estimate from the plan's Form 5500 filing · How we grade
$1,047Employer $ per active participant
$2,524Employee $ saved per active participant
0.39%Direct admin cost, % of plan assets
$157.1MNet plan assets, end of year
$46,849Average balance per account
Score breakdown
- Employer generosity45.1 / 5090th percentile for employer $ per participant
- Low cost4.3 / 2517th percentile for low admin cost vs. same-size plans
- Employee saving13.5 / 1590th percentile for employee $ per participant
- Plan features3 / 10Default investment
- Red-flag deductions-13 pts2 issues reported on the filing
Total score53 / 100 · Grade C
This plan vs. peers
Peers: Accommodation & Food Services plans with 2,500–9,999 active participants (104 plans).
| Measure | Percentile |
|---|---|
| Employer $ per participant | 90th |
| Lower admin cost | 17th |
| Employee saving | 90th |
| Peers that auto-enroll | 15% |
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Red flags from the filing
Late deposits: the filing says some employee contributions were not sent to the plan on time ($2,159,761 reported). That's money taken from paychecks that sat with the employer longer than the law allows.
Corrective distributions: the plan refunded $1,521 in contributions, which usually means it failed annual nondiscrimination testing.
What to do if you're in this plan
- Sonesta International Hotels put in about $1,047 per active participant, more than the typical peer ($244). Contribute at least enough to collect the full match. Skipping it leaves part of your pay on the table.
- The filing shows total dollars, not the match formula. Ask HR for the Summary Plan Description so you know the exact match and vesting schedule.
- Direct plan expenses (0.39% of assets) are well above similar-size plans (0.12%). Check your annual fee disclosure, choose low-cost index funds if you can, and think about whether savings beyond the match belong in an IRA.
- The plan reported late deposits of employee contributions. Compare your pay stubs with your account statements, and contact the plan administrator if money shows up late.
- Changing jobs? You can usually leave the money in the plan, move it to your new employer's plan, or roll it into an IRA. Don't cash out: you'd owe taxes and possibly a 10% penalty.
The raw numbers from the filing
| Employer contributions | $7,010,795 |
| Participant (employee) contributions | $16,890,972 |
| Other contributions (incl. rollovers in) | $5,286,129 |
| Administrative expenses paid from the plan | $553,578 |
| Contract administrator fees | $443,481 |
| Investment advisory & management fees | $110,097 |
| Benefits paid out | $16,295,211 |
| Net assets, start / end of year | $127.3M / $157.1M |
| Active participants, start / end of year | 6,816 / 6,570 |
| Participants with account balances | 3,354 |
| Auto-enrollment (feature code 2S) | Not reported |
| Auditor | PKF O'connor Davies, LLP |
Largest service providers (Schedule C)
| Principal Life Insurance Company | $447,465 reported compensation |
| Regions Bank | $110,097 reported compensation |
| PKF O'connor Davies LLP | $12,000 reported compensation |
Source: DOL EFAST2 Form 5500 filing, acknowledgment ID 20251015102025NAL0009046258001, received 2025-10-15, EIN 45-3784316, plan #002, plan year 2024-01-01 to 2024-12-31. Verify at efast.dol.gov.