COSTS AND REQUIREMENTS FOR LODGING CHAINS AND REFERRAL GROUPS

As of July 15, 2006
Name of Chain Minimum Rooms Initial Fee Royalty Fee Advertising/Marketing Fee Reservation Fee Ave. Per Room Construction Cost
aloft hotels
Circle 79
N/A $60,000 plus $400/room over 150 rooms 5.5% of gross rooms revenues 4% of gross rooms revenue included in other fees $76,000-$156,000
America's Best Inns
Circle 80
40 $20,000 2% of gross rooms revenues 1% of gross rooms revenues 1% of gross rooms revenues $40,000
Americas Best Value Inn by Vantage
Circle 81
20 $6,500 plus $100/room over 50 rooms $14 per room per month up to 50 rooms; $10, 51-75 rooms; $9, 76-plus rooms $5 per room per month included in other fees $30,000-$50,000
AmericInn
Circle 82
45 $35,000 5% of gross rooms revenue 2% of gross rooms revenue included in other fees N/A
AmeriHost Franchise Systems
Circle 83
59 greater of $35,000 or $350 per room 4-5% of gross rooms revenue 3.5% of gross rooms revenue included in other fees $40,428-$51,058
Baymont Inns & Suites
Circle 84
50 $25,000 4-5% of gross rooms revenues 3.5% of gross rooms revenues included in other fees $56,000-$73,000
Best Western International
Circle 85
50 $45,000 for 100 rooms $29,474 for 100 rooms included in other fees $14,965 for 100 rooms for first 12 months $70,000
Budget Host Inns
Circle 86
N/A $5,000 $1,500 base plus $80 per room included in other fees Approximately $12 per room per year N/A
Cambria Suites
Circle 87
90 (typically) $60,000 (minimum) 5% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue $78,672
Candlewood Suites
Circle 88
80 greater of $50,000 or $500 per room 5% of gross rooms revenue 2.5% of rooms revenue included in other fees $55,000
Clarion Hotel
Circle 89
100 (typically) $40,000 (minimum) 4.25% of gross rooms revenue 2% of gross rooms revenue 1.25% of gross rooms revenue $76,391
ClubHouse Inn/Inn & Suites/Suites/Hotel/Resort/Hotel & Suites
Circle 90
60 $30,000; discounts for multiple properties, first hotel in a state 3% of GRR for first year; 4% thereafter none $3.50-$11.95 per reservation $35,000-$85,000
Comfort Inn/Comfort Suites
Circle 91
Inn: 60 Suites: 75 (typically) $50,000 (minium) 5.65% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue Comfort: $55,135;
Comfort
Suites: $57,357
Country Hearth Inns
Circle 92
40 $30,000 4% of gross rooms revenue 1.5% of gross rooms revenue 1% of gross rooms revenue $45,000
Country Inns & Suites By Carlson
Circle 93
varies by location greater of $45,000 or $450 per room 4.5% of gross rooms revenue 2.5% of gross rooms revenue 1.25% of gross rooms revenue varies by location
Courtyard by Marriott
Circle 94
80 greater of $50,000 or $400 per room 5.5% of gross rooms revenue 2% of gross rooms revenue 1% of gross rooms revenue N/A
Crowne Plaza Hotels & Resorts
Circle 95
100 greater of $75,000 or $500 per room 5% of gross rooms revenue 3% of gross rooms revenue included in marketing fees $90,000-$153,000
Days Inns Worldwide
Circle 96
40 greater of $35,000 or $350 per room 5% of gross rooms revenue 3.8% of gross rooms revenue included in other fees $3,907-$56,999
Doubletree
Circle 97
100 for Suites $75,000 (minimum) 4% of gross rooms revenue 4% of gross rooms revenue included in other fees $110,415 for 250-room hotel
Downtowner Inns
Circle 98
N/A new construction: $5,000; conversion: $2,500 new construction: 3% of GRR; conversion: $375/, $375/, month to 25 rooms + $12.50/room over 25 new construction: 2.5% of GRR; conversion: included in royalty fee included in marketing fees $30,000-$37,000
Econo Lodge
Circle 99
40 (typically) $25,000 (minimum) 4.5% of gross rooms revenue 3.5% of gross rooms revenue included in other fees $36,369
Embassy Suites
Circle 100
100 $75,000 (minimum) 5% of gross rooms revenue 4% of gross rooms revenue included in other fees $124,942 for 145-room hotel
Fairfield Inn By Marriott
Circle 101
80 greater of $50,000 or $400 per room 4.5% of gross rooms revenue 2.5% of gross rooms revenue 1% of gross rooms revenue N/A
Four Points by Sheraton
Circle 102
N/A $50,000 plus $300/room over 200 rooms 5% of gross rooms sales 1% of gross rooms sales 0.8% of GRS + $8.65/room/month + channel fees $85,000-$176,000
Grandstay Residential Suites
Circle 103
53 $35,000 $3.75 per occupied room included in other fees 5-7% per occupied room when booked via GDS $59,603
GuestHouse International Inns/Suites
Circle 104
N/A greater of $15,000 or $250 per room $1.25 per room per day 30 cents per room per day voice, 8%; electronic, 5% + $5/res. N/A
Hampton Inn/Inn & Suites
Circle 105
52 $50,000 (minimum) 5% of gross rooms revenue 4% of gross rooms revenue included in other fees $60,187 for 81-room hotel
Hawthorn Suites
Circle 106
60 greater of $40,000 or $400 per suite 5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $60,000-$70,000
Hilton
Circle 107
120 $85,000 (minimum) 5% of gross rooms revenue 4% of gross rooms revenue included in other fees $112,703 for 300-room hotel
Hilton Garden Inn
Circle 108
90 $60,000 (minimum) 5% of gross rooms revenue 4.3% of gross rooms revenue included in other fees $72,285 for 135-room hotel
Holiday Inn Express
Circle 109
60 greater of $50,000 or $500 per room 6% of gross rooms revenue 3% of gross rooms revenue included in other fees $47,000-$68,000
Holiday Inn
Circle 110
100 greater of $50,000 or $500 per room 5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $43,000-$86,000
Homewood Suites By Hilton
Circle 111
90 $60,000 (minimum) 4% of gross rooms revenue 4% of gross rooms revenue included in other fees $76,163 for 123-room hotel
Hotel Indigo
Circle 112
100 greater of $60,000 or $500 per room 5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $50,000
Howard Johnson International
Circle 113
120 preferred greater of $35,000 or $350 per room 4% of gross rooms revenue 2% of gross rooms revenue 2.5% of gross rooms revenue $3,717-$66,549
Hyatt Place
Circle 114
100 $60,000 plus $400/room over 150 rooms 5% of gross rooms revenue 3.5% of gross rooms revenue 5% of gross rooms revenue from member stays $95,000-$105,000
Hyatt Summerfield Suites
Circle 115
100 $50,000 plus $400/room over 125 rooms yr. 1, 3% of GRR;
yr. 2, 4%
yr. 3, 5%
3.5% of gross rooms revenue 5% of gross rooms revenue from member stays $105,000-$115,000
InterContinental Hotels & Resorts
Circle 116
100 greater of $75,000 or $300 per room 5% of gross rooms revenue 3% of gross rooms revenue included in other fees $$171,000-$153,000
Key West Inns
Circle 117
43 Application fee: $1,000; entry fee: $6,500 $1 per room per day included in other fees 5% of business booked + $5.90 pass-through GDS charge $45,000
Knights Franchise Franchise
Circle 118
40 $5,000 Either 5% of gross rooms revenue or $20.80/room/month included in other fees $4 per reservation $1,829-$44,169
La Quinta Inn/Inn & Suites
Circle 119
60 Inn: $40,000 Inn & Suites: $45,000 First 24 mos.: 4% of GRR; thereafter: 4.5% of GRR 2.5% of gross rooms revenue 2% of gross rooms revenue $60,000-$65,000
Le Meridien
Circle 120
N/A $85,000 plus $300/ room over 200 rooms Less than 200 rooms: 7% of GRR; more than 200 rooms: 6% 1% of gross rooms revenue 0.8% of GRR + $8.65/room/month + channel fees $103,000-$$293,000
Lexington Collection by Vantage
Circle 121
80 $17,000 plus $150/ room over 100 rooms $21-26/room/month, depending on # rooms, or 2% of GRR $14 per room per month included in other fees $50,000+
Luxury Collection
Circle 122
N/A $40,000 plus $300/ room over 100 rooms 5% of GRR plus 2% of gross f&b revenue 1% of gross rooms revenue 0.8% of GRR + $8.65/room/month + channel fees $185,000-$376,000
MainStay Suites
Circle 123
55 (typically) $30,000 (minimum) 5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $58,227
Marriott Hotels Resorts
Circle 124
N/A greater of $82,500 or $300 per room 6% of GRR plus 3% of gross f&b revenue 1% of gross included in other fees N/A
Master Host Inns
Circle 125
N/A $5,000 4% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $30,000-$37,000
Microtel Inns & Suites
Circle 126
40 $35,000 4-6% of gross rooms revenue 2-3% of gross rooms revenue included in other fees $34,000-$38,000
Motel 6
Circle 127
42 $25,000 4% of gross rooms revenue 3.5% of gross rooms revenue included in other fees $35,000-$42,000
Park Inn
Circle 128
varies by location greater of $25,000 or $250 per room 4.5% of gross rooms revenue 2% of gross rooms revenue 1.25% of gross rooms revenue varies by location
Park Plaza Hotels & Resorts
Circle 129
varies by location greater of $40,000 or $400 per room 5% of gross rooms revenue 2% of gross rooms revenue 1.5% of gross rooms revenue varies by location
Passport Inn
Circle 130
N/A new construction: $5,000;
conversion: $2,500
new construction: 3% of GRR;
conversion: $375/month to 25 rooms + $12.50/room over 25
new construction: 2.5% of gross rooms revenue included in marketing fees $30,000-$37,000
Preferred Boutique
Circle 131
30 $8,500 $12,000-$20,000 per year, based on number of rooms $10,000 per year 10% voice,
7% GDS,
4% Internet
$150,000
Preferred Hotels & Resorts
Circle 132
100 $30,000 $25,000-$80,000 per year, based on number of rooms $20,000 per year 10% voice,
7% GDS,
4% Internet
$200,000+
Quality Inn
Circle 133
50 (typically) $35,000 (minimum) 4.65% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue $50,593
Radisson Hotels & Resorts
Circle 134
varies by location greater of $75,000 or $500 per room greater of 5% of GRR or $150,000 per year 2% of gross rooms revenue 2% of gross rooms revenue varies by location
Ramada Worldwide
Circle 135
100 preferred greater of $35,000 or $350 per room 4% of gross rooms revenue 4.5% of gross rooms revenue included in other fees $3,867-$67,173
Red Carpet Inn
Circle 136
N/A $5,000 3.5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $30,000-$37,000
Red Lion Hotels
Circle 137
150 $45,000 4% of gross rooms revenue 4.5% of gross rooms revenue included in other fees $90,000
Red Roof Inn
Circle 138
50 $30,000 4.5% of gross rooms revenue 4% of gross rooms revenue included in other fees $38,000-$44,000
Regent International Hotels & Resorts
Circle 139
varies by location greater of $100,000 or $700 per room varies by location; est. 3% of gross rooms revenue est. 2% of gross rooms revenue est. 2% of gross rooms revenue varies by location
Renaissance Hotels & Resorts
Circle 140
N/A greater of $60,000 or $200 per room 5% of gross rooms revenue 1.5% of gross rooms revenue included in other fees N/A
Residence Inn by Marriott
Circle 141
80 greater of $50,000 or $400 per suite 5% of gross rooms revenue 2.5% of gross rooms revenue 0.5% of gross rooms revenue N/A
Rodeway Inn
Circle 142
30 (typically) $5,000 + $90/room over 75 rooms $13 per room $7 per room $5 per room $35,945
Scottish Inns
Circle 143
N/A $5,000 3% of gross rooms revenue 2.5% of gross rooms revenue included in marketing fees $30,000-$37,000
Settle Inn/Inn & Suites
Circle 144
50 $25,000 3% of GRR first year; 3.5% of GRR thereafter 2.25% of gross rooms revenue included in other fees $45,000
Sheraton Hotels & Resorts
Circle 145
N/A $60,000 + $300/room over 200 rooms 5% of gross rooms sales 1% of gross rooms sales 0.8% of GRS + $8.65/room/month + channel fees $103,000-$245,000
Sleep Inn
Circle 146
70 (typically) $40,000 (minimum) 4.65% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue $53,180
SpringHill Suites by Marriott
Circle 147
80 greater of $50,000 or $400 per suite 5% of gross rooms revenue 2.5% of gross rooms revenue 0.5% of gross rooms revenue N/A
Staybridge Suites
Circle 148
80 greater of $50,000 or $500 per room 5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $55,000-$91,000
Sterling Hotels & Resorts
Circle 149
100 $23,000 $10,000-$17,000 per year, based on number of rooms $4.80 per room per month 10% voice,
7% GDS,
4% Internet
$80,000-$100.000
Studio 6
Circle 150
82 $25,000 5% of gross rooms revenue 2% of gross rooms revenue included in other fees $37,000-$42,000
Suburban Extended Stay Hotel
Circle 151
100 (typically) $30,000 (minimum) 5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees N/A
Summit Hotels & Resorts
Circle 152
75 $25,000 $10,000-$40,000 per year, based on number of rooms $15,000 per year 10% voice,
7% GDS,
4% Internet
$120,000
Super 8 Motels
Circle 153
50 $24,000 + $100/room over 120 5% of gross rooms revenue 3% of gross rooms revenue included in other fees $4,747-$47,157
TownePlace Suites by Marriott
Circle 154
80 greater of $40,000 or $400 per suite 5% of gross rooms revenue 1.5% of gross rooms revenue 1.5% of gross rooms revenue N/A
Travelodge Hotels
Circle 155
40 preferred greater of $35,000 or $350 per room 4.5% of gross rooms revenue 4% of GRR + 5-10 cents/room/day included in other fees $3,657-$56,899
Vagabond Inn
Circle 156
varies with market $20,000 2.5% of gross rooms revenue 2.5% of gross rooms revenue % included in other fees $38,963
$69,952
Value Place
Circle 157
105 greater of $42,000 or $400 per room 5% of gross rooms revenue included in other fees per-call expense + set-up charge $32,000
Westin Hotels and Resorts
Circle 158
N/A $85,000 + $300/room over 200 rooms 6% of gross rooms sales + 2% gross f&b sales 2% of gross rooms sales 0.8% of GRS + $8.65/room/month + channel fees $126,000-$296,000
Wingate Inns International
Circle 159
64 greater of $35,000 or $350 per room 4.5% of gross rooms revenue 4% of gross rooms revenue included in other fees $59,307-$64,844
Wyndham Hotels & Resorts/Garden Hotels
Circle 160
Hotels: 250 Garden Hotels: 125-250 between $35,000-$225,000, or $300 per room 5% of gross rooms revenue 1.5% of gross rooms revenue Approx: $9.75/GDS;
$11.50/voice;
$3.50/Internet
$225,628-$590,328
Visit www.LHonline.com for more information and related articles.

Reprints and Licensing
© 2014 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Most Recent

More Recent Articles

Career Center

Quick Job Search
Enter Keyword(s):
Enter a City:

Select a State:

Select a Category:



http://lhonline.com/images/bulk_tv_logo.jpg
Franchise Fact File Top Brands
Brand Company Basics Top Management Companies
Owners & Operators Industry Consultants
Industry Associations Industry Events
Design Firms Purchasing Companies
Top Ownership Groups  


http://lhonline.com/images/bulk_tv_logo.jpg

Click here to view all of the Lodging Hospitality Photo Galleries



Accor Best Western
Carlson Rezidor Choice
Hilton Hyatt
IHG La Quinta
Marriott Starwood
Vantage Wyndham







Free Product Information
News and Trends for the Hotel, Motel, and Hospitality Markets.

Lodging Hospitality eReport
Lodging Hospitality electronic newsletters are FREE to requested subscribers.

Lodging Hospitality Resource Center
The Lodging Hospitality Resource Center is the ultimate resource to find products and services to build, equip, and renovate hotels, motels and resorts.

Subscribe / Renew
Visit our subscription center to subscribe or renew your subscription to Lodging Hospitality.

Webinars
Visit our webinars page to view all our upcoming and on demand webinars.

Whitepapers
Visit our White Papers page to view all our current White Papers.