FRANCHISE Fact File

COSTS AND REQUIREMENTS FOR LODGING CHAINS AND REFERRAL GROUPS

Name of Chain Minimum Rooms Initial Fee Royalty Fee Advertising/Marketing Fee Reservation Fee Ave. Per Room Construction Cost
America's Best Inns & Suites
Circle 80
varies by market $10000 3%, yr. 1;4%, yr. 2; 5%, yr. 3 and after of rooms revenues 2.5% of gross rooms revenue included in marketing fees Conversion cost: $1,700-$5,800 per room
Americas Best Value Inn by Vantage
Circle 81
20 $6,000 plus $100/room over 50 rooms $13 per room per month up to 50 rooms; $9, 51-75 rooms; $8, 76-plus rooms $5 per room per month included in other fees $30,000-$50,000
AmericInn
Circle 82
46 $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 $400 per room 4-5% of gross rooms revenue 3.5% of gross rooms revenue included in other fees $29,425-$56,675
Baymont Inns & Suites
Circle 84
55 $25,000 4-4.5 of gross rooms revenues 2.5% of gross rooms revenue 2% of gross rooms revenue $40,000-$55,000
Best Western International
Circle 85
N/A $42,250 for 100 units none, but annual dues for 100 rooms: $3,761 $28,653 for 100 units $14,600 for 100 units for first 12 months $55000-$60,000
Budget Host Inns
Circle 86
N/A $5,000 $1,000 base plus $75 per room included in other fees Approximately $12 per room per year N/A
Cambria Suites
Circle 87
117 $60,000 5% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue $65,000
Candlewood Suites
Circle 88
80 greater of $40,000 or $500 per room 5% of gross rooms revenue 2.5% of rooms revenue included in other fees N/A
Clarion Hotels/Suites
Circle 89
50 $40,000 4.25% of gross rooms revenue 2% of gross rooms revenue 1.25% of gross rooms revenue $45,000-$70,000
ClubHouse Inn/Inn & Suites/Suites/Hotel/Resort
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 $45,000-$65,000
Comfort Inn/Comfort Suites
Circle 91
60 Inn:
Suites: 80
$50,000 5.25% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue Comfort: $40,000; Comfort Suites: $47,000
Country Hearth Inn
Circle 92
40 $30,000 4% of gross rooms revenue 1.5% of gross rooms revenue 1% of gross rooms revenue $35,000-$40,000
Country Inns & Suites By Carlson
Circle 93
50 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 N/A
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 GRR + $2.45/each non-property res. + $307/accounting period 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
50 greater of $35,000 or $350 per room 5% of gross rooms revenue 3.8% of gross rooms revenue 3.8% of gross rooms revenue $27,353-$54,303
Doubletree Hotels/Suites/Resorts
Circle 97
100 for Suites $75,000 4% of gross rooms revenue 4% of gross rooms revenue included in other fees $98,335 for 250-room hotel
Downtowner Inns
Circle 98
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 GRR; conversion: included in royalty included in marketing fees $30,000-$37,000
Econo Lodge Inn/Suites
Circle 99
40 $25,000 4.5% of gross rooms revenue 1.75% of gross rooms revenue 1.75% of gross rooms revenue $27,500
Embassy Suites Hotels
Circle 100
100 $100,000 (minimum) rooms revenue 4% of gross rooms revenue 4% of gross rooms revenue included in other fees $117,434 for 145-room hotel
Fairfield Inn By Marriott
Circle 101
80 greater of $40,000 or $400 per room 4.5% of gross rooms revenue 2.5% of gross rooms revenue 1% of GRR + $2.95/each on-property res. + $412/ accounting period N/A
Four Points by Sheraton
Circle 102
N/A $50,000 + $300/room over 200 5% of gross rooms sales 1.148% of gross rooms sales .8% of GRS + $8.66/room/month + transaction fees N/A
Grandstay Residential Suites
Circle 103
53 $35,000 $3.75 per occupied room included in other fees $3.50 per res + 7% daily room rate times days reserved $63,000
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%; GDS, 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 $54,038 for 52-room Inn
Hawthorn Suites
Circle 106
80 greater of $40,000 or $400 per suite 5% of gross rooms revenue 2.5% of gross rooms revenue included in marketing fees $52,000-$56,000
Hilton Garden Inn
Circle 107
90 $60,000 (minimum) 5% of gross rooms revenue 4.3% of gross rooms revenue included in other fees $64,762 for 135-room hotel
Hilton Hotels & Resorts
Circle 108
120 $85,000 (minimum) 5% of gross rooms revenue 4% of gross rooms revenue included in other fees $112,535 for 300-room hotel
Holiday Inn Express
Circle 109
60 greater of $40,000 or $500 per room 6% of gross rooms revenue 3% of gross rooms revenue included in other fees $47,000-$68,000
Holiday Inn Hotels & Resorts
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 $74,345 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
50 greater of $35,000 or $350 per room 4% of gross rooms revenue 2% of gross rooms revenue 2.5% of gross rooms revenue $28,513-$82,763
InterContinental Hotels & Resorts
Circle 114
100 greater of $75,000 or $300 per room 5% of gross rooms revenue 3% of gross rooms revenue included in marketing fees $171,000-$262,000
Key West Inns
Circle 115
40 $25,000 3% of gross rooms revenue 1% of gross rooms revenue $1 per booked res + GDS fees $37,000
Knights Franchise Systems
Circle 116
30 greater of $5,000 or $100 per room $20.80 per room per month included in royalty fee $1 per voice res booked by CRS $25,653-$49,473
La Quinta Inns/Inns & Suites
Circle 117
65 $40,000-$45,000 4-4.5% of gross rooms revenue 2.5% of gross rooms revenue 2% of gross rooms revenues $45,000-$60,000
The Luxury Collection
Circle 118
N/A $40,000 + $300/room over 100 2-4% of gross rooms sales 1.239%% of gross rooms sales .8% of GRS + $8.66/room/month + transaction fees N/A
MainStay Suites
Circle 119
60 $30,000 5% of gross rooms revenue 1.25% of gross rooms revenue 1.25% of gross rooms revenue $42,000
Marriott Hotels & Resorts
Circle 120
250 greater of $10,000 or $300 per room N/A N/A N/A N/A
Master Hosts Inns
Circle 121
N/A $5,000 4% of gross rooms revenue 2.5% of gross rooms revenue included in marketing fees $30,000-$37,000
Microtel Inns & Suites
Circle 122
varies by market $35,000 4%, yr. 1; 5%, yr 2; 6%, yr. 3 and after of rooms revenue 3%, yr. 1; 2.5%, yr 2; 2%, yr. 3 and after of rooms revenue included in marketing fees $26,000-$40,000
Motel 6
Circle 123
63 $25,000 4% of gross rooms revenue 3.5% of gross rooms revenue included in marketing fees $36,000
Park Inn Hotels
Circle 124
depends on market 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 N/A
Park Plaza Hotels and Resorts
Circle 125
depends on market greater of $40,000 or $400 per room 5% of gross rooms revenue 2% of gross rooms revenue 1.5% of gross rooms revenue N/A
Passport Inn
Circle 126
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 Hotels & Resorts
Circle 127
50 greater of $10,000 or $100 per room $200 per room; minimum: $15,000 $15,000 per year 10% voice, 7% GDS, 4% Internet $200,000
Quality Inn/Quality Suites
Circle 128
60 $35,000 4.65% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue $42,500
Radisson Hotels and Resorts
Circle 129
200; would consider 150 if unique greater of $75,000 or $500 per room greater of 6% of gross rooms revenue or $150,000/ year 2% of gross rooms revenue 2% of gross rooms revenue N/A
Ramada Worldwide
Circle 130
100 for Inns; 150 for Plazas greater of $35,000 or $350 per room 4% of gross rooms revenue 4.5% of gross rooms revenue included in marketing fees $28,802-$82,803
Red Carpet Inn
Circle 131
N/A $5,000 3.5% of gross rooms revenue 2.5% of gross rooms revenue included in marketing fees $30,000-$37,000
Red Roof Inn
Circle 132
71 $30,000 4-4.5% of gross rooms revenue 4% of gross rooms revenue included in marketing fees $42,000
Regent International Hotels
Circle 133
depends on location greater of $100,000 or $700 per room 3% of gross rooms revenue 2% of gross rooms revenue 2% of gross rooms revenue N/A
Renaissance Hotels & Resorts
Circle 134
175 greater of $10,000 or $200 per room N/A N/A N/A N/A
Residence Inn by Marriott
Circle 135
80 greater of $50,000 or $400 per suite 5% of gross rooms revenue 2.5% of gross rooms revenue included in marketing fees N/A
Rodeway Inn
Circle 136
30 $25,000 3.5% of gross rooms revenue 1.25% of gross rooms revenue 1.25% of gross rooms revenue $27,500
Scottish Inns
Circle 137
N/A $5,000 3% of gross rooms revenue 2.5% of gross rooms revenue included in marketing fees $30,000-$37,000
Sheraton Hotels & Resorts
Circle 138
N/A $60,000 + $300/room over 200 rooms 5% of gross rooms sales 1.239% of gross rooms sales .8% of GRS + $8.66/room/month + N/A
Sleep Inn/Sleep Inn & Suites
Circle 139
60 $40,000 4.65% of gross rooms revenue 2.1% of gross rooms revenue 1.75% of gross rooms revenue $35,000
SpringHill Suites by Marriott
Circle 140
80 greater of $50,000 or $400 per suite 5% of gross rooms revenue 2.5% of gross rooms revenue 0.5% of GRR + period $3.50/each non-property res. + $490 support fee per accounting period N/A
Staybridge Suites
Circle 141
80 greater of $40,000 or $500 per room 5% of gross rooms revenue 2.5% of gross rooms revenue included in other fees $55,000-$91,000
Studio 6
Circle 142
82 $25,000 5% of gross rooms revenue 2% of gross suites revenue included in marketing fees $39,000
Suburban Extended Stay Hotel
Circle 143
80 $30,000 4% of gross rooms revenue 1% of gross rooms revenue less than $2,000 per year $29,000
Summerfield Suites by Wyndham
Circle 144
135 greater of $65,000 or $300 per room 5% of gross rooms revenue 1.5% of gross rooms revenue $8.65/net reservation (average) $85,000-$115,000
Super 8 Motels
Circle 145
60 $24,000 + $100/room over 120 5% of gross rooms revenue 3% of gross rooms revenue included in marketing fees $26,330-$38,055
TownePlace Suites by Marriott
Circle 146
80 greater of $40,000 or $400 per suite 5% of gross rooms revenue 1.5% of gross rooms revenue 1% of GRR + $1.25/each non-propertty res. + communications fee N/A
Travelodge Hotels
Circle 147
50 greater of $35,000 or $350 per room 4.5% of gross rooms revenue 4% of GRR + 5-10 cents/room/day included in marketing fees $27,013-$54,213
Vagabond Inn/Vagabond Inn Executive
Circle 148
depends on market area $20,000 2% of GRR for years 1 and 2; 2.5% thereafter 2% of GRR for years 1 and 2; 2.5% thereafter included in other fees $27,543-$58,422
Value Place
Circle 149
105 greater of $31,500 or $300 per room 5% of gross rooms revenue included in royalty fees included in royalty fees $30,000
Westin Hotels and Resorts
Circle 150
N/A $85,000 + $300/room over 200 6% of gross rooms sales + 2% gross f&b sales 2% of gross rooms sales .8% of GRS + $8.66/room/month + transaction fees N/A
Wingate Inns International
Circle 151
64 greater of $35,000 or $350 per room 4.5% of gross rooms revenue 4% of gross rooms revenue included in marketing fees $58,095-$61,683
Wyndham Hotels & Resorts
Circle 152
200 greater of $65,000 or $300 per room 5% of gross rooms revenue 1.5% of gross rooms revenue $$8.65/net reservation (average) $135,000-$325,000
Average construction cost reflects new construction properties.

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.