How much does a Candlewood Suites franchise cost?
A prospective U.S. licensee may need $15,296,866 to $23,004,446 or more to open the 120-suite Candlewood Suites hotel described in the 2026 Franchise Disclosure Document. The disclosed range equals $127,474 to $191,704 per guest suite. It covers both New Development and Conversion Hotels, but it excludes land, contingency funds, financing charges, interest, debt service, and other amounts Holiday Hospitality Franchising, LLC cannot estimate.
Applicable model: a 120-suite Candlewood Suites hotel under the U.S. FDD issued April 2, 2026.
Interpretation: this is the Estimated Initial Investment in Item 7, not the Application Fee, not a liquid-capital requirement, and not a complete all-in real-estate budget.
Source: 2026 Candlewood Suites FDD, cover and Item 7, pp. 45–50.
Data basis. Legal franchisor: Holiday Hospitality Franchising, LLC. Direct parent: Six Continents Hotels, Inc. Ultimate parent: InterContinental Hotels Group PLC. FDD issuance date: April 2, 2026. Cost analysis uses Item 5, pp. 20–23; Item 6, pp. 23–45; Item 7, pp. 45–50; Item 10, pp. 61–62; and cost-relevant provisions in Items 8, 11, and 17. Information checked July 15, 2026.
The franchisor’s official Candlewood Suites development page confirms the brand’s current development activity. IHG’s official franchise disclosure and resource page instructs Americas prospects to request an FDD, but it does not publish a matching 2026 FDD file. The FDD references in this article are therefore unlinked Item-and-page citations.
Metric sources: 2026 Candlewood Suites FDD, cover; Item 5, p. 20; Item 6, pp. 23–24 and 31–32; Item 7, pp. 45–46 and 49–50.
What is inside the $15.3 million to $23.0 million investment range?
Building Construction is the dominant disclosed cost, at $12,925,400 to $19,237,800. Item 7 then adds Furniture, Fixtures, and Equipment; Operating Supplies & Equipment; professional services; technology; insurance; signage; pre-opening fees; and three months of Additional Funds. The official total is preserved because the table contains variable, conditional, monthly, and “as incurred” entries that should not be recombined into a new total.
Maximum amounts only; scale runs from $0 to $1,724,700. Building Construction is omitted from the geometry because its $19,237,800 maximum would flatten the remaining categories.
Interpretation: after construction, FF&E and Professional Fees create the largest disclosed maximums. This chart uses official maximums only; it does not imply that every category reaches its maximum simultaneously. Source: 2026 Candlewood Suites FDD, Item 7, pp. 45–46.
Site, structure, furnishings, and professional work
| Item 7 expenditure | 2026 amount | When paid | Payee |
|---|---|---|---|
| Application Fee | $60,000 | Lump sum with application | Holiday |
| PIP Fee | $0–$10,000 | Before application, when applicable | Holiday |
| Land | As required | As required | Third parties |
| Building Construction | $12,925,400–$19,237,800 | As required | Third parties |
| Furniture, Fixtures, and Equipment | $1,326,700–$1,724,700 | As required by suppliers | Suppliers |
| Operating Supplies & Equipment | $276,200–$359,100 | As required by suppliers | Suppliers |
| Professional Fees | $388,000–$962,000 | As incurred | Third parties |
Source: 2026 Candlewood Suites FDD, Item 7, pp. 45–47 and 49.
Technology and opening systems
| Item 7 expenditure | 2026 amount | When paid | Payee |
|---|---|---|---|
| PMS Equipment | $22,000–$31,000 | Invoiced before installation | SCH |
| Guest Internet Access hardware | $24,000–$49,000 | Invoiced before installation | Third parties |
| Guest Internet Access bandwidth | $450–$1,800 monthly | As required | Suppliers |
| Entertainment, Security System and Other Technology Systems | $95,043–$124,202 | As required | SCH or third-party suppliers |
| NextGen Payment Solution | $223–$794 | As required | Suppliers |
| Training Expenses | $2,000 plus travel | Within 30 days of invoice; travel as incurred | SCH and travel providers |
| Market Feasibility Study | $0–$30,000 | As required | Service provider |
Source: 2026 Candlewood Suites FDD, Item 7, pp. 45–49. Item 5, pp. 22–23, separately states that the broader pre-opening technology quote can range from $77,000 to $267,000, depending on hotel size, complexity, geography, provider choice, interfaces, locks, safety devices, and IHG Connect setup.
Approvals, launch costs, and initial working capital
| Item 7 expenditure | 2026 amount | When paid | Payee |
|---|---|---|---|
| Opening Date Extension Fee | $0–$5,000 plus expenses | Within 30 days of invoice, as incurred | SCH |
| Licenses and Permits | As incurred | As incurred | Local and state authorities |
| Security Deposits | $2,600–$26,250 | As incurred | Third parties |
| Insurance | $46,000–$197,000 | Before opening | Insurance carrier |
| Hotel Photography | $3,500–$5,000 | At opening | Approved supplier |
| Pre-Opening Support Fee | $6,500 | Invoiced within 60 days of groundbreaking; due within 30 days | SCH |
| Primary Identification Sign | $38,000–$65,100 | As required | Approved suppliers |
| IHG Revenue Services and IHG Commercial Services | $1,500–$2,200 | As incurred | SCH |
| Additional Funds, first three months | $78,750–$105,000 | As incurred after opening | Employees, suppliers, and utilities |
Source: 2026 Candlewood Suites FDD, Item 7, pp. 46 and 49–50.
The official total is not a complete acquisition-and-financing budget. Land is listed as “as required,” and the total expressly excludes real-estate cost, contingency funds, finance charges, interest, debt service, construction-loan interest, appraisal fees, taxes, and other items Holiday cannot estimate. Those exclusions can be material because Building Construction alone spans more than $6.3 million from low to high.
Are new-build and conversion costs disclosed separately?
No. The 2026 Item 7 range combines New Development and Conversion Hotels in one 120-suite estimate. A prospect should not treat the low end as a conversion price or the high end as a new-build price. Holiday states that conversion costs can vary greatly with the existing building’s condition, required upgrades, location, and compliance with Standards, while new development varies with site, design, soil, utilities, environmental conditions, and regional construction costs.
New Development
The Item 7 range applies, but land remains unestimated. Prototype plans must be adapted by an approved architect. Construction, site, environmental, permitting, and regional cost variables remain owner obligations.
Conversion or repurposed building
The same Item 7 range is used, but a Property Improvement Plan may add a $10,000 inspection/preparation fee, required renovation work, reinspection charges, and property-specific technology replacement.
Dual-brand site
Holiday may approve two IHG brands on one site, but the owner signs two separate brand License Agreements. The FDD warns that fees and costs may differ with the dual-brand structure.
IHG’s official development project-types page distinguishes new builds, conversions, mixed-use projects, and dual-branded projects. The official Candlewood Suites Beacon prototype brochure provides design context, but it does not replace the 2026 Item 7 cost contract.
Source: 2026 Candlewood Suites FDD, Item 7, pp. 46–50; Item 8, pp. 51–55.
When is the Candlewood Suites investment paid?
The investment is paid in stages rather than as one check. The Application Fee is due with the application, a PIP Fee may be due before a conversion or re-licensing application, construction and supplier costs are paid through development, insurance is paid before opening, and Item 7 Additional Funds are spent during the first three months after opening.
Property review before the application
A Conversion, Change of Ownership, Re-Licensing, or brand-change project generally requires a PIP inspection and preparation fee of $10,000 before the application. A failed opening inspection may lead to a $5,000 re-evaluation and reinspection charge plus expenses. Additional pre-opening or post-opening consultation visits can cost up to $5,000 per visit, plus the representatives’ travel, living, and lodging expenses.
Application submission
The Application Fee is $500 per approved guest suite, with a $60,000 minimum. For the 120-suite Item 7 model, the fee is $60,000. If Holiday denies the application or the applicant withdraws before a decision, Holiday retains $15,000 and returns the balance; after approval, the fee is nonrefundable.
Design, construction, and technology deployment
Construction, FF&E, OS&E, professional work, signage, deposits, and permits are paid as required. PMS and Guest Internet Access hardware are invoiced before installation. Custom design or a non-approved vendor review can add up to $35,000.
Pre-opening invoices
The $6,500 Pre-Opening Support Fee is invoiced within 60 days of groundbreaking and due within 30 days. Insurance is due before opening. The $2,000 IHG University subscription is prorated according to opening month. Additional onsite training currently ranges from $1,500 to $6,000 depending on scope, subsequent training materials may total up to $6,000 per hotel, and participants pay their own travel, meals, and lodging. Item 5 also requires learning-and-development allocations of $650 for hotel managers and department heads, $450 for assistant department heads, managers, and supervisors, and $250 for frontline or heart-of-house colleagues, capped at 2% of the hotel’s salaries-and-wages budget.
Opening and monthly operations
Additional Funds of $78,750 to $105,000 cover the first three months after opening. The first Royalty Fee payment also carries an Initial Marketing Contribution of $10 per approved suite. For the 120-suite model, that is a derived $1,200 one-time amount. Most monthly payments to Holiday or SCH are due on the 15th day of the following month through IHG SmartPay.
Sources: 2026 Candlewood Suites FDD, Item 5, pp. 20–23; Item 6, pp. 23–24 and 45; Item 7, pp. 45–50. The $1,200 figure is arithmetic from the disclosed $10-per-suite rate and the disclosed 120-suite model, not a separate franchisor estimate.
The FDD states that a franchise prospect must receive the disclosure document at least 14 calendar days before signing a binding agreement or making a payment connected to the proposed franchise sale. The federal framework is set out in the Federal Trade Commission Franchise Rule. State-specific timing and registration rules may add requirements.
Which Candlewood Suites fees continue after opening?
The principal continuing charges are the 5.5% Royalty Fee and 2.5% Services Contribution, both based on Gross Suites Revenue and generally paid monthly. The hotel also pays Loyalty Program Contributions on specified loyalty revenue, technology subscriptions, reservation and distribution charges, training fees, and other usage-based costs. These fees are not included in the initial investment unless Item 7 expressly includes an opening-period payment.
| Continuing fee | Amount or basis | Frequency | Payee |
|---|---|---|---|
| Royalty Fee | 5.5% of Gross Suites Revenue | Monthly, 15th of following month | Holiday |
| Casualty Royalty | 2% of Gross Suites Revenue based on the preceding 12-month average while the hotel is closed by casualty | Monthly, 15th of following month | Holiday |
| Services Contribution | 2.5% of Gross Suites Revenue | Monthly, 15th of following month | Holiday |
| Loyalty Program Contribution | 2.275% of Qualifying Full Folio Revenue from IHG One Rewards members; 1.365% of Qualifying Room and Meeting Revenue from IHG Business Rewards members | Monthly | Holiday or SCH |
| Technology Services Fee | $17.75 per suite per month | Monthly | SCH |
| HotelKey Cloud PMS Solutions Fee | $4.25 per suite per month | Monthly | SCH |
| HotelKey Cloud PMS Implementation Fee | $70 per month for first 48 months | Monthly | SCH |
| NextGen Payments Program Fee | $223–$794 | Monthly | SCH |
| IHG University Core subscription | $2,000 annually, prorated in opening year | Within 30 days of invoice | SCH |
| IHG Revenue Services and Commercial Services | $1,500–$2,200 per month through December 31, 2026; subject to change afterward | Monthly | SCH |
Source: 2026 Candlewood Suites FDD, Item 6, pp. 23–28 and Notes 1–10.
Same unit and period: dollars per guest suite per month. Bars are scaled to the $17.75 Technology Services Fee.
Interpretation: these are selected per-suite components, not a complete technology total. HBO adds $1.25 per suite per month where required; bandwidth, back-office connectivity, payment systems, interfaces, data storage, meeting-space support, taxes, and maintenance can add fixed or variable charges. Source: 2026 Candlewood Suites FDD, Item 6, pp. 26–27.
IHG’s official digital systems information describes the role of IHG Concerto and cloud-based platforms. The FDD, rather than that marketing page, controls the amounts and payment bases shown above.
Reservation, distribution, and program charges vary with use
The following Item 6 charges depend on booking source, program participation, or consumed revenue. They should not be added as a flat percentage because the denominators and transaction triggers differ.
- Travel Agent Commissions
- Minimum 10% commission on Gross Suites Revenue generated through the channel, or another commission Holiday designates.
- IHG Ignite Digital Marketing
- 2.25% commission on consumed direct digital revenue booked.
- TMC Revenue Program
- 2.25% override on qualifying consumed room nights, capped at $20,000 annually.
- Global Distribution System Fee
- $6.40 per reservation.
- IHG Business Edge
- 4% of consumed transient revenue booked through the program.
- Groups & Meetings Fee
- 4% of consumed or presumed/agreed room revenue for leads sent through IHG MeetingBroker.
- Groups & Meetings TMC Fee
- 2% for the named global meeting-management programs.
- Connection charges
- $5 per TMC Direct Connect reservation, $1.35 per Direct Connect reservation, and $1.75 per consumed Concur TripLink booking.
- Federal Room Rates
- 2.25% of qualifying bookings.
- IHG Voice Reservation Service
- $6.63 per net booking, plus a possible 10% commission for specified cross-sells or transferred calls.
- ARN Group Productivity Solution
- $1.75 per reservation.
- Local Marketing and optional promotions
- Actual cost, due as incurred or on request.
Source: 2026 Candlewood Suites FDD, Item 6, pp. 24–26 and Note 5.
Item 7 lists Guest Internet Access bandwidth at $450 to $1,800 monthly, while Item 6 lists the ongoing subscription at $450 to $2,500 monthly. Because Item 6 is the continuing-fee schedule, a buyer should obtain the current integrator quote and use the higher disclosed ceiling until the difference is resolved in writing.
Which additional charges depend on changes, delays, or non-compliance?
Item 6 adds material charges when the hotel is renovated, delayed, transferred, expanded, audited, or out of compliance. These amounts are not normal monthly operating fees, but they can affect capital planning because the License Agreement gives Holiday continuing approval and standards-enforcement rights.
Up to $10,000 for a PIP or renovation inspection/preparation, $5,000 for reinspection, up to $5,000 for milestone extensions/defaults, and up to $35,000 for Custom Design Review or review of a non-approved vendor. Mandatory Soft Goods replacement is required at least every seven years and Case Goods at least every fourteen years; the FDD does not state a renovation-dollar total.
For a New Development or Conversion Hotel, an extension greater than six but not more than 12 months costs $10,000 plus Holiday’s processing expenses. An extension greater than 12 months costs one-half of the Application Fee plus expenses.
$500 for each approved additional guest suite. A six-month extension costs one-half of the original Suite Addition Application Fee plus processing expenses.
Holiday may require a reserve funded monthly at up to 5% of Gross Revenue for capital expenditures and upgrading. Gross Revenue is broader than Gross Suites Revenue, and the reserve may still be insufficient for required work.
$500 per guest suite, with a $60,000 minimum, due with the application. A licensee name change or ownership realignment costs $5,000. The License has no contractual renewal right; continued operation would require an agreed Re-Licensing on then-current terms.
PMS hardware and software must be refreshed every 60 months. IHG Connect hardware/software license renewal can range from $1,000 to $200,000 every five years. Public Access Computers must be refreshed every four years.
Quality Program non-compliance can reach $7,500; The Operator’s View assessments can reach $2,500 per occurrence; Corrective Action Plan assessments can reach $13,500; Guest Relations charges are $150 per incident plus applicable guest compensation.
For hotels with 300 rooms or fewer, repeated quarterly failure can escalate from a cure period to $1,000, $2,000, and $3,000 per failed standard, capped at $3,000 per quarter per standard.
A payment deficiency can require the deficiency amount, interest, and a $3,000 audit fee. Late amounts accrue interest at 1.5% per month, subject to the applicable legal maximum.
A replacement or subsequent comfort letter costs $2,500. A public offering or private placement request costs $25,000 plus additional Holiday costs. Termination may trigger formula-based liquidated damages that are not stated as a fixed amount.
Sources: 2026 Candlewood Suites FDD, Item 6, pp. 28–45; Item 10, p. 62; Item 17, pp. 79–81.
Does Candlewood Suites disclose a liquid-capital or net-worth minimum?
The 2026 FDD does not publish a standardized Candlewood Suites Liquid Capital, Net Worth, or Non-Borrowed Funds minimum for ordinary applicants. Holiday evaluates financial information during the application process and may require owners, affiliates, or other parties to sign a Guaranty. The Guaranty form contains blanks for required net worth and liquid assets, indicating that any threshold may be set for the particular transaction rather than disclosed as one brand-wide amount.
- Estimated Initial Investment
- $15,296,866 to $23,004,446 or more for the 120-suite model, excluding specified items. This is the project-cost disclosure.
- Application Fee
- $500 per suite, minimum $60,000. Item 5 does not call this payment an “Initial Franchise Fee.”
- Liquid Capital
- No standard amount is disclosed in the 2026 FDD. It would mean readily available funds, not total project cost.
- Net Worth
- No ordinary applicant threshold is published. Net worth is not the same as cash available to develop the hotel.
- Personal or affiliate Guaranty
- Holiday may require immediate payment and performance guarantees based on its review of the applicant and proposed guarantors.
What financing does the franchisor offer?
Holiday does not offer a formal direct or indirect financing program. Holiday, SCH, or General Innkeeping Acceptance Corporation may consider a loan or guaranty case by case, subject to internal approval and negotiated terms. The FDD states that the licensee remains solely responsible for obtaining adequate financing for development, opening, and operation. A possible case-by-case relationship is not guaranteed approval and should not be treated as available capital.
Sources: 2026 Candlewood Suites FDD, Item 10, pp. 61–62; Item 15 and the Guaranty form in Exhibit B-1.
What should be verified before relying on the official range?
The most important unresolved number is the site-specific amount outside or near the edges of Item 7. Before using the range in a capital plan, the buyer should reconcile the FDD with current property, construction, technology, insurance, and financing quotes for the exact hotel.
Source: 2026 Candlewood Suites FDD, Items 5–8 and Item 10.
What does the Candlewood Suites cost structure mean for capital planning?
The verified starting point is $15,296,866 to $23,004,446 or more for a 120-suite hotel, but the decisive variables sit outside a simple franchise-fee calculation. Building Construction is the largest disclosed category; land and financing are excluded; the Application Fee is $60,000 for the model; Additional Funds cover only the first three months; and continuing Royalty, Services Contribution, loyalty, technology, distribution, and event-triggered obligations begin or continue after opening.
The range is most useful as an official cost framework, not as a guaranteed project budget. The buyer’s site, format, PIP, supplier quotes, technology configuration, financing terms, and required Guaranty must be resolved before the capital requirement can be stated for a specific transaction.