According to MIF, L.L.C.'s 2026 U.S. Franchise Disclosure Document, a newly constructed prototypical Fairfield by Marriott hotel is estimated to require $12,289,300 to $27,222,300 for 80 to 110 guestrooms, or $16,984,400 to $34,537,000 for 120 to 150 guestrooms. Those Item 7 totals exclude real estate, building permit, tap and impact fees, insurance, and the recommended hard-cost contingency, so the capital needed to secure land and complete the project may exceed the published range.
Legal franchisor: MIF, L.L.C., a subsidiary of Marriott International, Inc. Document: 2026 Fairfield Domestic FDD, issued March 31, 2026. Formats analyzed: newly constructed prototypical 80-110-guestroom and 120-150-guestroom Fairfield by Marriott hotels. Primary disclosures: Items 5, 6 and 7, pages 25-64; Item 10, page 74; Item 15, pages 101-102; and Item 17, pages 106-110. Information checked July 17, 2026. See the official 2026 Fairfield by Marriott FDD and Marriott's U.S. FDD library.
How do Fairfield's two new-build investment ranges compare?
The 2026 FDD does not publish one universal Fairfield by Marriott cost range. Item 7 separates a typical newly constructed suburban hotel into two room-count bands, and each band must be evaluated independently.
Room count changes both the total range and several per-guestroom assumptions. A buyer should not use the 80-110-room low end as a proxy for a 120-150-room project, and should not combine a low value from one format with a high value from the other.
Payments tied to the application, systems and pre-opening support
These figures are disclosed for both new-build formats and are generally paid before opening to Marriott, approved vendors or third-party consultants.
| Cost entity | 80-110 rooms | 120-150 rooms | Payment timing or payee |
|---|---|---|---|
| Initial Franchise Application Fee | $75,000 | $75,000 | Generally with the franchise application; paid to Marriott. |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services | $55,000 | $55,000 | Lump sum, on demand; paid to Marriott. |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $100,000-$152,000 | $100,000-$152,000 | As arranged or on demand; paid to suppliers and/or Marriott. |
| Market Feasibility Study | $6,000-$18,000 | $6,000-$18,000 | As arranged with an independent supplier; travel and living expenses may be extra. |
Source: 2026 Fairfield FDD, Item 7, page 59; Item 5, pages 25-31.
Construction, FF&E, technology and professional services
Building Construction, Kitchen and Laundry Equipment, and Furniture and Fixtures are stated per guestroom. The remaining categories below are stated as total project amounts for the applicable hotel format.
| Cost entity | 80-110 rooms | 120-150 rooms | What the estimate covers |
|---|---|---|---|
| Building Construction | $121,200-$201,900 per room | $112,500-$189,300 per room | Typical suburban new build, including site work, project management and exterior signs; excludes permit, tap and impact fees. |
| Kitchen and Laundry Equipment | $1,600-$2,800 per room | $1,500-$2,300 per room | Laundry equipment, kitchen equipment and required guestroom appliances. |
| Furniture and Fixtures | $13,000-$17,800 per room | $12,700-$16,900 per room | Prototype decor package, interior signage, televisions, procurement, freight, taxes and installation as described in the FDD. |
| Technology Hardware & Software and Network Infrastructure | $130,400-$229,100 | $195,600-$312,400 | Property technology infrastructure, including network, locks, security, in-room and public-space technology. |
| Operating Supplies | $162,400-$225,900 | $181,600-$250,400 | Linens, towels, amenities, maintenance items, uniforms, cleaning equipment and opening inventory. |
| Professional Design Services | $447,500-$1,007,300 | $626,200-$1,289,200 | Architectural, engineering and consulting services, Marriott design review and required compliance certifications. |
Source: 2026 Fairfield FDD, Item 7, pages 59-64. Marriott describes new builds, conversions, adaptive reuse and dual-branded projects on its official hotel-development formats page.
Opening costs and first-three-month operating funds
| Cost entity | 80-110 rooms | 120-150 rooms | FDD treatment |
|---|---|---|---|
| Start-up Costs | $2,300-$3,500 per room | $2,300-$3,500 per room | Pre-opening wages, marketing expenses and other operating costs incurred before opening. |
| Opening Advertising | $25,000-$50,000 | $25,000-$50,000 | Required opening campaign, including an approved hotel photography portfolio estimated at $10,000-$20,000. |
| Additional Funds | $3,000-$5,000 per room | $2,000-$3,500 per room | Prepaid and operating expenses for the first three months; already included in the Item 7 total. |
Which major costs are outside the Item 7 total?
The official total is incomplete by design. Fairfield's 2026 Item 7 total excludes several potentially large project obligations because MIF, L.L.C. says they cannot be meaningfully estimated across sites and owners.
Additional Funds are already part of the Item 7 total. They should not be added a second time. The excluded real estate, permits, insurance and contingency are different: those obligations sit outside the official total and require project-specific quotes.
When is the money paid?
Fairfield's cost schedule is not one closing-day payment. The 2026 FDD spreads cash demands from the application through construction, pre-opening staffing and the first three months of operation.
Marriott's official franchise process lists FDD request, application, deal review, approval and opening as the principal development stages. See Marriott's franchise development process. The FDD controls the actual payment obligations.
Which Fairfield fees continue after opening?
The two core monthly percentage charges are Franchise Fees of 5.5% of gross room sales and a Program Services Contribution equal to 3.85% of gross room sales, plus $7,000 per year and $135 per guestroom per year. The 3.85% contribution already includes a 2.5% Marketing Fund contribution; it is not an extra 2.5% charge on top of the 3.85%.
The compatible percentage components total 9.35% of gross room sales: 5.5% Franchise Fees plus 3.85% Program Services Contribution. This arithmetic excludes the contribution's fixed annual amounts and every fee based on qualifying revenue, transactions, devices, bookings, rooms, participation or non-compliance.
| Ongoing fee entity | Amount or basis | Timing | Applicability |
|---|---|---|---|
| Franchise Fees | 5.5% of gross room sales | By the 15th day after each month-end | Core mandatory fee under the Franchise Agreement. |
| Program Services Contribution | 3.85% of gross room sales + $7,000/year + $135/room/year | By the 15th day after each month-end | Mandatory; includes a 2.5% Marketing Fund component. |
| Loyalty Program | 1.55% of qualifying revenue, reduced to 1.45% through Dec. 2027; plus 1% of qualifying event revenue, capped at $300/event | On demand | Triggered by qualifying loyalty and event revenue; other member benefits may also be at the hotel's expense. |
| Revenue Management Advisory Services | $1,265-$1,400/month for most hotels; $3,000/month in the stated high-group-business circumstance; plus $2,500-$5,000 setup | Varies | Generally optional, but may be required for specified operators or training programs. |
| Learning & Development Bundle | $11.40-$12.60 per room/year | On demand | Covers designated required ongoing training programs. |
| Point-of-Sale System | $90.75/property/month + $17-$30/workstation/month | On demand | Required designated system; add-on functions can cost more. |
| Brand Experience Kits | $500/year | On demand | Annual Fairfield by Marriott brand materials and updates. |
| Food & Beverage Support | $400/year, subject to 3% annual increase | On demand | Supports the brand's food-and-beverage program. |
Source: 2026 Fairfield FDD, Item 6, pages 32-58; Marketing Fund detail in Item 11, pages 77-79.
Usage-based charges can sit on different denominators
Item 6 also contains transaction and participation charges that cannot be converted into one annual dollar estimate without making unsupported assumptions about bookings, revenue mix, devices or program use.
Account Sales Group Lead
4% of gross group room revenue, reduced to 3% when an intermediary generated the lead, with the stated per-booking caps. The fee applies only when the hotel accepts the lead and the group books.
Transaction-Based Media Program
8% of applicable gross room revenue, capped at $200 per stay, when a qualifying referral produces a completed stay.
Credit Card Processing
0.065% of the dollar amount of credit-card transactions for authorization, settlement and tokenization.
Travel intermediary and distribution charges
Item 6 discloses multiple bases, including 10% of qualifying room revenue for the Preferred Travel Agency program and generally 7%-10% of qualifying gross room sales for designated online channels.
Which costs arise only when the hotel changes, transfers or falls out of compliance?
Item 6 contains substantial conditional fees. They are not part of a normal opening budget unless the relevant event occurs, but they can materially affect the cost of a conversion, transfer, delayed project, renovation or default.
Transfer and change of ownership
The transfer application fee is the greater of $150,000 or $500 per guestroom. The transferee may also face a $12,000 Property Improvement Plan fee, outside-counsel costs, current fees and required upgrades.
Property Improvement Plan changes
A PIP revision or modification is $5,000. Refreshing a PIP 12 months after issuance is $6,000; reissuing it after 24 months is $12,000. Each non-compliance re-evaluation is $10,000.
Construction or conversion delay
A requested Construction/Conversion Extension is $10,000 and is refundable if the extension is not granted. The FDD limits an approved extension to no more than six months.
Custom or non-standard design
Custom Design & Construction Review Services are $20,000. Screening a non-recommended interior design firm is $2,500 per firm, with an additional $25,000 for a new hotel project or $15,000 for a renovation when the firm is retained.
Quality-assurance Red Zone
$25-$100 per guestroom, up to $50,000 for each six-month tracking period, plus $2,500 for each required meeting and possible supplemental training or site-visit costs.
Late payment and audit
Interest is the lesser of 18% per year or the maximum legal rate. If an audit finds an underpayment of at least 5%, or inadequate accounting procedures, the franchisee must reimburse audit costs.
Default termination
Liquidated damages use average monthly Franchise Fees and Program Services Contributions multiplied by a disclosed number of months, generally up to 36, plus a $12,000 removal-from-system charge and potentially actual damages.
Unauthorized electronic identifier
$100 per day for each unauthorized email address, domain, mobile application name, website or other electronic identifier using Marriott marks or confusingly similar marks.
Source: 2026 Fairfield FDD, Item 6, pages 40-49; transfer and post-term obligations are summarized in Item 17, pages 106-110.
Do conversions, existing hotels, dual-brand projects and residences use the same cost contract?
No. The two Item 7 totals apply only to newly constructed prototypical Fairfield by Marriott hotels. Other development paths have separate fee rules and, in several cases, no meaningful total-investment estimate.
New-to-system or non-Marriott conversion
The application fee is $75,000 plus $400 per guestroom above 125. Conversion construction and renovation costs are not covered by the new-build Item 7 totals.
Existing Fairfield or managed-to-franchised hotel
The application fee is the greater of $150,000 or $500 per room. A $12,000 PIP fee and transaction-specific legal, training and transition costs may also apply.
Fairfield plus TownePlace Suites dual-brand
A single $100,000 application fee plus $400 per guestroom above 140 can apply when all stated prototype, construction and timing conditions are met, including execution by March 30, 2027.
Residential, condominium or multi-family component
Item 5 estimates $18,500-$23,500 for residential pre-opening training and a current $10,000 Residential Executive Orientation fee, before the additional recurring residential fees in Item 6.
The FDD says conversion, acquisition and mixed-use costs may be significantly different because of the property's condition, configuration and Property Improvement Plan. It does not provide a substitute total range for those projects. A buyer needs a project-specific PIP, scope and supplier budget rather than adapting the new-build midpoint or endpoints.
Marriott's public development materials describe prototypical new builds, conversions, adaptive reuse, mixed-use and dual-branded projects as distinct development paths. The official U.S. and Canada development contact is the appropriate source for the current project format and disclosure process; it does not replace the applicable FDD and agreements.
Does Fairfield disclose a liquid-capital or net-worth minimum?
The 2026 Fairfield FDD does not state a numeric Liquid Capital, Net Worth or Non-Borrowed Funds threshold. Marriott's public franchise page says franchisees should have an appropriate real-estate net worth, but it does not publish a dollar minimum. MIF, L.L.C. reviews the applicant's financial information, ownership structure, property ownership and debt structure before determining guaranty requirements.
- Estimated Initial Investment
- The Item 7 project cost range for the applicable new-build format. It is not a liquidity requirement.
- Net Worth
- No numeric threshold is disclosed. Net worth is one factor in the guarantor review and is not the same as cash available to invest.
- Liquidity
- No numeric minimum is disclosed. Marriott considers liquidity, credit and operating history, and project debt when evaluating a proposed guarantor.
- Personal or entity guaranty
- Principals may be required to guaranty the franchisee's obligations. In limited cases, an entity with substantial net worth may be accepted instead.
- Franchisor financing
- Item 10 says Marriott generally does not offer direct or indirect financing or guaranty the buyer's obligations. Rare contingent guaranties or mezzanine loans may be offered in limited circumstances at Marriott's discretion.
External financing therefore remains a separate underwriting decision. The SBA's official 7(a) program information explains one lender-delivered business-loan structure, but program eligibility and lender approval do not establish Fairfield approval, project feasibility or sufficient total financing.
What should be verified before relying on the published range?
The official range is useful only after the buyer maps it to the correct property, room count, agreements and state-specific disclosures.
The Federal Trade Commission's Consumer's Guide to Buying a Franchise explains how Items 5, 6 and 7 fit together and why buyers must investigate costs that the FDD cannot estimate.
What is the practical Fairfield capital requirement?
A prospective U.S. Fairfield by Marriott franchisee should plan around the correct 2026 new-build range - $12,289,300 to $27,222,300 for 80-110 guestrooms or $16,984,400 to $34,537,000 for 120-150 guestrooms - and then add project-specific real estate, permit, insurance and contingency obligations that Item 7 excludes. The $75,000 Initial Franchise Application Fee is only one component of that capital requirement.
After opening, Franchise Fees, the Program Services Contribution, Loyalty Program charges, technology costs and transaction-based fees continue under different denominators and payment schedules. Marriott does not disclose a numeric liquidity or net-worth minimum, and generally does not finance the investment. Conversion, transfer, dual-brand and mixed-use projects therefore require a separate cost model tied to the applicable Property Improvement Plan, agreements, guaranty structure and current FDD.