How much does a Hawthorn Suites franchise cost?
The March 31, 2026 disclosure gives three format-specific answers: $12,589,830–$15,312,324 for 96-room new construction, $335,756–$7,690,186 for a 100-room conversion, and $14,445,089–$19,896,600 for the 103-room dual-brand prototype. FDD Item 7, pages 45–52.
New construction: $12.59 million–$15.31 million. Conversion: $335,756–$7.69 million. Dual brand: $14.45 million–$19.90 million. Land acquisition is not included in the standard new-construction and conversion tables, and the conversion estimate assumes the buyer already owns the hotel being converted.
The project format and its stated assumptions must be identified before using a range; the three endpoints are not a blended or typical price.
Data basis: Hawthorn Suites Franchising, Inc., a Georgia corporation and subsidiary within Wyndham Hotels & Resorts, Inc.; U.S. FDD issued March 31, 2026; cost analysis uses Items 5, 6, 7, 8, 10, 11 and 17. Formats reviewed: 96-room new construction, 100-room conversion and the 103-room La Quinta/Hawthorn dual-brand prototype. Information checked July 19, 2026. The official Hawthorn franchise page identifies new construction and high-quality conversions and references the March 31, 2026 FDD. A matching public FDD file was not located on an official franchise-controlled domain, so FDD citations in this article are unlinked and identify the year, Item and page.
Capital snapshot
The following figures answer different parts of the capital decision; the entry charge, initial operating reserve and ongoing percentage fees are not interchangeable.
The scale runs from $0 to $20 million. Each bar begins at the disclosed low end and ends at the disclosed high end; it does not imply that the formats are substitutes.
Interpretation: conversion has the lowest disclosed entry point but the widest condition-dependent spread; dual brand has the highest maximum. Source: 2026 FDD, Item 7, pages 45–52, including dual-brand footnote 20 on pages 48–49.
The $2,500 Application Fee is not automatically an extra payment on top of the room-based entry fee. It is non-refundable when submitted, but approval converts it into a credit against that fee. FDD Item 5, page 26.
What is included in the initial investment?
The 2026 investment tables combine entry payments, design and construction or renovation, technology and property-management setup, furnishings, signs, opening supplies, coverage, marketing, startup expenses and a three-month operating reserve. The mix differs sharply between a ground-up hotel and a conversion.
Phase key: “Entry, studies and training” groups the initial payment, required education, travel, photographs and any market study. “Design and premises” groups professional design work, physical construction or improvements, and the related contingency. “Systems and opening assets” groups technology, property-management setup, furnishings, signs and supplies. “Launch and startup” groups coverage, advertising, wages where disclosed and professional startup expenses.
96-room new-construction cost phases
For the 96-room prototype, physical construction is the dominant cost. The phase labels below are derived groupings of compatible line items; each column reconciles exactly to the official total.
| Derived cost phase | Low | High |
|---|---|---|
| Entry, studies and training | $58,149 | $74,199 |
| Design, construction and contingency | $10,753,331 | $12,825,771 |
| Technology, PMS and opening assets | $1,495,721 | $1,895,696 |
| Insurance, advertising, wages and startup | $147,489 | $315,923 |
| Additional Funds | $135,140 | $200,735 |
| Official Total Estimated Initial Investment | $12,589,830 | $15,312,324 |
This part-to-whole chart groups the compatible high-end values from the 96-room new-construction table. The four derived groups sum exactly to the stated maximum.
Interpretation: the upper end is driven principally by Facility Construction, Architecture/Engineering and the 5% Construction Contingency, not by the entry charge. Source: 2026 FDD, Item 7, pages 45–49. Percentages are derived and rounded to one decimal place.
100-room conversion cost phases
The conversion estimate begins with an existing hotel that the franchisee already owns. At the low end, the property is assumed to need almost no design work or Facility Improvements; at the high end, extensive renovation, replacement FF&E and new systems are assumed.
| Derived cost phase | Low | High |
|---|---|---|
| Entry, studies and training | $56,650 | $73,950 |
| Design, improvements and contingency | $0 | $5,058,675 |
| Technology, PMS and opening assets | $106,429 | $2,231,700 |
| Insurance, advertising and startup | $35,377 | $122,966 |
| Additional Funds | $137,300 | $202,895 |
| Official Total Estimated Initial Investment | $335,756 | $7,690,186 |
Source: 2026 FDD, Item 7, pages 49–52. Derived phase totals reconcile exactly to the official conversion totals.
Why is the conversion range so wide?
The conversion range is wide because the low and high ends describe fundamentally different property conditions. The 2026 table assumes an existing hotel may already comply with System Standards—or may require structural renovation, system replacement, new FF&E, new Signage and almost complete replacement of Opening Inventory.
Existing-asset condition drives the conversion contract
The official low end is not a generic “cheap conversion.” It depends on the buyer already owning a hotel whose exterior, public areas, rooms, plumbing, HVAC, technology and furnishings are in strong condition.
Low-end assumptions
No architecture/design work; no Facility Improvements; existing technology largely meets standards; existing FF&E is in excellent condition; only selected Mark-bearing Operating Supplies and Equipment are purchased.
High-end assumptions
Comprehensive renovation; up to $4,603,500 in Facility Improvements; up to $230,175 Conversion Contingency; replacement technology; up to $1,602,943 in FF&E; and up to $437,725 in Opening Inventory.
Source: 2026 FDD, Item 7, pages 49–52 and footnotes 7–14.
The $335,756 conversion minimum should be used only when the existing hotel satisfies the FDD’s low-end assumptions. A Property Improvement Plan, engineering review and current system specifications are needed before treating that figure as applicable to a particular asset.
Wyndham’s official hotel franchise cost FAQ distinguishes new builds from conversions, while the official new-hotel development page describes the design and construction work associated with ground-up projects. Neither page replaces the property-specific assumptions in the Item 7 table.
When is the money paid?
Payments are made in stages rather than as one check. The application and entry payments occur early, construction or renovation costs are paid as incurred, the OPERA PMS setup fee is due before opening, and several training and photo charges occur after opening.
Franchise Application
Submit the non-refundable application payment with the Franchise Application. If approved, that payment is credited against the entry fee.
Franchise Agreement signing
Pay the remaining room-based entry charge. The franchisor may defer some or all of it under a note in its sole discretion.
Development and design period
New-construction franchisees attend the Development Open House within six months after signing and pay its disclosed charge. Studies, professional design work, permits, construction, improvements, furnishings, signs, coverage and related third-party costs are paid as incurred.
At least 30 days before opening
Pay the $19,400 OPERA PMS Set-Up and Implementation Fee, plus applicable interface costs. Item 6 identifies interface amounts of $525 to $3,050, including a required $750 interface to the approved automated revenue and rate-management system. The Technology Systems estimate also includes the $1,500 Wyndham Gateway Equipment and Installation Fee.
Opening milestone
Complete required construction or pre-opening improvements, satisfy the permanent or temporary sign conditions, and fund supplies, wages, advertising and other startup obligations. A missed deadline may trigger the extension charge described later.
After opening
The two core percentage charges begin when the hotel opens. Photographs and certain training charges are incurred afterward, and the disclosed reserve covers the first three months, including labor and recurring payments.
Source: 2026 FDD, Items 5–7, pages 26–52.
Which fees continue after opening?
The core recurring contract begins with a 5.5% Royalty Fee and a 2.5% Marketing/Reservation Contribution, each based on Gross Room Revenues and generally payable monthly on the third day of the next month. The contract also discloses required technology, revenue-management, remote-sales, loyalty and reservation-channel charges.
| Fee entity | Amount or basis | Payment timing | Applicability |
|---|---|---|---|
| Royalty Fee | 5.5% of GRR | Monthly, third day of next month | From Opening Date through expiration or earlier termination |
| Marketing/Reservation Contributions | 2.5% of GRR | Same as Royalty Fee | From Opening Date through expiration or earlier termination |
| Standard RMS Fee | 0.75% of GRR; $645 monthly minimum and $1,395 monthly maximum | Invoice terms; otherwise 15 days after receipt | Required minimum service unless alternate criteria apply |
| Premium RMS Fee | 1.00% of GRR; $1,450 monthly minimum and $2,450 monthly maximum, except $3,500 per month for Facilities with annual GRR of $3,000,000 or more | Invoice terms; otherwise 15 days after receipt | Optional unless the disclosed occupancy trigger is met |
| Remote Sales Service | $1,500 per month | When invoiced | Required unless alternate System Standards criteria are met |
| Wyndham Connect Plus Fee | 3.5% of GRR for each reservation booked through the service | When invoiced | Required participation |
| PMS Monthly Support and Service Fee | $734 to $1,050 per month | When invoiced | Standard OPERA Cloud; amount depends on room count |
| Continuing Education | $1,200 per year | When invoiced | Access for Facility team members |
Source: 2026 FDD, Item 6, pages 29–41. GRR means Gross Room Revenues as defined in Item 6; it excludes specified food and beverage, telephone, key-forfeiture, entertainment, vending and tax amounts.
Transaction-driven and conditional charges
Several Item 6 obligations depend on how reservations are generated, whether standards are met and whether optional services are used.
- Distribution channels: GDS Fees, Third Party Channel Fees and Internet Booking Fees are each currently $2.34 per reservation. Agency Commissions can be up to 20% of GRR, plus a 1.5% Agency Commission Service Charge on commissionable revenue.
- Member and digital programs: Member Benefits Commissions can be up to 10% of GRR, with a 1.5% service charge; the required Digital Pay-For-Performance Commission is currently 7% and may be up to 10% of GRR; Everyone Sells Group Referrals are 10% of commissionable revenue.
- Wyndham Rewards: the Loyalty Program Charge is 4.25% to 5.5% of amounts on which members earn points or other program currency. A missed enrollment metric can cost up to $1,200 per quarter, currently $750 per quarter.
- Training and conferences: initial General Manager Certification is currently $2,250, an additional attendee is $1,400, and mandatory On-Site Opening Training for a 51–200-room Facility is currently $2,250 plus facilitator travel and lodging. The Chain Conference Fee is $2,000 for the first attendee and $1,750 for each additional attendee, generally every 18 to 24 months and charged even for nonattendance. Remedial Training may cost up to $1,250; Product Quality Training can reach $5,000 plus facilitator travel and lodging.
- Property and design events: additional Photos cost $225 each; a Rooms Addition Fee is currently $400 per added room; Custom Interior Design Review is currently $6,000; post-opening Property Improvement Plan preparation is $1,500 per request; and a non-approved vendor may be charged up to $15,000 for specifications for a required room-package component.
A percentage of GRR is not an annual dollar estimate. The document provides the denominator and payment basis, but it does not provide a buyer-specific annual fee amount. This article therefore does not convert Royalty Fees, Marketing/Reservation Contributions or reservation commissions into projected dollars.
Which costs can arise on transfer, renewal, delay or default?
Cost obligations extend beyond opening and across a 20-year Franchise Agreement term beginning on the first day of the month after the Opening Date. A transfer or approved renewal uses the Relicense Fee formula, construction delays can trigger an Extension Fee, quality failures can trigger Reinspection Fees, and termination can create substantial Liquidated Damages and de-identification costs.
| Trigger | Disclosed charge | Due | Cost interpretation |
|---|---|---|---|
| Transfer or approved renewal | Relicense Fee: greater of $40,000 or $400 per room, plus the application payment | At transfer or renewal process | No contractual renewal right; if both sides elect renewal, the then-current agreement and fee apply |
| Administrative Assignment | $5,000; $7,500 for assignment to a financial institution or receiver | At assignment | Includes the application payment |
| Opening-deadline extension | $10,000 | If assessed, within 10 days of Opening Date | Applies to new construction and conversion when Hawthorn extends a deadline |
| Failed quality or improvement inspection | $3,000 to $5,500, plus inspector travel, lodging and meals | When invoiced | Charged for each required reinspection |
| Early termination | Greater of $3,000 per authorized guest room or the disclosed Recurring Fee formula | Within 10 days after termination | Formula depends on operating history and remaining term |
| Failure to de-identify | $2,000 per day | On demand | Continues until de-identification is completed to Hawthorn’s satisfaction |
Source: 2026 FDD, Items 5, 6 and 17, pages 26–45 and 80–83.
- Late payment: interest is the lesser of 1.5% per month or the maximum lawful rate.
- Payment method problems: returned checks are currently $100; each paper check carries a $160 processing fee.
- System suspension: reconnecting Central Reservation System service after suspension is currently $4,000.
- Audit: the franchisee pays audit costs if the understatement is at least 3% of amounts owed during a six-month period.
- Lender document request: a Three-Party Agreement or Comfort Letter request currently costs $1,000, and issuance is discretionary.
What changes for a La Quinta and Hawthorn dual-brand hotel?
The 2026 disclosure estimates $14,445,089 to $19,896,600 for a 103-room dual-brand prototype containing 73 La Quinta rooms and 30 Hawthorn rooms. That figure is not the standard Hawthorn new-construction range and does not replace the separate obligations created by the Hawthorn Agreement and La Quinta Agreement.
One building, two franchise agreements
Separate entry fees
The franchisee makes separate application and entry payments under the Hawthorn Agreement and the La Quinta Agreement. At renewal or transfer, both brand agreements must be addressed if the property remains dual-branded.
Technology may be duplicated
The document states that a dual-brand operation may require SynXis or another approved PMS and may require separate PMS Set-Up and Ongoing Support Fees for the Hawthorn and La Quinta facilities.
Some fees may be combined
Only one Continuing Education Fee applies to all Facility team members. One Chain Conference Fee may apply to the first attendee when both brands hold their conferences simultaneously at the same location.
Cross-default and transfer conditions
A default under the La Quinta Agreement can affect the Hawthorn Agreement, and a transfer generally requires the same transferee to acquire the same interest in both facilities.
Source: 2026 FDD, Items 5–7, 10 and 17. The official dual-brand prototype page confirms the combined La Quinta and Hawthorn development format.
Does Hawthorn disclose financing or minimum capital requirements?
The 2026 FDD does not state a brandwide minimum Liquid Capital, Net Worth or Non-Borrowed Funds threshold. Item 10 also says the franchisor does not generally offer financing except for a possible entry-fee deferral and discretionary Development Incentives. A buyer should therefore separate the disclosed Item 7 investment from any lender equity, liquidity or personal-guarantee requirements.
- Initial Fee Deferral
- Hawthorn may defer some or all of that amount, usually for a short term such as 90 days or until opening, whichever occurs first. The franchisee and owners sign an Initial Fee Note; transfer or termination can accelerate the unpaid balance.
- Development Incentive
- A discretionary loan for new construction or conversion, typically funded shortly after opening. Principal is forgiven in portions over the Franchise Agreement term, but an early transfer or termination can require repayment of the unamortized balance plus a 10% Development Incentive Acceleration Fee.
- Personal obligations
- Significant owners must sign a Guaranty covering the franchisee’s obligations. Owners also co-sign a Development Incentive Note when that financing is offered, and spouses in specified states may have to sign the applicable note. The franchisor can request balance sheets, loan documents, equity-investment details and other financial information.
- Third-party financing
- Hawthorn may issue a Three-Party Agreement or Lender Notification Agreement at its discretion, but it has no obligation to enter into an arrangement with a lender.
A Development Incentive is generally funded after the hotel opens and only after specified conditions are met, including final credit review, completion of pre-opening improvements, payment of the entry charge and good standing. It should not be treated as guaranteed pre-opening construction cash.
The Women Own the Room Development Incentive targets $2,500 per guest room, capped at 50% of the approved women-owned franchisee’s equity investment, subject to qualification and the franchisor’s discretion. Wyndham’s official Women Own the Room page describes its capital-support framework. The BOLD program may also include a Development Incentive; the official BOLD program page describes tailored capital and operational support for qualifying Black hotel owners.
What does the official range not fully resolve?
The disclosed totals are detailed, but they are not a complete property-specific capital plan. Land, asset acquisition, local impact fees, certain insurance policies, debt service, rent, taxes, freight, installation and optional or future system costs can remain outside or unresolved.
- Land and hotel acquisition: the standard tables exclude purchasing or leasing real estate; the conversion table assumes the franchisee already owns the hotel.
- Site and government costs: impact fees, site-evaluation fees, geotechnical reports and civil engineering are excluded from the architecture and permitting line.
- FF&E and Opening Inventory add-ons: Item 7 states that tax, freight and installation are not included in specified FF&E figures, and tax or freight is not included in Opening Inventory estimates.
- Insurance gaps: the Item 7 Insurance estimate includes specified liability coverages but excludes workers’ compensation, employer’s liability, business interruption and other policies, even though Item 8 requires additional coverage.
- Working-capital exclusions: The three-month reserve includes labor and recurring payments for three months but exclude debt service and rent. Owner compensation is not separately identified, so it should not be assumed to be included.
- Technology changes: optional PMS interfaces, future OPERA upgrades, dual-brand technology and future fee changes may create costs beyond the standard setup amount.
- Supplier and procurement terms: required Mark-bearing items, specified technology and certain health-and-safety products must come from Approved Suppliers. Procurement service fees are estimated at 11% to 17% of FF&E purchased when that service applies.
- Current documents: verify the latest FDD, quarterly updates, property-improvement requirements, Franchise Agreement and ancillary technology agreements before signing or paying.
The Federal Trade Commission explains that a prospective franchisee must receive the FDD at least 14 calendar days before signing a binding agreement or paying the franchisor or an affiliate. The FTC Consumer’s Guide to Buying a Franchise explains how to use the disclosure, and the FTC Franchise Rule page identifies the governing federal disclosure framework.
What capital question matters most?
The first decision is not whether Hawthorn costs “about” one number; it is whether the project is a 96-room new construction, a 100-room conversion with a verified property condition, or a 103-room dual-brand development governed by two franchise agreements. The official endpoints belong to different formats and assumptions, so they cannot be blended into a typical budget.
For a buyer’s capital plan, the most important unresolved figure is usually the property-specific cost outside the standard range: land or acquisition financing for a new build, the Property Improvement Plan for a conversion, or the separate La Quinta obligations for a dual-brand project. The entry payment, three-month reserve, ongoing percentage charges and event-triggered charges should remain separate lines in that plan.