Microtel Inn & Suites by Wyndham requires an estimated initial investment of $7,511,622 to $9,558,175 for the 81-room new-construction hotel described in the 2026 Franchise Disclosure Document. The range includes construction, furniture, equipment, opening inventory, pre-opening payroll and three months of Additional Funds, but it excludes the purchase or lease of land and several locally variable charges.
The official Item 7 range applies to an 81-room New Construction Facility. Land is outside the estimate. The disclosed equivalent is $92,736 to $118,002 per room.
Source: Microtel Inn & Suites by Wyndham 2026 FDD, Item 7, pp. 44–48. The total and per-room range are official FDD figures, not a midpoint or local construction forecast.
The FDD cover states that $48,999 to $71,099 of the total must be paid to the franchisor or an affiliate; the remainder is principally paid to contractors, suppliers, professionals, employees and other third parties.
- Legal franchisor
- Microtel Inns and Suites Franchising, Inc., a Georgia corporation and indirect subsidiary of Wyndham Hotels & Resorts, Inc. The entity is also listed as active in the Florida Division of Corporations record.
- FDD date
- Issued March 31, 2026. The official Microtel development page also identifies a March 31, 2026 FDD.
- Offer analyzed
- All-new-construction Microtel Inn & Suites by Wyndham hotel; Item 7 models 81 rooms.
- FDD sections used
- Item 5, pp. 26–29; Item 6, pp. 29–44; Item 7, pp. 44–48; and cost-relevant provisions from Item 8, pp. 48–50, Item 10, pp. 54–57, Item 11, pp. 57–69 and Item 17, pp. 75–80.
- Checked
- July 22, 2026. No matching 2026 FDD copy was located on an official franchise-controlled public webpage, so FDD citations in this article are plain-text Item and page references.
The Federal Trade Commission explains that a prospective franchisee must receive the disclosure document at least 14 calendar days before signing a binding agreement or paying the franchisor or an affiliate. See the FTC Consumer’s Guide to Buying a Franchise and the FTC Franchise Rule.
What is included in the Microtel initial investment?
For the 81-room New Construction Facility in the 2026 FDD, Item 7 combines brand payments, professional and development work, construction, opening assets, payroll and a three-month operating allowance. The largest single disclosed component is Facility Construction at $5,895,800 to $7,209,975.
Facility Construction represents about three-quarters of both official endpoints. “All other Item 7 costs” is a derived subtraction from the disclosed total.
Source: 2026 FDD, Item 7, pp. 44–48. Percentages and “all other” values are derived from the official endpoint totals and Facility Construction endpoints; rounding may cause a 0.01-point display difference.
A $40,000 Initial Fee is only about one-half of one percent of the disclosed total. For this brand, the capital decision is primarily a real-estate development and construction decision, not a franchise-fee decision. Wyndham identifies Microtel as a new-construction opportunity on its new-hotel development page.
Early brand and professional costs
For the 81-room model in the 2026 FDD, these payments begin with the application and agreement, then continue through design review, market work, training and opening support.
| Item 7 expenditure | 2026 range | When due |
|---|---|---|
| Initial Fee, inclusive of Application Fee | $40,000 | $2,500 with application; balance at Franchise Agreement signing |
| Development Open House Fee | $1,499 | Before opening |
| Photos | $2,450–$4,700 | After opening |
| Training Tuition | $5,100–$6,600 | After opening |
| Training Expenses | $3,200–$5,500 | Third-party costs before opening; franchisor or affiliate charges after opening |
| Market Study — recommended and potentially required for site approval | $5,000–$15,000 | Before construction |
Source: 2026 FDD, Item 7, pp. 44–46.
Development and construction costs
For the 81-room model in the 2026 FDD, the building work and its contingency dominate the disclosed range, while land remains unpriced.
| Item 7 expenditure | 2026 range | When due | Important qualification |
|---|---|---|---|
| Real Estate and Site Preparation | Not estimated | As arranged | Land purchase or lease is excluded from the total. |
| Architecture, Design and Engineering, Phase I Environmental, Permits, Licenses, Deposits and Related Fees | $182,250–$485,500 | Before opening | Excludes impact fees, site evaluation fees, geotechnical reports and civil engineering fees. |
| Facility Construction | $5,895,800–$7,209,975 | Before opening | Includes general construction, minimal site work and landscaping. |
| Construction Contingency | $294,790–$360,499 | As incurred | Calculated as 5% of Facility Construction costs. |
Source: 2026 FDD, Item 7, pp. 44–47.
Opening assets and working capital
For the 81-room model in the 2026 FDD, these lines cover the systems and assets needed to open, plus payroll, startup services and three months of operating funds.
| Item 7 expenditure | 2026 range | When due |
|---|---|---|
| Technology Systems | $57,908–$59,908 | Before opening |
| Property Management Set-Up and Installation | $6,000–$22,100 | Before opening |
| Furniture, Fixtures and Equipment | $455,709–$498,451 | Before opening |
| Signage | $40,000–$100,000 | Before opening |
| Opening Inventory | $275,875–$299,373 | Before opening |
| Insurance | $22,500–$65,000 | Before opening |
| Grand Opening Advertising | $3,000–$14,500 | Before opening |
| Pre-Opening Wages | $83,293–$148,888 | Before opening |
| Miscellaneous Non-Tangible Asset Costs | $19,196–$37,035 | Before opening |
| Additional Funds for 3 Month Initial Period | $118,052–$183,647 | After opening |
Source: 2026 FDD, Item 7, pp. 45–48. Miscellaneous Non-Tangible Asset Costs include legal, accounting, licensing, banking and similar startup expenses.
The scale runs from $0 to $500,000. Bars show official low and high endpoints, not averages.
Source: 2026 FDD, Item 7, pp. 44–48. Facility Construction is omitted from this chart because its $5.90 million–$7.21 million scale would make the other ranges unreadable; it is shown separately above.
When is the money paid?
Microtel costs are not paid in one lump sum. The application starts the sequence, the balance of the brand fee is due at signing, most development spending occurs before opening, selected technology charges are due before opening, and some training, photography and operating-period amounts follow the Opening Date.
Source: 2026 FDD, Item 5, pp. 26–28; Item 6, p. 39; Item 7, pp. 44–48.
The 2026 FDD permits the franchisor, in its discretion, to defer some or all of the Initial Fee, usually for 90 days or until opening, whichever occurs first. This is not a general financing commitment and does not defer construction, land, equipment or third-party costs.
Source: 2026 FDD, Item 10, pp. 54–55.
How does the property-management system affect opening cost?
For the 81-room new-construction model in the 2026 FDD, the selected Property Management System changes the setup line from a fixed $6,000 for SynXis to $11,000–$22,100 for OPERA, before any additional OPERA interface charges. The Item 7 range uses a base SynXis system at the low end and Premium OPERA Cloud at the high end.
Property Management System setup comparison
The 2026 disclosure makes the technology choice explicit: SynXis sets the low endpoint, while the selected OPERA level can increase setup and interface charges.
SynXis PMS
$6,000One-time Set-Up and Implementation Fee; remote deployment, installation and training included.
OPERA PMS
$11,000–$22,100One-time setup range, depending on service level, plus disclosed interface costs of $525–$3,050; a required automated revenue-management interface is $750.
Source: 2026 FDD, Item 5, pp. 27–28; Item 6, p. 39; Item 7, pp. 45–47. Bar lengths use the $22,100 maximum as the chart scale.
After opening, the PMS Monthly Support and Service Fee is currently $734 to $1,050 per month for SynXis or Foundation/Standard OPERA, while Premium OPERA Cloud is $13.25 per room per month. Item 6 also lists the required Wyndham Connect Plus Fee at 3.5% of GRR for each reservation booked through that service. The official Microtel development information describes the current new-build program, while the 2026 FDD controls the financial amounts.
Which fees continue after the hotel opens?
Under the 2026 FDD for the offered new-construction facility, the principal recurring system charges are the 6% Royalty Fees and 2% Marketing/Reservation Contributions, both based on Gross Room Revenue and payable monthly from the Opening Date. Item 6 also discloses technology, loyalty, reservation-channel, training and conference charges that may be mandatory, usage-based or optional.
| Ongoing fee | 2026 amount or basis | Timing | Application |
|---|---|---|---|
| Royalty Fees | 6% of GRR | Monthly, 3rd day of next month | From Opening Date through expiration or earlier termination |
| Marketing/Reservation Contributions | 2% of GRR | Monthly, same timing | From Opening Date through expiration or earlier termination |
| Wyndham Connect Plus Fee | 3.5% of GRR for each WCP-booked reservation | When invoiced | Required participation |
| Digital Pay-For-Performance Commission | Currently 7%; up to 10% of GRR for applicable consumed reservations | When invoiced | Required program; added to other applicable reservation fees |
| GDS, third-party channel or internet booking fee | $2.08 per applicable reservation | When invoiced | Transaction fee depends on the booking channel |
| PMS Monthly Support and Service Fee | $734–$1,050 per month | Monthly | SynXis or Foundation/Standard OPERA; room-count dependent |
| OPERA Cloud Premium PMS Support | $13.25 per room per month | Monthly | Premium OPERA Cloud |
| Loyalty Program Charge | 4.25%–5.5% of qualifying amounts | After points are awarded and invoiced | Wyndham Rewards member stays; rate varies by Loyalty Metric |
| Continuing Education | $600 per year | When invoiced | Required access to training support and materials |
| Chain Conference Fee | $2,000 first attendee; $1,750 each additional attendee | Before conference | Required; billed even if not attended; currently held about every 18–24 months |
Source: 2026 FDD, Item 6, pp. 29–40. “GRR” means Gross Room Revenue as defined in Item 6, pp. 43–44; it is not total hotel sales and excludes specified non-room charges and taxes.
- Royalty and marketing basis
- Both use the Gross Room Revenue definition in Item 6; the article does not convert those percentages into annual dollar amounts.
- Agency and member commissions
- Agency Commissions can reach 20% of GRR, Member Benefits Commissions can reach 10% of GRR, and specified commission activities may also carry a 1.5% service charge.
- Optional service fees
- Revenue Management Services range from Standard RMS at 0.75% of GRR, subject to monthly minimums and maximums, to Premium Plus RMS at $5,425 per month.
- Required supplier exposure
- Item 8 states that goods and services meeting System Standards are estimated to represent 50%–75% of initial expenditures for goods and services and 10%–15% of annual purchases and leases.
Which charges depend on a later event or default?
Transfers, delayed openings, failed inspections, late payments, lender requests, early termination and failure to de-identify the hotel can create additional obligations outside the ordinary monthly fee schedule. These amounts should not be added to every opening budget, but they are part of the cost contract.
Source: 2026 FDD, Item 5, pp. 26–28; Item 6, pp. 29–44; Item 10, p. 57; Item 17, pp. 75–80.
The Franchise Agreement permits specified fixed-dollar fees to increase by up to 10% annually, cumulatively, for inflation, service scope, cost increases and other stated commercial considerations; if the Consumer Price Index exceeds 10%, the FDD permits an increase equal to that year’s CPI. A buyer should therefore distinguish “currently” listed fees from contractually fixed fees.
Source: 2026 FDD, Item 6, pp. 43–44.
Does Microtel disclose a minimum liquid capital or net worth requirement?
No fixed minimum Liquid Capital or Net Worth threshold is stated in the 2026 FDD sections reviewed for this cost analysis. That absence does not mean the project can be funded with the Initial Fee. The official range for the 81-room new-construction model is $7.51 million–$9.56 million before land, and the franchisor may evaluate equity, creditworthiness, total project cost, financing and owner guarantees.
If the franchisee is an entity, significant owners must sign a Guaranty covering the franchisee’s obligations. For a Development Incentive, owners sign the Development Incentive Note, and certain spouses also may have to sign.
What financing does the FDD describe?
Item 10 says the franchisor generally does not offer financing except for two discretionary arrangements: a short-term Initial Fee deferral and Development Incentive financing. A Development Incentive is typically funded shortly after opening, is forgiven in portions over the Franchise Agreement term, and becomes repayable if the franchise terminates or the Facility transfers before the end of the term. An early repayment event also adds a 10% Development Incentive Acceleration Fee to the unamortized balance.
Development Incentive approval is discretionary and is not a substitute for pre-opening capital: disbursement generally requires the hotel to be open, approved, complete, in good standing and fully paid on the Initial Fee.
The 2026 FDD also describes the Women Own the Room Development Incentive at a target of $2,500 per guest room, capped at 50% of the franchisee’s equity investment, for an approved majority women-owned franchisee. Wyndham’s public Women Own the Room information describes enhanced capital support and other assistance. The FDD further says BOLD Support may include a Development Incentive for an approved majority Black-owned applicant; the official BOLD program page describes tailored capital support and lender introductions. Neither program guarantees approval or reduces every Item 7 category.
Source: 2026 FDD, Items 9 and 10, pp. 54–57.
What costs are not fully resolved by the official range?
The Item 7 total is detailed, but it is not a turnkey project price. Land is excluded, several line items exclude tax, freight or installation, local development charges are partly omitted, and actual construction depends on site and market conditions.
The Microtel range has a real-estate gap
The $7.51 million–$9.56 million total excludes the asset that determines the site. A prospective franchisee should reconcile the Item 7 estimate with the actual land or ground-lease terms, site-work scope, local impact fees and financing carrying costs before treating the FDD range as the full capital requirement. The official Wyndham new-hotel development information addresses site selection and project financing, but the Microtel FDD supplies the controlling brand-specific figures.
What should be verified before relying on the range?
Under the 2026 FDD, the central cost question is not whether the buyer can pay the $40,000 Initial Fee. It is whether the buyer can fund the 81-room new-build whose disclosed total reaches $9,558,175 before land, while also carrying percentage-based Recurring Fees and project-specific exclusions.
Verified synthesis: the 2026 Microtel Inn & Suites by Wyndham cost disclosure is a single-format, 81-room new-construction estimate of $7,511,622 to $9,558,175, excluding land. Facility Construction is the dominant cost, Additional Funds cover a three-month period but exclude debt service and rent, and ongoing obligations begin with 6% Royalty Fees plus 2% Marketing/Reservation Contributions on Gross Room Revenue. The unresolved figure with the greatest buyer-specific impact is the full site and land package.
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