How Much Does a Microtel Inn & Suites Franchise Cost?

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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.

$7.51M–$9.56M

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.

Capital snapshot
$40,000 Initial Fee Greater of $40,000 or $400 per guest room; 81 rooms produce the $40,000 minimum.
$118,052–$183,647 Additional Funds Three-month initial period after opening; includes labor and Recurring Fees, excludes debt service and rent.
6% of GRR Royalty Fees Paid monthly from the Opening Date through expiration or earlier termination.
2% of GRR Marketing/Reservation Monthly contribution, using the same Gross Room Revenue basis as the Royalty Fees.
$92,736–$118,002 Total cost per room Official Item 7 equivalent for the 81-room new-construction model, excluding land.
ITEM 7 INVESTMENT

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.

Cost implication

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.

PAYMENT TIMING

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.

Submit the Franchise Application Pay the $2,500 non-refundable Application Fee. If the application is approved, the franchisor credits it toward the Initial Fee.
Sign the Franchise Agreement Pay the remaining Initial Fee balance. For the 81-room model, the greater-of formula produces a $40,000 Initial Fee, leaving $37,500 after the Application Fee credit.
Fund design, permits, construction and procurement Most design, permitting, building, equipment, signage, inventory, insurance and payroll costs are paid as incurred before opening.
Pay the Property Management System setup charge The SynXis or OPERA Set-Up and Implementation Fee is due at least 30 days before the Opening Date.
Cover opening-period and post-opening charges Photos, Training Tuition, portions of Training Expenses and the $118,052–$183,647 Additional Funds allowance occur after opening.

Source: 2026 FDD, Item 5, pp. 26–28; Item 6, p. 39; Item 7, pp. 44–48.

Payment timing

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.

MICROTEL TECHNOLOGY CHOICE

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

$6,000

One-time Set-Up and Implementation Fee; remote deployment, installation and training included.

OPERA PMS

$11,000–$22,100

One-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.

ONGOING FEES

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.
CONDITIONAL COSTS

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.

Transfer or elected renewal: the Relicense Fee is currently the greater of $40,000 or $400 per room, plus the $2,500 Application Fee unless a stated exception applies. The agreement gives no renewal right; this charge applies only if both parties elect to continue.
Opening deadline extension: the franchisor may assess a $5,000 Extension Fee, due within 10 days of the Opening Date.
Failed quality or improvement inspection: Reinspection Fee of $3,000–$5,500, plus reasonable inspector travel, lodging and meal expenses.
Property Improvement Plan preparation: currently $1,500 per request when the franchisor must prepare a post-opening PIP.
Custom interior design: review of customized required design elements may cost up to $6,000.
Non-approved room-package vendor: the vendor may be charged up to $15,000 to obtain required specifications; the buyer should confirm whether that charge is reflected in the vendor quote.
Existing-hotel PMS transfer: if a compliant Property Management System needs no upgrade, the transfer fee is $995; upgrades or replacement remain the transferee’s cost.
Late payment: interest is the lesser of 1.5% per month or the maximum lawful rate; a paper check adds a $160 processing fee.
Lender documentation: a Three-Party Agreement or Comfort Letter request is currently $1,000, and issuance is discretionary.
Early termination: Liquidated Damages use the greater of $3,000 per authorized guest room or a formula based on average monthly Recurring Fees, subject to the remaining term and other FDD qualifications.
Incomplete de-identification: $2,000 per day until de-identification is completed to the franchisor’s satisfaction, plus the expense of corrective work.

Source: 2026 FDD, Item 5, pp. 26–28; Item 6, pp. 29–44; Item 10, p. 57; Item 17, pp. 75–80.

FDD caveat

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.

CAPITAL QUALIFICATIONS

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.

Financing limitation

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.

EXCLUSIONS AND VARIABILITY

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.

Land purchase or ground lease: not estimated. The FDD says approximately one to two acres may be needed, depending on facility size and usable land.
Impact, site, geotechnical and civil engineering fees: excluded from the Architecture, Design and Engineering range.
FF&E tax, freight and installation: excluded from the $455,709–$498,451 estimate. The estimate includes procurement-service-provider fees of 11%–17% of purchased FF&E.
Opening Inventory tax and freight: excluded from the $275,875–$299,373 Operating Supplies and Equipment estimate.
Signage taxes and permits: excluded from the $40,000–$100,000 Signage range.
Insurance outside the modeled policies: the Item 7 estimate excludes workers’ compensation, employer’s liability, business interruption and other policies even though Item 8 lists required coverage categories.
Debt service and rent during the initial period: excluded from Additional Funds, even though Additional Funds include labor and Recurring Fees.
Optional OPERA interfaces and future technology upgrades: not fully included in the Property Management Set-Up range.

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.

BUYER RECONCILIATION

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.

Confirm the current room count and prototype. The 2026 Item 7 model uses 81 rooms; a different approved room count changes per-room fee formulas and project economics.
Obtain site-specific land and civil estimates. These are outside or partly outside Item 7 and can materially change total capital.
Reconcile supplier quotations to the FDD footnotes. Confirm freight, tax, installation, procurement-service fees and System Standards requirements.
Select the PMS before finalizing technology capital. SynXis and OPERA have different setup, interface and monthly support charges.
Model cash timing, not only the total. Construction and procurement payments precede the Opening Date, while Development Incentive funding generally follows opening.
Separate qualifications from investment. The FDD does not state a fixed Liquid Capital or Net Worth minimum, but equity, guarantees and lender requirements remain separate from the Item 7 total.

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.