How much does a Ramada franchise cost in 2026?
Ramada has four separate U.S. investment ranges, not one universal startup figure. The March 31, 2026 Franchise Disclosure Document estimates $9,625,641 to $14,635,175 for a 100-room Ramada new-construction hotel and $237,561 to $5,321,580 for a 100-room Ramada conversion. For the larger Ramada Plaza format, the estimate is $15,469,572 to $24,563,468 for a 150-room new build and $797,935 to $8,919,064 for a 150-room conversion.
Those Item 7 totals include the disclosed Additional Funds for a 3 Month Initial Period, but they exclude the cost of buying or leasing real estate. New-construction tables also exclude land acquisition. Conversion ranges assume the franchisee already owns the hotel being converted. Ramada Worldwide Inc. is the legal franchisor; the official Ramada development page identifies both new construction and conversion as current development paths.
Across four distinct Item 7 formats. This is not a single Ramada unit range. The low endpoint is a 100-room conversion that assumes an existing facility in excellent condition; the high endpoint is a 150-room Ramada Plaza new-construction project. Real estate acquisition or lease cost remains outside both endpoints. Source: 2026 FDD, Item 7, pp. 42–58.
Data basis. Legal franchisor: Ramada Worldwide Inc., a subsidiary of Wyndham Hotel Group, LLC, which is wholly owned by Wyndham Hotels & Resorts, Inc. FDD issuance date: March 31, 2026. Principal cost sources: Item 5, pp. 27–29; Item 6, pp. 29–42; Item 7, pp. 42–58; Item 10, pp. 64–67; and cost-relevant provisions in Items 8, 11, and 17. Information checked July 16, 2026.
A matching public copy of the 2026 FDD was not located on an official franchise-controlled website. FDD citations in this article therefore remain unlinked and identify the year, Item, and page directly.
Why do Ramada new-build and conversion costs differ so sharply?
The conversion low end assumes that major hotel assets already exist and meet Ramada System Standards. By contrast, a new construction project must fund the building, architecture and engineering, pre-opening wages, furniture, fixtures and equipment, operating supplies and equipment, signage, technology systems, insurance, and three months of initial operating funds. Wyndham describes the two development paths separately on its official pages for building a new hotel and converting an existing hotel.
| Official format | Item 7 low | Item 7 high | Critical assumption |
|---|---|---|---|
| 100-room Ramada, new construction | $9,625,641 | $14,635,175 | Land acquisition is excluded. |
| 100-room Ramada, conversion | $237,561 | $5,321,580 | Assumes the franchisee already owns the facility. |
| 150-room Ramada Plaza, new construction | $15,469,572 | $24,563,468 | Land acquisition is excluded. |
| 150-room Ramada Plaza, conversion | $797,935 | $8,919,064 | Assumes the franchisee already owns the facility. |
Scale: $0 to $25 million. Each teal bar begins at the disclosed low and ends at the disclosed high.
Interpretation: room count matters, but project type matters more. A conversion can still reach several million dollars when a Property Improvement Plan requires extensive structural work, replacement furniture, technology, signage, and opening inventory. Source: Ramada Worldwide Inc. 2026 FDD, Item 7, pp. 42–58.
New construction cost contract
The 100-room table includes $7,644,350 to $11,360,310 for Facility Construction and a separate $382,218 to $568,016 Construction Contingency. The 150-room Ramada Plaza table increases those categories to $11,883,830 to $17,660,715 and $594,192 to $883,036.
Conversion cost contract
The low end can be near zero for architecture, Facility Improvements, and Conversion Contingency only when the existing asset already satisfies the relevant standards. The 100-room high end includes $3,096,750 of Facility Improvements; the 150-room Ramada Plaza high end includes $4,815,900.
The conversion minimum is not a forecast for an average existing hotel. It is the bottom of a range built on favorable assumptions: the building, public areas, guest rooms, systems, furniture, fixtures, equipment, and operating supplies are already in excellent condition or need only limited replacement. A buyer should obtain the Property Improvement Plan before treating the conversion range as a capital budget.
What does the Ramada initial investment include?
Item 7 combines franchisor fees, third-party development costs, opening assets, pre-opening expenses, and three months of initial operating funds. The exact amount depends on the format, room count, condition of an existing hotel, local construction factors, and the technology and furnishing choices approved for the Facility.
| 100-room Item 7 category | New construction | Conversion | What changes the amount |
|---|---|---|---|
| Architecture, Design and Engineering, environmental, permits, licenses, deposits and related fees | $329,000–$673,150 | $0–$215,000 | Local code, design work, utility deposits and renovation scope. |
| Facility Construction or Facility Improvements | $7,644,350–$11,360,310 | $0–$3,096,750 | New building cost versus condition of the existing hotel and its PIP. |
| Technology Systems | $69,632–$71,632 | $1,500–$71,632 | Whether existing internet, telephone, television and computer equipment meets standards. |
| Property Management Set-Up and Installation | $6,000–$22,100 | $6,000–$22,100 | SynXis versus the selected OPERA Cloud level; interfaces may add cost. |
| Furniture, Fixtures and Equipment | $593,470–$1,009,929 | $9,794–$1,009,929 | Condition of existing FF&E and the approved design package. |
| Opening Inventory / Operating Supplies and Equipment | $280,168–$322,456 | $8,826–$322,456 | Existing compliant OS&E versus full replacement and optional items. |
| Insurance | $17,500–$65,000 | $17,500–$65,000 | Location, size, claims history and required coverages. |
| Additional Funds for 3 Month Initial Period | $126,164–$191,759 | $126,164–$191,759 | Includes labor costs and Recurring Fees; excludes rent and debt service. |
Other Item 7 categories include the Initial Fee, photos, Training Tuition, Training Expenses, a recommended or potentially required Market Study for new construction, Signage, Grand Opening Advertising, Pre-Opening Wages for new construction, and Miscellaneous Non-Tangible Asset Costs such as attorneys' fees, accountants' fees, business licenses, bank fees, and back-office accounting systems. A new-construction Construction Contingency and a conversion Conversion Contingency are each calculated at 5% of the corresponding construction or improvement category.
Scale: $0 to $25,000. The OPERA interface row is a per-interface amount and is not included in the plotted OPERA setup range.
Interpretation: Item 7 includes a $6,000 to $22,100 PMS setup range, but optional or required OPERA interfaces can sit outside that range. Both PMS setup fees are due at least 30 days before the Opening Date. Source: 2026 FDD, Items 5 and 6, pp. 28–29 and 37–38; Item 11, pp. 72–74.
Additional Funds are already part of every Item 7 total. Adding the three-month amount again would double-count it. For 100-room formats the disclosed range is $126,164 to $191,759; for 150-room Ramada Plaza formats it is $624,434 to $1,629,254. The FDD says these amounts include labor costs and Recurring Fees, exclude rent and debt service, and do not separately state whether owner compensation is included.
When does a Ramada franchisee pay the startup costs?
The cash outflow begins with the Franchise Application, accelerates at signing and during construction or renovation, and continues through the first three months after opening. The sequence below follows the payment timing stated in Items 5 and 7 rather than treating the full Item 7 total as a single check payable on one date.
Application submission
Pay the $2,500 non-refundable Application Fee. If Ramada approves the Franchise Application, this amount is credited toward the Initial Fee. If the application is not approved, the fee is forfeited.
Franchise Agreement signing
Pay the balance of the Initial Fee, calculated as the greater of $35,000 or $350 per guest room. The disclosed amount is $35,000 for a 100-room Facility and $52,500 for a 150-room Ramada Plaza. Ramada may defer some or all of this fee in its sole discretion under an Initial Fee Note.
Design, construction or renovation phase
Pay third-party costs as incurred for architecture, engineering, environmental work, permits, utility deposits, construction or Facility Improvements, contingency, FF&E, Signage, Opening Inventory, insurance, professional fees, and required supplier purchases.
At least 30 days before opening
Pay the one-time SynXis $6,000 or OPERA $11,000 to $22,100 Set-Up and Implementation Fee. For a conversion opening before permanent signage is installed, a $1,250 Temporary Signage fee may apply unless the stated permanent-signage conditions are met.
Opening and initial operating period
Photos and some Training Tuition are disclosed as incurred after opening. Recurring Fees start on the Opening Date; for an acquired existing Facility, they start when the buyer acquires or takes possession, whichever occurs first. Additional Funds cover the first three months and are spent as operating obligations arise.
The official Wyndham hotel franchise cost and FDD guidance correctly distinguishes application and Initial Franchise Fees from construction, renovation, pre-opening costs, working capital, and continuing operating expenses. For Ramada, the 2026 FDD controls the exact amounts and timing.
Which Ramada fees continue after the hotel opens?
The main continuing obligations are the Royalty, System Assessment Fee, reservation and distribution charges, Wyndham Rewards charges, technology support, education, regional association dues, and other program fees that apply to the Facility's activity. Percentage fees should be read by their exact denominator; they are not estimates of annual dollars.
| Continuing fee | Amount or basis | Timing | Scope |
|---|---|---|---|
| Royalty | 5.0% of Gross Room Revenues | Monthly, by the 3rd day after GRR accrue | Payable from Opening Date through expiration or earlier termination. |
| System Assessment Fee | 3.5% of GRR | Same as Royalty | Comprises a 2% Marketing Contribution and 1.5% Basic Reservation Fee. |
| Ramada Regional Management Association Fee | $15 per room/year, maximum $3,000/year | Annually in advance | RMA participation is mandatory; approved supplemental regional fees may also apply. |
| Wyndham Connect Plus Fee | 3.5% of GRR for each WCP-booked reservation | When invoiced | Mandatory participation in the call, messaging and lobby self-service program. |
| Loyalty Program Charge | 4.25%–5.5% | After points or program currency are awarded | Applied to amounts on which Wyndham Rewards members earn points or other program currency. |
| PMS Monthly Support and Service Fee | $734–$1,050/month | Monthly | SynXis, OPERA Cloud Foundation or Standard; amount depends on room count. |
| OPERA Cloud Premium PMS support | $13.25 per room/month | Monthly | Premium OPERA Cloud level. |
| Continuing Education | $1,200/year | When invoiced | Access to training materials, regional workshops and Wyndham University. |
| Chain Conference Fee | $2,000 first attendee; $1,750 each additional attendee | Before conference | Conference currently held about every 18–24 months; billed even if the franchisee does not attend. |
Reservation, channel and optional service charges
Ramada's Item 6 also layers transaction-based fees onto particular booking sources and optional support services. These charges do not replace the Royalty or System Assessment Fee.
| Fee or service | Disclosed basis | When it applies |
|---|---|---|
| GDS, Third Party Channel and Internet Booking Fees | $2.34 per reservation for each applicable channel | Reservations processed through the named distribution channel. |
| Agency Commissions | Up to 20% of GRR | Qualifying consumed reservations involving travel agents and other agencies. |
| Agency Commission Service Charge | 1.5% of commissionable revenue | Certain group sales and commission activity booked and consumed by agencies. |
| Member Benefits Commissions | Up to 10% of GRR | Reservations booked and consumed through a Member Benefits Program. |
| Digital Pay-For-Performance Commission | Currently 7%; up to 10% of GRR | Consumed reservations generated through specified paid digital sources; mandatory program. |
| Standard RMS | 0.75% of GRR; $645–$1,395/month | Optional revenue-management service, subject to service-level assessment. |
| Premium RMS | 1.00% of GRR; $1,450–$2,450/month, or $3,500 at stated GRR threshold | Optional premium service; the FDD states a $3,500 monthly amount for Facilities with annual GRR of $3 million or more. |
| Premium Plus RMS / Remote Sales Service | $5,425/month / $1,500/month | Optional specialized revenue-management or remote-sales support. |
Gross Room Revenues include revenue attributable to guest-room rentals and specified room-related receipts, subject to the exclusions defined in Item 6. The FDD separately lists a 1.5% Member Benefits Commission Service Charge, a 10% Everyone Sells Group Referrals Program charge on commissionable revenue, and other smaller technology and guest-service charges. Source: 2026 FDD, Item 6, pp. 29–42.
Which Ramada fees vary by circumstance?
Many Item 5 and Item 6 charges arise only when a project, transfer, training need, quality failure, technology choice, payment default, or termination event occurs. They should not be added mechanically to every opening budget, but they belong in the buyer's contingent-cost review.
Project, training and operating triggers
Transfer, payment-default and termination triggers
Does Ramada disclose a liquid-capital or net-worth minimum?
The 2026 FDD does not state a fixed Ramada Liquid Capital, Net Worth, or Non-Borrowed Funds threshold. That absence does not mean no financial review occurs. The Franchise Application requires financial information, Ramada may review the applicant and site, owners provide guarantees, and Development Incentive approval can depend on equity investment, creditworthiness, project cost, financing, market factors, and other information.
- Liquid Capital
- No brand-wide minimum dollar amount is disclosed in the 2026 FDD.
- Net Worth
- No brand-wide minimum dollar amount is disclosed in the 2026 FDD.
- Personal Guarantee
- Significant owners must guarantee the franchisee's obligations; spouses may also be required to sign in community-property or certain other states.
- Initial Fee deferral
- Ramada may defer some or all of the Initial Fee, usually for about 90 days or until opening, whichever occurs first, under an Initial Fee Note. Approval is discretionary.
- Development Incentive
- A discretionary loan for new construction or conversion, generally funded shortly after opening and forgiven in portions over the Franchise Agreement term if no repayment trigger occurs.
The Development Incentive is not guaranteed financing and does not replace the buyer's construction or acquisition funding. Before disbursement, the Facility must open with approval, complete required improvements, pay the Initial Fee, remain in good standing, and pass a final credit review. Ramada may pay the incentive to the franchisee or directly to an approved procurement service provider or supplier. Item 10 notes that procurement services may cost 11% to 17% of the FF&E purchased.
The 2026 FDD also describes two ownership-support programs. Women Own the Room targets a Development Incentive of $2,500 per guest room, capped at 50% of the franchisee's equity investment, for an approved majority women-owned franchisee. The official Women Own the Room page also identifies enhanced capital support and a reduced Initial Franchise Fee for qualifying new-construction and conversion projects. BOLD provides tailored support for qualifying majority Black-owned applicants and may include a Development Incentive; the official BOLD program page describes enhanced capital support, lender introductions, and selected supplier discounts. Eligibility and terms remain discretionary.
A stated Item 7 total is not the same as required cash equity. Ramada does not publish a universal liquid-capital threshold, and a Development Incentive is generally funded only after opening. The buyer therefore needs a project-specific sources-and-uses schedule showing equity, third-party debt, deferred fees, incentive timing, real estate cost, contingency, and the cash needed before any post-opening incentive disbursement.
What is not fully resolved by the official Ramada investment ranges?
The Item 7 totals are detailed, but they are not all-in property acquisition budgets. Several material obligations are excluded, conditional, locally variable, or subject to future standards.
What should a prospective Ramada franchisee verify before signing?
The decisive task is to reconcile the buyer's actual property and financing plan to the correct Item 7 table and every applicable Item 5 and Item 6 obligation. The following checks address the largest sources of misreading.
What is the practical capital takeaway?
The verified Ramada cost answer depends first on format and asset condition. A 100-room conversion is disclosed at $237,561 to $5,321,580, while a 100-room new build is $9,625,641 to $14,635,175. A 150-room Ramada Plaza conversion is $797,935 to $8,919,064, while its new-build range is $15,469,572 to $24,563,468. The Initial Fee, three months of Additional Funds, Royalty, System Assessment Fee, property-management technology, supplier requirements, and event-triggered fees are separate entities with different payment dates and bases.
The unresolved buyer-specific number is the cash needed before opening after adding real estate, financing costs, excluded local development items, the actual PIP, and any gap between pre-opening cash needs and post-opening Development Incentive funding. The 2026 FDD supplies the contractual framework; the property-level bids and financing documents determine the final capital stack.