How Much Does a Residence Inn Franchise Cost?

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The 2026 Residence Inn Franchise Disclosure Document discloses two separate new-build investment ranges: $15,396,510 to $35,935,810 for an 80- to 110-suite hotel and $22,085,110 to $45,474,010 for a 120- to 150-suite hotel. These are estimates for a newly constructed, prototypical suburban Residence Inn by Marriott hotel. They are not conversion estimates, and they exclude several potentially large obligations that the FDD says cannot be determined in advance.

80–110 suites: $15.40M–$35.94M 120–150 suites: $22.09M–$45.47M
The 2026 Item 7 totals exclude real estate, building permit, tap and impact fees, insurance, and the recommended 5% hard-cost contingency because those amounts are not determinable. Conversion, acquisition, spa, residential, condominium, and multi-family projects have materially different cost structures and no official total range.

Data basis. The legal franchisor is MIF, L.L.C., a Delaware limited liability company and subsidiary of Marriott International, Inc. The official 2026 Residence Inn Franchise Disclosure Document was issued March 31, 2026. This cost analysis uses Items 5, 6, 7, 8, 10, 11, and 17, with the principal investment tables on FDD pages 24–61. Information was checked July 15, 2026 against Marriott's official U.S. hotel development website.

Capital snapshot
$90,000 New-to-system application fee Generally due with the franchise application; extra $500 per suite above 150.
6.0% Franchise Fee Based on gross room sales; payable monthly after opening.
2.56% + fixed charges Program Services Contribution 2.56% of gross room sales, plus $6,000 yearly and $65 per suite yearly.
$3,000–$5,000 / $2,000–$3,500 Additional Funds per suite 80–110 suites / 120–150 suites; covers the first three months of operation.
$212,000–$288,500 Paid to franchisor or affiliate Approximate amount included in the FDD cover-page investment disclosure.
ITEM 7 INVESTMENT

How much does a new Residence Inn hotel cost under the 2026 FDD?

The applicable official range depends first on suite count. Item 7 separates an 80- to 110-suite hotel from a 120- to 150-suite hotel, so the low end of one format should not be combined with the high end of the other. Both ranges assume a typical newly constructed suburban property rather than an urban high-rise, resort, conversion, acquisition, or mixed-use project.

FDD CAVEAT The stated total is not an all-in project ceiling. Real estate, local development fees, insurance, and the recommended hard-cost contingency sit outside the disclosed total, while urban construction, unusual sites, labor shortages, structured parking, larger room counts, or mixed-use components can push costs above the range.
COST DRIVERS

Which Item 7 categories create the largest capital requirements?

Building construction is the dominant disclosed category because it is quoted per suite: $151,800 to $266,200 per suite for the 80- to 110-suite format and $146,100 to $250,000 per suite for the 120- to 150-suite format. Professional Design Services, Operating Supplies, Technology Hardware & Software and Network Infrastructure, Furniture and Fixtures, Kitchen and Laundry Equipment, and Additional Funds also move with project size or configuration.

Per-suite and unresolved project costs

Item 7 cost entity 80–110 suites 120–150 suites Basis or limitation
Building Construction $151,800–$266,200 $146,100–$250,000 Per suite; includes site work, project management and exterior signs, but excludes local permit, tap and impact fees.
Kitchen and Laundry Equipment $5,000–$7,500 $4,400–$6,200 Per suite; includes required guestroom appliances.
Furniture and Fixtures $17,300–$24,000 $16,300–$21,700 Per suite; prototypical décor package, freight, warehousing, taxes, installation and procurement fees are included as specified.
Start-up Costs $2,300–$3,500 $2,300–$3,500 Per suite; includes pre-opening wages, marketing expenses and other operating costs.
Additional Funds $3,000–$5,000 $2,000–$3,500 Per suite for the first three months of operation; already included in the Item 7 total.
Real Estate; Permit, Tap and Impact Fees; Insurance Not determinable Not determinable Excluded from the total range. Insurance must be effective before construction starts.
Hard Cost Contingency At least 5% At least 5% Recommended percentage of defined hard costs; amount is not determinable and is excluded from the total.

Lump-sum and project-level opening estimates

Item 7 expenditure 80–110 suites 120–150 suites Payment context
Initial Franchise Application Fee $90,000 $90,000 Generally due with the franchise application to Marriott.
Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services $55,000 $55,000 Lump sum, on demand, to Marriott.
Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems $100,000–$152,000 $100,000–$152,000 As arranged with suppliers and Marriott; legacy-system transitions can create separate costs.
Market Feasibility Study $6,000–$18,000 $6,000–$18,000 Paid to an independent supplier; travel and living expenses are extra.
Technology Hardware & Software and Network Infrastructure $128,800–$226,300 $193,200–$308,600 Property-based technology, security, door locks, network infrastructure and related systems.
Operating Supplies $252,900–$353,600 $284,700–$394,300 Opening inventory, linens, amenities, cleaning equipment, uniforms and related supplies.
Professional Design Services $554,600–$1,308,700 $799,000–$1,670,900 Architectural, engineering, consulting, accessibility and fire/life-safety work; local development fees are excluded.
Food Safety and Sanitation Compliance $210 $210 Assumes three required people at $70 each.
Opening Advertising $25,000–$50,000 $25,000–$50,000 Includes the required opening campaign and an approved initial photography portfolio; urban costs may be higher.
Total Range, excluding not-determinable categories $15,396,510–$35,935,810 $22,085,110–$45,474,010 Official 2026 new-build totals; do not add Additional Funds a second time.
COST IMPLICATION The smaller format does not have a lower estimate for every per-suite category. Item 7 uses different per-suite construction, furniture, kitchen/laundry, and Additional Funds ranges for each size band. Budgeting should therefore use the complete column for the planned room count rather than multiplying a single generic cost per suite.
PAYMENT TIMING

When is the capital paid before and shortly after opening?

Residence Inn costs are paid across the application, design, construction, systems, pre-opening, and first-three-month operating periods rather than as one payment to MIF, L.L.C. Item 7 describes many vendor costs as payable “as arranged by you,” while Marriott fees are generally due with the application or on demand.

Submit the franchise application. A new-to-system Residence Inn application generally requires $90,000. An application for an existing Residence Inn hotel, or a hotel converting from Marriott management to franchising, is the greater of $200,000 or $500 per suite. If an unapproved application is refunded, Marriott retains $10,000 per hotel plus applicable outside counsel costs and expenses.
Fund site studies, design and pre-construction obligations. The market feasibility study, professional design work, site control, local development fees and required insurance occur before or during construction. Insurance must be effective before construction starts, but Item 7 does not estimate the premium.
Pay construction, equipment, FF&E and technology suppliers. Building Construction, Kitchen and Laundry Equipment, Furniture and Fixtures, Technology Hardware & Software, Network Infrastructure and Operating Supplies are paid under the buyer's arrangements with contractors and approved suppliers.
Staff and train before opening. The FDD requires the general manager and sales directors or managers to be retained six to nine months before opening. Some sales, marketing and operations support begins 90 to 120 days before opening. The $55,000 Item 7 estimate covers specified pre-opening training and support, but the franchisee's attendee travel, meals and lodging are extra.
Launch the required advertising campaign and carry first-quarter operating cash. Opening Advertising is $25,000 to $50,000. Additional Funds cover prepaid and operating expenses during the first three months and are included in the Item 7 total, but they exclude Franchise Fees, management fees, FF&E reserves, taxes, permits and licenses, building insurance, and operating leases.
PAYMENT TIMING If Marriott requires Franchisee Introduction to Marriott, the current $40,000 FITM enrollment fee is due at least 10 months before the opening deadline. Franchisee OnBoarding for New Development is currently $20,000 on the same timing. Those programs can also trigger two years of specified advisory, customer-support, digital-marketing, and sales programs at additional cost.

Timing source: 2026 Residence Inn FDD, Item 5, pages 24–29; Item 7, pages 56–61; and cost-relevant Item 11 provisions. Marriott's public development process identifies application, review, approval and opening as separate stages on its official prospective-franchisee information page.

ONGOING FEES

Which Residence Inn fees continue after the hotel opens?

The two central recurring charges are the 6.0% Franchise Fee and the Program Services Contribution. Both are generally payable by the 15th day after the end of each month. The Program Services Contribution combines a percentage charge with annual fixed amounts and funds specified systems and services, but it does not cover every technology, security, training, revenue-management, or replacement-system cost.

Ongoing cost entity 2026 disclosed amount Fee basis and timing Important scope
Franchise Fee 6.0% Gross room sales; monthly Temporary reductions may be negotiated in limited circumstances, but no reduction is automatic.
Program Services Contribution 2.56% + $6,000/year + $65/suite/year Gross room sales plus fixed annual charges; monthly collection Includes a 2.5% Marketing Fund contribution and specified systems and services.
Loyalty Program 1.2% (1.1% through Dec. 2027) + 1% Qualifying loyalty revenue, plus 1% of qualifying event revenue capped at $300 per event; on demand Member benefits and purchases of extra points can create additional expense.
Revenue Management Advisory Services $1,265–$1,400/month; up to $3,000/month Most hotels; plus $2,500–$5,000 setup fee Generally optional, but may be required for a new Marriott owner, uncertified revenue management, or specified onboarding programs.
Learning & Development Bundle $9.70–$10.80/suite/year On demand Covers specified ongoing training, not pre-opening training.
Brand Experience Kits $500/year On demand Supports changing brand-signature materials and initiatives.
Association Dues $100/year On demand Residence Inn system association charge.
Food & Beverage Support $800/year On demand; 3% annual increase Supports food-and-beverage programming and field support.

Technology and distribution charges remain separate

Point-of-Sale System
$90.75 per property per month, plus $17 to $30 per POS workstation per month for software, support and patching.
Credit Card Processing
0.065% of the dollar amount of credit card transactions for authorization, settlement and tokenization.
PC and Server Management
$3.34 to $19.18 per computer per month and $28.13 to $119.03 per server per month.
Mobile Key Software
$8 to $13 per suite per year for software and support; required server costs can be separate.
Managed Detection and Response
$34.80 per device per year when the approved service is not covered for the device under the Program Services Contribution.
Continent Field Support
$7.34 to $13.75 per device per month; the Program Services Contribution currently covers up to six devices.

Distribution and sales programs can add percentage, per-booking, per-call, or subscription charges. Examples in Item 6 include the Transaction-Based Media Program at 8% of applicable gross room revenue, capped at $200 per stay; Account Sales Group Leads at 4% of defined gross group room revenue, reduced to 3% when an intermediary is involved; Customer Engagement Center Property Support Services at an estimated $2.65 to $2.80 per call plus $41.70 to $43.80 per hour for other support; and Centralized Travel Agent Commission obligations that include specified intermediary and online-distribution commissions. These charges apply only on their disclosed bases and should not be converted into an annual dollar estimate without hotel-specific activity.

Ongoing-fee source: 2026 Residence Inn FDD, Item 6, pages 30–55. The Marketing Fund structure is also described in Item 11. The official Marriott FDD resources page lists the current U.S. disclosure documents by brand.

CONDITIONAL OBLIGATIONS

Which fees are triggered by a transfer, renovation, delay, default, or compliance event?

Item 6 contains event-driven fees that do not belong in the ordinary monthly fee stack but can be material when the underlying event occurs. The amount often depends on room count, project condition, delay length, required services, or the hotel's compliance status.

Transfer or acquisition
The transfer application fee is the greater of $200,000 or $500 per suite, due with the application. A $12,000 Property Improvement Plan fee and outside counsel costs can also apply. The buyer may need a new Franchise Agreement, current fees, and upgrades to current standards.
PIP and renovation work
A PIP costs $12,000; a pre-expiration revision or modification costs $5,000; a PIP 12 months past issuance costs $6,000 to refresh; and a PIP 24 months past issuance costs $12,000 to reissue. Additional re-evaluations for incomplete PIP or renovation work cost $10,000 each.
Custom design or non-recommended design firm
Custom Design & Construction Review Services are $20,000. Screening a non-recommended interior design firm is $2,500 per firm, and retaining one can add $25,000 for a new hotel project or $15,000 for a renovation PIP.
Construction or conversion delay
A requested extension generally costs $10,000 and is refundable if not approved. For relicensing transactions, delayed PIP completion can trigger 1% of gross room sales per month in addition to other remedies.
Quality and safety non-compliance
Red Zone charges range from $25 to $100 per suite, capped at $50,000 per six-month tracking period, plus $2,500 for each required meeting. Other charges include food-safety re-assessments, fire/life-safety re-assessments, and a $3,000 Fire Protection and Life Safety Audit.
Late payment, audit, or system exit
Overdue amounts accrue the lesser of 18% per year or the legal maximum. An underpayment of 5% or more can shift audit costs to the franchisee. Removal from the system costs $12,000, and default termination can create formula-based Liquidated Damages.
BUYER VERIFICATION The Franchise Agreement is not renewable. At expiration, Marriott may offer a new agreement in its discretion, potentially with different fees, standards, and duration. A transfer likewise can require a new agreement and a Property Improvement Plan, so acquisition pricing should account for both the transfer fee and property-upgrade scope.

Relationship-event source: 2026 Residence Inn FDD, Item 6, pages 39–49 and Item 17, pages 102–107.

FORMAT DIFFERENCE

Why can a conversion, acquisition, or residential project cost materially more or less?

Only the two prototypical new-build size bands have official total investment ranges. The 2026 FDD expressly says it cannot give a meaningful estimate for converting a property, acquiring an existing Marriott hotel, or adding a spa, residential, condominium, or multi-family component. Those projects depend on the existing asset, PIP scope, configuration, location, retained systems, and current standards.

Residence Inn's cost contract changes with the asset path

New-build hotel

Item 7 provides full ranges for 80–110 and 120–150 suites. Land, local development charges, insurance and contingency remain unresolved outside the official total.

Conversion or acquisition

No total range. The application fee may be the greater of $200,000 or $500 per suite, with a $12,000 PIP fee. Support and training are estimated at $1,800–$15,000 for an existing Residence Inn or specified managed-hotel conversion, and $35,000–$75,000 for other conversions, before travel and the cost of PIP work.

Residential or mixed-use component

No total range. Initial residential training is estimated at $18,500–$23,500, Residential Executive Orientation is currently $10,000, and separate ongoing license, bundle, audit, conference, and renovation-review fees can apply.

For a residential or condominium component, Item 6 lists a 4% Residential Marketing License Fee on the total gross sales price of each unit; for a multi-family component, the fee is 3% to 4% of gross monthly rentals. The Residential Program and Services Bundle is $143 per year per unit sold, capped at $25,000 annually, and the Trademark License Fee is $1,000 per unit per year for applicable residential or condominium units. These amounts do not replace the hotel-level Franchise Fee or Program Services Contribution.

Required purchasing rules also affect variability. Item 8 permits Marriott to specify approved or designated sources for Furniture, Fixtures and Equipment, Operating Supplies and Equipment, signs, technology, food products, and other goods and services. The franchisor or its affiliates may retain markups, fees, credits, discounts, or rebates under negotiated arrangements, and the FDD does not guarantee that every designated arrangement will be cheaper than alternatives. Marriott's official brand portfolio identifies Residence Inn within its longer-stay hotel development platform, while the official Residence Inn brand site describes the consumer-facing hotel format.

FINANCIAL QUALIFICATIONS

Does Marriott disclose a minimum liquid capital or net worth requirement?

No fixed U.S. minimum for Liquid Capital, Net Worth, or Non-Borrowed Funds appears in the 2026 Residence Inn FDD. Marriott's official prospective-franchisee page says it looks for “appropriate real estate net worth,” but it does not publish a numeric threshold. The FDD states that guaranty requirements are determined after reviewing financial information, ownership structure, net worth and liquidity, credit and operating history, and the debt structure for the hotel.

A Personal Guarantee may be required from principals of the franchisee. In limited cases, MIF, L.L.C. may accept a guaranty from an entity with substantial Net Worth instead. Because the standard is case-specific, the Estimated Initial Investment cannot be treated as a disclosed cash-equity requirement, and Net Worth cannot be treated as cash available for development.

Financing is not a standard franchisor program

Item 10 says Marriott generally does not offer direct or indirect financing and does not guarantee a franchisee's loans or other obligations. In very limited circumstances and at Marriott's sole discretion, it may provide contingent support for part of a third-party loan or make a mezzanine loan. The amount, guaranty fee, interest, security, repayment, Personal Guarantee and default terms vary by transaction. That disclosure is not a promise of financing or approval.

Qualification and financing source: 2026 Residence Inn FDD, Item 10, page 71, and cost-relevant guaranty provisions. Marriott's official franchisee qualification information provides non-numeric owner criteria.

FINAL VERIFICATION

What should a buyer verify before relying on the disclosed range?

The decisive unresolved issue is the project-specific amount outside Item 7. A buyer needs the applicable room-count column, then separate evidence for the land or lease, local fees, insurance, contingency, financing structure, required supplier quotes, and any conversion or PIP work.

Confirm the applicable asset path. Determine whether the transaction is a new build, conversion, acquisition, transfer, relicensing, or mixed-use project before using any range.
Reconcile the site-specific exclusions. Obtain support for Real Estate, Building Permit, Tap and Impact Fees, Insurance, the 5% Hard Cost Contingency, taxes, licenses, operating leases, and FF&E reserves.
Prevent double counting. Additional Funds are already in the Item 7 total. System implementation, training, opening support, and technology quotes should be mapped to the exact Item 5 or Item 7 category they replace or supplement.
Identify mandatory programs for the owner and operator. FITM, FOND, FITM-R, API, Revenue Management Advisory Services, Customer Engagement Center Property Support Services, Digital Marketing, and designated sales programs can become required based on experience or qualification.
Test recurring fees by their disclosed basis. Separate gross room sales, qualifying loyalty revenue, group revenue, booking activity, calls, devices, workstations, suites, and annual fixed charges rather than applying one percentage to all hotel revenue.
Review the current FDD and state addenda before payment. The FTC guide explains that the disclosure document is a due-diligence tool, while the Franchise Agreement controls the legal relationship.

Cost synthesis. The verified 2026 investment range is $15,396,510 to $35,935,810 for an 80- to 110-suite new build and $22,085,110 to $45,474,010 for a 120- to 150-suite new build. The largest disclosed driver is Building Construction, but the principal uncertainty is the set of costs Item 7 leaves outside the total—especially Real Estate, local development fees, Insurance and the Hard Cost Contingency. The $90,000 Initial Franchise Application Fee, the total project investment, any case-specific Net Worth or liquidity review, and post-opening percentage fees are separate capital concepts and should be evaluated independently.