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.
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.
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.
Source: 2026 Residence Inn FDD, Item 7, pages 56–61. The totals exclude categories identified as not determinable. Review the official Item 7 disclosure.
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.
Source: 2026 Residence Inn FDD, Item 7, pages 56–58. Values are official high-end estimates, not typical costs and not additive. Construction is separately disclosed at up to $266,200 per suite for this format.
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. |
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.
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.
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.
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.
Relationship-event source: 2026 Residence Inn FDD, Item 6, pages 39–49 and Item 17, pages 102–107.
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.
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.
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.
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.