How much does a SpringHill Suites franchise cost?
The 2026 SpringHill Suites Franchise Disclosure Document reports two new-build investment ranges: $13,249,200 to $31,983,400 for an 80–110 guestroom hotel and $18,633,200 to $38,623,500 for a 120–150 guestroom hotel. These are Item 7 totals for typical newly constructed suburban prototypes, not conversion budgets or cash-on-hand requirements.
Data basis: MIF, L.L.C.; SpringHill Suites by Marriott U.S. Franchise Disclosure Document issued March 31, 2026; Items 5, 6, 7, 8, 10, 11, 15, and 17; principal cost tables on FDD pages 24–61. Information checked July 14, 2026. The matching official 2026 SpringHill Suites FDD is published through Marriott's hotel-development site.
There is no single range for every project. The lower prototype range applies to 80–110 guestrooms; the higher prototype range applies to 120–150 guestrooms. Item 7 excludes or cannot determine real estate, building permit/tap/impact fees, insurance, and the recommended hard-cost contingency.
Source: 2026 FDD, Item 7, pp. 56–61.
The FDD cover states a low-end figure of $13,240,200 for the 80–110 guestroom prototype, while the Item 7 total on page 58 states $13,249,200. This article uses the Item 7 table because it is the detailed investment schedule. A prospective franchisee should obtain written confirmation of the correct low-end total before relying on it.
The disclosed total is not a single payment to Marriott. Most of the capital is paid to contractors, architects, consultants, equipment vendors, technology providers, insurers, employees, and other third parties under separate contracts. The timing and refundability of those payments depend on the applicable purchase agreement, construction contract, professional-services engagement, or vendor order. Marriott-directed payments are generally non-refundable, except for the limited application-fee refund described in the disclosure.
The endpoints also should not be treated as a low-cost and high-cost package from which a buyer can freely choose. Each line has its own assumptions, and the lower endpoint for one expenditure may not occur with the lower endpoint for every other expenditure. The official total remains the controlling disclosed range even where a project-level sum of selected line-item endpoints could produce a different result. No midpoint, average, or “typical budget” is published.
Which figures matter before the hotel opens?
The investment total is only the top line. The application fee, pre-opening services, systems, working capital, and recurring charges have different payment bases and should not be treated as interchangeable capital requirements.
The larger prototype starts at a higher minimum, but both ranges are wide because construction and other project costs vary substantially.
Source: 2026 FDD, Item 7, p. 58. The bars use the official Item 7 totals and do not add costs listed as not determinable. See the official FDD investment table.
The overlap between the two ranges does not make the formats economically interchangeable. A larger building can have lower disclosed per-room amounts for some categories while still requiring more total capital because it contains more guestrooms and often more total building area, systems, furnishings, and supplies. Site constraints can reverse apparent scale advantages, particularly where parking, foundations, vertical construction, labor access, or local approvals are more complex.
The figures also assume a newly constructed suburban property using the prototype. Urban, resort, mixed-use, adaptive-reuse, and unusually configured projects can fall outside those assumptions. The disclosure expressly warns that actual costs can be higher and does not guarantee that a project will remain within either range.
What is inside the SpringHill Suites initial investment?
Item 7 combines Marriott payments, supplier purchases, construction, professional services, opening inventory, advertising, and the first three months of Additional Funds. It does not provide a usable estimate for every site-specific obligation.
Fixed project amounts and per-room amounts need different treatment. A fixed range can still vary with interfaces, vendor selection, hotel configuration, or service scope. A per-room line changes with the final room count, and multiplying it by the smallest or largest room count does not automatically recreate the official total because other lines have independent assumptions. “Not determinable” is not zero; it means the buyer must obtain a project-specific quotation or governmental calculation.
Some categories overlap operationally without being duplicates. For example, the systems line addresses designated hotel operating platforms, while the technology-infrastructure line covers property-based equipment and networks. The furnishings line covers the prototype décor package, while operating supplies cover opening inventory and consumables. Keeping those scopes separate prevents omissions during budgeting.
Project and pre-opening amounts
| Item 7 cost entity | 80–110 rooms | 120–150 rooms | Payment timing / payee |
|---|---|---|---|
| Initial Franchise Application Fee | $75,000 | $75,000 | Generally with application / Marriott |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services | $55,000 | $55,000 | On demand / Marriott |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $100,000–$152,000 | $100,000–$152,000 | As arranged or on demand / suppliers and Marriott |
| Market Feasibility Study | $6,000–$18,000 | $6,000–$18,000 | As arranged / third-party supplier |
| Technology Hardware, Software, and Network Infrastructure | $127,100–$223,400 | $190,700–$304,600 | As arranged / suppliers |
| Operating Supplies | $211,900–$296,300 | $238,600–$330,400 | As arranged / suppliers |
| Professional Design Services | $480,200–$1,143,900 | $686,900–$1,443,500 | As arranged / architects, consultants, and Marriott |
| Opening Advertising | $25,000–$50,000 | $25,000–$50,000 | As arranged / suppliers |
Per-room and unresolved project costs
| Item 7 cost entity | 80–110 rooms | 120–150 rooms | Interpretation |
|---|---|---|---|
| Building Construction | $129,600–$229,700 per room | $123,800–$213,000 per room | Includes site work, project-management fees, and exterior signs, but not graphics or local permit/tap/impact fees. |
| Kitchen and Laundry Equipment | $2,000–$3,500 per room | $1,500–$2,300 per room | Laundry, kitchen equipment, and required guestroom appliances. |
| Furniture and Fixtures | $15,100–$21,000 per room | $14,200–$19,000 per room | Prototypical décor package, furnishing, freight, warehousing, taxes, and specified installation. |
| Start-up Costs | $2,300–$3,500 per room | $2,300–$3,500 per room | Pre-opening wages, marketing expenses, and other operating costs incurred before opening. |
| Additional Funds | $3,000–$5,000 per room | $2,000–$3,500 per room | Prepaid and operating expenses during the first three months; already included in Item 7 total. |
| Real Estate and Building Permit, Tap, and Impact Fees | Not determinable | Not determinable | Site and local-government amounts vary by market and project. |
| Insurance | Varies | Varies | Required coverage must be effective before construction; no meaningful estimate is provided. |
| Hard Cost Contingency | Not determinable | Not determinable | Marriott recommends at least 5% of defined project hard costs. |
Additional Funds cover the first three months of prepaid and operating expenses, but exclude Franchise Fees, management fees, FF&E reserves, personal property and real estate taxes, permits and licenses, building insurance, and operating leases. Those exclusions prevent the Additional Funds line from functioning as a complete post-opening cash reserve.
Each category uses its own zero-based scale so the two prototype ranges can be compared within that category. Bar lengths should not be compared across categories.
Source: 2026 FDD, Item 7, pp. 56–58. These are official low/high ranges, not averages, expected amounts, or summable stand-alone budgets.
The larger prototype shows lower per-room bounds for construction, furnishings, and working capital, but that does not establish a lower total cost or a guaranteed economy of scale. The total room count multiplies each per-room line, and the larger property also carries higher disclosed totals for technology, supplies, and professional design. The comparison is useful for understanding how the schedule is structured, not for selecting a project size solely from a per-room figure.
When is the money paid?
The largest checks are not all due on one date. Item 7 frequently says “as arranged by you,” while Marriott fees may be due with the application, on demand, before closing, or before specific opening milestones.
Cash control therefore requires more than reserving the full disclosed total. The buyer must map deposits, progress payments, retainage, equipment orders, professional invoices, payroll before opening, and recurring charges to the project schedule. A delay can move costs into a later month without reducing the ultimate obligation, and it can add extension, reinspection, storage, remobilization, financing, or supplier-change costs that are not represented by a single standard line.
Refundability also differs by payee. The disclosure describes most payments to Marriott as non-refundable, while third-party payments depend on the buyer's contracts. A construction deposit, equipment order, or consultant retainer should therefore be reviewed for cancellation rights, change-order procedures, escalation clauses, and responsibility for delays before funds are committed.
Marriott's development timetable generally allows 15 months after application approval to begin construction and anticipates opening within 15 months after construction begins, although financing, local approvals, weather, labor, materials, equipment, and signage can alter the schedule. See 2026 FDD, Item 11, pp. 72–73, and Marriott's official hotel-development information.
Which SpringHill Suites fees continue after opening?
The core recurring charges are the 5.5% Franchise Fee and the multi-part Program Services Contribution. Item 6 also contains sales-channel, loyalty, technology, training, quality-assurance, and operational charges that are mandatory, usage-based, optional, or conditionally required.
| Ongoing fee | Amount or disclosed basis | Timing | Applicability |
|---|---|---|---|
| Franchise Fee | 5.5% of gross room sales | By the 15th day after month-end | Core recurring fee |
| Program Services Contribution | 3.85% of gross room sales, plus $10,000 per year, plus $220 per suite per year | By the 15th day after month-end | Includes a 2.5% Marketing Fund contribution |
| Loyalty Program | 1.8% of qualifying revenue, reduced to 1.7% through December 2027, plus 1% of qualifying event revenue capped at $300 per event | On demand | Applies to qualifying loyalty activity |
| Revenue Management Advisory Services | $1,265–$1,400 per month for most hotels; $3,000 per month where group business is at least 25% of room nights; setup $2,500–$5,000 | On demand | Generally optional but required in specified circumstances, often for at least two years |
| Business Transient Booking | $130–$309 per month | On demand | $130 per month during the first calendar year for new-to-system hotels |
| Point-of-Sale support | $90.75 per month per property, plus $17–$30 per month per workstation | On demand | Required designated POS system; vendor support can be additional |
| Mobile Key Software | $8–$13 per guestroom per year | On demand | Software and support; vendor/server requirements also apply |
| Learning & Development Bundle | $11.40–$12.60 per guestroom per year | On demand | Required ongoing training bundle |
These charges fall into three different cash-flow patterns. Percentage charges move with the defined sales base; fixed annual or per-room amounts continue regardless of the property's sales level; and usage or event charges arise when a booking channel, service, device, workstation, training program, or compliance event is used or triggered. Combining all three into one estimated annual number would require assumptions that the disclosure does not provide.
The percentage bases also are not interchangeable. The royalty uses gross room sales, the loyalty charge uses qualifying revenue, and transaction or intermediary programs can use their own defined booking or revenue measures. A buyer's accounting system must preserve the definitions in the agreements rather than applying one general “sales” number to every charge.
Source: 2026 FDD, Item 6, pp. 30–55, and Item 11, pp. 74–79. Marriott identifies SpringHill Suites among its Select Service Brands.
Which fees depend on the project or later events?
Conversions, ownership changes, schedule extensions, design deviations, quality failures, renovations, and defaults can activate charges that are not part of a normal monthly fee schedule.
These amounts are not all expected to occur in an ordinary month, but they belong in contractual scenario planning. A buyer evaluating a conversion, a future sale, a management-company change, a delayed opening, or a non-prototype design should identify the relevant trigger before using the new-build range. The same project may activate several charges at once, such as a plan, design review, training, outside counsel, and system implementation.
Several on-demand charges also include reimbursement of travel, meals, lodging, payroll, inspections, or third-party expenses. Where the table states a fixed service fee, those reimbursements can remain additional. The absence of a combined cap means the transaction documents and project correspondence are necessary to establish the actual payment exposure.
A conversion is not simply the new-build Item 7 range with construction removed. The existing property's condition, configuration, current systems, Property Improvement Plan, training status, management experience, and brand standards determine a different cost contract that Marriott says it cannot meaningfully estimate in advance.
Do the official ranges cover conversions and residential projects?
No. The two Item 7 ranges cover typical newly constructed suburban SpringHill Suites hotels. They do not provide a total for a conversion, acquisition of an existing Marriott hotel, spa addition, or residential, condominium, or multi-family component.
Three cost structures must stay separate
Use the 80–110 or 120–150 guestroom Item 7 range, then separately price land, local development charges, insurance, and contingency.
Expect a Property Improvement Plan, transaction fees, system gaps, renovations, transition support, training, and property-specific compliance work. No official total range is disclosed.
Separate charges can include a 4% Residential or Condominium Marketing License Fee on unit sales, or 3%–4% of gross monthly rentals for a Multi-Family Component, plus recurring unit-based program fees.
Item 8 also requires specified or approved Furniture, Fixtures and Equipment, Operating Supplies and Equipment, technology, signage, and other goods and services. Marriott estimates that required or standards-controlled purchases and leases represent approximately 70%–92% of the establishment purchases-and-leases denominator it defines, excluding real estate and several other cost categories. Supplier compliance therefore affects a large portion of the project even though that percentage is not a share of the complete Item 7 investment.
Source: 2026 FDD, Items 7 and 8, pp. 56–68. Brand context is available on the official SpringHill Suites by Marriott page.
Does Marriott disclose a liquid-capital or net-worth minimum?
The 2026 FDD does not state a numeric Liquid Capital or Net Worth minimum for SpringHill Suites. Marriott reviews the proposed franchisee's financial information, ownership structure, hotel, real property, debt structure, liquidity, credit history, and operating history to determine guaranty requirements.
The lack of a published minimum does not mean that no equity or liquidity standard applies. It means the threshold is determined through underwriting and the proposed ownership and debt structure rather than a single public number. A project with the same construction estimate can produce different guaranty or lender requirements depending on leverage, collateral, sponsor strength, operating experience, and the entities holding the land and hotel assets.
Financial qualification is therefore not the same as the Item 7 investment. The total investment estimates what the project may cost; the guaranty review determines who stands behind contractual obligations; and any lender establishes its own equity, collateral, liquidity, and repayment conditions. Marriott's official guidance for franchisees new to hotel franchising provides general owner-profile context, while the current FDD and transaction documents control the actual requirements.
Source: 2026 FDD, Item 10, p. 71, and Item 15, pp. 98–99.
What later costs can affect ownership changes or the end of the term?
A new-build Franchise Agreement typically ends on the 20th anniversary after Marriott authorizes the hotel to open, and the agreement is not renewable. Marriott may choose to offer a new agreement on its then-current form, which can carry different fees, terms, upgrades, and duration.
A transfer requires Marriott's consent, current owner qualifications, a new Franchise Agreement for the transferee, payment of then-current fees, a Property Improvement Plan, upgrades to then-current standards, satisfaction of outstanding amounts, and potentially outside counsel costs. Item 8 also requires periodic significant renovations and replacement of soft goods and case goods, although the FDD does not publish a fixed renovation-reserve amount.
That structure creates two separate future-capital questions. The first is asset preservation during the existing term: maintenance, replacements, and periodic renovations must keep the property compliant. The second is transaction or end-of-term capital: a buyer, transferee, or owner seeking a new agreement may face current standards and current fees that differ from those used at the original opening. The disclosure does not quantify either future renovation program as a complete range.
Source: 2026 FDD, Item 6, pp. 44–46; Item 8, p. 68; Item 17, pp. 103–107.
What should be confirmed before setting the capital budget?
The official range is a starting disclosure, not a site-specific construction budget. These checks address the largest disclosed uncertainties without substituting unsupported local estimates.
A useful review file should connect each budget line to a written quote, contract clause, responsible payee, due date, refund rule, escalation provision, and approval condition. It should also identify who bears a change order, delay, rejected design, damaged shipment, failed inspection, or replacement requirement. This does not create a new estimate; it makes the disclosed obligations traceable to the documents that will control payment. Where a quote expires before construction or opening, the budget should preserve the expiration date and the method for updating it rather than assuming the original price remains available.
The same discipline should be applied to amounts described as optional or conditional. A service may be optional in the standard case but required because of the sponsor's experience, management arrangement, property condition, or compliance status. Written confirmation of applicability is more reliable than excluding the amount merely because it does not appear in the core monthly schedule.
What is the practical capital takeaway?
The verified 2026 Item 7 investment spans $13,249,200 to $31,983,400 for an 80–110 guestroom new build and $18,633,200 to $38,623,500 for a 120–150 guestroom new build. The principal range driver is construction, while real estate, local development charges, insurance, and contingency remain outside or unresolved. The $75,000 application fee, the investment total, lender equity, guaranty capacity, and post-opening fees are separate obligations.
The most important unresolved question is the site-specific cost outside Item 7: land or lease economics, local fees, insurance, contingency, unusual construction conditions, and any conversion, residential, technology-transition, training, or Property Improvement Plan requirement.