How Much Does a Staybridge Suites Franchise Cost?

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2026 CAPITAL REQUIREMENT

How much does a Staybridge Suites franchise cost?

Holiday Hospitality Franchising, LLC estimates an initial investment of $21,222,018 to $31,870,847 for a four-story, 130-suite Staybridge Suites hotel in the United States. The same 2026 FDD expresses the range as $163,246 to $245,160 per guest suite. The estimate is not a land-inclusive project budget: land, contingency funds, finance charges, interest, debt service and other unquantified items sit outside the disclosed total.

$21.22M–$31.87M Estimated Initial Investment for the 130-suite model

Basis: 2026 FDD, Item 7, pages 47–54. The range covers a model that can involve a New Development, Conversion or repurposed building, but the FDD gives one combined range rather than separate format totals.

The official total includes $100,000 to $250,000 of Additional Funds for the first three months after opening. It excludes land and several financing- and site-specific obligations.

Legal franchisor
Holiday Hospitality Franchising, LLC
FDD issuance date
April 2, 2026
Cost model
Four-story, 130-suite U.S. Staybridge Suites hotel
Formats addressed
New Development, Conversion and repurposed-building conversion; dual-brand projects may have different economics and require two brand license agreements
Cost disclosures used
Item 5, pages 21–24; Item 6, pages 24–47; Item 7, pages 47–54; cost-relevant portions of Items 8, 10, 11 and 17
Checked
July 15, 2026. IHG’s official Staybridge Suites development page confirms the brand’s active development program. Its official resource page directs prospects to request a Franchise Disclosure Document but does not publish a matching 2026 FDD copy.

Capital snapshot

These figures separate the upfront license charge, opening reserves and continuing system charges. They are not interchangeable measures of capital.

Application Fee $75,000 Amount used in the 130-suite Item 7 model; formula is $500 per suite, subject to a $75,000 minimum.
Additional Funds $100K–$250K Included in Item 7 for the first three months after opening.
Royalty Fee 5.5% Of Gross Suites Revenue, paid monthly on the 15th of the following month.
Services Contribution 2.5% Of Gross Suites Revenue, paid monthly.
Technology Services Fee $17.75 Per suite, per month, payable to Six Continents Hotels, Inc.
Pre-Opening Support Fee $6,500 Invoiced within 60 days of ground break; payment is due within 30 days of invoice.
Cost implication The $75,000 Application Fee is not the total investment. For the 130-suite model, the disclosed $500-per-suite formula produces $65,000, so the $75,000 contractual minimum controls. This is a derived calculation from the Item 5 formula and Item 7 room count.
ITEM 7 INVESTMENT

What is included in the $21.22 million to $31.87 million range?

The 2026 Item 7 estimate is dominated by Building Construction, followed by Furniture, Fixtures & Equipment and Professional Fees. It also includes operating supplies, opening technology, insurance, signage, training, pre-opening support and three months of Additional Funds.

Premises, furnishings and professional work

Item 7 category Disclosed amount Payment timing Key scope point
Building Construction $17,757,200–$26,429,300 As required Range encompasses New Development and Conversion Hotels; local requirements, site conditions and labor or material costs can change the amount.
Furniture, Fixtures & Equipment $2,174,500–$2,826,900 As required Includes guest-room and common-area furniture, kitchen and bar equipment, fitness equipment and certain in-hotel technology.
Professional Fees $533,000–$1,321,000 As incurred Includes attorneys, accountants, architects, engineers, interior designers and technical services.
Operating Supplies & Equipment $303,300–$394,300 As required Includes base supplies such as linens, uniforms, housekeeping supplies, office items, amenities and food-and-beverage smallware.
Insurance $46,000–$197,000 Before opening Premiums depend on jurisdiction, exposure, hotel type, loss history, location, size and payroll.
Primary Identification Sign $38,000–$65,100 As required Must satisfy brand specifications and be purchased from an approved sign vendor.
Security Deposits $10,000–$25,000 As incurred Utility, lessor, vendor and supplier deposits vary by location.

Source: Staybridge Suites 2026 FDD, Item 7, pages 47–53; Item 8, pages 54–63, for approved-supplier and signage obligations.

Technology, opening and initial operating period

Item 7 category Disclosed amount Payment timing Interpretation
PMS Equipment $22,000–$31,000 Invoiced before installation Recommended HotelKey Cloud PMS equipment; exclusions include extra training, extra hardware or software, shipping, taxes and some travel.
Guest Internet Access hardware $24,000–$49,000 Invoiced before installation Actual design depends on a site survey, building type and network requirements; bandwidth is a separate monthly cost.
Entertainment, Security and Other Technology $122,445–$139,753 As required Projected acquisition, installation and annual support for listed systems; the FDD says the list may not be exhaustive.
Training Expenses $3,000 plus travel Within 30 days of invoice; travel as incurred The $3,000 IHG University subscription is prorated by opening month; trainee travel, meals and lodging remain the licensee’s responsibility.
Market Feasibility Study $0–$30,000 As required Paid to the service provider.
Pre-Opening Support Fee $6,500 Invoice within 60 days of ground break; due within 30 days Covers Hotel Lifecycle & Growth support from license execution through opening.
Hotel Photography $4,200–$7,000 At opening Brand-specified photographs are due within 45 days after opening and after significant renovations.
Additional Funds $100,000–$250,000 As incurred during first three months Includes opening advertising, payroll, royalties, Services Contribution, hardware/software support, utilities and other supplies.

Source: Staybridge Suites 2026 FDD, Item 7, pages 48–54. Additional Funds are already included in the total Estimated Initial Investment and should not be added a second time.

FORMAT AND EXCLUSIONS

Why can an actual Staybridge Suites project fall outside the FDD range?

The 2026 FDD uses one 130-suite model for New Development and Conversion projects, while warning that a conversion can vary greatly with the condition of the existing building and the upgrades needed to meet the Standards. It also excludes land and several financing or contingency costs from the official total.

Model behind Item 7
Four stories and 130 suites. The official range is not a universal per-property quote.
Development paths
New Development, Conversion or repurposed building. IHG’s official project-types page separately describes new-build, conversion and dual-brand structures.
Dual-brand treatment
Two licenses are required. The FDD states that costs and fees may differ according to the structure of a dual-brand site.
Excluded from Item 7 Land, contingency funds, construction-loan interest, financing fees, appraisal fees, taxes, finance charges, debt service and other items Holiday cannot estimate are not resolved by the $21.22 million to $31.87 million range. A site-level capital plan therefore needs a separate schedule for those obligations.
Land No dollar range is disclosed. Purchase or lease cost depends on location, acreage, local property values and financing terms.
Conversion scope The Property Improvement Plan can require renovations, furnishings and construction milestones. The FDD does not provide a separate conversion total.
Local construction variables Soil, environmental conditions, utilities, topography, earthquake rules, impact fees, aesthetic rules and regulatory remediation can move the project outside the model.
Optional or expanded amenities The FF&E estimate excludes extensive full-kitchen or catering facilities, pools, spas and expansive outdoor or common areas.
PAYMENT TIMING

When is the money paid?

Cash is committed in stages rather than at one closing. The Application Fee is submitted with the application, PIP work can precede a Conversion or Re-Licensing application, construction and supplier payments occur during development, and Additional Funds are consumed during the first three months after opening.

Application submission Pay $500 per guest suite, subject to a $75,000 minimum. For the 130-suite Item 7 model, the disclosed Application Fee is $75,000. If the application is rejected or withdrawn before a decision, Holiday returns the fee less $15,000; after approval it becomes nonrefundable.
PIP and design review, when applicable A Conversion, Change of Ownership, Re-Licensing or brand change generally requires a $10,000 PIP inspection and preparation fee before application. A custom design or non-approved vendor review can cost up to $35,000.
Plans, construction and supplier purchases Building Construction, FF&E, Operating Supplies & Equipment, professional services, permits, deposits, signage and insurance are paid as required or as incurred. The licensee also pays its own design-team travel for required meetings.
Technology deployment and training Cloud PMS and specified technology costs are quoted for the hotel and generally paid before delivery or deployment. The $3,000 IHG University subscription is invoiced and prorated by opening month; travel and optional training remain separate.
Ground break through opening The $6,500 Pre-Opening Support Fee is invoiced within 60 days of ground break and due within 30 days. Opening re-inspections, rescheduled visits or opening-date extensions can create additional charges and travel expenses.
Opening and first three months The first Royalty Fee payment also carries a one-time $10-per-approved-suite Initial Marketing Contribution. Item 7 includes $100,000 to $250,000 of Additional Funds for payroll, utilities, royalties, Services Contribution and other opening operating costs.

Payment sources: Staybridge Suites 2026 FDD, Item 5, pages 21–24; Item 6, pages 24–47; Item 7, pages 47–54; Item 11, pages 65–76.

ONGOING FEES

Which Staybridge Suites fees continue after opening?

The principal continuing system charges are a 5.5% Royalty Fee and a 2.5% Services Contribution, both based on Gross Suites Revenue and generally due monthly on the 15th of the following month. Loyalty, reservation, distribution, technology, training and supplier-related charges use separate bases and must not be collapsed into one percentage.

Continuing fee Amount or basis Timing Important distinction
Royalty Fee 5.5% of Gross Suites Revenue Monthly, 15th of following month Gross Suites Revenue is defined in Item 6 and generally does not allow deductions for commissions, chargebacks or credit-card service charges.
Services Contribution 2.5% of Gross Suites Revenue Monthly, 15th of following month Funds marketing, reservations, training, research and related system activities; local marketing and equipment costs remain separate.
Loyalty Program Contribution 2.275% of Qualifying Full Folio Revenue; 1.365% of qualifying IHG Business Rewards room and meeting revenue Monthly Different denominators apply, so these percentages are not additive to Gross Suites Revenue percentages without hotel-level revenue mapping.
Technology Services Fee $17.75 per suite per month Monthly Separate from Cloud PMS, network, entertainment, payment and hardware-support charges.
HotelKey Cloud PMS Solutions Fee $4.25 per suite per month Monthly An additional $70 per month implementation fee applies during the first 48 months of operation.
NextGen Payments Program Fee $223–$794 per month Monthly Includes support, installation and hardware for the disclosed payment solution.
IHG University core subscription $3,000 annually Within 30 days of invoice Prorated by opening month; optional, specialist and additional on-site training can cost more.
Local Marketing Programs Varies with actual cost Varies Required programs, materials, services, equipment, supplies or promotions can create hotel-specific spending.

Source: Staybridge Suites 2026 FDD, Item 6, pages 24–35 and related Item 6 technology and training disclosures through page 47.

Fee-basis caveat The 5.5% Royalty Fee and 2.5% Services Contribution share a Gross Suites Revenue basis. The Loyalty Program Contribution, digital marketing commissions, travel-agent commissions and booking fees use other revenue definitions or per-reservation amounts. Adding every percentage together would misstate the contract.

IHG describes its supplier support on the official procurement page. The FDD is controlling for required purchases: it estimates that Standards and specifications apply to 90% to 95% of purchases and leases, and notes that IHG Procurement Program prices may include a program fee of up to 6%.

CONDITIONAL OBLIGATIONS

Which fees arise only after a specific event?

Item 6 contains significant event-triggered charges for design deviations, PIP work, delays, technology refreshes, ownership changes, suite additions, audits and termination. These are not recurring in every month, but they can become material when the triggering event occurs.

PIP, inspection and compliance events PIP inspection and preparation can cost up to $10,000; re-inspection can cost $5,000 plus expenses; PIP milestone extensions or defaults can cost up to $5,000; non-compliance with renovation requirements can cost up to $5,000 per occurrence.
Custom design or non-approved vendor Holiday may charge up to $35,000 for a Custom Design Review or review of a non-approved vendor or product.
Development delay A New Development or Conversion extension greater than six months and no more than 12 months can cost $10,000 plus processing expenses. An extension beyond 12 months can cost one-half of the Application Fee plus processing expenses.
Technology refresh IHG Connect hardware and software license renewal ranges from $1,000 to $200,000 every five years. The FDD also requires PMS hardware and software refresh every 60 months.
Change of Ownership or Re-Licensing The application fee is $500 per suite, with a $75,000 minimum. A licensee name change or ownership realignment has a $5,000 processing fee. Required upgrading and a new then-current License can add costs not captured by those fees.
Suite additions and capital reserve Approved suite additions cost $500 per new suite. Holiday may require a Capital Reserve of up to 5% of Gross Revenue, paid monthly.
Securities transaction, audit or default A public offering or private placement request carries a $25,000 processing fee plus additional costs. An audit can require the deficiency, interest and a $3,000 audit fee. Liquidated damages after termination are formula-based and variable.
Renewal and transfer The License does not provide a contractual renewal right. If Holiday agrees to Re-License the hotel, the owner may need to sign a materially different agreement, pay the then-current Re-Licensing Application Fee and complete required upgrades. A prospective transferee must submit an application and fees and may be required to sign a Guaranty.
FUNDING QUALIFICATIONS

Does Staybridge Suites disclose a liquid-capital or net-worth requirement?

No numerical Liquid Capital, Net Worth or Non-Borrowed Funds threshold appears in the 2026 FDD or on the official Staybridge Suites development materials reviewed. That absence does not mean no financial screening applies; it means a prospect should not substitute a directory estimate for a franchisor-disclosed qualification.

Item 10 states that Holiday does not offer a formal direct or indirect financing program. Holiday, Six Continents Hotels, Inc. or General Innkeeping Acceptance Corporation may provide a loan or guaranty on a case-by-case basis, subject to internal approval, but the licensee remains responsible for obtaining adequate financing for development, opening and operation.

Financing distinction A possible case-by-case loan or guaranty is not committed financing and is not approval assurance. The Item 7 total also excludes finance charges, interest and debt service, so lender costs must be modeled separately from the franchisor’s Estimated Initial Investment.

The federal disclosure timing rule is separate from financing. Under 16 CFR Part 436, a U.S. prospect generally must receive the current disclosure document at least 14 calendar days before signing a binding agreement or making a related payment to the franchisor or an affiliate.

BUYER VERIFICATION

What should be verified before relying on the official range?

The central due-diligence task is to reconcile the 130-suite Item 7 model with the actual site, building condition, room count, project path, technology quote and lender structure. The official range is a disclosure framework, not a guaranteed construction contract.

Confirm the exact project format. Ask whether the proposal is New Development, Conversion, repurposed building or dual-brand, and identify every separate License and PIP obligation.
Reconcile room count with room-based charges. Recalculate the Application Fee, Initial Marketing Contribution, Technology Services Fee, Cloud PMS fee, safety-device cost and other per-suite items using the approved suite count.
Obtain site-specific premises estimates. Price land, local code work, soil and environmental conditions, utility access, professional services, permits, taxes and contingency funds outside the Item 7 total where applicable.
Request written technology quotes. Confirm Cloud PMS, IHG Connect, door locks, employee safety devices, telecommunications, payment hardware, entertainment systems, cabling, taxes, shipping and five-year refresh requirements.
Map every ongoing fee to its denominator. Keep Gross Suites Revenue charges separate from Qualifying Full Folio Revenue, booking commissions, per-reservation charges, per-user subscriptions and per-suite technology fees.
Model financing outside Item 7. Add construction-loan interest, financing and appraisal fees, debt service and lender-required reserves without double-counting Additional Funds.
Review transfer, delay and renovation triggers. Identify PIP deadlines, opening deadlines, extension charges, technology refreshes, Capital Reserve rights, Re-Licensing terms and liquidated-damages formulas in the current agreements.
Staybridge Suites development IHG FDD request resource IHG project types IHG procurement IHG hotel lifecycle FTC Franchise Rule
CAPITAL SYNTHESIS

What is the practical capital takeaway?

The verified 2026 starting point is $21,222,018 to $31,870,847 for a four-story, 130-suite Staybridge Suites hotel, including $100,000 to $250,000 for the first three months after opening. Building Construction is the main disclosed range driver, while land, financing, debt service, contingency funds and several site-specific obligations remain outside the total. After opening, the cost contract continues through the 5.5% Royalty Fee, 2.5% Services Contribution and multiple loyalty, distribution, technology, training and conditional charges. The most important unresolved number is the project-specific cost of land, conversion work or local construction scope that Item 7 cannot estimate.







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