How much does a SureStay Hotel franchise cost?
SureStay, Inc. discloses four different U.S. investment ranges, not one universal SureStay Hotel cost. The applicable amount depends first on whether the property is a 60-room SureStay by Best Western or a 100-room SureStay Studio by Best Western, and then on whether it is a new construction project or a conversion of an existing hotel.
These 2026 FDD totals already include Additional Funds for three months. They do not include debt service or lease costs. Source: 2026 FDD, Item 7, pp. 29–38.
Data basis. Legal franchisor: SureStay, Inc., an Arizona corporation and subsidiary of Best Western International, Inc. FDD issuance date: February 27, 2026. Cost analysis uses Item 5, pp. 15–18; Item 6, pp. 18–29; Item 7, pp. 29–38; Item 8, pp. 38–41; Item 10, p. 43; cost-relevant portions of Item 11, pp. 43–51; and Item 17, pp. 56–65. Information checked July 19, 2026. No matching 2026 FDD was located on an official franchise-controlled public website, so FDD citations below are unlinked. The official SureStay development page confirms that the U.S. development offer covers SureStay and SureStay Studio.
Capital snapshot
Why is the disclosed investment range so wide?
The main dividing line is new construction versus conversion. A new-build SureStay project includes millions of dollars for Construction Work and a full Furniture, Fixtures and Equipment package. A conversion may start with $0 for Renovation Work or Furniture, Fixtures and Equipment if the existing property already satisfies the applicable Standards, but the high end allows substantial renovation and replacement work.
Scale: $0 to $14 million. Each teal segment begins at the disclosed low end and ends at the disclosed high end.
60-room new build
60-room conversion
100-room new build
100-room conversion
Interpretation: the Studio format carries the highest new-construction range, while both conversion ranges depend heavily on the condition and existing equipment of the hotel. Source: 2026 FDD, Item 7, pp. 29–38. Values are official ranges; bar positions are proportional display calculations.
Conversion economics are conditional on the existing asset
New construction
SureStay Construction Work: $4,675,000–$7,300,000.
SureStay Studio Construction Work: $8,250,000–$12,200,000.
The opening deadline is generally two years after signing the Franchise Agreement.
Conversion
Renovation Work: $0–$500,000 for either disclosed brand model.
Furniture, Fixtures and Equipment: $0–$375,000 for SureStay and $0–$490,000 for SureStay Studio.
The opening deadline is generally 90 days after signing the Franchise Agreement.
The official BWH Hotels brand portfolio places SureStay in the value segment and SureStay Studio in extended stay. The 2026 FDD, rather than the marketing description, controls the financial ranges.
The low end of a conversion range is not a promise that a property can convert with minimal work. Item 7 says actual cost may vary substantially with the building’s type, condition, age, physical structure, furnishings, local material prices and local labor costs. A buyer should price the property improvement plan and required Standards before treating the conversion low end as available.
What does the initial investment include?
Item 7 combines franchisor payments, property work, hotel equipment, technology, insurance, permits, opening supplies and three months of Additional Funds. The total is an estimated opening-cost range for the specified room count; it is not the Initial Fee and it is not a liquid-capital requirement.
Payments tied to application, agreement and activation
| Cost entity | 2026 amount | Payment timing | When it applies |
|---|---|---|---|
| Franchise Application Fee | $2,500 | With Franchise Application | All applicants; non-refundable and not credited |
| Initial Fee | $35,000 | On signing Franchise Agreement | Plus $100 per guest room over 100 |
| Impact Study Fee | $0–$4,000 | Before study is commissioned | Only if a Member requests an impact study; refundable if the application is denied |
| Construction or Renovation Work Extension Fee | $0–$5,000 | When an approved extension is requested | Only if the opening deadline must be extended |
| Pre-Activation Re-Inspection Fee | $0–$2,500 | As required | Plus a free room night if a follow-up inspection is needed |
| Distribution Photography Package Fee | $1,150–$8,000 | Before opening / as required | Depends on room types and public areas; one photographer room night may also be required |
| Green Key Global Certification | $675 | As required | Certification must be obtained within six months after opening |
Source: 2026 FDD, Items 5 and 7, pp. 15–18 and 29–38. The certification amount, deadline and SureStay obligation come from the FDD.
Prior-year negotiated reductions are not a published discount. For the fiscal year ended November 30, 2025, SureStay, Inc. reports accepting decreased Franchise Application Fees of $0–$2,000, decreased Initial Fees of $14,500–$25,000 and decreased Construction or Renovation Work Extension Fees of $0–$4,000. Item 5 says these resulted from arm’s-length negotiations; the standard 2026 charges above remain the disclosed amounts.
Property, equipment and opening-capital ranges
| Cost category | SureStay new build | SureStay conversion | SureStay Studio new build / conversion |
|---|---|---|---|
| Construction or Renovation Work | $4,675,000–$7,300,000 | $0–$500,000 | $8,250,000–$12,200,000 / $0–$500,000 |
| Furniture, Fixtures and Equipment | $430,000–$590,000 | $0–$375,000 | $660,000–$990,000 / $0–$490,000 |
| Inventory and Operating Equipment | $15,000–$24,000 | $15,000–$24,000 | $30,000–$40,000 |
| Signage | $20,000–$50,000 | $10,000–$50,000 | $20,000–$50,000 / $10,000–$50,000 |
| Computer System | $42,150–$43,550 | $4,150–$43,550 | $46,150–$47,550 / $4,150–$47,550 |
| Additional Funds, three months | $100,000–$150,000 | $100,000–$150,000 | $150,000–$225,000 |
Source: 2026 FDD, Item 7, pp. 29–38. The slash in the last column separates SureStay Studio new construction from SureStay Studio conversion where the ranges differ.
Insurance: $7,500–$13,750 for a 60-room SureStay and $8,750–$15,000 for a 100-room SureStay Studio. Item 7 represents three months of the annual premium.
Organizational Expense: $1,000–$2,000 for accountant and attorney work.
Permits and Licenses: $25,000–$30,000 for either new-build model; $0–$1,000 for either conversion model. The conversion low end assumes the hotel was operating immediately before conversion.
Miscellaneous Preopening and Project Management Expenses: $0–$5,000, including pre-activation salaries and wages, personnel training, sales, administration, technical services, advertising and opening festivities.
Inventory and Operating Equipment: food, beverages, consumables, plates, cups, glasses and uniforms for three months. The official range is already included in the Item 7 total.
Scale: $0 to $225,000. The bars compare the disclosed working-capital ranges, not total project costs.
60-room model
100-room model
Interpretation: SureStay Studio carries a higher disclosed three-month reserve because the Item 7 model assumes 100 rooms rather than 60. Source: 2026 FDD, Item 7, pp. 30–38. Bar positions are proportional display calculations.
Additional Funds cover working capital such as staff salaries and operating expenses for the initial period, but the FDD expressly excludes debt service and lease costs. The Item 7 tables do not separately identify the buyer’s acquisition price for an existing hotel, a land purchase price where applicable, or site-specific financing costs; confirm how those project-specific amounts sit alongside the stated estimates.
When is the money paid?
Cash is committed in stages: application, contract signing, development or renovation, activation, opening and the first three months of operation. The timing is particularly different for a two-year new-build schedule and a 90-day conversion schedule.
Application
Pay the $2,500 Franchise Application Fee. If a Member requests an impact study, pay up to $4,000 before the study is commissioned.
Franchise Agreement
Pay the $35,000 Initial Fee, plus $100 for each guest room over 100. The typical 60-room SureStay and 100-room SureStay Studio models therefore use a $35,000 Initial Fee.
Construction or conversion work
Pay contractors and suppliers as agreed for Construction Work or Renovation Work, Furniture, Fixtures and Equipment, signage, inventory, permits, insurance and the Computer System. The official BWH Hotels development process describes architecture, design, pre-opening and training support, but the FDD controls who bears each cost.
Pre-activation and opening approval
Complete required training, photography, the pre-activation checklist and inspections. A failed checklist can trigger the $2,500 Pre-Activation Re-Inspection Fee plus a free room night. Opening without written authorization can trigger $1,000 per day plus costs.
Activation and first operating period
Fund the three-month Additional Funds range and begin monthly Item 6 payments. A separate $3,000 On-Boarding charge is payable 90 days after activation on the reservation system.
The FDD states that initial training generally lasts three to five days at the Hotel. The franchisee provides accommodations for trainers and pays employee wages, workers’ compensation, and employee travel and living expenses. The official onboarding and training overview describes the support structure; Item 11, pp. 49–51 states the franchisee-paid cost obligations.
Which fees continue after the hotel opens?
The central ongoing charges are a 4% Monthly Royalty Fee and a 4% Monthly Sales and Marketing Fee, each based on Gross Rooms Revenue and paid monthly upon statement receipt. Technology, security, guest-satisfaction, distribution and loyalty-program fees continue separately.
Gross Rooms Revenue (GRR): the Item 6 definition includes revenues from guest-room sale or rental, loyalty-point redemption, breakfast amounts included in room rates, guaranteed no-shows and credit transactions whether collected; it deducts guest-room rebates and overcharges and excludes taxes collected directly from guests. Group booking rebates cannot be deducted.
Automatic debit: the Franchise Agreement permits monthly automatic debits from the Hotel’s bank account for amounts owed.
Marketing-rate flexibility: Item 6 says SureStay, Inc. may change the Monthly Sales and Marketing Fee rate at any time without limitation.
| Continuing fee | 2026 amount or basis | Timing | Cost relationship |
|---|---|---|---|
| Monthly Royalty Fee | 4% of GRR | Monthly | Core royalty |
| Monthly Sales and Marketing Fee | 4% of GRR | Monthly | System marketing, loyalty, technology and administration |
| PMS Support Fee | $3.97 per guest room | Monthly | AutoClerk Atlas PMS; includes $1.45 per room for Canary GMS |
| Best Western Two-Way Interface | $41 | Monthly | Maintenance after approximately $1,500 installation |
| Hotel Managed Security Service | $130 | Monthly | Maintenance after $2,100–$3,500 installation |
| Internet of Things Monthly Fee | $9.99 | Monthly | Paid to AutoClerk after $550 hardware purchase |
| Guest Service Satisfaction Program | $25 | Monthly | Guest-satisfaction survey program |
| OTA Marketing Fund Assessment | $250 | Annual | Online Travel Agency advertising and marketing |
Source: 2026 FDD, Item 6, pp. 18–29; Item 11, pp. 47–49.
Reservation, distribution and loyalty charges
Reservation-channel fees: $7.90 per GDS booking; $4.60 per third-party internet booking; $1.00–$2.00 per third-party partner booking; $3.00 per net room night through the consortia marketing program; and $0.71 per commissionable BestCheque transaction.
Performance Based Marketing: 10% of GRR for each reservation received from a digital opportunity. Commission Junction: 10% of GRR for each reservation associated with a banner.
Distribution Commissions and Travel Agent Commissions: variable pass-through charges based on the applicable distribution or travel-agent arrangement.
Best Western Rewards Fee: 5.5% of PRR for SureStay and 2.75% of PRR for SureStay Studio, with a BWR cost per point issued of $0.0055. Item 6 also contains specified Online Travel Agent enrollment charges, rebates and award credits.
High-speed internet: estimated monthly bandwidth of $400–$3,000 for a 60-room SureStay and $600–$3,000 for a 100-room SureStay Studio, plus guest technical support of $0–$120 or $0–$180 per month, respectively.
The official SureStay brand page describes the standard value-hotel format, while the official SureStay Studio page identifies the extended-stay format and in-room kitchenettes. Those format differences help explain why the Studio Item 7 model uses 100 rooms and higher Inventory and Operating Equipment, Computer System and Additional Funds ranges.
Which costs arise only in certain circumstances?
Item 6 contains numerous event-triggered charges that are not part of ordinary monthly royalty and marketing payments. These can arise from quality failures, ownership changes, added rooms, late payment, unauthorized opening, audit findings or premature termination.
Room Addition Fee: $100 for each added guest room, due with the Room Addition Application.
Transfer costs: $1,000 for a Permitted Transfer requiring consent. A Change of Ownership Transfer costs the then-current Initial Fee; the proposed transferee must also submit an application and pay the then-current Franchise Application Fee.
Quality charges: $1,000 after the annual QA Assessment; $2,500 for the second and each subsequent consecutive Overall Experience threshold default; and $2,500 plus a free room night after a failed post-opening inspection.
Customer Care and First Contact Resolution: specified ticket and complaint charges include a $50 ticket fee on certain contacts, no charge for the first four annual complaints, $100 each for complaints five through ten, $250 each for complaint eleven and above, and $75 per non-response, plus applicable resolution costs.
Financing-document requests: $500 before a Lender Comfort Letter is issued. A public offering or private placement request costs $5,000 plus additional review costs, including reasonable attorneys’ fees.
Rate parity: administrative fees can increase to $4,000 per violation based on the number of annual violations, with possible higher third-party commission costs.
Audit and default: an audit requires payment of the actual understatement plus service charges and interest. If the underpayment exceeds 2% of the reported amount, the franchisee also reimburses examination costs. Default remedies and indemnification are based on actual reimbursable expenses.
Payment default: $50 for each rejected ACH resubmission and an 18% annual percentage Service Charge on overdue payments, plus applicable taxes.
Liquidated damages: post-opening premature termination uses the prior 12 months of Monthly Royalty Fees and Monthly Sales and Marketing Fees, divided by 12 and multiplied by the lesser of 24 or the months remaining in the Term. Unauthorized opening is $1,000 per day plus costs. Pre-opening premature termination is $1,500 per authorized guest room.
Item 17 allows SureStay, Inc. to require upgrades when approving a Change of Ownership Transfer, and says those requirements may include a property improvement plan fee. The FDD does not state a fixed PIP fee or upgrade budget. A resale buyer should obtain the written upgrade scope and fee before relying on the conversion investment range.
Optional service programs
Rate Shopping Service: generally $59–$99 per month, depending on market.
BestREV: variable cost-recovery set-up fee plus $175 per month.
Digital Display Boards: $276–$708 annually for content management, up to three updates per month.
Property Revenue Manager: $1,087 per month for 1–120 rooms, $1,308 for 121–200 rooms, or $1,524 for 201 or more rooms.
SureStay Revenue Manager: $524 per month for 1–120 rooms or $736 for 121 or more rooms.
Property Sales Management: $2,300 per hotel per month, or $2,100 for multi-property owners. Reservation Transfer Service: 3% commission per reservation, capped at three nights; nonparticipants pay $5 per transferred call.
Supply and Studio Design: amount varies with the level of procurement, interior-design and conceptual architectural support.
Does SureStay disclose liquid capital, net worth or financing?
The 2026 FDD does not state a minimum Liquid Capital, Net Worth or Non-Borrowed Funds threshold. Those concepts therefore should not be inferred from the Item 7 Total Investment or Additional Funds range. The absence of a disclosed threshold does not mean that a buyer, lender or SureStay, Inc. will approve any capital structure.
Item 10 states that SureStay, Inc. and its affiliates do not offer direct or indirect financing and do not guarantee a note, lease or obligation. Third-party financing availability depends on creditworthiness, collateral, lender policy and market conditions. A $500 Lender Comfort Letter Processing Fee applies only when the franchisee requests that document; it is not financing approval.
Separate the Total Initial Investment from the buyer’s equity contribution, lender proceeds and property acquisition price.
Obtain the current property improvement plan, construction plans and approved-supplier specifications before fixing the conversion or new-build budget.
Confirm whether existing PMS equipment, high-speed internet, printers, EMV devices, signage, furnishings and permits can be retained.
Model debt service and lease costs separately because Item 7 Additional Funds expressly exclude them.
Request the most recent FDD and quarterly updates before signing. The FTC franchise buying guide explains the 14-calendar-day disclosure period, and the FTC Franchise Rule page identifies the federal disclosure framework.
What should a buyer budget beyond the opening range?
The Franchise Agreement has a 15-year term and automatically renews for successive 15-year terms unless either party gives at least 12 months’ notice of non-renewal. The 2026 FDD does not disclose a separate renewal fee, but continuing Standards, technology, maintenance, photography, certification, quality and transfer obligations can create later capital needs.
Photography refresh: System Hotels must update distribution photographs at least every three years, or sooner if requested, at $1,150–$8,000 plus a room night when needed.
Green Key Global maintenance: $500 every three years after the initial $675 certification cost, according to Item 8.
Computer System changes: the FDD says no contract limits the frequency or cost of required changes, upgrades or updates. SureStay, Inc. or its affiliates may charge reasonable software, maintenance and support fees.
Relocation: Item 12 says SureStay, Inc. will not approve relocation of the Hotel under any circumstances; there is therefore no disclosed relocation-fee pathway.
De-branding after termination or non-renewal: the franchisee must pay outstanding amounts and remove signs, custom decorations, promotional material and other Brand identifiers at its own cost.
The official BWH Hotels corporate page describes SureStay Hotels within the wider BWH Hotels organization. For cost due diligence, the controlling relationships remain the SureStay, Inc. Franchise Agreement, the 2026 FDD and the current Standards.
What is the practical capital takeaway?
A prospective SureStay franchisee should begin with the exact hotel model, not the lowest number visible across the system. The 2026 FDD range is $5,354,975–$8,265,975 for a new 60-room SureStay, $176,975–$1,221,975 for a 60-room conversion, $9,230,225–$13,662,225 for a new 100-room SureStay Studio, and $243,225–$1,433,225 for a 100-room Studio conversion.
The Initial Fee is $35,000, but it is only one part of the capital requirement. Construction or Renovation Work, Furniture, Fixtures and Equipment, the Computer System, signage and the existing property’s condition drive the range. After opening, the core recurring percentage charges total 4% of GRR for the Monthly Royalty Fee plus 4% of GRR for the Monthly Sales and Marketing Fee, before technology, distribution, loyalty and conditional charges.
The largest unresolved buyer-specific questions are the written property improvement plan, the treatment of existing hotel assets, land or acquisition cost, local project pricing, debt service, lease cost and the buyer’s lender-required equity. None should be replaced with an average or midpoint of the Item 7 ranges.