How Much Does a TownePlace Suites Franchise Cost?

A newly constructed, prototypical TownePlace Suites by Marriott hotel has a disclosed initial investment of $13,054,800 to $29,913,500 for an 80–110-suite hotel, or $18,747,400 to $38,493,400 for a 120–150-suite hotel. Those are the ranges on the cover of the 2026 U.S. Franchise Disclosure Document issued by MIF, L.L.C. on March 31, 2026.

Capital snapshot

The figures below keep Total Initial Investment, Initial Franchise Application Fee and continuing fees separate. They are different obligations with different payment bases.

How should the disclosed range be read?

The low and high endpoints are boundaries for two room-count bands, not a forecast for one specific property. Selecting a midpoint would conceal the way the disclosure is constructed. Some entries are fixed amounts, some are ranges, some are quoted per room, and several major obligations have no stated amount. The lower endpoint therefore should not be treated as the minimum cash a lender or developer will require.

The room count has to remain compatible with the applicable rates. A smaller property cannot use the lower per-room construction rate disclosed for the larger band merely because that rate appears cheaper, and a larger property cannot use the smaller band’s room count to reduce the total. Fixed charges should not be multiplied by room count unless the table expressly states a per-room basis.

The practical reading is sequential: establish the approved format and final room count; calculate the disclosed categories on their stated basis; preserve every “varies” or “not determinable” entry as an open requirement; then add documented project-specific bids for the excluded obligations. This method keeps the official range intact while showing why the final capital stack can exceed it without contradicting the disclosure.

Item 7 includes the application fee, pre-opening services, hotel systems, feasibility work, construction, furnishings, equipment, technology infrastructure, operating supplies, professional design, start-up costs, opening advertising and three months of Additional Funds. It does not put a dollar amount on the site, specified local government charges, insurance or the 5% hard-cost contingency.

Site, building and furnishing obligations

Construction is the dominant disclosed category and is stated per guestroom. The estimates assume a typical suburban prototype, on-grade parking and ordinary site conditions. Urban projects, structured parking, unusual foundations, labor shortages, custom design and larger room counts can move costs outside the range.

Source: 2026 FDD Item 7, pp. 57–62. Marriott’s broader hotel development formats include new builds, conversions, adaptive reuse, mixed-use and dual-branded projects, but the TownePlace Suites Item 7 totals above apply only to the specified new-build suburban prototypes.

Systems, supplies and launch capital

These entries combine payments to MIF, L.L.C., Marriott affiliates, approved vendors, consultants, suppliers and employees. Item 5 provides detail about several payments represented in Item 7; those cross-referenced amounts should not automatically be added again.

Source: 2026 FDD Item 7, pp. 57–62, with payment detail from Item 5, pp. 24–29.

A transaction budget should retain the disclosure’s payment basis instead of flattening every entry into one undifferentiated total. Per-room amounts need a confirmed key count; fixed amounts remain fixed unless a separate condition changes them; and vendor ranges require actual proposals for the chosen design and equipment package. An open line should remain visible when the document says an amount cannot be determined. Entering zero would make the schedule look complete while omitting a real funding obligation.

Cross-references also require care. The initial-fee section explains who receives certain payments and when they are due, while the investment table places those payments within the overall opening estimate. The same service may therefore be described in more than one place without becoming two separate expenditures. A useful sources-and-uses schedule should assign each payment one row, identify the payee and due date, and note the disclosure reference that controls it.

Vendor contracts will determine deposits, progress draws, retainage, cancellation rights and final payment dates. Those commercial terms are not standardized by the disclosed range. They should be documented separately rather than inferred from the low or high endpoint, particularly for construction, furnishings, technology installation and opening inventory.

The cash requirement is staged from application through construction, opening authorization and the first three months of operation. The 2026 FDD does not state that the full Item 7 range is paid to Marriott at signing; most construction and property costs are paid to third parties under project contracts.

The FDD cover states that the prospective franchisee must receive the disclosure document at least 14 calendar days before signing a binding agreement or making a payment to the franchisor or an affiliate. The FTC Franchise Rule Compliance Guide provides the federal disclosure framework; applicable state law can add requirements.

Source: 2026 FDD Items 5 and 7, pp. 24–29 and 57–62; development timetable in Item 11, p. 74.

The two Item 7 ranges are only for new-build suburban prototypes. A conversion, transfer, acquisition, dual-brand project or residential component can create a different application fee, Property Improvement Plan, transition training, design review and renovation obligation. The 2026 FDD states that it cannot provide a meaningful conversion or acquisition cost estimate.

• Conversion or transfer PIP.A Property Improvement Plan costs $12,000 when requested. A pre-expiration revision is $5,000; a PIP that is 12 months past issuance costs $6,000 to refresh, and one 24 months past issuance costs $12,000 to reissue.
• Existing-hotel transition support.Support and training are estimated at $1,800–$15,000 for an existing TownePlace Suites purchase or a Marriott-managed-to-franchised conversion, and $35,000–$75,000 for other conversions, excluding attendee and Marriott personnel travel.
• New operator training.FITM-R is currently $60,000 at Franchise Agreement execution when Marriott determines additional training is required for an open hotel; API is currently $20,000 at execution for a qualified operator unfamiliar with Marriott systems.
• Extension after the applicable automatic process.A construction or conversion extension request can cost $10,000. The amount is refundable if the extension is denied.
• Custom or non-prototype design.Custom Design & Construction Review is $20,000. Screening a non-recommended interior designer is $2,500 per firm, with a further $25,000 charge for a new hotel or $15,000 for a renovation when the disclosed conditions apply.
• Residential, condominium or multi-family component.A separate Item 6 schedule applies, including a 4% Residential Marketing License Fee on gross unit sale price for residential or condominium units, or 3%–4% of gross monthly rentals for a multi-family component, plus specified annual per-unit, audit and review charges.

The two principal monthly charges with the same disclosed denominator are the 5.5% Franchise Fees and the 3.35% Program Services Contribution, both based on gross room sales. The Program Services Contribution also carries $7,000 per year and $135 per guestroom per year and includes a Marketing Fund contribution equal to 2% of gross room sales.

Source: 2026 FDD Item 6, pp. 30–56. “Gross room sales” is defined in Item 6 and is not reduced for chargebacks, credit-card service charges or uncollectible amounts; specified taxes are excluded. Percentage fees should not be converted into an annual dollar amount without hotel-specific sales data.

The continuing schedule is easier to manage when it is separated into three buckets. First are charges that recur because the hotel remains in the system, including percentage and fixed annual obligations. Second are usage-based charges that change with rooms, devices, calls, transactions, bookings or selected services. Third are event-triggered charges that arise only after a transfer, compliance issue, renovation, expansion, closure or other specified event.

This separation matters because an “optional” program is not always permanently optional. The disclosure allows some services to become mandatory for a new operator, an uncertified manager, a property in a remedial program or a participant in designated training. Conversely, a conditional amount should not be treated as a normal monthly charge when the triggering circumstance has not occurred. The operating model should record the trigger and responsible payee rather than force every possible charge into one annual estimate.

Fixed annual and per-room amounts also behave differently from percentage charges. They may continue regardless of the level of the percentage base, while room and device charges change as inventory or required technology changes. The schedule should therefore retain the original unit—per year, per room, per device, per transaction or on demand—so that future updates can be applied without changing the meaning of the disclosure.

Which post-opening events can create large extra charges?

Item 6 contains many on-demand charges. The following are material cost triggers rather than normal monthly estimates.

• Transfer.The fee is the greater of $150,000 or $500 per guestroom, due with the application. A denied application is refundable less $10,000, and outside counsel costs may also apply.
• Quality-assurance Red Zone.$25–$100 per guestroom in a six-month tracking period, capped at $50,000 per period, plus $2,500 for each required meeting and possible remedial-program expenses.
• PIP or renovation delay.Relicensing PIP delay can cost 1% of gross room sales for each delayed month; each additional PIP or renovation re-evaluation is $10,000.
• Default termination.For a hotel open at least two years, liquidated damages equal average monthly Franchise Fees and Program Services Contributions multiplied by the lesser of 36 or the remaining months in the term. For an unopened hotel or one open less than two years, the multiplier is 36 times the greater of the hotel or system average monthly fees. A $12,000 system-removal fee and other amounts due can also apply.
• Late payment or underreporting.Interest is the lesser of 18% per year or the maximum lawful rate. If an audit finds an underpayment of 5% or more, the franchisee must reimburse audit costs.
• System and standards changes.New or changed reservation, security, sales, marketing, technology and training systems can carry implementation, license, maintenance and support charges not covered by the Program Services Contribution.

The 2026 TownePlace Suites FDD does not publish a fixed U.S. liquid-capital or net-worth threshold. MIF, L.L.C. reviews the applicant’s financial information, ownership structure, the hotel and the real property, then determines guaranty requirements. Principals may be required to guarantee the franchisee’s obligations; an entity guarantor is accepted only in limited cases after review of net worth, liquidity, credit and operating history, and hotel debt structure.

The absence of a published minimum does not mean that capitalization is untested. It means the review is project-specific. The applicant may need to demonstrate the ability to fund equity, excluded development items, lender reserves, opening obligations and possible overruns while also satisfying the proposed debt structure. A lender can impose requirements that are separate from, and potentially more restrictive than, the franchisor’s approval process.

For that reason, the financial package should distinguish cash available at closing, assets that support overall credit strength, committed third-party financing and contingent resources that are not yet approved. Combining those categories into one “net worth” figure would obscure whether the project can meet payments as they become due.

• Liquid Capital.No numeric minimum is disclosed in the FDD. Liquidity is one factor in evaluating a proposed guarantor; it is not the same as total net worth.
• Net Worth.No numeric minimum is disclosed. Marriott’s official franchisee guidance says applicants should have appropriate real-estate net worth but does not state a dollar threshold.
• Personal or entity guaranty.The guaranty decision is made after financial and ownership review. It is a contractual credit-support obligation, not a line item inside Item 7.
• Financing.Item 10 states that Marriott generally does not provide direct or indirect financing and does not guarantee the franchisee’s loans or other obligations.
• Limited discretionary support.In very limited circumstances, Marriott may offer a contingent guaranty of part of a third-party loan or make a mezzanine loan. Terms are not standardized, approval is not promised, and possible terms include interest, guaranty fees, security interests and personal guaranties.

Source: 2026 FDD Item 10, p. 72, and Item 15, pp. 98–99 in the official public copy.

A new-build Franchise Agreement typically ends on the 20th anniversary after opening authorization, and the 2026 FDD says the agreement is not renewable. Marriott may decide to enter into a new agreement after expiration, but it can use its then-current form, fees and duration. A buyer should therefore avoid treating “renewal” as a known fixed fee.

A transfer is more concrete: the transferee must apply, pay the then-current application fee, meet current qualifications, retain qualified management, sign a new Franchise Agreement, complete required upgrades and satisfy the PIP. The transfer fee is the greater of $150,000 or $500 per guestroom, and legal costs can be additional. Item 17, pp. 103–107, explains the agreement events; Item 6, pp. 44–45, states the related fee amounts.

The decisive work is to convert the FDD’s two prototype ranges into a transaction-specific sources-and-uses schedule without altering the official categories. The checklist below focuses on the amounts that Item 7 leaves undetermined or that change with the transaction.

• Confirm the controlling FDD and amendments.Match the legal franchisor, issuance date, room band and state addenda. Ask for written clarification of the cover-versus-p. 58 total discrepancy.
• Lock the official project format.Determine whether the transaction is a prototypical new build, custom design, conversion, acquisition, dual brand, adaptive reuse or mixed-use/residential project. Only the first path receives the two Item 7 prototype ranges.
• Price the excluded site obligations.Obtain project-specific evidence for real estate, permit/tap/impact fees, insurance, financing costs, taxes, licenses, operating leases and the recommended hard-cost contingency.
• Separate per-room and fixed estimates.Apply the correct room count to per-room construction, FF&E, equipment, start-up and Additional Funds entries. Do not mix the low count from one room band with the high rate from another.
• Map Item 5 payments to Item 7.Identify which pre-opening, training, system and service charges are already represented in Item 7 and which conditional programs apply to the operator, avoiding double counting.
• Document recurring fee denominators.Keep gross room sales, qualifying loyalty revenue, event revenue, per-room charges, per-device charges and vendor commissions separate.
• Test transfer and PIP exposure.For an existing hotel, obtain the actual PIP, transition scope, renovation schedule, outside counsel estimate and current application-fee calculation before using any new-build comparison.
• Confirm financing and guaranties.Separate lender equity and reserve requirements from Marriott’s project review. A contingent guaranty or mezzanine loan is discretionary and should not be assumed in the capital stack.

Bottom line: the verified 2026 capital range is $13,054,800–$29,913,500 for an 80–110-suite new build and $18,747,400–$38,493,400 for a 120–150-suite new build. The largest unresolved amounts are real estate, local development charges, insurance and contingency; conversions and existing hotels require a separate PIP-based analysis. After opening, the 5.5% Franchise Fees and 3.35% Program Services Contribution are the central common-basis percentages, while fixed annual, technology, loyalty, program and event-triggered charges continue under Item 6.