This is a manager-run, pre-tax operating owner-earnings scenario range for a U.S. Days Inn & Suites-format hotel. The 2026 Franchise Disclosure Document reports 2025 room-rate, occupancy and RevPAR data, but it does not report hotel profit, owner compensation or cash flow.
This range is an independent analytical scenario, not an Item 19 financial performance representation by Days Inns Worldwide, Inc. It combines identified 2026 FDD facts with a U.S. Census Bureau lodging-expense benchmark and explicit modeling assumptions. Actual results can differ materially because of location, room count, format, Average Daily Room Rate, occupancy, labor, property costs, insurance, utilities, channel mix, financing, owner involvement and execution.
Legal franchisor: Days Inns Worldwide, Inc. FDD: issued March 31, 2026. Item 19: 2025 U.S. franchised Chain Facilities; it reports Average Daily Room Rate, Occupancy Rate, RevPAR and reservation contribution, not total revenue or earnings. Format caveat: Days Inn & Suites is an authorized Chain Facility format, but Item 19 does not publish a separate Days Inn & Suites cohort. External benchmark: 2022 Service Annual Survey, NAICS 72111, employer firms. Confidence is LIMITED because the margin is a broad firm-level hotel-industry proxy rather than a Days Inn & Suites property-level result.
Median 2025 RevPAR
Qualified U.S. Chain Facilities; 498-property sample.
Core percentage fees
5.5% royalty plus 3.8% System Assessment, both based on Gross Room Revenue.
U.S. franchised outlets
System count at December 31, 2025; no company-owned Days Inn outlets.
Industry residual margin
2022 Census revenue less operating expenses for NAICS 72111 employer firms.
Manager labor proxy
May 2024 BLS median wage for lodging managers in traveler accommodation.
How much may a Days Inn & Suites owner earn each year?
For the modeled 89-room U.S. facility, the independent estimate is $361,000 to $642,000 in annual pre-tax owner earnings under a manager-run structure, with a base scenario of approximately $493,000. These are scenario results for a mature operating year, not official franchisor earnings figures and not a prediction for a particular property.
The range starts with the FDD's $43.06 median RevPAR for 2025 Qualified Chain Facilities. Because Item 19 provides no lower or upper distribution, the revenue cases use 80%, 100% and 120% of that median as explicit analytical assumptions. The 89-room room count comes from the FDD's new-construction investment example; an actual Days Inn & Suites may have a different room count and operating profile.
| Scenario | Modeled gross room revenue | Manager-run owner earnings | Owner-operator benefit |
|---|---|---|---|
| Conservative | $1,119,000 | $361,000 | $428,000 |
| Base | $1,399,000 | $493,000 | $560,000 |
| Upside | $1,679,000 | $642,000 | $709,000 |
Manager-run annual owner-earnings scenarios
Estimated pre-tax residual per 89-room facility, before financing interest, financing principal and personal income taxes.
Interpretation: The $281,000 spread is driven jointly by assumed RevPAR variation and a six-percentage-point margin sensitivity band; it is not an FDD-reported earnings distribution.
Source: 2026 Days Inn Franchise Disclosure Document, Item 19, pp. 88–91; Item 7, pp. 47–54; U.S. Census Bureau, 2022 Service Annual Survey tables. Calculations rounded to the nearest $1,000.
What does the Days Inn Item 19 actually measure?
Item 19 officially measures Average Daily Room Rate, Occupancy Rate and RevPAR for 2025 U.S. franchised Chain Facilities; it does not measure annual owner earnings. The main Qualified Chain Facilities sample includes 498 of the 1,201 U.S. properties at year-end, while the DAWN Group contains 158 properties that completed the specified design improvements by December 31, 2024.
Qualified facilities had to open before January 1, 2025, satisfy the quality-assurance condition and achieve the defined Comparable Social Review Score. The disclosure excluded facilities that were in the system on January 1, 2025 but left by year-end. Seventy-three facilities left the system during 2025, so the Item 19 sample is not an all-outlet survival-neutral population.
| Official 2025 cohort | Facilities | Median RevPAR | Average RevPAR |
|---|---|---|---|
| Qualified Chain Facilities | 498 | $43.06 | $46.86 |
| DAWN Group | 158 | $45.29 | $48.68 |
The Qualified cohort's average ADR was $89.33 and average occupancy was 52.5%; its medians were $83.07 and 52.6%. The FDD states that 211 of 498 properties, or 42.4%, met or exceeded the average RevPAR. Source: 2026 Days Inn Franchise Disclosure Document, Item 19, pp. 88–90.
RevPAR is gross room revenue per available room. It excludes the rest of the income statement: payroll, housekeeping supplies, utilities, insurance, property taxes, repairs, management expense, franchise fees, channel commissions, financing and capital needs. Multiplying RevPAR by rooms and days estimates room revenue, not take-home pay.
How does active owner involvement change the estimate?
The FDD officially permits an owner not to manage the hotel personally, but a non-managing owner must use an experienced individual manager or management company. In the independent scenarios, replacing a paid lodging manager adds about $66,880 of labor value, producing an estimated owner-operator benefit of $428,000 to $709,000.
This added amount is not passive business profit. It represents the May 2024 median wage for lodging managers in traveler accommodation, used as a labor-value proxy. The owner-operator benefit combines residual business earnings with compensation for work that may involve evenings, weekends, holidays and on-call responsibility. The FDD also reserves the right to require an approved third-party manager in specified circumstances.
Manager-run residual versus owner-operator benefit
The teal increment is the $66,880 lodging-manager labor proxy, not additional passive profit.
Interpretation: Active ownership can increase the owner's economic benefit only when the owner genuinely replaces a compensated manager and can satisfy the franchisor's management requirements.
Source: 2026 Days Inn Franchise Disclosure Document, Item 15, pp. 80–81; U.S. Bureau of Labor Statistics, Lodging Managers, May 2024 wages.
How is the owner-earnings estimate calculated?
The estimate is derived by converting official 2025 median RevPAR into annual room revenue and then applying a separately sourced lodging-industry residual margin. It is a Mode C scenario because the FDD supplies a revenue-performance anchor but no compatible hotel profit or owner-compensation figure.
- Revenue spread: Conservative and Upside use 80% and 120% of the FDD median RevPAR. This spread is editorial, not disclosed by the franchisor.
- Margin spread: The scenarios use 32.25%, 35.25% and 38.25%—the Census residual margin minus three percentage points, unchanged, and plus three percentage points.
- Fee treatment: The 5.5% royalty and 3.8% System Assessment are official FDD facts. They are not subtracted again because the Census benchmark is an all-in operating-expense measure; a second deduction could double count. Variable reservation, loyalty and channel charges still require property-level verification.
- Debt and taxes: Financing interest, financing principal and personal income taxes are excluded. The Census survey explicitly excludes interest from operating expenses, so this is an operating-earnings scenario before debt service, not after-debt cash flow or after-tax take-home pay.
- Capital and accounting: The Census expense framework includes depreciation and amortization in its selected-expense structure, so the residual is not EBITDA. It excludes capitalized expenses and cost of goods sold; no separate FF&E reserve, capital-expenditure schedule or merchandise cost is modeled.
- Other revenue: Food, beverage, ancillary and other hotel revenue are omitted because Item 19 reports gross room revenue measures, not total property revenue.
The margin benchmark covers U.S. employer firms in NAICS 72111 and is reported at the firm level, not the Days Inn & Suites property level. It can include different hotel classes, service levels, ownership structures and portfolios. The 2022 benchmark is useful for a disciplined scenario, but it cannot replace a comparable hotel's trailing twelve-month profit-and-loss statement.
Which variables can move actual owner earnings the most?
The largest uncertainty is the absence of a Days Inn & Suites-specific profit cohort. The official 2025 sample combines eligible Days Inn Chain Facilities, and the external margin applies across the broader U.S. hotels-and-motels industry. Therefore, market-specific occupancy, ADR and operating costs can move actual earnings well outside the modeled range.
- Room count and RevPAR
- Every $1 change in annual RevPAR changes modeled room revenue by about $32,485 for an 89-room property before expenses.
- Labor and management
- A paid general manager is a normal operating cost in the manager-run case. An owner's labor only creates additional benefit when it replaces that role rather than duplicating it.
- Franchise and distribution burden
- The FDD's 9.3% core Gross Room Revenue charge is only the starting point. Loyalty charges, agency commissions, digital pay-for-performance fees, Wyndham Connect Plus and reservation fees depend on transaction mix.
- Property-level fixed costs
- Real estate taxes, insurance, utilities, repairs, security, breakfast, pool or fitness-center costs and required improvements vary materially by site and facility condition.
- Debt service and capital needs
- Loan interest, principal, renovation obligations and FF&E reserves can substantially reduce cash distributions even when operating results are positive.
- Cohort selection
- Item 19 excludes facilities that left the system during 2025 and requires quality and review-score conditions for the Qualified cohort; those filters matter when comparing a target property.
What should a buyer verify before relying on this range?
A buyer should treat the range as a screening model and replace every broad assumption with comparable-property evidence. The Federal Trade Commission explains that gross sales do not show profit and recommends reviewing Item 19 limitations, written substantiation and current and former franchisee experience.
- Request the franchisor's written substantiation for the 2025 Item 19 representations and identify properties comparable by market, room count, corridor type, suite mix, age, renovation status and operating model.
- Ask existing Days Inn & Suites franchisees for trailing twelve-month room revenue, occupancy, ADR, RevPAR, payroll, manager compensation, utilities, insurance, taxes, repairs, franchise fees and channel charges.
- Reconcile the monthly franchise statements to the 5.5% royalty, 3.8% System Assessment, loyalty fees, reservation charges and every channel-specific commission.
- Separate business profit from owner salary, owner draw, distributions and retained cash. Record the owner's actual weekly hours and duties.
- Model financing interest and principal separately, together with required property improvements, replacement reserves and near-term capital expenditures.
- Review Item 20 contacts and system movement: U.S. franchisedoutlets declined from 1,235 at the start of 2025 to 1,201 at year-end, while 51 outlets transferred to new owners during 2025.
What is the strongest defensible earnings answer?
The strongest defensible estimate is $361,000 to $642,000 in annual pre-tax manager-run owner earnings for the modeled 89-room facility, with a $493,000 base scenario. It is scenario-based, not an official Item 19 profit disclosure. An actively managing owner who truly replaces a paid lodging manager could have an estimated owner-operator benefit of $428,000 to $709,000, but approximately $66,880 of that amount represents labor value rather than passive profit.
The most important driver is RevPAR multiplied across the available room inventory; the largest unresolved uncertainty is the property's actual all-in operating margin after franchise, distribution, labor, occupancy and property costs. Before making a decision, a buyer should verify the Item 19 substantiation, obtain a comparable Days Inn & Suites profit-and-loss statement, reconcile all Item 6 charges and test the assumptions through current and former franchisee interviews.