How Much Does a SpringHill Suites Franchise Owner Make?

Using 2025 Item 19 performance as the revenue anchor, a reasonable analytical range is approximately $510,000 to $1.05 million per mature 100-suite hotel per year for a manager-run property. This is a scenario range, not a franchisor-reported result. The base case is about $760,000, but it should not be interpreted as the most likely outcome because the FDD does not disclose the property expense distribution needed to estimate probability.

The model first converts the FDD’s 2025 average RevPAR into annual room revenue: $107.34 × 365 days × 100 suites = $3,917,910. Because Item 19 provides one central average rather than a revenue distribution suitable for profit modeling, the Conservative and Upside revenue cases use 80% and 120% of that amount. The model then applies a 16.39%, 19.39%, and 22.39% operating-margin sensitivity around the January 2026 NYU Stern Hotel/Gaming benchmark.

• Revenue: room revenue only; ancillary hotel revenue and its related costs are not modeled separately.
• Operating earnings: after normal hotel-level operating costs and disclosed recurring franchise fees, but before interest, financing principal, personal taxes, and major capital expenditures.
• Depreciation: the selected pre-tax unadjusted operating-margin proxy is an EBIT-style measure, so depreciation is treated as an expense. The result is not EBITDA or property cash flow.
• Management and owner pay: manager-run scenarios assume normal general-manager compensation is included in operating expenses. Owner salary, draws, distributions, and personal taxes are not modeled as separate take-home amounts.
• Margin spread: the benchmark minus 3 percentage points, the benchmark, and the benchmark plus 3 percentage points; this spread is editorial, not FDD-reported.
• Maturity: the revenue anchor comes from franchised hotels open at least two years and satisfying Item 19’s renovation and expansion conditions.

The official 2026 FDD reports 2025 hotel operating-performance indicators, not owner earnings. For 508 STR Included Hotels, average ADR was $150.69, average occupancy was 71.2%, average RevPAR was $107.34, and average RevPAR Index was 112.7. The applicable population was franchised SpringHill Suites hotels open at least two years and meeting defined renovation and expansion conditions.

The disclosure combines qualifying hotels in the United States and Canada and converts Canadian results to U.S. dollars. It is therefore not a U.S.-only performance table. Item 20 reports 566 franchised hotels and 13 company-owned, managed, or leased hotels at the end of 2025 across the same U.S.–Canada system, while Item 19’s STR cohort is narrower because it applies maturity and condition screens.

ADR

Gross room sales divided by guestrooms sold. It measures realized room price, not profit.

Occupancy

Guestrooms sold divided by guestrooms available. It measures room utilization, not margin.

RevPAR

Gross room sales divided by available guestrooms. It combines room rate and occupancy and is the revenue anchor used here.

RevPAR Index

A hotel’s RevPAR relative to its competitive set. An index above 100 indicates more than fair-share RevPAR, but it still does not reveal expenses or owner distributions.

For the modeled 2025 room-revenue base case for a 100-suite hotel, the FDD’s core franchise fee and Program Services Contribution equal approximately $398,000 per year, or 10.17% of modeled room revenue after adding the fixed per-property and per-suite amounts. A simplified loyalty-program charge adds about $42,000, producing a combined analytical amount near $441,000, or 11.25% of modeled room revenue.

These amounts are not the hotel’s total operating costs. They exclude payroll, benefits, property costs, utilities, insurance, supplies, repairs, management-company charges, transaction-dependent fees, optional programs, penalties, and capital expenditures. They are shown to explain the franchise-fee scale and are not deducted again from the scenario earnings, because the scenario margins are defined as all-in operating margins after ordinary operating costs and recurring brand fees.

The loyalty estimate uses Item 19’s 63.7% average Marriott Bonvoy contribution to room-night revenue and the Item 6 rate reduced to 1.7% through December 2027. It excludes event charges, nonqualifying revenue, additional discounts and amenities, and other program mechanics. It is a derived approximation, not a fee forecast for a particular hotel.

Under the 2026 FDD operating requirements, active owner operation may increase economic benefit only when the owner is qualified, approved, and actually replaces paid management labor. The FDD requires the hotel to be operated by the franchisee or an approved management company and requires a trained general manager to supervise the property full time. If Marriott determines the owner is not qualified, the owner must retain a management company.

The U.S. Bureau of Labor Statistics reports a May 2024 median wage of $66,880 for lodging managers in traveler accommodation. Adding that amount to the manager-run scenarios produces an estimated owner-operator benefit of roughly $580,000 to $1.12 million. The added amount is compensation for labor performed by the owner; it is not passive business profit, and it may not equal the full cost of a general manager or third-party management agreement in a specific market.

At the FDD’s $107.34 average RevPAR, annual modeled room revenue ranges from about $3.13 million for 80 suites to $5.88 million for 150 suites. These figures are derived room-revenue capacities, not reported Average Unit Volume and not owner earnings. Larger properties also carry more payroll, utilities, maintenance, supplies, insurance exposure, and capital requirements, so earnings do not scale automatically in direct proportion to suite count.

Formula: suite count × 365 available days × $107.34 RevPAR. Item 7 identifies different prototypical investment ranges for 80–110 suites and 120–150 suites; startup investment is not treated as an annual operating expense in this earnings model.

For this 2025 mature-hotel scenario, the largest unresolved uncertainty is the absence of a SpringHill Suites franchisee expense or profit distribution. The strongest verification is property-level evidence: written Item 19 substantiation, actual operating statements for comparable hotels, management agreements, capital plans, and interviews with current and former franchisees listed in Item 20.

• Local RevPAR: obtain competitive-set ADR, occupancy, RevPAR, seasonality, and demand-generator evidence for the proposed market.
• Comparable property P&Ls: ask for payroll, benefits, utilities, insurance, property taxes, supplies, maintenance, sales, and administrative expense ratios for similar suite counts and ages.
• Management structure: confirm the general-manager compensation, management-company fee, incentive fee, shared-services allocations, and whether the proposed owner is approved to operate.
• Brand charges: reconcile Item 6 percentage fees, fixed per-suite charges, loyalty charges, transaction-based fees, required programs, and local marketing obligations against the property budget.
• Capital requirements: separate recurring operating earnings from furniture, fixtures and equipment reserves, renovations, Property Improvement Plans, and other major capital expenditures.
• Debt service: model interest and principal separately using the actual loan amount, rate, amortization, covenants, and required reserves. This article assumes no financing structure.
• Cohort fit: determine whether the proposed property resembles the mature Item 19 cohort by market type, age, suite count, renovation history, and operating model.
• Franchisee interviews: ask owners for revenue, operating profit, cash distributions, owner labor, management fees, debt burden, and the reasons actual results differed from their original underwriting.

Anchored to 2025 Item 19 data, the strongest defensible range is an independent manager-run scenario of approximately $510,000 to $1.05 million per mature 100-suite hotel per year, before interest, debt principal, personal taxes, and major capital expenditures. It is not an official owner-earnings disclosure. An approved owner who personally replaces paid general-management labor may have an estimated owner-operator benefit of roughly $580,000 to $1.12 million, but the added amount compensates the owner for work.

The most important earnings driver is property-level RevPAR relative to the hotel’s fixed and semi-fixed cost structure. The largest uncertainty is that Item 19 does not disclose franchisee operating expenses or profits and uses a combined U.S.–Canada mature-hotel cohort. A buyer should verify the Item 19 substantiation, compare actual hotel P&Ls, reconcile every management and franchise charge, and interview multiple current and former franchisees before treating any point in the scenario range as investable underwriting.