A mature, manager-run Staybridge Suites hotel with 130 suites may generate approximately $998,000 to $1.863 million in annual pre-tax owner earnings, with a base scenario near $1.400 million. This is an independent estimate based on 2025 U.S. RevPAR disclosed in the 2026 Franchise Disclosure Document and a separately sourced rooms-focused hotel margin proxy. It is before financing interest, financing principal, owner-level overhead and personal income taxes.
What does the 2026 Staybridge Suites FDD actually measure?
The official disclosure measures room performance, not owner earnings. Item 19 reports 2025 occupancy, Average Daily Room Rate (ADR), Revenue Per Available Room (RevPAR), Enterprise Contribution and IHG One Rewards metrics for 229 Mature Hotels in the United States. It does not report total hotel revenue, operating expenses, property-level profit, EBITDA, cash flow, owner distributions or owner salary.
A “Mature Hotel” had been open for at least two full years by December 31, 2025, had less than 10% of rooms out of order, was licensed or owned/managed by the franchisor or an affiliate, and was not in default. That definition excludes younger, substantially disrupted and defaulting hotels, so the sample should not be treated as the full start-up experience. Source: 2026 Staybridge Suites FDD, Item 19, pp. 85–89.
| Official 2025 metric | Average | Median | Disclosed range |
|---|---|---|---|
| Occupancy Rate | 77.5% | 77.6% | 54.3%–96.7% |
| Average Daily Room Rate | $138.49 | $133.14 | $100.34–$286.01 |
| Revenue Per Available Room | $107.29 | $103.00 | $61.25–$246.32 |
| Enterprise Contribution | 92.8% | 94.2% | 66.6%–99.3% |
Of the 229 Mature Hotels, 101, or 44.1%, exceeded the average RevPAR of $107.29. Item 20 reports 297 licensed U.S. outlets at year-end 2025 and no company-owned outlets. The FDD also states that the Item 19 data were largely submitted by licensees and hotel managers and were not independently audited or verified. Source: 2026 Staybridge Suites FDD, Item 19, pp. 85–89; Item 20, pp. 89–96.
Fiscal 2025 average for 229 Mature Hotels; revenue productivity, not profit.
The Item 19 population out of 297 licensed U.S. hotels at year-end 2025.
Comparable-portfolio Adjusted Hotel EBITDA margin less its 2025 capital spending ratio.
5.5% royalty plus 2.5% Services Contribution; not the all-in fee burden.
BLS 2024 median pay for lodging managers; not Staybridge-specific compensation.
How is the annual owner-earnings range calculated?
The estimate applies transparent revenue and margin sensitivities to a typical 130-suite hotel. The central room-revenue anchor is official FDD RevPAR; the operating-margin bridge is derived from a different rooms-focused U.S. hotel portfolio. Conservative and Upside values are analytical scenarios, not probabilities or FDD quartiles.
- Central room revenue: $107.29 average RevPAR × 130 suites × 365 days = $5,090,911. The 130-suite format comes from Item 7’s typical four-story hotel, not the average size of the Item 19 sample.
- Revenue sensitivity: Conservative, Base and Upside use 80%, 100% and 120% of central modeled room revenue: $4.073 million, $5.091 million and $6.109 million. The spread is editorial and not reported by the franchisor.
- Cash-margin proxy: Apple Hospitality REIT reported a 33.739% 2025 Adjusted Hotel EBITDA margin. Subtracting its 6.245% capital spending-to-revenue ratio produces a 27.494% after-reserve proxy.
- Margin sensitivity: The model uses 24.494%, 27.494% and 30.494%, or three percentage points below, at and above the proxy.
- Definition: Estimated pre-tax owner earnings are after normal property operating expenses, benchmark management and franchise fees, and a capital reserve proxy; they exclude financing interest, financing principal, depreciation, owner-level overhead and personal income taxes.
How do the three annual owner-earnings scenarios compare?
The modeled range is approximately $998,000 to $1.863 million, with a $1.400 million central case.
Interpretation: Revenue and margin move together in this sensitivity analysis, so it is deliberately wider than changing either input alone. The Base case is a midpoint for analysis, not a forecast of the most likely result.
Sources: 2026 Staybridge Suites FDD, Item 7, pp. 47–54 and Item 19, pp. 85–89; Apple Hospitality REIT 2025 Annual Report on Form 10-K. Calculations use full-precision inputs and display rounded annual values.
What happens between hotel revenue and owner cash?
The central model retains about 27.5 cents of each revenue dollar after comparable property operating costs and a capital-spending reserve. This is a derived benchmark, not a Staybridge Suites margin. It is used because the Staybridge Suites Item 19 does not disclose expenses or profit.
How is the 27.5% cash-margin proxy constructed?
The comparable portfolio’s revenue reconciles to hotel operating costs, Adjusted Hotel EBITDA and capital spending.
Interpretation: Apple Hospitality REIT reported $1.412 billion of 2025 total revenue and $476.525 million of Adjusted Hotel EBITDA, a 33.739% margin. Its $88.2 million of 2025 capital improvements equaled 6.245% of revenue, leaving the 27.494% analytical cash proxy.
Source and limitation: Apple Hospitality REIT’s 2025 Form 10-K. The portfolio contained 217 U.S. hotels and 29,583 rooms, mostly Marriott and Hilton brands, including several extended-stay formats. It is not Staybridge Suites data. Its Adjusted Hotel EBITDA includes hotel operating, administrative, sales and marketing, utility, repair, franchise, management, property tax and insurance expenses, but excludes corporate general and administrative expense, interest, taxes, depreciation and capital spending.
How does owner involvement change the result?
Owner involvement changes compensation only when the owner performs work that would otherwise be paid to a qualified manager. Item 15 requires the licensee to retain direct management control but does not require personal day-to-day operation. Holiday may require an approved management company, General Manager or Director of Sales, and a multi-hotel owner may need a separate qualified General Manager for each hotel. Source: 2026 Staybridge Suites FDD, Item 15, pp. 80–82.
If Holiday approves the owner to replace a paid General Manager, the economic result should be labeled estimated owner-operator benefit, not pure business profit. The labor component compensates the owner for operating work. The U.S. Bureau of Labor Statistics reported 2024 median pay of $68,130 for lodging managers; this broad national wage excludes employer payroll taxes and benefits and may understate compensation for an experienced full-service hotel General Manager.
How much could replacing a paid manager add?
Each right-hand marker adds the $68,130 BLS median wage to the manager-run scenario; it does not create passive profit.
Interpretation: The illustrative owner-operator increment is modest relative to the property’s modeled operating result. Its value depends on formal approval, the owner’s qualifications, whether a manager is genuinely eliminated, and the actual fully loaded compensation avoided.
Source: U.S. Bureau of Labor Statistics lodging manager pay data, May 2024; 2026 Staybridge Suites FDD, Item 15, pp. 80–82.
Which FDD fees can materially affect owner earnings?
The clearest recurring percentage charges are an 8.0% core burden on Gross Suites Revenues, but the all-in cost is higher and depends on booking mix. Item 6 defines Gross Suites Revenues broadly and lists loyalty, reservation, distribution, technology, training, marketing, management-service and compliance charges in addition to the royalty and Services Contribution.
- Royalty
- 5.5% of Gross Suites Revenues. Gross Suites Revenues generally include room/suite rental receipts, no-show and cancellation revenue, mandatory room fees and other room-related revenue, with limited exclusions.
- Services Contribution
- 2.5% of Gross Suites Revenues. Used for marketing, reservations, training, research and related Brand System activities; it does not cover the hotel’s own local marketing, equipment or training costs.
- Loyalty contribution
- 2.275% of qualifying full-folio revenue from IHG One Rewards members and 1.365% of qualifying IHG Business Rewards room and meeting revenue. The applicable base is not identical to Gross Suites Revenues.
- Technology and systems
- Examples include a $17.75 per-suite monthly Technology Services Fee, a $4.25 per-suite monthly cloud PMS fee, reservation and connectivity charges, and other required or usage-based systems.
- Distribution and marketing
- Travel-agent commissions, GDS and direct-connect fees, digital marketing commissions, group and meeting fees, and local marketing vary with channel and booking source.
- Capital reserve
- Holiday may require a reserve of up to 5% of Gross Revenue annually for renovations, furniture, fixtures and equipment; additional capital may still be necessary.
Source: 2026 Staybridge Suites FDD, Item 6, pp. 24–47. The scenario’s comparable-portfolio margin already contains franchise and management fees, so the listed FDD percentages are used to interpret risk rather than subtracted again. A buyer should rebuild the bridge using the proposed hotel’s exact channel, loyalty, management and technology assumptions.
How wide should a buyer assume the real outcome can be?
The real range can be much wider than the three modeled cases. Item 19’s mature-hotel RevPAR ran from $61.25 to $246.32. Applied mechanically to 130 suites for 365 days, those endpoints imply about $2.91 million to $11.69 million of annual room revenue—not owner earnings. This calculation only illustrates dispersion because the FDD does not state that every hotel has 130 suites, and the endpoints are not quartiles or probabilities.
- Cohort fit: A new hotel may not resemble the FDD’s Mature Hotels, which had at least two full operating years and excluded significant room outages and defaults.
- Suite-count fit: The 130-suite assumption is Item 7’s typical development format, not an Item 19 sample average.
- Revenue completeness: RevPAR models room revenue only; food, beverage, pantry, meeting and other revenue are not separately modeled.
- Cost comparability: The margin source is a diversified rooms-focused portfolio dominated by Marriott and Hilton brands, not a Staybridge Suites cohort.
- Capital timing: Annual reserves smooth costs that can arrive in large renovation, property-improvement and technology cycles.
- Financing: Debt interest and principal can materially reduce owner distributions. Item 7 excludes finance charges, interest and debt service from the initial-investment estimate, and this earnings model does not assume a loan structure.
- Taxes: Personal after-tax take-home pay is not estimated because entity structure, jurisdiction, deductions and owner circumstances differ.
What should a buyer verify before relying on this range?
A buyer should replace the proxy margin with property-level evidence before making an investment decision. The most useful work is to reconcile the proposed hotel’s RevPAR, total revenue and every operating cost to comparable Staybridge Suites franchisees and written Item 19 substantiation.
- Request the franchisor’s written substantiation for Item 19 and any permitted supplemental financial performance representation for the proposed location or circumstances.
- Obtain at least three years of monthly profit-and-loss statements from comparable mature Staybridge Suites hotels, separating room revenue, ancillary revenue, payroll, management fees, franchise fees, property taxes, insurance, utilities, repairs and capital spending.
- Ask franchisees how long ramp-up took, which outlets were remodeled or disrupted, and whether reported results include management-company fees and owner-level overhead.
- Model the exact Item 6 fee burden by loyalty share, direct digital bookings, travel-agent bookings, GDS usage, group business, technology stack and local marketing.
- Confirm in writing whether the owner may operate the hotel, whether a qualified General Manager or management company is mandatory, and whether a separate Director of Sales is required.
- Underwrite debt service separately and stress-test refinancing, interest rates, construction overruns, renovation cycles and reserve requirements.