For a representative 100-suite U.S. TownePlace Suites hotel, this is a reasonable manager-run, hotel-level pre-tax earnings scenario based on the 2026 FDD’s 2025 RevPAR evidence and a 32%–38% operating-margin sensitivity. It is before interest, depreciation, capital expenditures, financing principal, and personal income taxes.
$97.38 average RevPAR × 100 suites × 365 days. This excludes non-room revenue.
Base room revenue × 35% analytical operating margin.
About 84.8% of the 567 franchised U.S.-and-Canada hotels open at year-end 2025.
5.5% franchise fee plus 3.35% Program Services Contribution, before fixed and transaction-based charges.
2024 U.S. median annual wage; used only to illustrate qualified owner-GM labor value.
What does the TownePlace Suites FDD actually measure?
Officially, Item 19 measures room-rate and occupancy performance—not owner earnings. For calendar 2025, the principal cohort consisted of 481 franchised TownePlace Suites hotels in the United States and Canada that reported STR data, had operated for at least two years, and avoided specified material renovation or expansion disruptions.
The disclosed average was $133.65 ADR, 72.9% occupancy, and $97.38 RevPAR. RevPAR is gross room sales divided by available room nights. It is revenue productivity, not Gross Sales for the whole hotel and not Operating Profit, EBITDA, Net Income, cash flow, owner salary, distributions, or take-home pay.
| Official Item 19 metric | Average | Median | Population and interpretation |
|---|---|---|---|
| Average Daily Room Rate (ADR) | $133.65 | $128.51 | 481 STR Included Hotels; room rate on sold guestrooms. |
| Occupancy Rate (OCC) | 72.9% | 73.4% | Occupied room nights divided by available room nights. |
| Revenue per Available Room (RevPAR) | $97.38 | $94.14 | Room revenue per available room night; not profit. |
| RevPAR Index | 109.7 | 111.0 | Hotel RevPAR relative to each property’s competitive set. |
| New Generation Hotel RevPAR | $101.50 | $97.21 | 141 fourth-generation-or-later STR Included Hotels. |
Source: 2026 TownePlace Suites Domestic FDD, Item 19, pp. 110–115. The cohort includes U.S. and Canadian properties; Canadian STR results were converted to U.S. dollars. The FDD says the STR data were not audited or independently confirmed by the franchisor.
How is the annual owner-earnings range calculated?
The estimate converts official RevPAR into annual room revenue, then applies a clearly labeled hotel-level operating-margin sensitivity. The model holds the room count at 100, a size within the FDD’s 80–110 guestroom new-build format, so the comparison is driven by operating performance rather than by mixing hotel sizes.
Estimated manager-run hotel-level earnings = estimated annual room revenue × scenario operating margin.
| Scenario | RevPAR anchor | Estimated room revenue | Margin assumption | Estimated earnings |
|---|---|---|---|---|
| Conservative | $94.14 Item 19 median | $3,436,110 | 32% | $1,099,555 |
| Base | $97.38 Item 19 average | $3,554,370 | 35% | $1,244,030 |
| Upside | $101.50 New Generation average | $3,704,750 | 38% | $1,407,805 |
- RevPAR anchors are official; earnings margins are not. The median, system average, and New Generation average are separate FDD observations, not probabilities or promised outcomes.
- The 32%, 35%, and 38% margins are editorial scenario assumptions. They are calibrated to public rooms-focused U.S. hotel-owner reporting, including Apple Hospitality REIT filings available through SEC EDGAR. They are not TownePlace Suites margins and are not presented as an exact peer average.
- The margin is treated as all-in at hotel level. Normal operating payroll, a paid general manager, property operating costs, management expense, and recurring brand fees are assumed to be inside the margin; FDD fees are therefore not subtracted a second time.
- The estimate excludes important owner-level cash uses. Interest, depreciation, capital expenditures and renovation reserves, financing principal, entity-level overhead, and personal income taxes are outside the estimate.
- Only room revenue is modeled. Pet fees, parking, retail, and other hotel revenue are omitted, which can make the revenue base conservative, but the actual cost structure may offset that effect.
Estimated manager-run earnings across three scenarios
Representative 100-suite hotel; annual hotel-level earnings before interest, depreciation, capital expenditures, debt service, and personal taxes.
Interpretation: A modest difference in RevPAR combines with a six-percentage-point margin spread to move annual hotel-level earnings by about $308,000.
Sources and method: RevPAR values from the 2026 TownePlace Suites Domestic FDD, Item 19, pp. 110–115. Margins are independent scenario assumptions. Calculations use full precision and are rounded to the nearest dollar in the table.
How do franchise fees affect the earnings model?
The 2026 FDD identifies a substantial recurring brand-fee burden, but those fees should not be deducted twice from an all-in operating-margin proxy. The core disclosed charges are a 5.5% Franchise Fee and a 3.35% Program Services Contribution, plus $7,000 per year and $135 per guestroom per year.
| Recurring obligation | FDD basis | Base-case illustration | Model treatment |
|---|---|---|---|
| Franchise Fee | 5.5% of gross room sales | $195,490 | Assumed inside the hotel-level margin. |
| Program Services Contribution | 3.35% of gross room sales | $119,071 | Includes a 2% Marketing Fund contribution; assumed inside margin. |
| Program Services fixed portion | $7,000 + $135 per guestroom | $20,500 | 100-suite illustration; assumed inside margin. |
| Loyalty Program | 0.9% through December 2027 on qualifying revenue, plus certain event charges | Variable | Actual qualifying revenue must be verified; assumed inside margin. |
| Other programs and transactions | Revenue management, commissions, technology, sales leads, audits, and other charges | Variable | Property-specific; verify operating statements and agreements. |
Source: 2026 TownePlace Suites Domestic FDD, Item 6, pp. 30–56. The base illustration uses $3,554,370 of estimated annual room revenue. The fixed charge assumes 100 guestrooms. Item 7 startup investment is not treated as an annual operating expense.
Does active owner involvement increase the result?
Potentially, but only as compensation for work performed—not as passive business profit. Item 15 requires the hotel to be operated by the franchisee or an approved management company and requires a trained general manager to supervise the business on the premises full time. An owner who is qualified, approved, and actually serves in that role may capture some manager labor value.
The U.S. Bureau of Labor Statistics lodging-managers profile reports a 2024 median annual wage of $68,130. Adding that benchmark to the manager-run residual produces an estimated owner-operator benefit of about $1.17 million to $1.48 million. It combines hotel-level residual profit with the market value of the owner’s full-time management labor.
Manager-run earnings versus qualified owner-GM benefit
The distance between markers is the $68,130 BLS lodging-manager wage benchmark, not additional passive profit.
Interpretation: Owner involvement changes who receives the management-labor value; it does not automatically improve the hotel’s underlying operating profit.
Sources and method: Manager-run scenarios above; 2024 median annual wage from the BLS Lodging Managers Occupational Outlook Handbook. The FDD’s Item 15 operating and general-manager requirements control whether this structure is feasible.
Manager-run ownership
This scenario is estimated and assumes paid professional management is already included in operating expense. The residual is hotel-level earnings before financing and owner taxes. A separate third-party management-company fee, regional overhead, or incentive fee could reduce distributions if the margin proxy does not fully reflect the owner’s contract.
Qualified owner-GM operation
This scenario is estimated and combines business residual with labor compensation. It applies only if the owner can satisfy Marriott’s qualifications, complete required training, serve full time on premises, and receive approval. It should not be described as passive income.
Why is the confidence rating limited?
The largest uncertainty is the missing same-brand expense and profit statement. Item 19 provides a strong room-revenue productivity anchor, but it does not disclose total hotel revenue, departmental expenses, labor, utilities, insurance, property taxes, management fees, FF&E reserves, EBITDA, net income, debt service, or owner distributions.
- Mixed U.S.-Canada evidence population. The FDD is a U.S. offer, but Item 19’s hotel cohort combines qualifying U.S. and Canadian properties. Canadian results were converted to USD, so the disclosed RevPAR is not a U.S.-only statistic.
- Survivorship and maturity filters. STR Included Hotels generally had at least two years of operations and excluded specified renovation or expansion disruptions. A new hotel’s ramp-up may look materially different.
- Average, median, and New Generation figures are not a forecast distribution. The scenarios use distinct disclosed observations to create analytical cases; they are not probabilities, quartiles, or franchisor guidance.
- Operating margin is the decisive modeled input. A one-percentage-point change in margin at the base room-revenue estimate changes annual hotel-level earnings by about $35,544.
- Capital and financing are outside the range. The FDD recommends regular renovation funding but does not supply a universal annual reserve percentage. Interest and principal depend on each owner’s capital structure and can materially reduce distributable cash.
- Hotel size scales the result. A 100-suite hotel is representative, not universal. The FDD separately presents 80–110 and 120–150 guestroom new-build investment formats.
What should a prospective owner verify before relying on this range?
A buyer should replace scenario assumptions with property-specific operating statements and written substantiation. The most useful diligence is a line-by-line bridge from room revenue to cash available for distribution for hotels matching the proposed market, generation, room count, age, and management structure.
- Request Item 19 substantiation. Confirm the exact U.S.-versus-Canada mix, hotel counts, excluded days, renovation filters, currency conversion, and whether a closer U.S.-only or regional cut can be provided in writing.
- Interview comparable current franchisees. Ask for actual 2024 and 2025 total revenue, rooms expense, payroll, management fees, franchise and program charges, insurance, property tax, utilities, repairs, and FF&E reserve contributions.
- Separate hotel EBITDA from owner cash flow. Reconcile interest, principal, capital expenditures, lender reserves, owner-company overhead, and distributions rather than treating RevPAR or EBITDA as take-home pay.
- Verify management structure. Confirm whether the owner can serve as the trained full-time general manager, whether an approved management company is required, and every base or incentive management fee.
- Model the actual room count and ramp-up. Use the proposed hotel’s suite count, opening date, market feasibility study, competitive set, seasonality, and first-two-year ramp rather than a stabilized 100-suite assumption.
- Reconcile every recurring Item 6 charge. Include qualifying loyalty revenue, reservation and intermediary costs, revenue management, technology, audit exposure, and locally required advertising without double counting.
The strongest defensible annual range is approximately $1.10 million to $1.41 million of manager-run hotel-level pre-tax earnings for a stabilized 100-suite property. It is a scenario-based estimate, not an official TownePlace Suites owner-income disclosure. A qualified owner who personally fills the full-time general-manager role may capture additional labor value, producing an estimated owner-operator benefit of roughly $1.17 million to $1.48 million, but that increment compensates work rather than passive ownership.
The most important driver is the combination of RevPAR and operating margin. The largest unresolved uncertainty is the absence of same-brand, franchised-hotel expense and profit data. Before making a decision, a buyer should verify Item 19 substantiation, obtain comparable hotel operating statements, and test the model through franchisee interviews using the proposed hotel’s market, room count, generation, management structure, capital reserve, and debt terms.