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Staybridge Suites Franchise ProfileRestaurant Franchises > Full-Service Restaurants |
What Are the Initial Investment Requirements for a Staybridge Suites Franchise?
To open a Staybridge Suites franchise, you should expect an initial investment ranging from $17,742,375 to $26,629,495. This includes a franchise fee of $75,000. Additionally, you will need to demonstrate a cash requirement of $100,000 to $250,000 and a net worth between $1,000,000 and $5,000,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for ownership.
What Are the Ongoing Fees and Financial Performance Metrics?
Staybridge Suites charges a royalty fee of 5.50% and a marketing fee of 2.50% on gross revenue. On average, each unit generates annual revenue of approximately $3,032,048, with a median revenue of $92,100. The breakeven period is estimated at 24 months, with an investment payback period of around 60 months. These figures provide a clear picture of the potential financial landscape for franchisees.
How Many Units Are Currently Operating Under Staybridge Suites?
As of 2022, Staybridge Suites has a total of 273 franchised units, showing steady growth from 261 units in 2020. Notably, there are no corporate-owned units, indicating a strong franchise model focused solely on franchising. This growth trend is a positive sign for potential franchisees looking at the brand's expansion and market presence.
What Are the Average Operating Expenses for a Staybridge Suites Franchise?
The average total operating expenses for a Staybridge Suites franchise amount to $2,424,112 annually. Key expense categories include hotel operations ($7,397), property taxes and insurance ($49,435), and general administrative expenses ($414,334). Understanding these expenses is vital for franchisees to effectively manage their operations and maintain profitability in a competitive hospitality market.
Staybridge Suites Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Staybridge Suites Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 261 | 273 | 273 |
| Net Change YoY | 12 | 0 | |
| Franchised Units | 261 | 273 | 273 |
| Net Change YoY | 12 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
Staybridge Suites offers a range of initial investment options, with costs ranging from $17,742,375 to $26,629,495. The initial franchise fee is set at $75,000, with ongoing royalty fees of 5.50% and a marketing fee of 2.50%. Prospective franchisees should prepare for a cash requirement between $100,000 and $250,000, along with a net worth requirement of $1,000,000 to $5,000,000.
Revenue Potential
The average annual revenue per unit for Staybridge Suites is approximately $3,032,048, with a median revenue of $92,100 per unit. Units have reported a wide revenue range, from a low of $1,025,000 to a high of $5,195,000. This indicates strong earning potential for franchisees who effectively manage their operations.
Franchise Growth
Staybridge Suites has shown consistent growth in its franchise units, increasing from 261 units in 2020 to 273 units in both 2021 and 2022. All units are franchised, with no corporate-owned locations, reflecting a robust franchise model that relies solely on franchisee partnerships for expansion.
Operational Performance
Average operating expenses for Staybridge Suites total approximately $2,424,112 annually. This includes costs related to hotel operations, property taxes, maintenance, and general administrative expenses. Effective management of these expenses is crucial for maintaining profitability within the franchise model.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 24 months of operation, with an investment payback period estimated at 60 months. This timeline provides a clear expectation for new franchisees regarding the financial recovery of their initial investment.
Franchise Support
Staybridge Suites provides comprehensive support to franchisees, including training, marketing resources, and operational guidance. This support system is designed to help franchisees navigate the complexities of running a hotel, ensuring they have the tools and knowledge to succeed in a competitive market.
Frequently Asked Questions
The initial investment for a Staybridge Suites franchise ranges from approximately $17,742,375 to $26,629,495. This includes the franchise fee and other startup costs necessary to launch the hotel.