Marriott International Franchise Costs, Fees & FDD

Year Business Began: 1967

Franchising Since: 1967

Headquarters: Bethesda, Maryland

Estimated Number of Units: 600 for the Marriott brand (9,360 across all Marriott International brands)

Franchise Description: Marriott International, Inc. is the franchisor. The franchisor is a worldwide operator and franchisor of hotels and related lodging facilities. Marriott hotels are full-service hotels that cater to business and leisure travelers. The hotels range in size from approximately 100 to 2,000 guestrooms. The hotels offer a variety of food and beverage options, including one or more restaurants and lounges, room service, catering, and banquet services. The hotels may also offer meeting rooms and ballrooms for meetings and social events. Business centers provide copying and printing facilities. Additionally, there are dedicated recreational and fitness centers.
The franchisor’s brands cater to a broad spectrum of customers, and include luxury and upper-upscale full-service hotels, lifestyle hotels, extended-stay hotels, and select-service hotels. The company’s brands include: Bulgari, The Ritz-Carlton and The Ritz-Carlton Reserve, W, EDITION, JW Marriott, The Luxury Collection, Marriott Hotels, Westin, Le Méridien, Renaissance Hotels, Sheraton, Delta Hotels by Marriott, Marriott Executive Apartments, Marriott Vacation Club, Autograph Collection Hotels, Tribute Portfolio, Design Hotels, Gaylord Hotels, Courtyard, Four Points by Sheraton, SpringHill Suites, Fairfield Inn & Suites, Residence Inn, TownePlace Suites, AC Hotels by Marriott, Aloft, Element, Moxy Hotels, St. Regis Hotels & Resorts, Protea Hotels by Marriott, and StudioRes. In addition to operating and franchising company brand hotels, the franchisor and its affiliates manage golf facilities and resorts and luxury yachts under the company brands.

Training Overview: The franchisor has established training programs for its franchisees and certain personnel who perform key functions at hotels. All required training must be completed to the franchisor’s satisfaction within the time periods it designates, and verification of successful completion must be presented at its request. Required training programs are in addition to initial pre-opening and opening training and support. Optional programs may be available at an additional cost. The franchisor may require additional training programs and courses when systems and operating standards change. General manager brand immersions are required within the first six months of hire for all general managers who are new to the brand. During years in which a regional General Managers Conference is held, the general manager of the hotel will be required to attend. During years in which a continental General Manager and Sales Leader Conference is held, the general manager and sales leaders of the hotel are encouraged to attend.

Territory Granted: The Franchise Agreement will permit franchisees to operate one hotel of a specific size at a specific site selected by the franchisee and approved by the franchisor. Franchisees may not be granted a territory, but if they are, it will be non-exclusive. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, leases, manages, licenses, or franchises, or from other channels of distribution or competitive brands that the franchisor controls.

Obligations and Restrictions: The franchisor requires franchisees to operate the hotel or to hire a management company consented to by the franchisor. A general manager who has successfully completed the training program must directly supervise the business on the premises. The franchisor requires the general manager and other managers to devote full time to the management and operation of the hotel. Franchisees must offer all of the goods and services that the franchisor designates. Furthermore, franchisees may offer only those goods and services that the franchisor requires or specifically allows.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years (term typically ends on the 20th anniversary of the opening date). The Franchise Agreement is not renewable.

Financial Assistance: Generally, the franchisor does not offer direct or indirect financing for franchised Marriott hotels or guarantee any financing, loans, or other obligations. However, from time to time, under very limited circumstances and at its sole discretion, the franchisor may offer for certain hotels credit support in the form of a contingent guaranty of a portion of a loan provided by a third-party lender, or it may make a mezzanine loan.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Application Fee	$120,000	$120,000
Pre-Opening Training, Revenue Management, Marketing Support, and Related Services	$114,000	$181,000
Property Management System, Reservation System, Yield Management System, Sales and Catering System	$217,000	$287,000
Other Systems and Training	$42,000	$135,000
Market Feasibility Study	$15,000	$25,000
Real Estate	Not determinable because of variables.
Building Permit, Tap, and Impact Fees	Not determinable because of variables.
Building Construction (per guestroom)	$268,600	$447,700
Kitchen and Laundry Equipment (per guestroom)	$7,900	$10,100
Furniture and Fixtures (per guestroom)	$32,000	$40,900
Technology Hardware & Software and Network Infrastructure (per guestroom)	$2,900	$14,800
Operating Supplies (per guestroom)	$6,400	$8,200
Additional Cost of Operating Supplies (per hotel)	$59,100	$75,500
Professional Design Services (per guestroom)	$13,400	$22,400
Insurance	Varies
Start-Up Costs (per guestroom)	$4,800	$7,500
Hard Cost Contingency (10% of hard costs)	Not determinable because of variables.
Food Safety and Sanitation Compliance (assuming 7 people at $70 per kitchen manager and engineering leader with responsibility for kitchen equipment)	$490	$490
Opening Advertising	$133,000	$235,000
Additional Funds per guestroom (first 3 months)	$3,500	$8,000
ESTIMATED TOTAL*	$93,910,590	$168,938,990

*The estimated initial investment range is for a 300-guestroom Marriott, excluding land and permit fees, and other costs identified as not determinable. Investment estimates for other brands available in their respective FDDs.

Other Fees

Type of Fee	Amount
GENERAL
Franchise Fees	6% of gross room sales and 3% of gross food & beverage sales.
Program Services Contribution	An amount equal to: 1.62% of gross room sales (which includes a contribution to the marketing fund of 1% of gross room sales); plus $50,000 per year; plus $510 per guestroom per year.
SALES & MARKETING
Loyalty Programs	An amount equal to: 4.2% of the total guest folio generated by guests earning loyalty points or miles; plus 1% of qualifying event revenue for select meetings or group events involving at least 10 guestrooms and select catering, up to a maximum charge of $300 per event.
Revenue Management Advisory Services	$1,240 to $7,000 per month, plus a one-time set-up fee that ranges from $3,500 to $5,000.
Cluster Revenue Management and Revenue Management Advisory Services Signature Tiers	Varies.
Area/Account Sales and Group Sales	Varies.
Account Sales: Group Lead	4.5% of gross group room revenue (reduced to 3% of gross group room revenue if an intermediary is involved in generating the lead). This fee will not exceed $12,000 per booking (or $30,000 per booking if the hotel is a convention/resort hotel).
Business Transient (BT) Booking	$126.69 to $300.14 per month, depending on the number of guestroom nights that are centrally reserved for the hotel through the area sales and multi-hotel sales organizations during the immediately preceding calendar year.
Customer Engagement Center (CEC) Property Support Services (PSS)	The cost of this program is allocated among participating hotels. Varies per guestroom type.
National Group Sales: Group Lead	$2.30 per room night booked.
National Group Sales: Catering Lead	$139 per catering opportunity booked.
National Group Sales: Extended-Stay Lead	$2.30 per room night booked.
Group Demand Generation	$1.00 per group room night booked.
International Sales Teams: Group and/or Sales and Catering Lead	Varies, approximately 6% of gross group room revenue and/or catering revenue, as applicable.
Cooperative Advertising and Marketing Initiatives	Varies.
Gift Cards	Varies.
Intermediary Payments and Centralized Travel Agent Commission (CTAC) Usage	Varies.
Marriott Digital Services	Varies depending on the product or service selected.
Enhanced On-Platform Website Maintenance	$125 per month.
Transaction-Based Media	8% of applicable gross room revenues, not to exceed $200 per stay.
Luminous	$1,495
TECHNOLOGY
Point-of-Sale (POS) System	$17 to $30 per month per POS workstation for software, technical support, and “patching” services.
Property Management System Application Patching	$210 to $220 per month.
Opera-Exchange Interface (OXI) License and Support	$440 per year.
Email	$11.80 to $14.75 per month per email address.
Continent Field Support	$7.34 to $13.75 per device per month.
Information Security Managed Detection and Response Services	$39 per device per year.
Unauthorized Electronic Identifier	$100 per day an unauthorized email address, domain name, mobile application name, website, or other electronic identifier is in use.
Credit Card Processing	$0.047 per settlement transaction.
Server Management	$28.13 to $119.03 per server per month.
Mobile Device and Application Management and Mobile Application Access	$2.75 to $3.00 per device per month.
Lock System Software	$8 to $11 per guestroom per year for software and support.
Interactive Voice Response	$150 to $1,000 per year.
OPERATIONS
Audit Program	The annual cost to participate in the audit program is covered by the program services contribution.
Red Zone	Varies per guestroom.
Audit Program/GSS Improvement Program	The then-current fee, presently $20,000 for up to 10 participants, plus $10,000 for up to an additional 10 participants.
Food Safety Re-Inspection	$1,350 to $1,500 per re-inspection.
Fire Protection and Life Safety Re-Inspection (Audit Program-related)	$315 to $700 per re-inspection.
Property Improvement Plan (PIP)	$16,000
PIP Revision or Modification	$5,000 per revision or modification.
Expired PIP Refresh	$8,000 to refresh a PIP that is 12 months past its initial issuance date; $16,000 to re-issue a PIP that is 24 months past its initial issuance date.
Design & Construction Review Services	$20,000
Interior Design Firm Screening and Coordination	$2,500 per screen of interior design firm, plus $30,000 to $50,000 if franchisees retain a non-recommended interior design firm.
PIP and Renovation Non-Compliance	$20,000 per re-evaluation.
Advisory Services	Varies.
Comfort Letter or Estoppel Processing Fee	$2,500
Prospectus Review	Varies.
Additional Design/Construction Review Services	Varies.
Fire Protection and Life Safety or Security Design Plan Review, Inspection and Testing, and Compliance Audits	Approximately $500 to $19,500, based on the services rendered, the time needed for the testing and inspection, the size of the hotel, and the complexity of its design.
Post-Opening Authorization to Open (ATO) Work Inspection	$910 per day per inspector.
Expansion	$400 per guestroom.
Expansion Opening Authorization	$3,500
Post-Approval Owner Background Check	$300 per entity/$100 per person. If additional enhanced due diligence is required, the cost ranges from approximately $400 to $5,600 per background check, depending on the country involved and whether an entity or person is being checked. Expedited turnaround is available at an additional cost.
Operator Screen	$7,500
Management Company Transition Services	$5,500
Temporary Closure and Re-Opening Support Services	$0 to $25,000 depending on the size and location of the hotel and the length of time the hotel is closed, and the level of support provided.
Destination and Resort Fees	Application fee of $1,500 plus $400 per year if the application to charge destination or resort fees is approved.
Learning & Development Bundle	$11.60 to $12.80 ($17.40 to $19.20 for JW Marriott hotels) per guestroom per year.
Conferences	Varies.
Transfer	The greater of $150,000 or $500 per guestroom.
Liquidated Damages	Varies, based on a formula.
Indemnification	Varies.
Removal of Hotel from System	$33,000
Construction/Conversion Extension	$10,000
Other Company Brand Conversion Authorization	Varies.
Global Recipe Database Support	$1.00 per guestroom per year (not to exceed $800 per year).
Best Rate Guarantee Non-Compliance	$50 to $500 per violation (based on the number of violations each month).
Customer Issue Resolution	$55 to $65 per customer complaint or other customer service issue handled by the franchisor, and reimbursement of all costs incurred by the franchisor to resolve a matter (including compensation paid by the franchisor to a guest).
MISCELLANEOUS
Accounting Audit	The amount of the underpayment plus interest if an audit reveals an underpayment.
Interest on Overdue Amounts	Lesser of 18% per year or maximum interest rate permitted by law.
Costs and Attorneys’ Fees	Varies.
mCredit Customer Credit Reference Reports	$12 per report.
American Hotel and Lodging Association (AH&LA)	$4.50 per guestroom per year ($5.00 per guestroom per year for JW Marriott hotels).
Franchisee Associate Job Postings	$135 per Marriott.com job posting.
GM Awards	$300 to $1,500 per hotel per year.
Franchise Operations Support Resources	Varies; approximately $400 to $1,500 per day per employee, depending on the experience and area of expertise of the employee.

The above information has been compiled from the FDD of Marriott. Year of FDD: 2025.
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