As of July 15, 2009

FRANCHISE FACT FILE/ Costs and Requirements For Lodging Chains & Referral Groups

Minimum Advertising/ Reservation Ave. Per Room

Name of Chain Rooms Initial Fee Royalty Fee Marketing Fee Fee Construction Cost

Aloft Hotels N/A $60,000 plus 5.5% of gross 4% of gross included in $78,000-
$450 per room rooms revenue if rooms revenue program fee $190,000
over 150 rooms not in default of (program fee)
license agreement

America’s Best 40 $25,000 4% of gross 1.5% of gross 1% of gross N/A

Inns & Suites rooms revenue rooms revenue rooms revenue

Americas Best 40 $9,000 plus $16 per room per $8 per room included in $30,000-
Value Inn $125 per room month up to 50 rooms; per month other fees $50,000
over 60 rooms $12, 51-75 rooms;
$11, 76-plus rooms

AmericInn 59 $35,000 5% of gross 2% of gross N/A $65,000

rooms revenue rooms revenue

Baymont Inns & Suites 60 $26,000- 5% of gross 2% of gross 1.5% of gross $56,863-
(approx.) $27,000 rooms revenue rooms revenue rooms revenue $74,718

Best Western N/A $40,000 plus Annual dues: $47.76/ $1.12 per room $2.75 per room $75,000
International $200 per room room, + $21/ room per day booked via res
over 50 rooms over 80 rooms systems

Budgetel 40 $10,000 $12.50 per room $7.50 per room 7% of gross res N/A
Inns & Suites per month per month revenue

Budget Host N/A $5,000 $1,500 base plus included in $12 per unit per N/A
$80 per room other fees year (average)

Cambria Suites 100 $500 per room, 5% of gross 2.1% of gross 1.75% of gross $60,000-
$60,000 minimum rooms revenue rooms revenue rooms revenue $80,000

Candlewood Suites 70 $500 per room, 5% of gross 2.5% of rooms included $59,027-
$50,000 minimum rooms revenue revenue in other fees $79,168

Clarion N/A $300 per room, 4.25% of gross 2% of gross 1.25% of gross $70,000-
$40,000 minimum rooms revenue rooms revenue rooms revenue $95,000

Comfort Inn N/A $500 per room, 5.65% of gross 2.1% of gross 1.75% of gross $55,000-
$50,000 minium rooms revenue rooms revenue room revenues $65,000

Comfort Suites N/A $500 per room, 5.65% of gross 2.1% of gross 1.75% of gross $63,000-
$50,000 minium rooms revenue rooms revenue room revenues $73,000

Country Hearth 40 $25,000 4% of gross 1.5% of gross 1% of gross N/A

Inns & Suites rooms revenue rooms revenue rooms revenue

Country Inns & Suites varies by $45,000 4.5% of gross 2.5% of gross 1.25% of gross varies
By Carlson location rooms revenue rooms revenue rooms revenue by location

Courtyard by Marriott N/A greater of $50,000 5.5% of gross 2% of gross .9% of GRR; + $2.10 N/A
or $400 per room rooms revenue rooms revenue per non-property
res; plus
communications fee

Crowne Plaza 150 $500 per room, 5% of gross 3% of gross included in $89,152-
Hotels & Resorts $75,000 minimum rooms revenue rooms revenue other fees $231,000+

Days Inns 40 $1,000 plus greater 5.5% of gross 3.8 of gross included in $41,173-
(approx.) of $35,000 or $350 rooms revenue rooms revenue marketing fee $62,660
per room

64 LodgingHospitality / December 2009 LHonline.com

 As of July 15, 2009

FRANCHISE FACT FILE/

Costs and Requirements For Lodging Chains & Referral Groups

Minimum Advertising/ Reservation Ave. Per Room

Name of Chain Rooms Initial Fee Royalty Fee Marketing Fee Fee Construction Cost

Doubletree 100 for $75,000 4% of gross 4% of gross included in $98,335-$156,413
Suites (minimum) rooms revenue rooms revenue other fees for 250-room
hotel

Downtowner Inns N/A $5,000 3% of gross 2.5% of gross included in $30,000-

rooms revenue rooms revenue advertising fees $37,000
Econo Lodge N/A $250 per room, 4.5% of gross 3.5% of gross included in $35,000-
$25,000 minimum rooms revenue rooms revenue other fees $55,000

Element N/A $60,000 plus 5.5% of gross 4% of gross included in $122,000-
$450/room over rooms revenues if rooms revenue program fee $205,000
150 rooms not in default of (program fee)
license agreement

Embassy Suites 100 $75,000 5% of gross 4% of gross included in $78,902-$147,038

(minimum) rooms revenue rooms revenue other fees for 250-room hotel
Fairfield Inn & Suites N/A greater of $50,000 4.5% of gross 2.5% of gross .8% of GRR; plus N/A
By Marriott or $400 per room rooms revenue rooms revenue $2.60/non-property
reservation; plus
communication fee
Four Points N/A $60,000 plus 5.5% of gross 1.25% of gross 0.8% of GRR + $85,000-
by Sheraton $450/room over rooms revenues if rooms revenue $8.65/room $176,000
150 rooms not in default of per month
license agreement
Grandstay Residential 53 $35,000 $3.75 per 2% of gross 2-7% of gross $88,600
Suites Hotel occupied room rooms revenue rooms rvenue

GuestHouse 50 $25,000 3% of gross 1% of gross 2% of gross rooms $70,000
International rooms revenue rooms revenues rooms revenue

Hampton Inn/ 52 $50,000 5% of gross 4% of gross included in $53,679-
Inn & Suites (minimum) rooms revenue rooms revenue other fees $97,685

Hawthorn Suites 60 greater of $40,000 5% of gross 2.5% of gross included in $90,855-

by Wyndham (approx.) or $400 per suite rooms revenue rooms revenue other fees $142,895

Hilton 120 $85,000 5% of gross 4% of gross included in $112,535-

(minimum) rooms revenue rooms revenue other fees $191,478
Hilton Garden Inn 90 $60,000 5% of gross 4.3% of gross included in $64,762-
(minimum) rooms revenue rooms revenue other fees $106,081
Historic Hotels 30 $5,000-$8,000 $12,000-$18,000 $5,000 voice, 10%; $125,000
of America GDS, 7%;
Internet, $12

Holiday Inn Express 70 $500 per room, 6% of gross 3% of gross included in $64,205-
$50,000 minimum rooms revenue rooms revenue other fees $91,575+

Holiday Inn 100 $500 per room, 5% of gross 2.5% of gross included in $70,240-
Hotels & Resorts $50,000 minimum rooms revenue rooms revenue other fees $114,972+
Homewood Suites 90 $60,000 4% of gross 4% of gross included in $74,345-
By Hilton (minimum) rooms revenue rooms revenue other fees $117,780

Home2 80 $50,000 5% of gross 3% of gross included in $70,000-

rooms revenue; rooms revenue other fees $80,000
less if apply before
YE 2009

65
 As of July 15, 2009

FRANCHISE FACT FILE/

Costs and Requirements For Lodging Chains & Referral Groups

Minimum Advertising/ Reservation Ave. Per Room

Name of Chain Rooms Initial Fee Royalty Fee Marketing Fee Fee Construction Cost

Hotel Indigo 100 $500 per room, 5% of gross 3.5% of gross included in $107,376-
$60,000 minimum rooms revenue rooms revenue other fees $242,214+

Howard Johnson 40 $1,000 plus greater 4% of gross 2% of gross 2.5% of gross $42,491-
(approx.) of $35,000 or rooms revenue rooms revenue rooms revenue $73,119
$350 per room

Hyatt Place 100 $400 per room, 5% of gross 3.5% of gross included in N/A
$60,000 minimum rooms revenue rooms revenue other fees
Hyatt Summerfield 100 $400 per room, 5% of gross 3.5% of gross included in N/A
Suites $50,000 minimum rooms revenues rooms revenue other fees

InnSuites Boutique 15 $20,000 but reduced $10/room/month included in $5, 1 night; N/A
Hotel Collection to $5,000 for years for first 100 rooms royalty fee $7, 2 nights;
2009-2010 + $2/room/month $9, 3 nights;
over 100 rooms $12, 4 nights;
$15, 5+ nights
InterContinental 150 $500 per room, 5% of gross 3% of gross included in $212,120-
Hotels & Resorts $75,000 minimum rooms revenue rooms revenue other fees $312,850+

Key West Inn 45 Application fee: $17 per room $100 per month voice, 8%, $45,000
$1,000; entry fee: per month Internet, 5%,
$7,500 electronic, 6%

Knights Inn 40 $5,000 (includes 5% of gross included in $4 per reservation $38,797-

(approx.) application fee) rooms revenue royalty fee $49,719
or $20.80 per room
per month
La Quinta 106 $50,000 4% of gross 2.5% of gross 2% of gross $54,000-
Inn & Suites rooms revenues rooms revenue rooms revenue $70,000

Le Meridien N/A $85,000 plus 6% of gross rooms 1% of gross 0.8% of GRR + $190,000-
$300/ room over revenue (if not in rooms revenue $8.65 per room $298,000
200 rooms default) + 3% of per month
gross f&b sales

Lexington Collection 80 $25,000 plus Either $32-$40/room/ $19 per room included in $50,000+
$200/ room over month or 3% of per month other fees
100 rooms gross rooms revenues
Luxe Hotels 100 $100 per room, 3% of gross 2% of gross 3rd-party N/A
$20,000 minimum rooms revenue rooms revenue pass through
Luxury Collection N/A $85,000 plus 5% of gross rooms 1% of gross 0.8% of GRR + $185,000-
$300/ room over revenue (if not in rooms revenue $8.65 per room $376,000
200 rooms default) + 2% of per month
gross f&b sales
MainStay Suites N/A $300 per suite, 5% of gross 2.5% of gross included in $38,000-
$30,000 minimum rooms revenue rooms revenue other fees $48,000
Marriott Hotels & N/A greater of $82,000 6% of GRR plus 1% of gross $2.90/room/ N/A
Resorts or $300 per room 3% of gross f&b rooms revenue accounting period;
revenue $4.16-$4.47/
gross reservation;
$.32/transaction

Master Host Inns N/A $15,000 4% of gross 2.5% of gross included in $30,000-
rooms revenue rooms revenue other fees $37,000

Microtel Inns & Suites 60 greater of $40,000 5-6% of gross 2-3% of gross included in $44,948-
(approx.) or $400 per room rooms revenue rooms revenue other fees $70,685

Motel 6 40 $25,000 4% of gross 3.5% of gross included in $36,000-

rooms revenue rooms revenue other fees $50,000

66 LodgingHospitality / December 2009 LHonline.com

 As of July 15, 2009

FRANCHISE FACT FILE/

Costs and Requirements For Lodging Chains & Referral Groups

Minimum Advertising/ Reservation Ave. Per Room

Name of Chain Rooms Initial Fee Royalty Fee Marketing Fee Fee Construction Cost

NYLO Hotels 150 $60,000 minimum 5% of gross 3.5% of gross included in other fees; $68,000-
or $400/room rooms revenue rooms revenue third-pary fees apply $79,000

Park Inn & Suites varies by $35,000 4.5% of gross 2% of gross 1.25% of gross varies by
location rooms revenue rooms revenue rooms revenue location

Passport Inn N/A $5,000 3% of gross 2.5% of gross included in $30,000-

rooms revenues rooms revenues marketing fees $37,000

Preferred Boutique 25 $100 per room, $300 per room, $10,000 voice, 10% $200,000
$5,000 minimum $15,000 minimum GDS, 7%
Internet, $12
Preferred Hotels 100 $100 per room, $300 per room, $20,000 per year voice, 10% $275,000
& Resorts $20,000 minimum $25,000 minimum GDS, 7%
Internet, $12
Quality N/A $300 per room, 4.65% of gross 2.1% of gross 1.75% of gross $45,000-
$35,000 minimum; rooms revenue rooms revenue rooms revenue $55.000
$50,000 minimum for Suites
Radisson Hotels varies by $75,000 5% of gross 2% of gross est. 2% of gross varies by
& Resorts location rooms revenue rooms revenue rooms revenue location

Ramada 100 $1,000 + greater of 5% of GRR first 4% of gross 2.5% of gross $52,428-
(approx.) $35,000 or $350 per year; 6% of GRR rooms revenue rooms revenue $78,127
room (includes app fee) thereafter

Red Carpet Inn N/A $10,000 3.5% of gross 2.5% of gross included in $30,000-
rooms revenue rooms revenue other fees $37,000
Red Lion Hotels 150 $60,000 4.5% of gross 4% of gross included in N/A
rooms revenue rooms revenue other fees
Red Roof Inn 60 $3,000, application; 4.5% of gross 4% of gross included in $50,000
$27,000, initial fee rooms revenue rooms revenue other fees
Renaissance Hotels N/A greater of $60,000 5% of gross 1.5% of gross $2.30/room/ N/A
& Resorts or $200 per room rooms revenue rooms revenue accounting period;
$4.25-$4.57/gross reservation;
$.32/transaction
Residence Inn N/A greater of $50,000 5.5% of gross 2.5% of gross included in N/A
by Marriott or $400 per suite rooms revenue rooms revenue other fees

Rodeway Inn N/A $10,000 + $125/room $25 per room $15 per room included in $25,000-
over 80 rooms per month per month other fees $32,000

Scottish Inns N/A $7,500 3% of gross 2.5% of gross included in $30,000-

rooms revenue rooms revenue marketing fees $37,000

Select Inn N/A $1,000, application; 4% of gross included in other 8% of reservations $30,000-
$15,000 initial fee rooms revenue fees revenue $80,000

Settle Inn & Suites 50 $25,000 3% of gross 1% of gross 2% of gross $70,000

rooms revenue rooms revenue rooms revenue;
Sheraton N/A $85,000 plus 6% of gross rooms 1% of gross 0.8% of gross N/A
$300/room revenues (if not in rooms revenue rooms revenue +
over 200 rooms default) + 2% of $8.65 per room
gross f&b sales per month

Sleep Inn N/A $300 per room, 4.65% of gross 2.1% of gross 1.75% of gross $45,000-
$40,000 minimum rooms revenue rooms revenue rooms revenue $55,000

SpringHill Suites N/A greater of $50,000 5% of gross 2.5% of gross .4% of GRR; + $3.15 N/A
by Marriott or $400 per suite rooms revenue rooms revenue per non-propertyreservation,
plus communication fee

68 LodgingHospitality / December 2009 LHonline.com

 As of July 15, 2009
FRANCHISE FACT FILE

FRANCHISE FACT FILE/

Costs and Requirements For Lodging Chains & Referral Groups

Minimum Advertising/ Reservation Ave. Per Room

Name of Chain Rooms Initial Fee Royalty Fee Marketing Fee Fee Construction Cost

Staybridge Suites 80 $500 per room, 5% of gross 2.5% of gross included in $88,854-
$50,000 minimum rooms revenue rooms revenue other fees $118,218+

Sterling Hotels 50 $70 per room, $150 per room $10,000 voice, 10% $150,000
$5,000 minimum $10,000 minimum GDS, 7%
Internet, $12
Studio 6 N/A $25,000 5% of gross 2% of gross included in $36,000-
rooms revenue rooms revenue other fees $50,000

Suburban Extended N/A $225 per suite, 5% of gross 2.5% of gross included in $35,000-
Stay Hotel $30,000 minimum rooms revenue rooms revenue other fees $45,000

Summit Hotels 100 $70 per room, $150 per room, $15,000 voice, 10% $175,000
& Resorts $7,000 minimum $10,000 minimum GDS, 7%
Internet, $12

Super 8 50 Conversion: $24,000 + 5.5% of gross 3% of gross included in $40,677-

(approx.) $100/room over 120; rooms revenue rooms revenue other fees $50,439
New construction:
$25,500 + $100/
room over 120

3 Palms Hotels N/A $20,000 $12.50 per room $12.50 per room 7% of gross N/A
& Resorts per month per month res revenues
delivered

TownePlace Suites N/A greater of $40,000 5% of gross 1.5% of gross .9% of GRR; plus $1 N/A
by Marriott or $400 per suite rooms revenue rooms revenue per non-property
reservation, plus
communication fee

Travelodge 40 $1,000 + greater of 4.5% of gross 2% of gross rooms 2% of gross $39,310-
(approx.) $35,000 or $350 rooms revenue revenues + 5-10 rooms revenue $62,644
per room cents/room/day

Vagabond Inn varies by $20,000 4% of gross 2.5% of gross included in $70,000+

market rooms revenue rooms revenue other fees

Value Place 124 greater of $49,600 5% of gross up to 2.5% of gross per reservation + $26,000
or $400 per room rooms revenue rooms revenue $100/month

Vista N/A $1,000, application; $17/room/month; $7 per room 8% of reservations $30,000-
$20,000, initial fee $850 minimum revenue $80,000

Westin N/A $85,000 + $300/ 7% of gross rooms 2% of gross 0.8% of GRR + $180,000-
room over 200 revenue (if not in rooms revenue $8.65 per room $297,000
rooms default) + 3% of per month
gross f&b revenue

Wingate by 60 $1,000 + greater of 4.5% of gross 4% of gross included in $69,423-

Wyndham (approx.) $35,000 or $350 rooms revenue rooms revenue other fees $77,156
per room

WORLDHOTELS 100 $14,000-$18,000 $12,000-$30,000 included in 7% of delivered & N/A

other fees consumed rooms revenue

Wyndham Hotels 100 greater of $35,000 5% of gross 3% of gross varies $108,077-
& Resorts (approx.) or $300 per room; rooms revenue rooms revenue $193,169
maximum, $225,000

XP by 90 $45,000 minimum 5% of gross 3% of gross included in other fees; $46,000-

NYLO Hotels plus $350/key > 127 keys rooms revenue rooms revenue third-pary fees apply $52,000

Visit www.LHonline.com for more information and to use the Franchise Calculator.

70 LodgingHospitality / December 2009 LHonline.com