AC Hotels by MarriottFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A AC Hotels by Marriott franchise does not disclose total investment in its current FDD, including a $90K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $18.2M
- 48th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 126
- 37th pct Lodging
- SBA default
- 50.0%
- system-wide median varies by category
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
21 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $18.2M including a $90K franchise fee, 6.0% ongoing royalty.
- Item 19 discloses "ADR, Occupancy, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict B (Above Average) with a risk score of 55/100.
- 21 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MIF, L.L.C.
- Parent company
- Marriott International, Inc. ("MII")
- Incorporated in
- DE
- HQ
- 7750 Wisconsin Avenue, Bethesda, Maryland 20814
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $103.3M
- vs $94.4M prior year
Overview
About
Franchisees develop and operate upscale select-service hotel properties under the AC Hotels by Marriott brand, managing 24/7 front desk operations, housekeeping, maintenance, and guest services. Daily operations include revenue management, staff scheduling, brand compliance audits, and coordination with Marriott's loyalty and distribution systems while paying 6% of gross room sales in royalties.
- CEO
- Anthony Capuano
- Headquarters
- MD
- Founded
- 2011
- FDD year
- 2025
- States available
- 35
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Application Fee | $90K | $115K | |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Servicesnot refundable | $50K | $86K | |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $92K | $114K | |
| Market Feasibility Study | $6K | $18K | |
| Real Estate | — | — | |
| Building Permit, Tap, and Impact Fees | — | — | |
| Building Construction | $142K | $262K | |
| Kitchen and Laundry Equipment | $3K | $6K | |
| Furniture and Fixtures | $17K | $23K | |
| Technology Hardware & Software and Network Infrastructure | $172K | $439K | |
| Operating Supplies | $238K | $493K | |
| Professional Design Services (including stylist) | $723K | $2.4M | |
| Insurance | — | — | |
| Start-up Costs | $2K | $4K | |
| Hard Cost Contingency (5% of hard costs) | — | — | |
| Food Safety and Sanitation Compliance | $210 | $210 | |
| Food and Beverage Consulting Services | $6K | $8K | |
| Opening Advertising | $121K | $156K | |
| Additional Funds (first 3 months) | $2K | $5K | |
| Total initial investment | $1.7M | $4.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $18.2M
- Near category avg vs category
- Liquid capital req'd
- $300K – $750K
- Better than avg vs category
- Franchise fee
- $90K – $200K
- Near category avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 12.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $3 |
| Transfer fee | $200K |
| Total fee load | 12.3% of rev |
Financial Performance
This brand's FDD disclosed "ADR, Occupancy, and RevPAR" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How AC Hotels by Marriott Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 126
- Opened
- 9
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 8
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Multi-unit owners
- 15.0%
- Net growth (yr3)
- +8.3%
- Net unit change last year
- 3-yr CAGR
- +18.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 4
- Transfer rate
- 3.2%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $17.0M
- Median loan
- $2.5M
- 50th percentile
- Charge-off rate
- 50.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 50.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 2
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into AC Hotels by Marriott's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 5-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
AC Hotels presents meaningful risks due to opaque financial performance data, active litigation exposures, lack of territorial protection, and capital-intensive model with unproven returns.
Litigation (Item 3)
Numerous putative class actions and individual actions filed against Starwood and MII in U.S. federal and state courts following November 30, 2018 data security incident involving unauthorized access to Starwood reservations database. Claims include negligence, invasion of privacy, violation of federal and state consumer protection and data privacy laws, GDPR violations, conversion, misrepresentation, and unfair trade practices. MDL consolidated in U.S. District Court for District of Maryland (MDL No. 19-md-2879) as of February 6, 2019. Accenture LLP added as defendant July 22, 2019.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 55 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate $18.2M investment ROI claims
- 02HIGHSignificant litigation portfolio including 2018 data breach class actions, regulatory investigations, and ongoing fee disputes affecting brand reputation
- 03MINORModest unit growth of 8.3% YoY suggests slower expansion and potential market saturation in select-service segment
- 04MINORNo territorial protection leaves franchisees vulnerable to company-owned or competing franchisee cannibalization
- 05MINORHigh capital requirement ($18.2M) with 6% royalty creates significant fixed cost burden without revenue guarantees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | non_exclusive |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 21 |
View Item 3 litigation summary
Numerous putative class actions and individual actions filed against Starwood and MII in U.S. federal and state courts following November 30, 2018 data security incident involving unauthorized access to Starwood reservations database. Claims include negligence, invasion of privacy, violation of federal and state consumer protection and data privacy laws, GDPR violations, conversion, misrepresentation, and unfair trade practices. MDL consolidated in U.S. District Court for District of Maryland (MDL No. 19-md-2879) as of February 6, 2019. Accenture LLP added as defendant July 22, 2019.
Items 10, 11
Training & Operations
- Classroom training
- 187 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Time to open
- 15 mo
- From signing to launch
- POS system
- Proprietary (system designated by Marriott)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Proprietary (system designated by Marriott)
Item 20 · call current owners
Franchisee Contacts
75 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
AC Hotels by Marriott · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
What do AC Hotels by Marriott franchise owners earn?
AC Hotels by Marriott does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is AC Hotels by Marriott's franchise failure rate?
SBA 7(a) loan charge-off data is not available for AC Hotels by Marriott (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many AC Hotels by Marriott franchise locations are there?
As of their most recent FDD filing, AC Hotels by Marriott has 126 total units in the United States, including 100 franchised units and 8 company-owned units. 9 new units were opened in the latest reporting year.
Is AC Hotels by Marriott a good franchise to buy?
FranchiseVerdict rates AC Hotels by Marriott as a B-grade franchise with a risk score of 55 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.