Aloft Hotels Franchise Cost, Revenue & Review 2026
- Investment
- $13.3M – $29.4M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (3)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Aloft Hotels is Marriott's upper-midscale, design-forward select-service hotel franchise aimed at younger travelers. Franchisees own and operate individual properties, running rooms, bar, and guest services on Marriott's systems.
FranchiseVerdict summary · 2026
A Aloft Hotels franchise requires a total initial investment of $13.3M – $29.4M, including a $75K franchise fee and an ongoing 5.5% royalty[2]. The 2025 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $13.3M – $29.4M
- 51st pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 166
- 51st pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $13.3M – $29.4M including a $75K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports ADR/Occupancy/RevPAR (not full gross sales). For the 149 STR Included Hotels in 2024: average ADR $154.61, average OCC 69.7%, average RevPAR $107.73, RevPAR Index 100.8. RevPAR ranged $31.92-$197.04 (median $99.76); ADR ranged $80.85-$232.01 (median $144.86). No revenue/profit figures disclosed.
- RISKVerdict B (Above average), verdict score 64/100 (higher is better).
- GROWTHPositive: net +4 franchised outlets in the latest year (5 opened, 1 closed); 51 signed but not yet open (Item 20).
- LEGAL15 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
Corporate structure & franchisor financials
- Legal entity
- MIF, L.L.C.
- Parent company
- Marriott International, Inc.
- FDD Item 1, page 9 of the 2025 FDD
- Incorporated in
- Delaware
- HQ
- 7750 Wisconsin Avenue, Bethesda, Maryland 20814
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $103.3M
- vs $94.4M prior year
Same owner · FDD Item 1, page 9
8 other brands on this site name Marriott International, Inc. as parent or ultimate parent in their own FDD.
- AC Hotels by MarriottC
- City Express by MarriottB
- Delta Hotels by MarriottB
- Fairfield by MarriottA
- Marriott Hotel / JW MarriottA
- Postcard CabinsC
- SpringHill Suites by MarriottA
- TownePlace Suites by MarriottA
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Anthony Capuano
- Headquarters
- Maryland
- FDD year
- 2025
- States available
- 35
Can you afford it, and what does the money buy?
Entry cost runs 140% above the typical lodging franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Application Fee | $75K | $75K | |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services | $50K | $81K | |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $83K | $135K | |
| Market Feasibility Study | $6K | $18K | |
| Real Estate | — | — | |
| Building Permit, Tap, and Impact Fees | — | — | |
| Building Construction | $10.2M | $23.4M | |
| Kitchen and Laundry Equipment | $280K | $671K | |
| Furniture and Fixtures | $1.4M | $2.6M | |
| Technology Hardware & Software and Network Infrastructure | $136K | $239K | |
| Operating Supplies | $184K | $252K | |
| Professional Design Services (including stylist) | $380K | $854K | |
| Insurance | — | — | |
| Start-up Costs | $184K | $385K | |
| 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) | $240K | $550K | |
| Total initial investment | $13.3M | $29.4M |
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
- $13.3M – $29.4M
- Middle of category vs category
- Liquid capital req'd
- $160K – $550K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $150K |
| Total fee load | 6.5% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Aloft Hotels is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Aloft Hotels unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Item 19 reports ADR/Occupancy/RevPAR (not full gross sales). For the 149 STR Included Hotels in 2024: average ADR $154.61, average OCC 69.7%, average RevPAR $107.73, RevPAR Index 100.8. RevPAR ranged $31.92-$197.04 (median $99.76); ADR ranged $80.85-$232.01 (median $144.86). No revenue/profit figures disclosed.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.5% — below the Lodging median of 8.5%.
Disclosure
Item 19 reports occupancy, ADR and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 6.5% CAGR over 3 years across 166 units — operators are staying and new ones are joining.
Multi-unit rate
Only 15% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Lodging medians
How Aloft Hotels Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 166
- Opened
- 5
- Last reporting year
- Closed
- 1
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.6%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Multi-unit owners
- 15.0%
- Net growth (3-yr)
- +6.5%
- Net unit change over 3 years
- 3-yr CAGR
- +6.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Not renewed
- 1
- Signed, not yet open
- 51
- 0.31 per open outlet · Item 20 Table 5
- Projected new
- 1
- Franchisor's next-year forecast
- Transfer rate
- 3.0%
- Owners selling to other franchisees
- Continuity rate
- 99.4%
- Units that stayed open
- Termination rate
- 0.6%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 34 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.
Where the owners are · Item 20 owner list
160 current owners across 34 states.
- TX 31
- FL 18
- CA 10
- NC 10
- NY 9
- GA 7
- OH 7
- AZ 5
- IL 5
- SC 5
- TN 5
- CO 4
- +22 more states
Counts only, from the list the franchisor prints in Item 20; 12 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $8.2M
- Median loan
- $1.0M
- 50th percentile
- Charge-off rate
- Under 10 loans (3)
- Insufficient SBA coverage: 3 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (3)
- 5-yr charge-off
- Under 10 loans (3)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Aloft presents meaningful caution-level risk due to extreme capital requirements without financial transparency, litigation overhang from data breach, stagnant unit growth, and unprotected territories—requiring deep validation of actual unit economics before commitment.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Item 3 discloses: (A) Data Security Incident matters (4 case groups incl. MDL No. 19-md-2879, City of Chicago v. Marriott, administrative investigations, Canadian actions); (B) Destination/Resort Fee matter (District of Columbia v. Marriott); (C) 3 franchisor-initiated arbitrations/suits (Arkansas Knoxville Hotel, Lucky Cleveland Holdings, Pride Hotel); (D) 3 other pending actions (Portillo v. CoStar antitrust, Segal v. Amadeus antitrust, Hall v. Marriott $16M NC verdict on appeal); (E) 6 concluded actions (Rahman, HPT arbitration, Rivera, Puleo, Cityfront, Todd Hall). Most matters target parent MII; franchisor-initiated suits target franchisees.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 64 / 100 verdict
- 01MEDMassive capital requirement ($13.3M-$36.2M) with no disclosed net income data to validate ROI
- 02MINORAnemic unit growth of only 2.5% YoY suggests market saturation or franchisee dissatisfaction in 166-unit system
- 03HIGHOngoing 2018 Starwood data breach litigation creates reputational risk and potential liability exposure for franchisees
- 04MINORNo protected territory means direct competition from other Aloft franchisees and Marriott brands in same market
- 05MINOR5.5% royalty on gross room sales is owed regardless of profitability, creating cash flow pressure during downturns
- 06MINORMultiple class-action lawsuits and antitrust investigations indicate systemic franchisor governance issues
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 0 years |
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Baltimore, Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 15 |
View Item 3 litigation summary
Item 3 discloses: (A) Data Security Incident matters (4 case groups incl. MDL No. 19-md-2879, City of Chicago v. Marriott, administrative investigations, Canadian actions); (B) Destination/Resort Fee matter (District of Columbia v. Marriott); (C) 3 franchisor-initiated arbitrations/suits (Arkansas Knoxville Hotel, Lucky Cleveland Holdings, Pride Hotel); (D) 3 other pending actions (Portillo v. CoStar antitrust, Segal v. Amadeus antitrust, Hall v. Marriott $16M NC verdict on appeal); (E) 6 concluded actions (Rahman, HPT arbitration, Rivera, Puleo, Cityfront, Todd Hall). Most matters target parent MII; franchisor-initiated suits target franchisees.
Items 10, 11
Training & Operations
- Classroom training
- 154 hrs
- On-the-job training
- 0 hrs
- Training location
- Off-site and on-site
- Time to open
- 30 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Designated POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Designated POS System
Item 20 · call current owners
Franchisee Contacts
172 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Aloft Hotels franchise?
The total investment to open a Aloft Hotels franchise ranges from $13.3M – $29.4M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Aloft Hotels franchise owners earn?
Item 19 of the Aloft Hotels FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Aloft Hotels?
Aloft Hotels is franchised by MIF, L.L.C.. Its parent company is Marriott International, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Aloft Hotels FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Aloft Hotels FDD and qualifies whose outlets they describe.
What is Aloft Hotels's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Aloft Hotels (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 Aloft Hotels franchise locations are there?
As of their most recent FDD filing, Aloft Hotels has 166 total units in the United States, including 164 franchised units and 2 company-owned units. 5 new units were opened in the latest reporting year.
Is Aloft Hotels a good franchise to buy?
FranchiseVerdict rates Aloft Hotels as a B-grade franchise with a verdict score of 64 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.