City Express by Marriott Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
City Express by Marriott is a limited-service hotel franchise offering value-priced rooms for business and leisure travelers. Franchisees own and operate the hotels, managing front desk, housekeeping, and revenue.
FranchiseVerdict summary · 2026
A City Express by Marriott franchise requires a total initial investment of $2.8M – $4.9M, including a $75K – $100K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $2.8M – $4.9M
- 29th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 11
- 23rd pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · 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 $2.8M – $4.9M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSFinancial statements of franchisor MIF, L.L.C. ($ in thousands). FY2025 total revenues of $147,482K comprise gross fee revenue $98,016K less contract investment amortization ($1,417K) for net fee revenues of $96,599K, plus cost reimbursement revenue of $50,883K. Gross fee revenue includes franchise fees $95,027K and licensing fees and other revenue $2,989K.
- RISKVerdict B (Above average), verdict score 48/100 (higher is better).
- LEGAL17 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.
- Predecessor
- Hoteles City Express, S.A.B. de C.V. (acquired by Marriott International May 2023)
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 7750 Wisconsin Avenue, Bethesda, Maryland 20814
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $147.5M
- vs $103.3M prior year
Overview
About
- CEO
- Anthony Capuano
- Headquarters
- MD
- Founded
- 2012
- FDD year
- 2026
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 61% below the typical lodging franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $75K | $75K |
| Working capital (3–6 mo) | $300K | $500K |
| Equipment, build-out, other | $2.4M | $4.3M |
| Total initial investment | $2.8M | $4.9M |
Source: City Express by Marriott 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.8M – $4.9M
- Top 40% of category vs category
- Liquid capital req'd
- $300K – $500K
- Top 40% of category vs category
- Franchise fee
- $75K – $100K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $0 |
| Training fee | $10K |
| Transfer fee | $100K |
| Total fee load | 6.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
City Express by Marriott did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one City Express by Marriott unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
2%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Financial statements of franchisor MIF, L.L.C. ($ in thousands). FY2025 total revenues of $147,482K comprise gross fee revenue $98,016K less contract investment amortization ($1,417K) for net fee revenues of $96,599K, plus cost reimbursement revenue of $50,883K. Gross fee revenue includes franchise fees $95,027K and licensing fees and other revenue $2,989K.
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 average of 10.4%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How City Express by Marriott Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 10
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 21
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Litigation (Item 3)
Multiple matters: (A) 2018 Starwood data security breach MDL and related administrative investigations/regulatory actions in US, UK, Turkey, Canada, Australia; (B) Resort/destination fee investigations and DC lawsuit (settled 2025); (C) Portillo antitrust class action, Segal antitrust class action, Hall negligence ($16M verdict, settled 2025), Marriott v Lucky Cleveland arbitration ($1.95M awarded), SRG v Discover credit card proceeds dispute; (D) Several concluded cases including Rahman Property System Incident (settled), HPT arbitration, two Puerto Rico resort fee suits (settled individually), Cityfront Hotel Associates (settled 2017), Todd Hall (settled).
Largest disclosed settlement: $52,000,000
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
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 48 / 100 verdict
- 01HIGHGoing concern status is FALSE, indicating potential financial viability questions at corporate level
- 02MEDZero disclosed franchise units with unknown growth trajectory suggests brand either new, failing, or data transparency issues
- 03HIGHExtensive litigation portfolio including data security class action, state AG investigations, antitrust claims, and contractual disputes indicates systemic corporate governance problems
- 04MINORNo average revenue or net income disclosure (no Item 19) prevents ROI validation on $2.75M-$4.85M investment
- 05MINORUnprotected territory creates direct competition risk and revenue cannibalization among franchisees
- 06MINOR5% royalty on gross room sales (not net) combined with high capex requirements creates margin squeeze risk
- 07HIGHMarriott brand association provides some credibility, but litigation suggests parent company distance or weak oversight
- 08MINOR20-year term locks franchisees into relationship with litigious corporate entity
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 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | 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 | MD |
| Litigation count | 17 |
View Item 3 litigation summary
Multiple matters: (A) 2018 Starwood data security breach MDL and related administrative investigations/regulatory actions in US, UK, Turkey, Canada, Australia; (B) Resort/destination fee investigations and DC lawsuit (settled 2025); (C) Portillo antitrust class action, Segal antitrust class action, Hall negligence ($16M verdict, settled 2025), Marriott v Lucky Cleveland arbitration ($1.95M awarded), SRG v Discover credit card proceeds dispute; (D) Several concluded cases including Rahman Property System Incident (settled), HPT arbitration, two Puerto Rico resort fee suits (settled individually), Cityfront Hotel Associates (settled 2017), Todd Hall (settled).
Items 10, 11
Training & Operations
- Classroom training
- 3 hrs
- On-the-job training
- 0 hrs
- Training location
- Remote/web-based and on-site at hotel or location designated by Marriott
- Ongoing training
- Required
- Site selection
- franchisee (with franchisor approval)
- Franchisor financing
- Offered
- Item 10
- POS system
- MARSHA and One Yield
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MARSHA and One Yield
Item 20 · call current owners
Franchisee Contacts
20 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
City Express by Marriott · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a City Express by Marriott franchise?
The total investment to open a City Express by Marriott franchise ranges from $2.8M – $4.9M, 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 City Express by Marriott franchise owners earn?
City Express 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 Item 19 in the City Express by Marriott 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 City Express by Marriott FDD and qualifies whose outlets they describe.
What is City Express by Marriott's franchise failure rate?
SBA 7(a) loan charge-off data is not available for City Express 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 City Express by Marriott franchise locations are there?
As of their most recent FDD filing, City Express by Marriott has 11 total units in the United States, including 11 franchised units and 0 company-owned units. 10 new units were opened in the latest reporting year.
Is City Express by Marriott a good franchise to buy?
FranchiseVerdict rates City Express by Marriott as a B-grade franchise with a verdict score of 48 out of 100 (higher is better), 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.
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.