City Express by Marriott Franchise Cost, Revenue & Review 2026
- Investment
- $2.8M – $4.9M
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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
- $2.8M – $4.9M
- 29th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 11
- 22nd 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 $2.8M – $4.9M including a $75K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 53/100 (higher is better).
- GROWTHPositive: net +10 franchised outlets in the latest year (10 opened, 0 closed) (Item 20).
- 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.
- FDD Item 1, page 9 of the 2026 FDD
- 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
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
- Aloft HotelsB
- 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 2026 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
- MD
- Founded
- 2012
- FDD year
- 2026
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 57% 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%
- 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. 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 City Express by Marriott 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: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 City Express by Marriott 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 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
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 44
- Franchisor's next-year forecast
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)
Subject: the franchisor is a named party (defendant).
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 ($1.95M awarded), SRG v Discover credit card proceeds dispute; (D) Several concluded cases including Rahman Property System Incident (settled), HPT arbitration, two Puerto Rico resort fee suits (settled individually), Cityfront Hotel Associates (settled 2017), Todd Hall (settled).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements of franchisor MIF, L.L.C. ($ 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.
ⓘ 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 53 / 100 verdict
- 01MEDZero disclosed franchise units with unknown growth trajectory suggests brand either new, failing, or data transparency issues
- 02HIGHExtensive litigation portfolio including data security class action, state AG investigations, antitrust claims, and contractual disputes indicates systemic corporate governance problems
- 03MINORNo average revenue or net income disclosure (no Item 19) prevents ROI validation on $2.75M-$4.85M investment
- 04MINORUnprotected territory creates direct competition risk and revenue cannibalization among franchisees
- 05MINOR5% royalty on gross room sales (not net) combined with high capex requirements creates margin squeeze risk
- 06HIGHMarriott brand association provides some credibility, but litigation suggests parent company distance or weak oversight
- 07MINOR20-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 | No territory protection |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns City Express by Marriott?
City Express by Marriott is franchised by MIF, L.L.C.. Its parent company is Marriott International, Inc.. Source: FDD Item 1, 2026 filing.
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 53 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.