Delta Hotels by Marriott Franchise Cost, Revenue & Review 2026
- Investment
- $72.4M – $118.6M
- Disclosed sales
- not disclosed
- SBA charge-off
- 2.3%
- on 72 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Delta Hotels by Marriott is a full-service, upscale hotel franchise focused on simplified, essential amenities for business travelers. Franchisees own and operate individual properties, running rooms, dining, and guest services on Marriott's systems.
FranchiseVerdict summary · 2026
A Delta Hotels by Marriott franchise requires a total initial investment of $72.4M – $118.6M, including a $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. SBA 7(a) loans show a 2.3% charge-off rate across 72 loans[1]. 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
- $72.4M – $118.6M
- 71st pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 3rd pct Lodging
- Units
- 92
- 46th pct Lodging
- SBA charge-off
- 2.3%
- % of SBA 7(a) loans not repaid · median varies by category
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 $72.4M – $118.6M including a $100K 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 46/100 (higher is better). SBA loan charge-off rate of 2.3% across 72 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHFlat: no net change in franchised outlets in the latest year (2 opened, 2 closed); 14 signed but not yet open (Item 20).
- LEGAL25 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
- Predecessor
- Delta Hotels Limited Partnership
- Prior franchisor entity
- CEO title
- Director, Chief Executive Officer, and President of Marriott International, Inc.
- Anthony Capuano
- 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
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
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
- City Express 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
- MD
- Founded
- 2012
- FDD year
- 2025
- States available
- 27
Can you afford it, and what does the money buy?
Entry cost runs 974% 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 | $120K | $120K | |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Servicesnot refundable | $75K | $152K | |
| Property Management System, Reservation System, Yield Management System, and Sales and Catering System | $133K | $225K | |
| Other Systems and Training | $42K | $135K | |
| Market Feasibility Study | $15K | $25K | |
| Real Estate | — | — | |
| Building Permit, Tap, and Impact Fees | — | — | |
| Building Construction | $58.2M | $97.0M | |
| Kitchen and Laundry Equipment | $1.2M | $1.5M | |
| Furniture and Fixtures | $5.5M | $7.0M | |
| Technology Hardware & Software and Network Infrastructure | $690K | $1.6M | |
| Operating Supplies | $899K | $1.2M | |
| Professional Design Services | $2.9M | $4.9M | |
| Insurance | — | — | |
| Start-Up Costs | $1.4M | $2.3M | |
| Hard Cost Contingency (10% of hard costs) | — | — | |
| Food Safety and Sanitation Compliance | $280 | $490 | |
| Opening Advertising | $115K | $165K | |
| Additional Funds (first 3 months) | $1.1M | $2.4M | |
| Total initial investment | $72.4M | $118.6M |
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
- $72.4M – $118.6M
- Bottom third — review vs category
- Liquid capital req'd
- $1.1M – $2.4M
- Middle of category vs category
- Franchise fee
- $100K – $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 | $220 |
| Training fee | $75K |
| Transfer fee | $16K |
| Renewal fee | $0 |
| Total fee load | 6.5% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Delta Hotels 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 Delta Hotels 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: 2025 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.
Operator retention
System expanding at 8.1% CAGR over 3 years across 92 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 Delta Hotels 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 92
- Opened
- 2
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.0%
- Company-owned
- 25
- Corporate units in the system
- % franchised
- 73%
- vs corporate-owned
- Multi-unit owners
- 15.0%
- Net growth (3-yr)
- +8.1%
- Net unit change over 3 years
- 3-yr CAGR
- +8.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Signed, not yet open
- 14
- 0.15 per open outlet · Item 20 Table 5
- Projected new
- 21
- Franchisor's next-year forecast
- Transfer rate
- 1.1%
- Owners selling to other franchisees
- Termination rate
- 2.2%
- Franchisor-initiated terminations
- Ceased ops
- 2.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 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
57 current owners across 30 states.
- VA 6
- FL 5
- CA 4
- MI 3
- NJ 3
- PA 3
- WI 3
- IN 2
- LP 2
- MD 2
- NY 2
- OH 2
- +18 more states
Counts only, from the list the franchisor prints in Item 20; 15 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 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 72
- Loan volume
- $192.3M
- Median loan
- $3.5M
- 50th percentile
- Charge-off rate
- 2.3%
- on 72 loans · 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 1
- Typical loan rate
- 5.8%
- avg rate to borrowers
- Franchised industry avg
- 6.3%
- brand beats franchise avg ↓
- Jobs supported
- 99
- 1.4 per loan
- Lender concentration
- 50%
- top lender's share
Borrower mix: 50% went to startups / new businesses, 50% to established operators
Franchise vs independent — in hotels (except casino hotels) and motels, franchised businesses charge off at 6.3% vs 9.2% for independents — franchising is associated with 32% lower SBA default risk in this category.
Top lenders financing Delta Hotels by Marriott franchisees
Showing 3 of 9 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Delta Hotels by Marriott from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 5.75%
- Lender concentration
- 50.0%
- Job velocity
- 1.4 per $100K
- NAICS benchmark
- 7.6%
- NAICS 721110
- Jobs supported
- 99
Top SBA lendersTop lender holds 50% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | WesBanco Bank, Inc. | 1 | $2.0M | N/A |
| 2 | Wright Patt Credit Union Inc | 1 | $5.0M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NCNorth Carolina | 1 | 0 | -- |
| OHOhio | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 2.3% — 86% below the 16.0% national norm, i.e. lower lender-observed risk.
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 active and concluded cases. Active: trademark infringement suit by Delta Air Lines; data breach MDL (In re Marriott, MDL 19-md-2879) and City of Chicago case; Canadian data breach class action; DC resort fee lawsuit; antitrust suits (Portillo/CoSTAR, Segal/Amadeus); jury verdict of $16M in Hall v. Marriott (NC). Franchisor-initiated: arbitration awards won against franchisees. Concluded: several settled matters including $52M AG settlement and ICO £18.4M penalty related to 2018 data breach.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited statements of MIF, L.L.C. (in thousands). FY2024 total revenues $103,268K = Franchise fees $69,954K + Licensing fees and other revenue $2,026K (gross fee revenue $71,980K), less contract investment amortization ($1,203K) = net fee revenues $70,777K, plus cost reimbursement revenue $32,491K. FY2023 total $94,417K; FY2022 $87,939K.
ⓘ 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: Yes
Score breakdown · what drove the 46 / 100 verdict
- 01HIGHExtensive litigation portfolio including trademark disputes with Delta Air Lines, multiple class-action lawsuits, data security breaches affecting reservations, and franchisor-initiated collection actions suggests systemic operational and legal vulnerabilities
- 02MINOROnly 92 units with unknown growth trajectory in a mature hotel franchise segment raises questions about brand viability and franchisee recruitment ability
- 03MEDNo disclosed average revenue or net income figures prevent meaningful ROI analysis and suggest possible performance issues or franchisor reluctance to disclose unfavorable metrics
- 04HIGH2018 Starwood database breach with ongoing litigation indicates unresolved guest trust and cybersecurity issues that impact franchisee operations and liability exposure
- 05MINORMultiple resort fee and amenity fee legal disputes indicate franchisor-franchisee misalignment on revenue practices and potential guest dissatisfaction
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 |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Baltimore, Maryland |
| Jury trial waiver | Yes |
| Governing law | MD |
| Litigation count | 25 |
View Item 3 litigation summary
Multiple active and concluded cases. Active: trademark infringement suit by Delta Air Lines; data breach MDL (In re Marriott, MDL 19-md-2879) and City of Chicago case; Canadian data breach class action; DC resort fee lawsuit; antitrust suits (Portillo/CoSTAR, Segal/Amadeus); jury verdict of $16M in Hall v. Marriott (NC). Franchisor-initiated: arbitration awards won against franchisees. Concluded: several settled matters including $52M AG settlement and ICO £18.4M penalty related to 2018 data breach.
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 0 hrs
- Training location
- Franchisor-designated locations (on-site and virtual)
- Ongoing training
- Required
- Time to open
- 21 mo
- From signing to launch
- Site selection
- Franchisee selects; Franchisor approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Franchisor designated Point-of-Sale (POS) System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Franchisor designated Point-of-Sale (POS) System
Item 20 · call current owners
Franchisee Contacts
72 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 Delta Hotels by Marriott franchise?
The total investment to open a Delta Hotels by Marriott franchise ranges from $72.4M – $118.6M, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Delta Hotels by Marriott franchise owners earn?
Delta Hotels 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 Delta Hotels by Marriott?
Delta Hotels by Marriott 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 Delta Hotels 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 Delta Hotels by Marriott FDD and qualifies whose outlets they describe.
What is Delta Hotels by Marriott's franchise failure rate?
Based on SBA 7(a) loan data, Delta Hotels by Marriott has a charge-off rate of 2.3% across 72 loans, meaning 2.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Delta Hotels by Marriott franchise locations are there?
As of their most recent FDD filing, Delta Hotels by Marriott has 92 total units in the United States, including 67 franchised units and 25 company-owned units. 2 new units were opened in the latest reporting year.
Is Delta Hotels by Marriott a good franchise to buy?
FranchiseVerdict rates Delta Hotels by Marriott as a B-grade franchise with a verdict score of 46 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.