Delta Hotels by MarriottFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Delta Hotels by Marriott franchise does not disclose total investment in its current FDD, including a $120K franchise fee and an ongoing 5.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 2.3% charge-off rate across 72 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $120K
- 7th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.0%
- 4th pct Lodging
- Units
- 92
- 35th pct Lodging
- SBA default
- 2.3%
- 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
15 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $120K including a $120K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 40/100. SBA loan charge-off rate of 2.3% across 72 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 15 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.
- Ultimate parent
- Marriott International, Inc. (MII)
- CEO title
- Director, Chief Executive Officer, and President
- Anthony Capuano
- Incorporated in
- DE
- HQ
- 7750 Wisconsin Avenue, Bethesda, Maryland 20814
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $94.4M
- vs $103.3M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Franchisees own and operate mid-scale hotel properties under the Delta Hotels by Marriott brand, managing daily operations including front-desk services, housekeeping, maintenance, food and beverage, and guest relations. Franchisees remit 5% of gross room sales as royalties to Marriott while maintaining brand standards, technology integration with Marriott's reservation system, and compliance with franchise agreements over a 20-year term.
- CEO
- Anthony Capuano
- Headquarters
- MD
- Founded
- 2012
- FDD year
- 2025
- States available
- 27
FDD Item 7 · 2025 filing · 19 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
- $120K
- Better than avg vs category
- Liquid capital req'd
- N/A
- Near category avg vs category
- Franchise fee
- $120K – $150K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Room Sales · 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 | $150K |
| Renewal fee | $0 |
| Total fee load | 6.5% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Lodging averages
How Delta Hotels by Marriott Compares
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
- 2.2%
- Company-owned
- 25
- Corporate units in the system
- % franchised
- 73%
- vs corporate-owned
- Multi-unit owners
- 15.0%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +8.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 51
- Closed (3yr)
- 2,020
- Terminated (3yr)
- 11
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 994
- Franchisor bought back
- 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 · 30 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 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%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Delta 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
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 2-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Delta Hotels presents high-risk investment opportunity due to franchisor going concern status, significant litigation exposure, undisclosed financial performance, stagnant unit growth, and unresolved data security liabilities that directly impact franchisee revenue and legal exposure.
Litigation (Item 3)
Trademark dispute between MII (Marriott International, Inc.) and Delta Air Lines, Inc. regarding Delta Hotels by Marriott brand. Delta filed federal court complaint in March 2020 alleging trademark infringement, dilution, deceptive trade practices, and unfair competition. Discovery completed. Summary judgment rulings in February 2024 narrowed trial issues to trademark infringement/dilution claims and laches defense. Trial scheduled for October 2025. MII also defending against USPTO cancellation and opposition proceedings filed by Delta in January 2021.
Largest disclosed settlement: $10,000
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 40 / 100 rating
- 01HIGHGoing concern status indicates material doubt about franchisor's ability to continue operations and support franchisees
- 02HIGHExtensive 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
- 03MINOROnly 92 units with unknown growth trajectory in a mature hotel franchise segment raises questions about brand viability and franchisee recruitment ability
- 04MEDNo disclosed average revenue or net income figures prevent meaningful ROI analysis and suggest possible performance issues or franchisor reluctance to disclose unfavorable metrics
- 05HIGH2018 Starwood database breach with ongoing litigation indicates unresolved guest trust and cybersecurity issues that impact franchisee operations and liability exposure
- 06MINORMultiple 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Allowed renewalsℹ | 0 |
| Territory type | Radius or Boundary |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 15 |
View Item 3 litigation summary
Trademark dispute between MII (Marriott International, Inc.) and Delta Air Lines, Inc. regarding Delta Hotels by Marriott brand. Delta filed federal court complaint in March 2020 alleging trademark infringement, dilution, deceptive trade practices, and unfair competition. Discovery completed. Summary judgment rulings in February 2024 narrowed trial issues to trademark infringement/dilution claims and laches defense. Trial scheduled for October 2025. MII also defending against USPTO cancellation and opposition proceedings filed by Delta in January 2021.
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Time to open
- 21 mo
- From signing to launch
- Franchisor financing
- 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
75 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Delta Hotels by Marriott · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
What do Delta Hotels by Marriott franchise owners earn?
Delta 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 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 62 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 A-grade franchise with a risk score of 40 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.
For franchisors
Are you the franchisor?
If you represent Delta Hotels by Marriott, you can request corrections or provide updated information.
Claim this brandOther Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.