Delta Hotels by Marriott
Formerly known as Marriott International
Bottom line
- Total investment — including a $120K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Delta Hotels by Marriott unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 75 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
75 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Delta Hotels by Marriott · FDD (2025) PDF