Extended Stay America Premier SuitesFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A EXTENDED STAY AMERICA PREMIER SUITES franchise requires a total initial investment of $328K – $15.3M, including a $50K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $328K – $15.3M
- 20th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 57
- 27th pct Lodging
- SBA default
- N/A
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
The system grew 47% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $328K – $15.3M including a $50K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "Operating Metrics (Occupancy, ADR, RevPAR, Length of Stay)" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 42/100.
- System growing at 177.8% CAGR over 3 years with 57 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ESH Strategies Franchise LLC
- Parent company
- ESH Hospitality Strategies LLC
- CEO title
- President
- Greg Juceam
- Incorporated in
- DE
- HQ
- 13024 Ballantyne Corporate Place, Suite 1000, Charlotte, NC 28277
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $25.8M
- vs $29.3M prior year
Overview
About
Franchisees operate extended-stay hotel properties (typically 50–200+ rooms) targeting weekly/monthly guests, managing daily housekeeping, maintenance, front-desk operations, and revenue management. Core operations depend on franchisor's revenue management software (subject to active antitrust litigation) and loyalty program integration. Franchisees handle local marketing, staffing, property upkeep, and guest services while paying 5.5% of gross room revenue to the franchisor.
- CEO
- Greg Juceam
- Headquarters
- NC
- Founded
- 2010
- FDD year
- 2026
- States available
- 18
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $175K | $250K |
| Equipment, build-out, other | $103K | $15.0M |
| Total initial investment | $328K | $15.3M |
Source: EXTENDED STAY AMERICA PREMIER SUITES 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
- $328K – $15.3M
- Better than avg vs category
- Liquid capital req'd
- $175K – $250K
- Better than avg vs category
- Franchise fee
- $50K
- Better than avg vs category
- Royalty
- 5.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 4.5%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 4.5% of gross sales |
| Transfer fee | $50K |
| Total fee load | 10.0% of rev |
Financial Performance
This brand's FDD disclosed "Operating Metrics (Occupancy, ADR, RevPAR, Length of Stay)" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Lodging averages
How Extended Stay America Premier Suites Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 57
- Opened
- 8
- 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
- 32
- Corporate units in the system
- % franchised
- 44%
- vs corporate-owned
- Net growth (yr3)
- +47.1%
- Net unit change last year
- 3-yr CAGR
- +177.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- Transfer rate
- 1.8%
- Owners selling to other franchisees
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapidly expanding extended-stay franchise with meaningful litigation exposure, opaque financial performance, and unproven unit-level profitability in a competitive segment.
Litigation (Item 3)
Two pending antitrust lawsuits alleging Sherman Act violations related to revenue management algorithm software. Company believes lawsuits are without merit and intends to vigorously defend.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche 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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 42 / 100 rating
- 01MEDNo Item 19 financial performance disclosure (average revenue/net income not disclosed) prevents accurate ROI assessment on $327k–$15.3M investment range
- 02MINORAggressive unit growth (47.1% YoY) with only 57 total units suggests rapid expansion into unproven market without mature franchisee performance data
- 03HIGHMultiple active litigation exposures including two consolidated antitrust class actions on revenue management software (core operational tool) and two IP enforcement actions initiated by franchisor against franchisees
- 04MED5.5% royalty rate combined with no earnings visibility creates cash flow risk if per-room revenues decline
- 05MINORWide investment range ($327k–$15.3M) with 47x spread indicates inconsistent unit economics or undefined scalability
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 geographic area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Charlotte, North Carolina |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 4 |
View Item 3 litigation summary
Two pending antitrust lawsuits alleging Sherman Act violations related to revenue management algorithm software. Company believes lawsuits are without merit and intends to vigorously defend.
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 12 hrs
- Training location
- franchisor location and on-site
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- POS system
- HotelKey
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HotelKey
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
EXTENDED STAY AMERICA PREMIER SUITES · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a EXTENDED STAY AMERICA PREMIER SUITES franchise?
The total investment to open a EXTENDED STAY AMERICA PREMIER SUITES franchise ranges from $328K – $15.3M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do EXTENDED STAY AMERICA PREMIER SUITES franchise owners earn?
EXTENDED STAY AMERICA PREMIER SUITES 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 EXTENDED STAY AMERICA PREMIER SUITES's franchise failure rate?
SBA 7(a) loan charge-off data is not available for EXTENDED STAY AMERICA PREMIER SUITES (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 EXTENDED STAY AMERICA PREMIER SUITES franchise locations are there?
As of their most recent FDD filing, EXTENDED STAY AMERICA PREMIER SUITES has 57 total units in the United States, including 25 franchised units and 32 company-owned units. 8 new units were opened in the latest reporting year.
Is EXTENDED STAY AMERICA PREMIER SUITES a good franchise to buy?
FranchiseVerdict rates EXTENDED STAY AMERICA PREMIER SUITES as a A-grade franchise with a risk score of 42 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
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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.