Extended Stay America Premier Suites
Bottom line
- Total investment $328K – $15.3M including a $50K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 62/100.
- 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
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 EXTENDED STAY AMERICA PREMIER SUITES unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
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.
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 · 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 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.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 62 / 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
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
43 numbers
One-time purchase · CSV download · Validation questions included
FDD download
EXTENDED STAY AMERICA PREMIER SUITES · FDD (2026) PDF