Extended Stay America Suites Franchise Cost, Revenue & Review 2026
- Investment
- $9.2M – $14.3M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 22 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Extended Stay America is a midscale extended-stay hotel franchise with in-room kitchens for weekly and monthly guests. Franchisees own and operate individual properties, running suites, housekeeping, and revenue management to brand standards.
FranchiseVerdict summary · 2026
A EXTENDED STAY AMERICA SUITES franchise requires a total initial investment of $9.2M – $14.3M, including a $50K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
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 scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $9.2M – $14.3M
- 41st pct Lodging
- Avg gross sales
- N/A
- Incl. company outletsProjection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 427
- 61st pct Lodging
- SBA charge-off
- N/A
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 $9.2M – $14.3M including a $50K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports operating metrics rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHPositive: net +13 franchised outlets in the latest year (23 opened, 9 closed); 1 signed but not yet open (Item 20).
- GROWTHSystem growing at 15.4% CAGR over 3 years with 427 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- ESH Strategies Franchise LLC
- Parent company
- ESH Hospitality Strategies LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Eagle Strategies Holdings LLC
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- President
- Greg Juceam
- CEO experience
- 4 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 13024 Ballantyne Corporate Place, Suite 1000, Charlotte, NC 28277
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $29.3M
- vs $25.8M prior year
Same owner · FDD Item 1, page 9
1 other brand on this site name Eagle Strategies Holdings LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 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
- Greg Juceam
- Headquarters
- NC
- Founded
- 2010
- FDD year
- 2026
- States available
- 42
Can you afford it, and what does the money buy?
Entry cost runs 32% above the typical lodging franchise.
Source: FDD 2026 · Items 5–7
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 | $9.0M | $14.0M |
| Total initial investment | $9.2M | $14.3M |
Source: EXTENDED STAY AMERICA 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
- $9.2M – $14.3M
- Middle of category vs category
- Liquid capital req'd
- $175K – $250K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.5%
- 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 |
| Training fee | $2K |
| Transfer fee | $50K |
| Total fee load | 10.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for EXTENDED STAY AMERICA SUITES is on file. 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 EXTENDED STAY AMERICA SUITES 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: 2026 FDD
Financial Performance
Includes company-owned outlets
Not a revenue figure
- Item 19 type
- operating metrics
- Sample size
- 97
- vs category median 98
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 175 Lodging brands
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 10.0% — above the Lodging median of 8.5%.
Disclosure
Item 19 reports operating metrics rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 15.4% CAGR over 3 years across 427 units — operators are staying and new ones are joining.
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 Extended Stay America Suites 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 427
- Opened
- 23
- Last reporting year
- Closed
- 9
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.3%
- Company-owned
- 307
- Corporate units in the system
- % franchised
- 28%
- vs corporate-owned
- Net growth (3-yr)
- +15.4%
- Net unit change over 3 years
- 3-yr CAGR
- +15.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 21
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
- Transfer rate
- 4.9%
- Owners selling to other franchisees
- Continuity rate
- 92.3%
- Units that stayed open
- Termination rate
- 0.2%
- Franchisor-initiated terminations
- Ceased ops
- 2.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 42 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
42
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 22
- Loan volume
- $77.6M
- Median loan
- $3.5M
- average
- Charge-off rate
- Limited · 22 loans
- Limited SBA coverage: 22 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 22 loans
- 5-yr charge-off
- Limited · 22 loans
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
- Typical loan rate
- 8.2%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 29%
- top lender's share
Vintage analysis
Extended Stay America Suites charge-off rate by loan vintage
Top lenders financing Extended Stay America Suites 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 Extended Stay America Suites from SBA 7(a) FOIA data.
- Avg interest rate
- 8.18%
- Lender concentration
- 28.6%
Top SBA lendersTop lender holds 29% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | GBank | 6 | $20.1M | N/A |
| 2 | Shoreham Bank | 2 | $6.5M | N/A |
| 3 | American Bank | 2 | $2.6M | N/A |
| 4 | First Utah Bank | 2 | $10.0M | N/A |
| 5 | Home Bank, National Association | 1 | $1.9M | 0.0% |
| 6 | Commonwealth Business Bank | 1 | $2.6M | 0.0% |
| 7 | BankUnited, National Association | 1 | $2.5M | 0.0% |
| 8 | Ameris Bank | 1 | $4.3M | 0.0% |
| 9 | United Midwest Savings Bank National Association | 1 | $4.2M | N/A |
| 10 | Byline Bank | 1 | $4.8M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 5 | 0 | -- |
| TXTexas | 4 | 0 | 0.0% |
| FLFlorida | 2 | 0 | 0.0% |
| ILIllinois | 2 | 0 | -- |
| MIMichigan | 2 | 0 | -- |
| MSMississippi | 2 | 0 | -- |
| ALAlabama | 1 | 0 | -- |
| GAGeorgia | 1 | 0 | -- |
| LALouisiana | 1 | 0 | -- |
| NCNorth Carolina | 1 | 0 | -- |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Extended Stay America presents elevated risk due to undisclosed financials, significant litigation exposure, unprotected territories, and gross-revenue-based royalties that limit franchisee profitability flexibility.
Why this reads harsher than the A grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
3 pending antitrust class actions (consolidated/related re hotel pricing algorithm); 2 enforcement actions by franchisor post-termination; 1 prior class action settled for $100,000 in 2024
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financial statements of ESH Strategies Franchise LLC (Exhibit D), in thousands, for fiscal years ended December 31, 2025 and 2024. FY2025 revenues comprise franchise fees $10,723K, system service fees $12,449K, direct expense reimbursements $3,724K, and other revenues $2,412K. Auditor report dated March 24, 2026; the CPA firm name was not captured as machine-readable text (signed by an unnamed firm). Emphasis-of-matter note re significant related-party transactions with affiliates.
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: No
Score breakdown · what drove the 76 / 100 verdict
- 01HIGHMultiple active litigation matters including antitrust software claims, IP enforcement actions, and settled guest refund disputes indicate operational and legal vulnerabilities
- 02MINORUnprotected territory creates direct competition risk; franchisees may compete with other company units or future franchisees in same market
- 03MINOR5.5% royalty on gross room revenue (not net) provides no relief during downturns and compounds during high-occupancy periods
- 04MINOR12.1% YoY unit growth is modest for extended-stay sector; unclear if growth is sustainable or reflects new development vs. acquisitions
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · 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 | Restricted |
| 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 | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Charlotte, NC |
| Jury trial waiver | Yes |
| Governing law | NC |
| Litigation count | 6 |
View Item 3 litigation summary
3 pending antitrust class actions (consolidated/related re hotel pricing algorithm); 2 enforcement actions by franchisor post-termination; 1 prior class action settled for $100,000 in 2024
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 12 hrs
- Training location
- Charlotte, NC (headquarters) and franchisee's hotel
- Ongoing training
- Required
- Time to open
- 24 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor reviews and approves within 60 days
- Franchisor financing
- Not offered
- Item 10
- POS system
- Property Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Property Management System
Item 20 · call current owners
Franchisee Contacts
122 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 EXTENDED STAY AMERICA SUITES franchise?
The total investment to open a EXTENDED STAY AMERICA SUITES franchise ranges from $9.2M – $14.3M, 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 SUITES franchise owners earn?
Item 19 of the EXTENDED STAY AMERICA SUITES FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns EXTENDED STAY AMERICA SUITES?
EXTENDED STAY AMERICA SUITES is franchised by ESH Strategies Franchise LLC. Its parent company is ESH Hospitality Strategies LLC. The ultimate parent named in the FDD is Eagle Strategies Holdings LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the EXTENDED STAY AMERICA SUITES 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 EXTENDED STAY AMERICA SUITES FDD and qualifies whose outlets they describe.
What is EXTENDED STAY AMERICA SUITES's franchise failure rate?
SBA 7(a) loan charge-off data is not available for EXTENDED STAY AMERICA 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 SUITES franchise locations are there?
As of their most recent FDD filing, EXTENDED STAY AMERICA SUITES has 427 total units in the United States, including 120 franchised units and 307 company-owned units. 23 new units were opened in the latest reporting year.
Is EXTENDED STAY AMERICA SUITES a good franchise to buy?
FranchiseVerdict rates EXTENDED STAY AMERICA SUITES as a A-grade franchise with a verdict score of 76 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.