Extended Stay America Suites Franchise Cost, Revenue & Review 2026
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 $35K – $50K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 22 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $9.2M – $14.3M
- 39th pct Lodging
- Avg gross sales
- N/A
- 1st pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 427
- 49th pct Lodging
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging avg · 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
- Total investment $9.2M – $14.3M including a $35K franchise fee, 5.5% ongoing royalty.
- 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.
- Verdict A (Strongest tier), verdict score 88/100 (higher is better). SBA loan charge-off rate of 0.0% across 22 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System 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
- Ultimate parent
- Eagle Strategies Holdings LLC
- 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
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 15% 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 | $35K | $35K |
| 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
- Top 40% of category vs category
- Liquid capital req'd
- $175K – $250K
- Top 40% of category vs category
- Franchise fee
- $35K – $50K
- Top 40% of category vs category
- Royalty
- 5.5%
- percentage · 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
Financial Performance
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.
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% (near the Lodging average).
Disclosure
Item 19 reports "operating_metrics" rather than annual gross sales. Not directly comparable across brands.
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 averages
How Extended Stay America Suites Compares
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
3-year detail · Item 20
- Opened (3yr)
- 23
- Closed (3yr)
- 9
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 21
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 20 · 24 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
- 22
- Loan volume
- $77.6M
- Median loan
- $3.5M
- average
- Charge-off rate
- 0.0%
- 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
- 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.
Premium insight
SBA Lending Report
Deep-dive into Extended Stay America Suites's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 10 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
With a 0.0% charge-off rate across 22 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
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.
Litigation (Item 3)
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
Largest disclosed settlement: $100,000
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: No
Score breakdown · what drove the 88 / 100 verdict
- 01MEDNo Item 19 financial performance data disclosed—unable to assess actual franchisee profitability or validate ROI claims
- 02MINORWide investment range ($210K–$14.3M) suggests highly variable unit economics and unclear capital requirements
- 03HIGHMultiple active litigation matters including antitrust software claims, IP enforcement actions, and settled guest refund disputes indicate operational and legal vulnerabilities
- 04MINORUnprotected territory creates direct competition risk; franchisees may compete with other company units or future franchisees in same market
- 05MINOR5.5% royalty on gross room revenue (not net) provides no relief during downturns and compounds during high-occupancy periods
- 06MINOR12.1% 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 | none |
| 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
94 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
EXTENDED STAY AMERICA SUITES · FDD (2026) PDF
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 $35K. 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?
EXTENDED STAY AMERICA 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 SUITES's franchise failure rate?
Based on SBA 7(a) loan data, EXTENDED STAY AMERICA SUITES has a charge-off rate of 0.0% across 22 loans, meaning 0.0% 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 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 88 out of 100 (higher is better), 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 EXTENDED STAY AMERICA SUITES, you can request corrections or provide updated information.
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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.