Hawthorn Extended Stay by WyndhamFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Hawthorn Extended Stay by Wyndham franchise requires a total initial investment of $12.6M – $15.3M, including a $40K 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
- $12.6M – $15.3M
- 42nd pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 82
- 34th 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
Franchising since 1996. Systems this mature have refined operations and brand recognition.
The system grew 16% year-over-year. Fast growth means demand, but can strain support.
13 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $12.6M – $15.3M including a $40K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "ADR, Occupancy Rate, and RevPAR" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Top Quintile) with a risk score of 44/100.
- 13 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
- Legal entity
- Hawthorn Suites Franchising, Inc.
- Parent company
- Wyndham Hotels & Resorts, Inc.
- Incorporated in
- GA
- HQ
- 22 Sylvan Way, Parsippany, New Jersey 07054
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $1.4B
- vs $1.4B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- WSSI
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees develop, construct, and operate extended-stay hotel properties under the Hawthorn brand within Wyndham's loyalty ecosystem. Day-to-day responsibilities include property management, guest services, housekeeping coordination, front-desk operations, revenue management, and compliance with Wyndham brand standards while paying 5.5% royalties on gross room revenue.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1996
- FDD year
- 2026
- States available
- 27
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $135K | $201K |
| Equipment, build-out, other | $12.4M | $15.1M |
| Total initial investment | $12.6M | $15.3M |
Source: Hawthorn Extended Stay by Wyndham 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
- $12.6M – $15.3M
- Near category avg vs category
- Liquid capital req'd
- $135K – $201K
- Better than avg vs category
- Franchise fee
- $16K – $40K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Room Revenue (GRR) · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "ADR, Occupancy Rate, and RevPAR" 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 Hawthorn Extended Stay by Wyndham Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 13
- Last reporting year
- Closed
- 2
- Turnover rate
- 2.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +15.5%
- Net unit change last year
- 3-yr CAGR
- +20.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 3.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 27 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Material litigation risk, missing financial transparency (Item 19), and high capital requirements for a small/growing franchise system warrant cautious due diligence before committing $12M+.
Litigation (Item 3)
5 case reference(s): 1 pending, 0 settled.
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: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 44 / 100 rating
- 01MINORNo Item 19 financial performance disclosure (avg revenue/net income) prevents ROI validation on $12.6M-$15.3M investment
- 02HIGHActive class action litigation against parent Wyndham for price fixing, antitrust, misleading fees, and data security breaches creates brand/operational risk
- 03MEDModest unit growth of 15.5% YoY with only 82 total franchises suggests limited scale and market validation for the extended-stay segment
- 04MEDHigh capital requirement ($12.6M-$15.3M) combined with undisclosed profitability creates asymmetric risk for franchisees
- 05MINORFTC settlement history on cybersecurity indicates prior data breach exposure affecting customer trust and operational compliance
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 | Negotiated |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 13 |
View Item 3 litigation summary
5 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 61 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and off-site
- Franchisor financing
- Not offered
- Item 10
- POS system
- OPERA Cloud Standard PMS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OPERA Cloud Standard PMS
Item 20 · call current owners
Franchisee Contacts
92 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hawthorn Extended Stay by Wyndham · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hawthorn Extended Stay by Wyndham franchise?
The total investment to open a Hawthorn Extended Stay by Wyndham franchise ranges from $12.6M – $15.3M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hawthorn Extended Stay by Wyndham franchise owners earn?
Hawthorn Extended Stay by Wyndham 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 Hawthorn Extended Stay by Wyndham's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hawthorn Extended Stay by Wyndham (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 Hawthorn Extended Stay by Wyndham franchise locations are there?
As of their most recent FDD filing, Hawthorn Extended Stay by Wyndham has 82 total units in the United States, including 68 franchised units and 0 company-owned units. 13 new units were opened in the latest reporting year.
Is Hawthorn Extended Stay by Wyndham a good franchise to buy?
FranchiseVerdict rates Hawthorn Extended Stay by Wyndham as a A-grade franchise with a risk score of 44 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.