Hawthorn Suites by WyndhamFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Hawthorn Suites by Wyndham franchise requires a total initial investment of $317K – $14.2M, including a $40K franchise fee and an ongoing 5.5% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 16 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $317K – $14.2M
- 19th pct Lodging
- Avg gross sales
- N/A
- 2nd pct Lodging
- Royalty
- 5.5%
- 31st pct Lodging
- Units
- 68
- 31st pct Lodging
- SBA default
- 0.0%
- system-wide median varies by category
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
Only 0.0% of 16 SBA loans charged off, well below the 16% franchise average.
Franchising since 1996. Systems this mature have refined operations and brand recognition.
Franchised units fell from 84 to 68 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $317K – $14.2M including a $40K franchise fee, 5.5% ongoing royalty.
- Item 19 discloses "Average and Median 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 38/100. SBA loan charge-off rate of 0.0% across 16 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -5.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hawthorn Suites Franchising, Inc.
- Parent company
- Wyndham Hotels & Resorts, Inc.
- CEO title
- President and Chief Executive Officer
- Geoff Ballotti
- Incorporated in
- GA
- HQ
- 22 Sylvan Way, Parsippany, New Jersey 07054
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $1.6B
- vs $1.5B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Wyndham Franchisor
- WSSI
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees develop and operate extended-stay hotel properties under the Hawthorn Suites brand, managing day-to-day operations including guest services, housekeeping, maintenance, and revenue management. They pay 5.5% royalties on gross room revenues and participate in the Wyndham loyalty ecosystem while managing properties typically in mid-market segments.
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1996
- FDD year
- 2024
- States available
- 23
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $131K | $196K |
| Equipment, build-out, other | $145K | $13.9M |
| Total initial investment | $317K | $14.2M |
Source: Hawthorn Suites by Wyndham 2024 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
- $317K – $14.2M
- Better than avg vs category
- Liquid capital req'd
- $131K – $196K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.5%
- Gross Room Revenues · 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 |
| Technology fee | $699 |
| Training fee | $7K |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Inventory (initial) | $424K – $430K |
| Total fee load | 8.0% of rev |
Financial Performance
This brand's FDD disclosed "Average and Median 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 Suites by Wyndham Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 68
- Opened
- 6
- Last reporting year
- Closed
- 5
- Turnover rate
- 7.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +1.5%
- Net unit change last year
- 3-yr CAGR
- -5.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 6
- Closed (3yr)
- 5
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 9
- Franchisor's next-year forecast
- Transfer rate
- 2.9%
- Owners selling to other franchisees
- Ceased ops
- 2.9%
- 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.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Michigan
- New York
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 16
- Loan volume
- $59.7M
- Median loan
- $3.9M
- 50th percentile
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 13
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Hawthorn Suites by Wyndham'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 8 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 16 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hawthorn Suites presents moderate-to-high risk: anemic growth trajectory, opaque financials, substantial litigation exposure, and demonstrated disputes with current franchisees raise concerns about system viability and franchisor support.
Litigation (Item 3)
18 case reference(s): 1 pending, 3 settled.
Largest disclosed settlement: $403
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
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 38 / 100 rating
- 01MINORStagnant unit growth (1.5% YoY) indicates declining brand momentum and potential market saturation
- 02HIGHExtensive litigation portfolio spanning destination marketing fees, resort fees, privacy breaches, FTC settlement, and current franchisee contract disputes suggests systemic legal/operational vulnerabilities
- 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation and obscures true profitability
- 04MINORWide investment range ($316K–$14.1M) with unclear unit economics creates uncertainty around capital requirements and break-even timelines
- 05HIGHParent company (Wyndham) litigation history indicates potential for corporate decisions that negatively impact franchise operations (fee structures, brand reputation)
- 06MED5.5% royalty rate coupled with undisclosed revenue baseline makes margin analysis impossible for prospective franchisees
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 boundary (radius or irregular area) |
| Protected territory | Yes |
| Online sales rights | 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 |
| Termination groundsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 9 |
View Item 3 litigation summary
18 case reference(s): 1 pending, 3 settled.
Items 10, 11
Training & Operations
- Classroom training
- 45 hrs
- On-the-job training
- 30 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- OPERA® system from Oracle Hospitality
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: OPERA® system from Oracle Hospitality
Item 20 · call current owners
Franchisee Contacts
89 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 Hawthorn Suites by Wyndham franchise?
The total investment to open a Hawthorn Suites by Wyndham franchise ranges from $317K – $14.2M, 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 Suites by Wyndham franchise owners earn?
Hawthorn Suites 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 Suites by Wyndham's franchise failure rate?
Based on SBA 7(a) loan data, Hawthorn Suites by Wyndham has a charge-off rate of 0.0% across 16 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 Hawthorn Suites by Wyndham franchise locations are there?
As of their most recent FDD filing, Hawthorn Suites by Wyndham has 68 total units in the United States, including 84 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is Hawthorn Suites by Wyndham a good franchise to buy?
FranchiseVerdict rates Hawthorn Suites by Wyndham as a A-grade franchise with a risk score of 38 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
Are you the franchisor?
If you represent Hawthorn Suites by Wyndham, you can request corrections or provide updated information.
Claim this brandOther Lodging franchises
Compare similar franchise opportunities in the Lodging category
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.