Microtel Inn & Suites by Wyndham Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Microtel Inn & Suites by Wyndham is a limited-service, economy-to-midscale hotel franchise of new-construction properties. Franchisees develop and operate individual hotels, running rooms and guest services on Wyndham's systems.
FranchiseVerdict summary · 2026
A Microtel Inn & Suites by Wyndham franchise requires a total initial investment of $7.5M – $9.6M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $7.5M – $9.6M
- 37th pct Lodging
- Avg gross sales
- N/A
- Outlet subsetProjection
- Royalty
- 6.0%
- 53rd pct Lodging
- Units
- 280
- 56th pct Lodging
- SBA charge-off
- N/A
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
- COSTTotal investment $7.5M – $9.6M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports ADR/Occupancy/RevPAR metrics (not gross sales) rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict B (Above average), verdict score 63/100 (higher is better).
- DATAItem 19 reports ADR/Occupancy/RevPAR metrics (not gross sales) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Microtel Inns and Suites Franchising, Inc.
- Parent company
- U.S. Franchise Systems, Inc. (USFS); Wyndham Hotel Group, LLC; Wyndham Hotels & Resorts, Inc.
- Ultimate parent
- 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
- $1.4B
- vs $1.4B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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
- CEO
- Geoff Ballotti
- Headquarters
- NJ
- Founded
- 1995
- FDD year
- 2026
- States available
- 42
Can you afford it, and what does the money buy?
Entry cost runs 19% below 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 | $40K | $40K |
| Working capital (3–6 mo) | $118K | $184K |
| Equipment, build-out, other | $7.4M | $9.3M |
| Total initial investment | $7.5M | $9.6M |
Source: Microtel Inn & Suites 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
- $7.5M – $9.6M
- Top 40% of category vs category
- Liquid capital req'd
- $118K – $184K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $5K |
| Transfer fee | $40K |
| Renewal fee | $40K |
| Inventory (initial) | $276K – $299K |
| Total fee load | 8.0% 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 Microtel Inn & Suites by Wyndham 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 Microtel Inn & Suites by Wyndham 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
Reported for a subset of outlets rather than the whole system
An occupancy metric, not unit revenue
- Item 19 type
- ADR/Occupancy/RevPAR metrics (not gross sales)
- Sample size
- 141
- 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 8.0% — below the Lodging average of 10.4%.
Disclosure
Item 19 reports ADR/Occupancy/RevPAR metrics (not gross sales) rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -4.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Microtel Inn & Suites by Wyndham Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 280
- Opened
- 3
- Last reporting year
- Closed
- 8
- Turnover rate
- 2.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -4.4%
- Net unit change over 3 years
- 3-yr CAGR
- -4.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 20
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 36
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 3.1%
- Owners selling to other franchisees
- Termination rate
- 0.3%
- Franchisor-initiated terminations
- Ceased ops
- 3.1%
- 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.
No SBA loan data available for this brand.
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
Declining system with undisclosed unit economics, multiple legal liabilities, and no financial benchmarking data creates elevated risk for an $8M+ hotel investment.
Litigation (Item 3)
No pending litigation against the Franchisor. Nine pending cases against parents/affiliates include Canadian class actions (price-fixing/hotel fee), franchisee breach cases, and extended stay antitrust litigation. One resolved case named MISF directly (New Mexico). One pending indemnification suit filed by MISF and affiliates against franchisees.
Largest disclosed settlement: $7,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21/Exhibit D references audited consolidated financial statements of parent Wyndham Hotels & Resorts, Inc. (auditor PCAOB ID No. 34). Only the index page (F-1) appears in the extracted text; balance sheet, income statement, and equity pages (F-2 to F-9) were not captured, so no figures are available.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 63 / 100 verdict
- 01MINORDeclining unit count (-1.8% YoY) indicates system contraction and potential saturation or performance issues
- 02HIGHMaterial litigation disclosed involving price-fixing, fee transparency, breach of contract, and data security—suggests franchisor governance and legal compliance concerns
- 03MINORHigh capital requirement ($7.5M-$9.6M) combined with 6% royalty creates substantial fixed costs with unvalidated revenue potential
- 04MINOR20-year term locks franchisee into relationship with litigious franchisor; exit costs likely high given capital intensity
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | protected |
| Protected territory | Yes |
| 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 | 10 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Arbitration location | New Jersey (Morris County or US District Court for NJ); non-binding mediation available |
| Jury trial waiver | Yes |
| Governing law | NJ |
| Litigation count | 9 |
View Item 3 litigation summary
No pending litigation against the Franchisor. Nine pending cases against parents/affiliates include Canadian class actions (price-fixing/hotel fee), franchisee breach cases, and extended stay antitrust litigation. One resolved case named MISF directly (New Mexico). One pending indemnification suit filed by MISF and affiliates against franchisees.
Items 10, 11
Training & Operations
- Classroom training
- 34 hrs
- On-the-job training
- 0 hrs
- Training location
- Corporate designated location (Parsippany, NJ) or online (hybrid or virtual-only)
- Ongoing training
- Required
- Site selection
- Franchisee selects, Franchisor approves
- Franchisor financing
- Offered
- Item 10
- POS system
- SynXis Property Hub (Aven Hospitality) or OPERA Cloud (Oracle Hospitality)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SynXis Property Hub (Aven Hospitality) or OPERA Cloud (Oracle Hospitality)
Item 20 · call current owners
Franchisee Contacts
274 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Microtel Inn & Suites by Wyndham · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Microtel Inn & Suites by Wyndham franchise?
The total investment to open a Microtel Inn & Suites by Wyndham franchise ranges from $7.5M – $9.6M, 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 Microtel Inn & Suites by Wyndham franchise owners earn?
No average owner earnings figure for Microtel Inn & Suites by Wyndham is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Microtel Inn & Suites by Wyndham 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 Microtel Inn & Suites by Wyndham FDD and qualifies whose outlets they describe.
What is Microtel Inn & Suites by Wyndham's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Microtel Inn & Suites 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 Microtel Inn & Suites by Wyndham franchise locations are there?
As of their most recent FDD filing, Microtel Inn & Suites by Wyndham has 280 total units in the United States, including 280 franchised units and 0 company-owned units. 3 new units were opened in the latest reporting year.
Is Microtel Inn & Suites by Wyndham a good franchise to buy?
FranchiseVerdict rates Microtel Inn & Suites by Wyndham as a B-grade franchise with a verdict score of 63 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
Are you the franchisor?
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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.