SpringHill Suites by Marriott
Bottom line
- Total investment $13.2M – $38.6M including a $75K franchise fee, 5.5% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 15 loans (below the industry average).
- 21 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one SpringHill Suites by Marriott unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Below typical band (30–60%)
Overview
About
SpringHill Suites franchisees operate extended-stay and select-service hotels targeting business travelers and families. Day-to-day responsibilities include front desk/housekeeping operations, room maintenance, guest services, revenue management within Marriott's systems, collection of fees for amenities and services, compliance with brand standards, and payment of 5.5% royalties on gross room sales to Marriott.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
SpringHill Suites presents moderate-to-high risk due to lack of financial transparency (no Item 19), significant litigation tied to data security and antitrust issues, unprotected territory, and high capex requirements with no disclosed average unit economics.
Score breakdown · what drove the 53 / 100 rating
- 01MEDNo disclosed average unit revenue or net income (Item 19) prevents ROI validation on $13.2M–$38.6M investment
- 02HIGHExtensive litigation exposure: 2018 data breach class actions, fee disclosure investigations, antitrust allegations on pricing/data sharing, and multiple franchisee disputes create legal and reputational risk
- 03MINORUnprotected territory with 579 competing units (8.4% YoY growth) creates cannibalization risk—no guarantee of exclusivity
- 04MEDHigh-end capital requirement ($13.2M–$38.6M) combined with 5.5% royalty on undisclosed revenue creates uncertainty on payback period and cash flow
- 05HIGHGoing Concern: False status, while not critical, suggests Marriott's internal reporting flagged material uncertainty about SpringHill's viability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SpringHill Suites by Marriott · FDD (2026) PDF