TownePlace Suites by Marriott Franchise Cost, Revenue & Review 2026
- Investment
- $13.1M – $29.8M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (9)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
TownePlace Suites by Marriott is an extended-stay hotel franchise with in-room kitchens for longer stays. Franchisees own and operate individual properties, running suites, housekeeping, and revenue management on Marriott's systems.
FranchiseVerdict summary · 2026
A TownePlace Suites by Marriott franchise requires a total initial investment of $13.1M – $29.8M, including a $75K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $13.1M – $29.8M
- 49th pct Lodging
- Avg gross sales
- N/A
- Projection
- Royalty
- 5.5%
- 39th pct Lodging
- Units
- 571
- 66th pct Lodging
- SBA charge-off
- N/A
Quick verdict · Lodging · color = vs category peers
Green = favorable by >10% vs Lodging median · 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 $13.1M – $29.8M including a $75K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 is hotel ADR/OCC/RevPAR performance, not per-unit gross sales.
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better).
- GROWTHPositive: net +48 franchised outlets in the latest year (52 opened, 4 closed) (Item 20).
- LEGAL20 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
Corporate structure & franchisor financials
- Legal entity
- Marriott International, Inc. (or MIF, L.L.C. for California-located hotels/franchisees)
- Parent company
- Marriott International, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Incorporated in
- Delaware
- HQ
- 7750 Wisconsin Avenue, Bethesda, Maryland 20814
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $103.3M
- vs $147.5M prior year
Same owner · FDD Item 1, page 9
8 other brands on this site name Marriott International, Inc. as parent or ultimate parent in their own FDD.
- AC Hotels by MarriottC
- Aloft HotelsB
- City Express by MarriottB
- Delta Hotels by MarriottB
- Fairfield by MarriottA
- Marriott Hotel / JW MarriottA
- Postcard CabinsC
- SpringHill Suites by MarriottA
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Anthony Capuano
- Headquarters
- MD
- FDD year
- 2026
- States available
- 48
Can you afford it, and what does the money buy?
Entry cost runs 141% 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 | $75K | $75K |
| Equipment, build-out, other | $13.0M | $29.7M |
| Total initial investment | $13.1M | $29.8M |
Source: TownePlace Suites by Marriott 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
- $13.1M – $29.8M
- Middle of category vs category
- Liquid capital req'd
- N/A
- Cash you must have on hand
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 5.5%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $150K |
| Inventory (initial) | $173K – $245K |
| Total fee load | 7.5% 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 TownePlace Suites by Marriott 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 TownePlace Suites by Marriott 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, other operating costs and working capital, 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
Item 19 is hotel ADR/OCC/RevPAR performance, not per-unit gross sales.
An occupancy metric, not unit revenue
- Item 19 type
- ADR, OCC, and RevPAR
- Sample size
- 452
- vs category median 98 · large
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2023
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 7.5% (near the Lodging median).
Disclosure
Item 19 reports ADR, OCC, and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System expanding at 6.0% CAGR over 3 years across 571 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 medians
How TownePlace Suites by Marriott Compares
Category median of published Lodging brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 571
- Opened
- 52
- Last reporting year
- Closed
- 4
- Turnover rate
- 0.6%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +6.0%
- Net unit change over 3 years
- 3-yr CAGR
- +6.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Projected new
- 371
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 48 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.
Where the owners are · Item 20 owner list
542 current owners across 48 states.
- TX 74
- FL 47
- CA 36
- MI 25
- OH 25
- GA 18
- TN 17
- PA 16
- AZ 15
- NC 15
- AL 14
- LA 13
- +36 more states
Counts only, from the list the franchisor prints in Item 20; 79 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $39.2M
- Median loan
- $5.0M
- 50th percentile
- Charge-off rate
- Under 10 loans (9)
- Insufficient SBA coverage: 9 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (9)
- 5-yr charge-off
- Under 10 loans (9)
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
16 litigation matters sounds high but are overwhelmingly parent/affiliate Marriott matters (2018 Starwood data-breach class actions/MDL, resort-fee investigations) not brand-specific, spread across a 503-unit system with a strong parent-level net worth of $402.9M and net income of $64.2M. Litigation count is normal relative to system size; financials are parent-level.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Extensive litigation primarily arising from the 2018 Starwood Data Security Incident (multiple class actions/MDL, AG/FTC investigations, foreign regulator actions), resort-fee display investigations/litigation, a franchisor-initiated arbitration for unpaid fees against a hotel owner, and several other franchisee/third-party disputes; several matters concluded via settlement or dismissal.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financials are from the audited statements of MIF, L.L.C. (the franchisor entity for California; guarantor of Marriott's obligations), in thousands USD, FY ended Dec 31, 2023; all figures scaled x1000. MIF total revenue = net fee revenues 71,931 + cost reimbursement revenue 22,486 = 94,417 (thousands). Balance sheet reconciles: total liabilities 6,791 + member's equity 402,921 = total assets 409,712 (thousands). The FDD also includes larger Marriott International, Inc. consolidated statements (parent); MIF entity chosen because it is the actual franchisor/guarantor entity. Item 19 is hotel ADR/OCC/RevPAR performance, not per-unit gross sales.
ⓘ 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
Score breakdown · what drove the 78 / 100 verdict
- 01MINOR16 suits but parent-level (Starwood breach, resort-fee) across 503 units
- 02MINORfinancials_are_parent_level; net worth $402.9M, net income $64.2M
- 03MINORturnover 0.6%, no going-concern
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.5% 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 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Baltimore, Maryland |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 20 |
View Item 3 litigation summary
Extensive litigation primarily arising from the 2018 Starwood Data Security Incident (multiple class actions/MDL, AG/FTC investigations, foreign regulator actions), resort-fee display investigations/litigation, a franchisor-initiated arbitration for unpaid fees against a hotel owner, and several other franchisee/third-party disputes; several matters concluded via settlement or dismissal.
Items 10, 11
Training & Operations
- Classroom training
- 187 hrs
- On-the-job training
- 0 hrs
- Ongoing training
- Required
- Site selection
- franchisee (franchisor reviews/approves only)
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
621 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 TownePlace Suites by Marriott franchise?
The total investment to open a TownePlace Suites by Marriott franchise ranges from $13.1M – $29.8M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TownePlace Suites by Marriott franchise owners earn?
Item 19 of the TownePlace Suites by Marriott FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns TownePlace Suites by Marriott?
TownePlace Suites by Marriott is franchised by Marriott International, Inc. (or MIF, L.L.C. for California-located hotels/franchisees). Its parent company is Marriott International, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the TownePlace Suites by Marriott 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 TownePlace Suites by Marriott FDD and qualifies whose outlets they describe.
What is TownePlace Suites by Marriott's franchise failure rate?
SBA 7(a) loan charge-off data is not available for TownePlace Suites by Marriott (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 TownePlace Suites by Marriott franchise locations are there?
As of their most recent FDD filing, TownePlace Suites by Marriott has 571 total units in the United States, including 567 franchised units and 4 company-owned units. 52 new units were opened in the latest reporting year.
Is TownePlace Suites by Marriott a good franchise to buy?
FranchiseVerdict rates TownePlace Suites by Marriott as a A-grade franchise with a verdict score of 78 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
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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.