TownePlace Suites by Marriott Franchise Cost, Revenue & Review 2026
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 – $38.5M, including a $75K franchise fee and an ongoing 5.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $13.1M – $38.5M
- 49th pct Lodging
- Avg gross sales
- N/A
- Royalty
- 5.5%
- 38th pct Lodging
- Units
- 503
- 63rd 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 $13.1M – $38.5M including a $75K franchise fee, 5.5% ongoing royalty.
- RETURNSItem 19 reports ADR, OCC, and RevPAR rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better).
- 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.
- 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
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 162% 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 |
| Working capital (3–6 mo) | $240K | $750K |
| Equipment, build-out, other | $12.7M | $37.7M |
| Total initial investment | $13.1M | $38.5M |
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 – $38.5M
- Middle of category vs category
- Liquid capital req'd
- $240K – $750K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 5.5%
- percentage_of_gross · 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 |
| 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
TownePlace Suites by Marriott did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one TownePlace Suites by Marriott unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
0%
Below the 30–60% attractive-franchise band
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 type
- ADR, OCC, and RevPAR
- Sample size
- 452
- vs category median 99 · large
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
Compared against 174 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% — below the Lodging average of 10.4%.
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 503 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 averages
How TownePlace Suites by Marriott Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 503
- Opened
- 52
- Last reporting year
- Closed
- 4
- Turnover rate
- 0.6%
- Company-owned
- 6
- 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
3-year detail · Item 20
- Opened (3yr)
- 20
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 14
- Reacquired (3yr)
- 0
- Franchisor bought back
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.
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
- N/A
- limited sample (9 loans) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- 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.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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.
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 |
| 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 |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 20 |
Items 10, 11
Training & Operations
- Classroom training
- 187 hrs
- On-the-job training
- 0 hrs
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
FDD download
TownePlace Suites by Marriott · FDD (2026) PDF
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 – $38.5M, 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?
TownePlace Suites by Marriott 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 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 503 total units in the United States, including 497 franchised units and 6 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), 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.