How Much Does a MHO Hotels Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$72K – $1.2M
Franchise Fee
$10K
Royalty
Option 1: $26.95 per room per month or Option 2: $2.00 per occupied room night
Ad Fund
5.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for MHO Hotels is $10K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a MHO Hotels franchise requires a total investment of $72K – $1.2M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $50K to $300K.
Ongoing Costs
Beyond the initial investment, MHO Hotels franchisees pay ongoing fees. The royalty structure is: Option 1: $26.95 per room per month or Option 2: $2.00 per occupied room night. The advertising or brand fund contribution is 5.0% of gross sales. There is also a technology fee of $26.
Net Worth & Liquid Capital Requirements
MHO Hotels requires working capital of $50K – $300K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
MHO Hotels does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View MHO Hotels?
SBA Loans Issued
4
Default Rate
0.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. MHO Hotels has 4 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current MHO Hotels franchise owners
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