What additional real estate costs might be incurred when establishing an Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- Note 7 It is difficult to estimate real estate costs.
These costs vary widely by reason of location, type of market, size of parcel, competitive market conditions and type of interest acquired; we anticipate that a 50-room ABVI Hotel will have a building area of approximately 25,000 square feet and be located on approximately one and a half acres of land.
Additional costs incident to real estate may include legal fees and title recording expenses, all which vary by location.
- Note 8 These amounts include the cost of architects and engineers and construction plans, as well as local fees (including building permits, licenses and environmental impact fees), which vary widely depending on your specific location and situation, as well as the design selected by you, and may be significantly greater than shown in this table.
You should consult with your attorney to determine any applicable licensing or permit fees you must obtain to operate your Hotel.
- Note 9 For conversions, you will incur costs to bring your existing property into conformity with the Brand Standards as specified in your Franchise Agreement.
We cannot estimate these costs with more precision as they vary significantly based upon the amount, type and physical condition of the hotel's existing property, fixtures, equipment, furnishings, furniture, signage, and similar items.
- Note 10 Construction costs may vary due to unusual conditions associated with site, preparation, foundations, etc., as well as the size and configuration of the site, the market and the cost of labor and materials.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 32–38)
What This Means (2025 FDD)
According to Americas Best Value Inn's 2025 Franchise Disclosure Document, estimating real estate costs is difficult due to variations in location, market type, parcel size, competitive conditions, and the type of interest acquired. For a typical 50-room Americas Best Value Inn hotel, the brand anticipates a building area of approximately 25,000 square feet located on about one and a half acres of land. Franchisees should anticipate that real estate costs are variable.
Additional costs related to real estate may include legal fees and title recording expenses, which can vary by location. For new construction, the estimated initial investment includes variable costs for permits, licenses, and plans, ranging from $139,725 to $300,150. Construction costs are also variable, ranging from $2,328,750 to $6,000,000, depending on site conditions, preparation, foundation work, site size and configuration, market conditions, and the cost of labor and materials.
For conversions, franchisees will incur costs to bring the existing property into compliance with Americas Best Value Inn's Brand Standards, as specified in the Franchise Agreement. These costs can vary significantly based on the condition of the hotel's existing property, fixtures, equipment, furnishings, furniture, signage, and similar items. Franchisees should consult with their attorney to determine applicable licensing or permit fees required to operate their hotel. Given the wide variability, prospective franchisees should carefully evaluate potential real estate costs and consult with experienced professionals to develop realistic estimates for their specific location and project type.