For a Best Western franchise, what is the minimum and maximum estimated cost for construction work?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
If your hotel will be new construction, you will have to incur construction work costs to build the Property so that is in conformity with the requirements specified in the Regulatory Documents.
If your license is for the conversion of an existing hotel to a hotel, depending on the type, condition, age and physical structure of the existing hotel, you may or may not have to incur renovation work costs to bring the existing hotel into conformity with the requirements specified in the Regulatory Documents.
Construction or renovation costs, as applicable, will vary significantly and the amounts in the above table are just estimates.
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to the 2025 Best Western FDD, if a prospective franchisee intends to build a new hotel, they will incur construction costs to ensure the property conforms to the requirements outlined in the regulatory documents. The FDD states that these construction costs can vary significantly, and the amounts provided in the table are merely estimates.
The estimated initial investment for new construction of a 75-room Best Western System hotel ranges from $7,079,575 to $11,494,500. For a 90-room Best Western Plus System hotel, the estimated initial investment for new construction ranges from $8,787,575 to $13,799,500. The estimated initial investment for new construction of a 120-room Best Western Premier System hotel ranges from $12,348,575 to $18,446,500.
For a 100-room @Home by Best Western System hotel, the estimated initial investment for new construction ranges from $9,183,575 to $13,834,500. The estimated initial investment for new construction of a 100-room Executive Residency by Best Western System hotel ranges from $9,263,575 to $14,015,500. These costs are estimates and may vary substantially based on factors such as building construction, material, and labor costs specific to the geographic area where the hotel will be located. Best Western encourages prospective franchisees to independently investigate these costs before signing the Membership Agreement.