What is the total estimated initial investment range for a Best Western franchise?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
dues and assessments are subject to change by us without limitation except as noted above.
ITEM 7
ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
NEW CONSTRUCTION – BEST WESTERN SYSTEM HOTEL (75-ROOM)
| Marketing and Technology Fees | Effective Date | Description | |---|---|---| | 2.10% of PRR | January 1, 2022 | The sum of the Sales and Marketing | | | | assessment of 0.6% of PRR, the | | | | Technology Assessment of 0.5% of PRR | | | | and the Technology and Marketing | | | | Assessment of 1.00% of PRR |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be made | |
|---|---|---|---|---|---|
| Impact Study Fee (1) | $0 - $4,000 | Lump Sum | Before Commission of Impact Study | Us | |
| Entrance Fee (2) | $54,000 (comprised of Evaluation Fee | Lump Sum | Evaluation Fee portion upon | Us | 31 |
CONVERSION – BEST WESTERN SYSTEM HOTEL (75-ROOM)
| Type of Expenditure | Amount |
Source: Item 7 — Estimated Initial Investment (FDD pages 37–61)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the estimated initial investment varies significantly based on whether you are constructing a new hotel or converting an existing one, as well as the specific Best Western brand you choose. The FDD includes detailed tables outlining these costs for different scenarios, such as new construction versus conversion for brands like Best Western, Best Western Plus, and Best Western Premier. These tables provide a breakdown of various expenses, including the initial fee, signage, computer systems, insurance, and inventory.
For a new construction Best Western System Hotel with 75 rooms, the initial investment ranges from $6,484,723 to $11,174,723. Converting an existing 75-room hotel to a Best Western System Hotel has a lower range, from $2,444,723 to $5,495,223. The initial investment for a new construction Best Western Plus System Hotel with 90 rooms ranges from $7,648,723 to $12,798,723. Converting a 90-room hotel to a Best Western Plus System Hotel ranges from $2,733,723 to $6,224,223.
For a new construction Best Western Premier System Hotel with 120 rooms, the estimated initial investment ranges from $10,238,723 to $16,488,723. Converting an existing 120-room hotel to a Best Western Premier System Hotel ranges from $3,553,723 to $7,884,223. The initial investment for a new construction @Home by Best Western System Hotel with 100 rooms ranges from $8,298,723 to $13,588,723. Converting a 100-room hotel to an @Home by Best Western System Hotel ranges from $2,853,723 to $6,464,223.
For a new construction Executive Residency by Best Western System Hotel with 100 rooms, the initial investment ranges from $8,468,723 to $13,848,723. Converting an existing 100-room hotel to an Executive Residency by Best Western System Hotel ranges from $2,903,723 to $6,554,223. These figures highlight the substantial financial commitment required to establish and operate a Best Western franchise, with new construction generally requiring a significantly higher investment than conversions due to building and furnishing costs. Prospective franchisees should carefully review these estimates and conduct their own due diligence to determine the actual costs for their specific location and circumstances.