What is the assumed parking situation for the construction cost estimate for Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
This estimate is for the total cost to construct a typical new-build Delta hotel with 300 guestrooms, an average floor space ratio of 550 to 600 square feet per-guestroom, and a 3-fixture bathroom located in a suburban area.
This estimate is stated on a per-guestroom basis and includes site work, project management fees, and the cost of exterior signs (but not graphics).
Parking is assumed to be on-grade, and estimates for special foundations for earthquake requirements are not included.
This estimate does not include building permit fees, tap fees, or impact fees, which are charged by local government authorities and will therefore vary.
Source: Item 1 — Fees for Other Services (FDD pages 39–71)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, the construction cost estimate for a typical new-build hotel assumes that parking will be on-grade. This means the estimate does not include costs for parking structures such as underground parking. The estimate also does not include costs for special foundations that may be required for earthquake conditions.
For a prospective franchisee, this is important because if the location requires a parking structure or special foundations, the actual construction costs could be significantly higher than the estimate provided. The FDD also states that building construction costs for an urban hotel can be higher and may include the cost of an underground parking structure. Franchisees should carefully consider the location of their hotel and any specific site requirements when budgeting for construction costs.
Delta Hotels By Marriott notes that the estimate is for a typical 300-guestroom hotel in a suburban area. The size of the site for a typical 300-guestroom Delta Hotel varies from 4 to 10 acres, depending on the number of floors in your hotel. The building size can vary from 154,000 to 189,000 square feet or more for a typical 300-guestroom Delta Hotel. Franchisees should consult with local government authorities to determine building permit fees, tap fees, or impact fees, which are not included in the estimate.