What are the cost considerations for the franchisee-managed network (FMN) for Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
guestroom inventory management system that provides forecasting tools and makes inventory recommendations. The reservation system and yield management system will interface with your hotel's PMS. The initial costs associated with the reservation system and yield management system are included
in the PMS system costs described above. The ongoing costs of the reservation system and yield management system are covered by the Program Services Contribution.
(6) Marriott Communications Network ("MCN") and Property Network Standards. In order to securely connect to Marriott business applications and services that are hosted off-property, a connection to the Marriott Communications Network (MCN) is required. A Marriott router installed at your hotel provides end-to-end encryption to the MCN. All hotels are required to have primary and failover internet connections for MCN connectivity, for which you are strongly encouraged to use Marriottapproved Internet Service Providers (ISP). A secondary internet
Source: Item 10 — FINANCING (FDD pages 82–101)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, franchisees are required to implement and maintain a franchisee-managed network (FMN) for hotel devices. The initial cost to implement the FMN ranges from approximately $25,000 to $30,000. However, the FDD indicates that Marriott will not access, control, or manage the FMN.
Delta Hotels By Marriott does not provide an estimate for the ongoing costs of the FMN, as these costs can vary significantly depending on the vendor selected by the franchisee and the specific services rendered. This means franchisees need to budget for potentially variable and ongoing expenses related to the FMN.
In addition to the FMN, franchisees must also establish and maintain an on-property Wi-Fi network for the benefit of the hotel and its guests. The estimated cost to implement a Wi-Fi network that meets Marriott's Global Property Network Standards (GPNS) ranges from approximately $650 to $1,000 per guestroom. The ongoing cost for the Wi-Fi network is estimated to be approximately $2.50 to $8.50 per month per guestroom, payable directly to approved third-party vendors. Marriott generally requires the Wi-Fi network to be upgraded or replaced every three to five years, adding another layer of cost consideration for franchisees.