What documentation is required for the Management Company when applying for a Delta Hotels By Marriott franchise?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
For each hotel, indicate whether the proposed franchisee or a management company will manage the hotel and provide the information requested. Please also indicate if there is common ownership between the franchisee and the management company for a hotel and provide the requested information. If the hotel is to be managed by a third-party manager, there may be additional requirements, and certain modifications to the franchise agreement may be required. For provisions required to be in your management agreement and for additional information related to our requirements, see Item 15 of the applicable Franchise Disclosure Document and the Management Company Acknowledgment form attached to the Franchise Agreement.
If there is common ownership between the franchisee and the Management Company for a hotel, please describe the common ownership, including the level in the ownership structure at which there is common ownership, the percentage ownership interest
8. HOTEL OPERATIONS
8.1 Operator of the Hotel.
- A. Franchisor Consent Required. The Hotel will be operated only by the Person consented to by Franchisor in a Management Company Acknowledgment. Franchisor may withhold its consent to any proposed management company that: (i) Franchisor determines (a) is not financially capable or (b) does not have the managerial skills or operational capacity required to operate the Hotel in accordance with the Standards and this Agreement; (ii) does not provide Franchisor with all information and access that Franchisor reasonably requests; or (iii) is not a Qualified Person. Franchisor has the right to review any management agreement between Franchisee and its proposed management company. In the event of any conflict between this Agreement and any agreement with the Management Company, this Agreement will control. Franchisee will at all times be responsible for complying with the obligations of this Agreement even though Franchisee may retain a Management Company.
Source: Item 23 — RECEIPTS (FDD pages 134–251)
What This Means (2025 FDD)
According to the 2025 Delta Hotels By Marriott FDD, if a third-party management company will manage the hotel, there may be additional requirements and certain modifications to the franchise agreement may be required. Form IV, titled "Management Company," requires you to specify whether the Applicant's Management Company, a Third Party Management Company, or a Third-Party Management Company with Equity will manage the hotel. You must also list the applicable hotels. The form requires the Hotel Management Company Name, State/Province, Address, Contact Name, Phone Number, Tax ID Number, Email Address, and Authorized Signer for Entity.
If there is common ownership between the franchisee and the management company for a hotel, the applicant must describe the common ownership, including the level in the ownership structure at which there is common ownership and the percentage ownership interest. An ownership structure chart for the management company must be provided. The franchisor has the right to review any management agreement between the franchisee and its proposed management company.
Delta Hotels By Marriott requires that the hotel be operated only by the Person consented to by Franchisor in a Management Company Acknowledgment. Delta Hotels By Marriott may withhold its consent to any proposed management company that: (i) Delta Hotels By Marriott determines (a) is not financially capable or (b) does not have the managerial skills or operational capacity required to operate the Hotel in accordance with the Standards and this Agreement; (ii) does not provide Delta Hotels By Marriott with all information and access that Delta Hotels By Marriott reasonably requests; or (iii) is not a Qualified Person. Franchisee will at all times be responsible for complying with the obligations of this Agreement even though Franchisee may retain a Management Company.