How are the fees paid to Sabre funded for Delta Hotels By Marriott?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
roducts purchased by Company Brand Hotels from these FF&E and building product vendors. In 2024, Marriott Design & Construction received $1,138,000 as a result of building product purchases by Company Brand Hotels, all of which was used to offset the cost to develop prototypes.
Franchisees may choose to purchase recurring food, beverage, hotel and restaurant supplies, and other operating supplies, engineering supplies, business services, and related products and services from suppliers participating in the purchasing programs arranged by MII's procurement division ("MIP Americas"), including Avendra, LLC and Avendra Replenishment, LLC. Certa
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 72–77)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Delta Hotels By Marriott pays fees to Sabre Inc. for each transaction delivered from travel agencies through Sabre's global distribution system. These fees are funded through the costs charged to the hotels for each reservation, either directly or through Program Services Contribution, also known as Reservation System Fees.
If Delta Hotels By Marriott purchases select Sabre Travel Network media products and services above certain thresholds during any year, they will receive a credit for that year. In 2024, Delta Hotels By Marriott and its affiliates received approximately $354,000 as a result of this arrangement.
This credit is then used to offset reservation system costs. This arrangement provides a potential benefit to franchisees by reducing the overall costs associated with reservation systems, as any credits received by Delta Hotels By Marriott are used to lower these expenses.