For Delta Hotels By Marriott, how were the restricted allowances utilized in 2024?
Delta_Hotels_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
r the owners of the hotels; however, we retain certain credits on domestic and international "tiered discount" calls. In 2024, credits received from AT&T ranged from approximately 17% to 27% of the discounted rate for domestic calls and up to 35% for international calls. In 2024, we and our affiliates received approximately $3,000 in credits from these arrangements, all of which was retained by us. The terms of these arrangements with these telecommunications suppliers are reviewed every year and may be modified in accordance with the terms of the contract. If you choose to participate in the arrangements with these telecommunications suppliers, you must enter into our Participation Agreement, a sample of which is attached in Exhibit H.
We and our affiliates require the installation of an on-property communications network. Your hotel must meet our bandwidth and network standards. We have certified and approved certain internet service providers that offer internet solutions that comply with our standards. Such standards and a list of such approved providers are posted on the Marriott Global Source. For
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 72–77)
What This Means (2025 FDD)
According to Delta Hotels By Marriott's 2025 Franchise Disclosure Document, in 2024, approximately $128,779,000 in restricted allowances was available to Delta Hotels By Marriott and its affiliates globally from suppliers participating in programs with certain managed and franchised hotels under the Company Brands. These allowances are designated to be spent according to the terms of agreements with the funding providers. These funds were used for marketing and promotional activities, including programs promoting suppliers' products, joint marketing programs between Delta Hotels By Marriott and its affiliates and the suppliers, marketing programs for the Company Brands, designated loyalty programs, and allocations to marketing funds and programs for Company Brand Hotels.
In 2024, approximately $46,373,000 of the restricted allowances was utilized by the marketing funds in which the Company Brand franchised hotels participate in the United States and Canada. However, none of this amount was allocated to the Marketing Fund specifically for Delta Hotels By Marriott located in the United States and Canada. This means that while Delta Hotels By Marriott benefits from the overall marketing efforts, there was no specific allocation of these restricted allowances to directly support Delta Hotels By Marriott's marketing fund in the US and Canada.
Prospective franchisees should note that while substantial marketing funds are available, the allocation to specific brands and regions can vary. This highlights the importance of understanding how marketing funds are distributed and used to support individual franchise locations. Franchisees should inquire about specific marketing plans and support available for their Delta Hotels By Marriott location to ensure they are adequately supported in their local market.