Under what conditions will Marriott receive a credit from Sabre 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, Marriott and its affiliates will receive a credit from Sabre Inc. if they purchase select Sabre Travel Network media products and services in amounts exceeding certain thresholds during any given year. These credits are then used to offset the costs charged to Delta Hotels By Marriott for each reservation made directly or through the Program Services Contribution, also known as Reservation System Fees.
In 2024, Marriott and its affiliates received approximately $354,000 as a result of this arrangement with Sabre, and this entire amount was used to offset reservation system costs. This arrangement suggests that Marriott actively manages its relationships with travel service providers like Sabre to potentially reduce reservation-related expenses for its franchisees.
For a prospective Delta Hotels By Marriott franchisee, this arrangement could mean lower reservation system fees, depending on the volume of Sabre Travel Network media products and services purchased by Marriott. It is important to note that the specific thresholds for earning credits and the allocation of these credits can change, so franchisees should stay informed about these arrangements and their potential impact on their operational costs.