What is the estimated range for start-up costs per guestroom for a Springhill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE | AMOUNT FOR A 80 – 110 GUESTROOM HOTEL | AMOUNT FOR A 120 – 150 GUESTROOM HOTEL | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|---|
| Furniture and | $14,500 - $20,100 | $13,700 - $18,200 | As arranged | As arranged | Suppliers |
| Fixtures8 | per guestroom | per guestroom | by you | by you | |
| Technology Hardware & Software and Network Infrastructure9 | $127,100 -$223,400 | $190,700 -$304,600 | As arranged by you | As arranged by you | Suppliers |
| Operating | $197,000 - $275,500 | $221,800 - | As arranged | As arranged | Suppliers |
| Supplies10 | $307,200 | by you | by you | ||
| Professional Design Services 11 | $475,100 - $1,131,900 | $679,600 - $1,428,400 | As arranged by you | As arranged by you | Architects/ Consultants/ Marriott/ |
| Insurance12 | Varies | Varies | As arranged by you | As arranged by you – must be effective before start of construction | Insurance Company |
| Start-up Costs13 | $2,300 - $3,500 per | $2,300 - $3,500 per | As arranged | As arranged | Suppliers and |
| guestroom | guestroom |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 64–66)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, the estimated start-up costs range from $2,300 to $3,500 per guestroom. This estimate applies to both an 80 to 110 guestroom hotel and a 120 to 150 guestroom hotel. These costs are paid as arranged by the franchisee to suppliers and employees.
These start-up costs are part of the broader initial investment required to open a Springhill Suites By Marriott franchise. It is important to note that this figure is just one component of the total estimated initial investment, which also includes expenses such as the initial franchise application fee, pre-opening training, property management systems, real estate, building construction, furniture, fixtures, technology, operating supplies, professional design services, insurance, and additional funds for the first three months of operation.
Prospective franchisees should carefully consider this range and factor it into their overall budget. The FDD also notes that actual costs may vary depending on factors such as regional conditions, management skills, economic conditions, and local regulations. It is advisable to consult with business and legal advisors to review these estimates and assess the financial feasibility of investing in a Springhill Suites By Marriott franchise.