Are the financial statements for Springhill Suites By Marriott audited?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
228,000,000 member accounts worldwide. Over 9,300 hotels and resorts in 144 countries and territories participate in Marriott Bonvoy.
A. Loyalty Contribution to Revenue
During 2024, Marriott Bonvoy member paid room nights generated an average of approximately 59.3% of the total room night revenue at Included Hotels, with an average daily spend of $154.00 per member paid room night, not including taxes and tips. During 2024, Marriott Bonvoy generated a total of 8,538,000 member paid room nights for Included Hotels and approximately $1,352,751,000 in eligible spend, not including taxes and tips. A "member paid room night" means a room night during which a Marriott Bonvoy member occupied a room at an Included Hotel and was awarded loyalty points for the stay. It does not include (1) room nights redeemed by Marriott Bonvoy members, (2) group room nights booked by Marriott Bonvoy members for which loyalty points are not awarded, (3) room nights booked by Marriott Bonvoy members using OTAs, and (4) wholesale and crew room nights booked by Marriott Bonvoy Members.
During 2024, of the 495 Included Hotels, 187 hotels or 38.0% of hotels met or exceeded the average daily spend per Marriott Bonvoy member paid room night, and the median average daily spend per member paid room night was $146.00.
B. Loyalty Contribution to Occupancy
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Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 137–138)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial information provided by Springhill Suites By Marriott regarding the Smith Travel Research (STR) data has not been audited. Specifically, STR compiles data on occupancy rates, average daily room rates (ADR), and RevPAR, which Springhill Suites By Marriott uses. However, Springhill Suites By Marriott explicitly states that this information has not undergone an audit or confirmation process by them.
This means that while Springhill Suites By Marriott relies on STR for industry data, prospective franchisees should be aware that the figures presented in Item 19 concerning average occupancy rate, ADR, and RevPAR are based on unaudited information. The figures related to reservations and loyalty programs are drawn from Marriott's internal databases and are also not audited.
Given that the data has not been audited, there is a risk that the numbers may not be completely accurate. While STR is described as an independent research firm used by major lodging companies, the lack of an audit introduces a degree of uncertainty. A potential franchisee should consider this when evaluating the financial performance representations and may want to conduct their own due diligence or seek professional advice to assess the reliability of the data.
It is common practice in the franchise industry for franchisors to provide financial performance representations, but the level of assurance on these figures can vary. Some franchisors may provide audited financial statements, while others may rely on unaudited data. The Springhill Suites By Marriott FDD makes it clear that the STR data is unaudited, allowing potential franchisees to make an informed decision with this knowledge.