Who imposes the Franchise Fees for Springhill Suites By Marriott?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Property Improvement Plan
When converting a hotel (including another Company Brand Hotel) to a SpringHill Suites by Marriott hotel, transferring an existing SpringHill Suites by Marriott hotel, or converting a hotel that is currently managed by us or one of our affiliates to a franchised SpringHill Suites by Marriott hotel, as set forth in Item 6, you must pay a property improvement plan fee of $12,000 for us to review the hotel to determine the renovations or other work necessary to bring the hotel into good repair and to conform the hotel to our then-current SpringHill Suites by Marriott standards, including fire protection and life safety standards, and prepare a property improvement plan ("PIP"). Payment is due when the review is requested. The PIP fee includes the cost of the initial Fire Protection and Life Safety Audit to determine the renovations or other work necessary to comply with our then-current fire protection and life safety standards (but does not include the cost of any additional audits that may be necessary). PIPs are effective for a period of 12 months after issuance. If you request revisions or modifications to a PIP prior to its expiration, you must pay to us a fee of $5,000 to review the proposed revisions or modifications. You must pay to us a fee of $6,000 to refresh a PIP that is 12 months past its initial issuance date. If a PIP is 24 months past its initial issuance date, you must pay to us a fee of $12,000 to issue a new PIP. These fees are non-refundable.
B. Support and Training Services for Purchasing or Converting Existing Company Brand Hotels
When converting another Company Brand Hotel to a SpringHill Suites by Marriott hotel, purchasing an existing SpringHill Suites by Marriott hotel, or converting a hotel that is currently managed by us or one of our affiliates to a franchised SpringHill Suites by Marriott hotel, we will assign a transition manager. In addition, we will assess the hotel and provide training and services if we deem it necessary or desirable based on the experience level and prior training of you or your management company. Certain franchisee personnel may be required to attend (i) Executive Orientation within 4 months after the conversion of the hotel and other required training, and (ii) sales and marketing meetings at the hotel to analyze or assist in sales efforts. You will also be required to train your new managers and staff (or their replacements) and incur those costs as described in Item 11. We estimate that the costs for on-site classes, training services, and relicensing assistance (not including reimbursement for Marriott personnel's travel, meal, and lodging expenses) generally will range from $1,800 to $15,000 if you are purchasing an existing SpringHill Suites by Marriott hotel or converting a hotel that is currently managed by us or one of our affiliates into a franchised SpringHill Suites by Marriott hotel. For all other conversions, we estimate that the cost of the support and training will range from $35,000 to $75,000, depending on the size of the hotel, the length of time the hotel has been closed (due to renovations or otherwise), your experience and familiarity with the system, and the experience of the hotel staff.
In addition, if you desire to operate your hotel but we determine that you are not qualified to operate a system hotel without additional training, you must participate in the FITM program for open hotels ("FITM-R"), the cost of which is currently $60,000 and must be paid when you execute the franchise agreement. If we determine that you are qualified to operate the hotel, but are unfamiliar with the Marriott systems, we may require you to participate in the Above Property Immersion program ("API"), through which we provide several executive-level conference calls or webinars and virtual, self-paced web-based training to familiarize your executive team with the use of the Marriott programs, systems, and services. You must pay our then-current API enrollment fee, presently $20,000, when you execute the franchise agreement. Franchisees that participate in FITM-R or API must undergo one non-accountable audit.
Franchisees that participate in FITM-R or API may also be required to must also participate in the Revenue Management Advisory Services program, the Customer Engagement Center Property Support Services program, the Digital Marketing program, and the sales programs we specify, at an additional cost. See Items 6 and 11 for more information regarding these programs. You may incur additional fees and costs or be required to retain a third-party management company if you do not complete these programs in the time frame specified by us.
The ranges above exclude, and you must pay for the cost of, travel, meal and lodging expenses incurred by you and your designated attendees to complete training programs that are not conducted on site, such as orientation training.
Fees for Other Services
A. Design and Construction Review Services
We will make our standard design and construction criteria available to you and conduct up to three hotel assessments at no cost to you to ensure that your hotel is constructed and designed in accordance with our standards. If we determine that additional pre-opening hotel assessments are necessary, you may be required to pay our then-current charge per hotel assessment, presently $1,500. In addition, if your hotel includes a residential, condominium, or multi-family component, we will conduct up to two additional pre-opening project assessments, and you must pay our then-current charge per project assessment, presently $1,500. These amounts are payable on demand and are not refundable.
You may request additional services from Marriott Design & Construction in connection with the design and construction of your hotel to assure compliance with our standards.
Source: Item 6 — B. Other Fees That May Apply to Your Transaction (FDD pages 32–64)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, many fees are imposed by Springhill Suites By Marriott themselves.
For instance, when converting a hotel to a SpringHill Suites By Marriott, Springhill Suites By Marriott charges a $12,000 property improvement plan fee to review the hotel and determine necessary renovations. If revisions are requested to the PIP prior to its expiration, a $5,000 fee is charged. To refresh a PIP that is 12 months past its initial issuance date, a fee of $6,000 is charged. If a PIP is 24 months past its initial issuance date, a fee of $12,000 is charged to issue a new PIP.
Additionally, Springhill Suites By Marriott determines the costs for pre-opening training and services, which generally range from $34,000 to $60,000. This includes training on the property management system, management and executive training, and pre-opening operations support. Springhill Suites By Marriott also determines if additional pre-opening hotel assessments are necessary, potentially charging $1,500 per assessment. For new franchisees, Springhill Suites By Marriott may require participation in the Franchisee Introduction to Marriott program (FITM) with a fee of $40,000 or the Franchisee OnBoarding for New Development program (FOND) with a fee of $20,000, depending on their qualifications.