Does Springhill Suites By Marriott offer a modular construction development incentive program?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
t the time of loan origination.
Modular Construction Projects. We offer a modular construction development incentive program to franchisees for certain new development projects. To be eligible for the program, each of the following must be satisfied: (1) the project must be for the development of a new-to-system hotel that is not a conversion of a Company Brand Hotel, (2) you must retain the manufacturer approved by us to construct the components of the hotel that we specify (which may include the guestroom and bathroom furniture and fixtures) in accordance with our standards for modular construction and the approved plans for the hotel, (3) you must purchase the hotel furniture, fixtures, equipment, and hotel opening operating supplies we specify from Marriott's global design procurement division; (4) you must notify us of your intent to use modular construction in the application for the project; (5) the application for the project must be approved by our Hotel Development Committee between March 31, 2025 and March 30, 2026 and the franchise agreement must be executed by March 30, 2026, and (6) the construction of the hotel must commence within 15 months of the date of approval and the hotel must open as a system hotel within 13 months of the date of such construction commencement, unless we approve otherwise. If your project satisfies these criteria, your project will be eligible for the following incentive payment 60 days after the opening of the hotel as a system hotel:
| Tier | Type of Modular Construction | Amount of Incentive |
|---|---|---|
| 1 | Bathrooms Only | Up to $150,000 of Key Money |
| 2 | Custom Guestrooms with Custom Décor Solutions | Up to $200,000 of Key Money |
| 3 | Prototype Guestrooms with Prototype Décor | Up to $250,000 of Key Money |
The dollar amount of the incentive for each tier of modular construction will vary depending on the size and location of the hotel, the number of guestrooms at the hotel, and the extent to which you utilize modular construction.
Source: Item 10 — FINANCING (FDD pages 80–100)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, Springhill Suites By Marriott does offer a modular construction development incentive program to franchisees for certain new development projects. To be eligible for the program, the project must be for a new-to-system hotel that is not a conversion of a Company Brand Hotel. The franchisee must retain a manufacturer approved by Springhill Suites By Marriott to construct the components of the hotel that Springhill Suites By Marriott specifies, which may include the guestroom and bathroom furniture and fixtures, in accordance with their standards for modular construction and the approved plans for the hotel. The franchisee must purchase the hotel furniture, fixtures, equipment, and hotel opening operating supplies that Springhill Suites By Marriott specifies from Marriott's global design procurement division and notify Springhill Suites By Marriott of the intent to use modular construction in the application for the project.
The application for the project must be approved by the Hotel Development Committee between March 31, 2025, and March 30, 2026, and the franchise agreement must be executed by March 30, 2026. Construction of the hotel must commence within 15 months of the date of approval, and the hotel must open as a system hotel within 13 months of the date of such construction commencement, unless Springhill Suites By Marriott approves otherwise. If the project satisfies these criteria, the project will be eligible for an incentive payment 60 days after the opening of the hotel as a system hotel. The dollar amount of the incentive for each tier of modular construction will vary depending on the size and location of the hotel, the number of guestrooms at the hotel, and the extent to which modular construction is utilized.
Springhill Suites By Marriott states that to be eligible to receive a modular construction development incentive, the franchisee must have timely constructed the hotel in accordance with their standards and the plans approved by them. If the franchise agreement is terminated before the expiration of its term for any reason, the unamortized portion of the modular construction development incentive amount will be added to any amounts due upon termination. Any incentives are personal to the franchisee, may not be combined, and will terminate and not transfer in connection with a transfer of the hotel to a third party, a change in control, or other relicensing transaction.