How will the ongoing cost of the new PMS be covered for a Springhill Suites By Marriott franchise?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
Program Services Contribution.
The current, approved PMS will be replaced with a new system to be designated by us. This transition is expected to occur between 2026 and year-end 2027. The amount payable to us for pre-opening technology planning and installation services associated with the implementation of the new PMS, as well as the reservation system and yield management system, will range from approximately $66,000 to $106,000. The third-party costs associated with implementing the new PMS will range from approximately $9,000 to $11,000. Certain franchisees may be required to commence operating under the current, approved system and replace it with the new system at a later date. The cost of transitioning from the current approved PMS to the new system will range from approximately $5,150 to $14,520 plus $59 to $91 per guestroom at the hotel. The transition process will consist of a series of key milestones that you must complete in a timely manner (approximately 7 milestones). If you fail to timely complete any key milestone in the transition process, we may complete the milestone on behalf of the hotel, at a cost ranging from $7,000 to $20,000 per milestone. Hotels participating in revenue management advisory services must pay an additional $2,700 for revenue management advisory services associated with the transition. The ongoing cost of the new PMS will be covered by the Program Services Contribution. The ongoing third-party costs associated with the new PMS will range from approximately $7,000 to $15,000.
Your costs may differ materially from these estimates depending on the number of guestrooms and interfaces at your hotel and any optional hardware or additional services you choose. You must install our two-way interface to the PMS, and, depending on the types and quantities of PCs, terminals, and printers in the hotel, there could be additional equipment purchases. The PMS server(s) must be updated or replaced every four years, or as needed to meet ev
Source: Item 10 — FINANCING (FDD pages 80–100)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the ongoing cost of the new Property Management System (PMS) will be covered by the Program Services Contribution. The current approved PMS is expected to be replaced with a new system between 2026 and the end of 2027.
Implementing this new PMS involves several costs. The amount payable to Springhill Suites By Marriott for pre-opening technology planning and installation services, along with the reservation system and yield management system, is estimated to range from $66,000 to $106,000. Additionally, third-party costs for implementing the new PMS are projected to range from $9,000 to $11,000. Franchisees transitioning from the current PMS to the new system can expect costs between $5,150 and $14,520, plus an additional $59 to $91 per guestroom.
It is important to note that the ongoing third-party costs associated with the new PMS are estimated to range from approximately $7,000 to $15,000. These costs can vary based on the number of guestrooms and interfaces at the hotel, as well as any optional hardware or additional services chosen by the franchisee. The PMS servers will also need to be updated or replaced approximately every four years to meet evolving application requirements.