What pricing-related actions are Springhill Suites By Marriott franchisees prohibited from taking?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for setting your own prices and rates for the goods and services offered by your hotel, except that we: (i) prohibit price-gouging at the hotel; (ii) require you to participate in our associate rate discount program; (iii) may require you to provide discounted rates to members of our loyalty programs; (iv) prohibit you from charging for certain goods or services that we require be provided on a complimentary basis; (v) prohibit complimentary or reduced price guestrooms or food and beverage to benefit any other business at or outside of the hotel; and (vi) prohibit certain types of surcharges, destination fees, resort fees, and other similar fees, unless we determine that the fees are appropriate based on, among other factors, the location of the hotel, the services offered by the hotel, and consumer sentiment regarding the assessment of such fees. You may also be prohibited from charging certain fees by applicable law or by consent orders entered into by us on behalf of system hotels. In addition, as discussed below, you must distribute your inventory in a manner consistent with our designated best rate guarantee policy. We may,
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 107–117)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, franchisees face several restrictions regarding pricing and fees. While franchisees are generally responsible for setting their own prices, Springhill Suites By Marriott prohibits certain pricing practices. Specifically, franchisees cannot engage in price-gouging, must participate in the associate rate discount program, and may be required to provide discounted rates to members of loyalty programs.
Additionally, Springhill Suites By Marriott prohibits franchisees from charging for goods or services that are required to be provided on a complimentary basis. They also cannot offer complimentary or reduced-price guestrooms or food and beverage to benefit any other business at or outside of the hotel. Furthermore, franchisees are restricted from imposing certain types of surcharges, destination fees, resort fees, and other similar fees, unless Springhill Suites By Marriott determines that such fees are appropriate based on factors like the hotel's location, services offered, and consumer sentiment.
Springhill Suites By Marriott also requires compliance with its designated best rate guarantee policy, ensuring that published room rates across all reservation channels are not lower than those on Marriott Direct Channels. Non-compliance with this policy can result in a non-compliance charge and reimbursement for all costs incurred by Springhill Suites By Marriott, including audit costs and excess property reimbursements. These policies ensure consistent pricing and service standards across all Springhill Suites By Marriott locations, protecting the brand's reputation and customer expectations.