What was the related party royalty expense for Springhill Suites By Marriott in 2023?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
s charged a 1% markup on the final allocated amount. The Company believes the proportional cost allocation is an appropriate method of allocating costs from i t s Parent. Corporate allocation costs for the years ended December 31, 2024, December 31, 2023, and December 31, 2022 was $1,712, $1,284, and $1,396, respectively.
Royalties for licensing of the Marriott franchise system are charged to the Company at a rate of 2% of the underlying franchised properties' gross room revenue, and food and beverage revenue for full-service hotels. Additionally, with the expansion into franchising legacy Starwood brands in 2024, the Company is charged a rate of 98% of the net revenue collected from franchise fees.
Source: Item 17 — , "Renewal, Termination, Transfer, and Dispute Resolution," is amended by the addition of the following paragraph(s) at the conclusion of the Item: (FDD pages 285–553)
What This Means (2025 FDD)
According to Springhill Suites By Marriott's 2025 Franchise Disclosure Document, royalties for licensing of the Marriott franchise system are charged to the company at a rate of 2% of the underlying franchised properties' gross room revenue, and food and beverage revenue for full-service hotels.
However, the document does not explicitly state the related party royalty expense for Springhill Suites By Marriott in 2023. The document does state that corporate allocation costs for the years ended December 31, 2024, December 31, 2023, and December 31, 2022 was $1,712, $1,284, and $1,396, respectively.
To obtain the specific royalty expenses, a prospective franchisee should directly ask Springhill Suites By Marriott for the related party royalty expenses in 2023.