What revenue management services will Springhill Suites By Marriott provide to the franchisee?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
With this letter, you will find the 2025 consulting agreement, the cost for 2025 as well as our service specifications. As noted in your commitment form, it is mandatory that your hotel leverages the One Yield system functionality in partnership the services of Marriott's Revenue Management Advisory Services.
B. Services and Support
- Systems: Use SFAWeb with FSI or CI/TY and One Yield as the hotel's sales and revenue management systems or similar authorized system.
- Total Hotel Goal Setting: Maintain total group, transient, and contract rooms, average daily rate (ADR), and revenue goals for the Hotel's current booking window (minimum 2 years) in the One Yield Total Hotel Goal Setting system or similar authorized system. Enter this information in One Yield or similar authorized system.
- Group Pricing: Set and communicate pricing to Marriott by using Group Pricing Optimizer (GPO) or similar authorized pricing tool. In providing the Shared Services, Marriott will adhere to Franchisee's pricing decisions, as reflected in GPO or otherwise provided by Hotel management (as described in Paragraph 5.d of the Shared Services Agreement), when developing group sales proposals or executing customer contracts for group events at the Hotel. In the absence of specific pricing direction, Franchisee authorizes Marriott to offer group pricing on Franchisee's behalf within the range recommended by GPO, or similar authorized system, that is determined, in part, using the attributes established by Franchisee in the One Yield Total Hotel Goal Setting System or similar authorized system.
- Group Business Evaluation: Have resource(s) available to handle questions and requests from Program Sales Managers about group leads for the Hotel. For group events that do not meet the guidelines for the Business Evaluation Express process, approve group business evaluation for any pricing outside of the pre-approved ranges communicated via GPO or similar authorized pricing tool. Respond to all leads sent to the Hotel during standard business hours for business evaluation within one hour (for leads arriving within 6 months) or three hours (for leads arriving beyond 6 months). Franchisee will also set and communicate the maximum percentage, if any, that Marriott may modify a group sales proposal in its sole discretion using the Business Evaluation Express process. In the absence a specific maximum percentage, Franchisee authorizes Marriott to modify a group sales proposal by no more than five percent of the estimated total quote revenue through the Business Evaluation Express process.
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 the 2025 Springhill Suites By Marriott Franchise Disclosure Document, franchisees are required to utilize the One Yield system in conjunction with Marriott's Revenue Management Advisory Services (RMAS). This suggests that Springhill Suites By Marriott mandates a specific revenue management approach, combining a proprietary system with advisory services.
Springhill Suites By Marriott franchisees must use SFAWeb with FSI or CI/TY and One Yield (or a similar authorized system) for sales and revenue management. Franchisees are also required to maintain total group, transient, and contract rooms, average daily rate (ADR), and revenue goals for at least two years in the One Yield system (or a similar authorized system). This involves actively inputting and managing data within the specified systems to align with the brand's revenue management strategies.
Furthermore, Springhill Suites By Marriott requires franchisees to set and communicate pricing using the Group Pricing Optimizer (GPO) tool or a similar authorized tool. Marriott will adhere to the franchisee's pricing decisions when developing group sales proposals or executing customer contracts. However, in the absence of specific pricing direction from the franchisee, Marriott is authorized to offer group pricing within the range recommended by GPO, which is determined using the attributes established by the franchisee in the One Yield system. This indicates a collaborative approach where the franchisee retains control over pricing while leveraging Marriott's tools and recommendations.
Franchisees must have resources available to handle inquiries from Program Sales Managers regarding group leads. They need to approve group business evaluations for pricing outside pre-approved ranges communicated via GPO. The franchisee is expected to respond to leads within one to three hours, depending on the arrival date of the event. Additionally, the franchisee will set the maximum percentage that Marriott can modify a group sales proposal using the Business Evaluation Express process. If no specific percentage is defined, Marriott is authorized to modify a proposal by up to five percent of the estimated total quote revenue. This ensures efficient lead management and responsiveness, with clear guidelines for pricing adjustments.