What is the scope of the revenue management services that Springhill Suites By Marriott provides to the franchisee?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby specifically acknowledged, the parties agree as follows:
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- Scope of Services. Franchisor shall provide the revenue management services set forth on Schedule "A" attached hereto and made a part hereof (the "Services") to Franchisee with respect to the Hotel. If the hotel did not participate in Franchisor's revenue management services in 2024, Franchisor shall provide the set-up services described in Schedule C, for the fee set forth in Schedule C. The set-up services shall otherwise be deemed part of the "Services" for purposes of this Agreement. Franchisor's personnel who assist in providing the Services shall be qualified in and dedicated to revenue management. Both parties acknowledge and agree that Franchisee is under no obligation to comply with any recommendations made by Franchisor in connection with this Agreement, including but not limited to recommendations regarding pricing, inventory, room allocation or rate allocation. Franchisee expressly reserves the right to make, and is ultimately responsible for, any and all decisions relating to pricing, rate allocation and all other revenue management issues. Nothing contained herein should be considered a representation or warranty by Franchisor that compliance with any recommendations made by Franchisor in connection with this Agreement, including but not limited to recommendations regarding pricing, inventory, room allocation or rate allocation will produce, increase or optimize profits of Franchisee.
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 FDD, the franchisor, Marriott International Administrative Services, Inc., offers revenue management services to franchisees. The objective of the program is to provide leadership support to participating hotels in order to meet the hotel budget requirements for transient, extended stay, and group business.
To achieve this, the Area Sales Team provides services such as serving as the primary sales contact for General Managers and property leadership teams. They focus on building each property's top-line revenue by developing a sales strategy that utilizes on-property and off-property sales channels. The team also ensures that area sales and marketing strategies are aligned with overall market goals, manages the development and execution of strategic account plans, and engages with owners and asset managers to communicate account strategy and hotel performance metrics.
Springhill Suites By Marriott requires franchisees to use designated revenue management resources, including In-Market Marriott Services Revenue Management, Marriott's Revenue Management Advisory Services, or a franchise hotel or company resource. Franchisees must also use SFAWeb with FSI or CI/TY and One Yield as the hotel's sales and revenue management systems, maintain total group, transient, and contract room goals in the One Yield system, and set pricing using the Group Pricing Optimizer (GPO). While Marriott will adhere to the franchisee's pricing decisions, in the absence of specific direction, Marriott is authorized to offer group pricing within the range recommended by GPO.
Ultimately, the franchisee retains control over revenue management decisions. While Springhill Suites By Marriott provides recommendations regarding pricing, inventory, and room allocation, the franchisee is under no obligation to comply with these recommendations and is responsible for all final decisions related to revenue management.