What is the basis for the initial investment estimates provided for a Surestay Hotel By Best Western?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
All estimates are based on our and our affiliates' 70+ years of experience.
The estimates in the above tables are for the new construction of, and conversion of an existing hotel to, a 60-room SureStay by Best Western, an 80-room SureStay Plus by Best Western, and a 100-room SureStay Studio by Best Western, as applicable.
The costs in the above tables are only estimates, and the actual costs will vary substantially depending on the type, condition, age, physical structure and quality of furnishing of the existing hotel and the building construction, material and labor costs applicable to the geographic area in which the hotel is located.
You are encouraged to independently investigate the actual costs before executing the Franchise Agreement.
The estimated range in the SureStay by Best Western table was calculated for a System Hotel with 60 rooms, an average daily rate of $60 and an occupancy rate of 80%.
The estimated range in the SureStay Plus by Best Western table was calculated for a System Hotel with 80 rooms, an average daily rate of $80 and an occupancy rate of 80%.
The estimated range in the SureStay Studio by Best Western table was calculated for a System Hotel with 100 rooms, an average daily rate of $60 and an occupancy rate of 80%.
The range in the tables above for "Computer System" relate to (i) the cost for three computers that you may have to purchase to support the PMS ($9,900), (ii) the cost for two credit card EMV (chip/pin) devices that you may have to purchase to support the PMS's credit card interface ($4,000), (iii) an installation fee of approximately $1,500 you are required to pay us for technical and software license support of our Two-Way system, which connects your PMS to our hotel system, (iv) the cost of installing HMSS, generally $2,100 to $3,500 depending on the complexity of the installation, (v) the cost of two printers to support guest folios, registration cards and back-office reports ($1,200), (vi) the cost of one fax machine to support reservation delivery back-up services ($400) (vii) the cost for the equipment and installation of the high speed internet that you are required to provide to your guests ($21,000 for a 60 room SureStay by Best Western System Hotel; $23,000 for an 80-room SureStay Plus by Best
Although the estimated initial investment for inventory and operating equipment will vary significantly depending upon the Brand, the number of rooms at the hotel, occupancy and other similar factors, we anticipate the initial investment for inventory and operating equipment will equal roughly 8% to 10% of guest room revenue.
- Signs include freestanding signs and primary identification for the building.
The cost of signage for your Hotel depends on location, type, quantity and sizes of exterior signs.
The estimates include installation, freight, foundation and wiring.
Source: Item 7 — Estimated Initial Investment (FDD pages 35–48)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the estimated initial investment costs are based on over 70 years of experience from the franchisor and its affiliates. These estimates are for both new construction and the conversion of existing hotels into Surestay Hotel By Best Western locations. The document provides cost breakdowns for a 60-room SureStay by Best Western, an 80-room SureStay Plus by Best Western, and a 100-room SureStay Studio by Best Western. However, the FDD clearly states that these are only estimates, and actual costs can vary significantly.
The FDD indicates that several factors can influence the actual initial investment. These include the type, condition, age, physical structure, and quality of furnishings of an existing hotel, as well as building construction, material, and labor costs specific to the geographic area. For example, the estimated range for inventory and operating equipment is based on 8% to 10% of guest room revenue, calculated for three months of operations. The SureStay by Best Western estimate uses a 60-room hotel with an average daily rate of $60 and an 80% occupancy rate, while the SureStay Plus by Best Western estimate uses an 80-room hotel with an average daily rate of $80 and an 80% occupancy rate, and the SureStay Studio by Best Western estimate uses a 100-room hotel with an average daily rate of $60 and an 80% occupancy rate.
The initial investment estimates also include specific costs for items such as computer systems and signage. For computer systems, the estimates cover items like computers, credit card EMV devices, installation fees, HMSS installation, printers, and fax machines. Signage costs depend on location, type, quantity, and sizes of exterior signs, including installation, freight, foundation, and wiring. Given the variability in these costs, Surestay Hotel By Best Western advises prospective franchisees to independently investigate the actual costs before signing the Franchise Agreement.
Prospective franchisees should carefully review all components of the initial investment estimates and conduct thorough due diligence to determine the actual costs for their specific location and circumstances. Understanding these factors is crucial for making an informed decision about investing in a Surestay Hotel By Best Western franchise.