On what is the initial investment estimate for a Surestay Hotel By Best Western based?
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.
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- All prospective franchisees must complete a Franchise Application for a System Hotel and pay a Franchise Application Fee.
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- All franchisees must pay us an Initial Fee upon signing the Franchise Agreement.
Source: Item 7 — Estimated Initial Investment (FDD pages 35–48)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the estimated initial investment for a Surestay Hotel By Best Western is based on several factors. The estimates are derived from over 70 years of experience from Surestay Hotel By Best Western and its affiliates. These estimates consider whether the hotel is new construction or a conversion of an existing hotel. The document provides estimates 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.
The FDD notes that the actual costs can vary significantly based on the type, condition, age, physical structure, and quality of furnishings of the existing hotel. Building construction, material, and labor costs specific to the geographic area also play a crucial role in determining the final investment. For example, the estimated range for inventory and operating equipment is based on a 60-room hotel with an average daily rate of $60 and an occupancy rate of 80%.
Prospective franchisees should independently investigate the actual costs before signing the Franchise Agreement, as the provided figures are only estimates. The initial investment can vary widely, with total estimated costs ranging from $234,625 to $1,421,095 for a conversion and $5,344,745 - $8,254,345 for new construction, depending on the brand and specific circumstances. Factors such as signage costs, computer systems, and renovation work can significantly impact the total investment.