Residence Inn Franchise

Residence Inn by Marriott is an international, upscale extended-stay hotel chain. Known for pioneering the extended-stay market, Residence Inn offers innovative and convenience-oriented amenities for guests. Each hotel features cooking facilities or a kitchenette and well-defined areas for living, working, and resting, providing a home-like environment that appeals to traveling professionals staying for extended periods.

Franchise Formats Offered

The standard Residence Inn by Marriott hotel comprises 60 to 150 rooms, typically featuring the following amenities:

• Complimentary buffet breakfast
• Nighttime social and networking activities
• A pantry area selling food, beverages, and sundries (branded as "The Market")
• Meeting facilities
• Semi-private buffet area
• Guest laundry facilities
• Guest storage

Room configurations include a mix of studios, 1-bedroom suites, and 2-bedroom suites. Suites are spacious and feature distinct areas for rest, living, and dining.

History of Residence Inn

Residence Inn was launched in 1975 by Jack DeBoer in Wichita, Kansas. Initially developed to cater to extended-stay guests, the first-of-its-kind model was a substantial success. In 1987, Marriott acquired Residence Inn, rebranding it as Residence Inn by Marriott. Since then, the brand has expanded rapidly, now consisting of over 1,000 locations, with significant growth potential in emerging markets such as Africa and the Middle East.

What Does A Residence Inn Franchise Cost?

The initial investment required to build and open a Residence Inn hotel varies based on the property's size. Below are the estimated costs:

• $10.3 million to $22.5 million for an 80-110 suite Residence Inn franchise
• $14.7 million to $28.7 million for a 120-150 suite Residence Inn franchise

These estimates exclude the costs related to procuring the underlying real estate and other associated expenses.

Franchise Application Fees

• New hotel or conversion: $75,000 or $500 per suite (whichever is greater)
• Transfer of ownership: $175,000 or $500 per suite (whichever is greater)

Note: These fees are typically refundable if the application is not approved (less a $10,000 non-refundable portion plus the franchisor's costs).

Ongoing Royalties and Program Contributions

• 6% monthly royalty fee on gross room sales
• 2.5% of monthly gross room sales to the marketing fund
• Monthly program services fee ranging from 0.05% to 0.56% of gross room sales, plus a flat fee of $6,000 - $7,200 per year, and $90-$108 per suite per year

Residence Inn Franchise System Size and Composition

There are over 1,000 Residence Inn locations, including approximately 800 in operation (nearly 100,000 open rooms) and around 250 in development (accounting for over 30,000 rooms). About 85% of these locations are franchised, with the majority based in the United States. The chain generates an estimated $3.9 billion in total annual sales.

Key Takeaways

• Residence Inn by Marriott is a leading player in the upscale extended-stay hotel market.
• Franchise opportunities are available, focusing on extended-stay travelers seeking homely accommodations.
• Initial investment ranges from $10.3 million to $28.7 million, excluding real estate costs.
• Ongoing fees include a 6% royalty on gross room sales and various marketing and program service contributions.
• The brand is part of the Marriott International portfolio, which includes many other prestigious hotel chains.

If you're interested in learning more about franchising with Residence Inn by Marriott, we invite you to download the franchise disclosure document or fill out the free information request form on this page.