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Lodging

Marriott Hotel / JW Marriott Hotel Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$93,910,590 – $168,938,990

Franchise Fee

$100,000

Royalty Rate

6.0%

Initial Investment Range

Low: $93,910,590 High: $168,938,990

The total initial investment to open a Marriott Hotel / JW Marriott Hotel franchise ranges from $93,910,590 to $168,938,990, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $100,000.

Midpoint estimate: $131,424,790

Franchise Fee

$100,000

One-time initial fee

The Marriott Hotel / JW Marriott Hotel franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Marriott Hotel / JW Marriott Hotel brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

1.62%

of gross revenue

Total Ongoing Fee Burden: 7.6% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Franchise Fees 6.0 PCT 6% of gross room sales plus 3% of gross food and beverage sales. Payable by 15th day after month end. May qualify for reduction under Development Incentive Program.
Franchise Fees - Food & Beverage 3.0 PCT Part of Franchise Fees. Payable by 15th day after month end.
Program Services Contribution - Percentage Component 1.62 PCT Includes 1% contribution to Marketing Fund. Payable by 15th day after month end. Covers certain programs, systems, and services.
Program Services Contribution - Annual Fixed Component 50000.0 FIXED Part of Program Services Contribution. Payable by 15th day after month end (monthly installments).
Program Services Contribution - Per Guestroom Component 510.0 FIXED Part of Program Services Contribution. $510 per guestroom per year.
Loyalty Program 4.2 PCT 4.2% (reduced to 4.0% through December 2027) of qualifying revenue from customers earning loyalty points, plus 1% of qualifying event revenue for select group/catering events (max $300 per event). On demand payment. Additional loyalty point purchase costs range from $2.75 to $12.50 per 1,000 points.
Loyalty Program - Event Revenue 1.0 PCT 1% of qualifying event revenue for select group events and catering events, up to maximum charge of $300 per group or catering event.
Revenue Management Advisory Services 1240.0 VARIABLE $1,240 to $7,000 per month, plus one-time setup fee of $3,500 to $5,000. Generally optional but may be required in certain circumstances. Minimum 2 years participation typically required.
Revenue Management Advisory Services - Setup Fee 3500.0 VARIABLE One-time setup fee ranging from $3,500 to $5,000 for Revenue Management Advisory Services.
Account Sales - Group Lead 4.5 PCT 4.5% of gross group room revenue (reduced to 3% if intermediary involved). Gross group room revenue calculated as 90% of total room revenue in contract. Max $12,000 per booking ($30,000 for convention/resort hotels). Voluntary acceptance, paid only if lead accepted and group books.
Business Transient (BT) Booking 126.69 VARIABLE $126.69 to $300.14 per month, depending on guestroom nights centrally reserved. Optional BT Plus program available for additional $360.58 per month.
Customer Engagement Center (CEC) Property Support Services - Non-Resort 2.65 VARIABLE $2.65 to $2.80 per call for non-resort hotels. Generally optional but may be required in certain circumstances. Rates adjusted annually.
Customer Engagement Center (CEC) Property Support Services - Resort 4.25 VARIABLE $4.25 to $4.45 per call for resort hotels requesting enhanced services from specialized resort team.
Customer Engagement Center (CEC) Property Support Services - Other PSS 41.7 VARIABLE $41.70 to $43.80 per hour for other property support services.
National Group Sales - Group Lead 2.3 FIXED $2.30 per room night booked. Applies to groups of 10+ rooms. Voluntary acceptance, paid only if lead accepted and books.
National Group Sales - Catering Lead 139.0 FIXED $139.00 per catering opportunity booked. Voluntary acceptance.
National Group Sales - Extended-Stay Lead 2.3 FIXED $2.30 per room night booked for extended-stay opportunities. Voluntary acceptance.
Group Demand Generation 1.0 FIXED $1.00 per group room night booked. Applies to reservations through group intermediaries, including National Group Sales and Global Sales Organization. In addition to other fees. Voluntary acceptance.
International Sales Teams - Group/Sales/Catering Lead 6.0 PCT Varies, approximately 6% of gross group room revenue and/or catering revenue. Voluntary acceptance, paid only if lead accepted and books.
Cooperative Advertising and Marketing Initiatives N/A VARIABLE Mandatory participation in designated cooperative advertising programs and marketing initiatives. Amount varies.
Gift Cards N/A VARIABLE Varies. On demand payment.
Intermediary Payments and Centralized Travel Agent Commission (CTAC) N/A VARIABLE Facilitates payment of commissions to intermediaries (travel agencies, TMCs, OTAs, group intermediaries). Optional programs available at additional cost. May need to opt out of certain programs.
Marriott Digital Services N/A VARIABLE Varies depending on products and services selected. Generally optional but may be required in certain circumstances. Offers marketing, digital, and ecommerce products and services.
Enhanced On-Platform Website Maintenance 125.0 FIXED $125 per month for optional enhanced (narrative) on-platform webpage. Standard core webpage provided at no cost.
Transaction-Based Media 8.0 PCT 8% of applicable gross room revenues, not to exceed $200 per stay. Paid only if guest stays at hotel. On demand payment.
Luminous 1495.0 FIXED $1,495 annually. Optional invitation-only luxury marketing program. May require offering discounted stays and complementary services to members. Add-on services available at additional cost.
Point-of-Sale (POS) System 17.0 VARIABLE $17 to $30 per month per POS workstation for software, technical support, and patching services. Mandatory use of designated POS system. Optional add-on functions available at additional cost.
Property Management System (PMS) Application Patching 210.0 VARIABLE $210 to $220 per month for patching services (security and system-optimizing upgrades).
Opera-Exchange Interface (OXI) License and Support 440.0 FIXED $440 per year. OXI software allows PMS to communicate with GxP.
Email 11.8 VARIABLE $11.80 to $14.75 per month per email address. Includes web-based Microsoft Office and support. Program Services Contribution covers up to 7 emails per hotel. Optional add-ons available.
Continent Field Support 7.34 VARIABLE $7.34 to $13.75 per device per month. Centralized support for required electronic systems. Program Services Contribution covers up to 12 devices. May assess on different basis in future.
Information Security Managed Detection and Response Services 39.0 FIXED $39.00 per device per year. Mandatory EDR and MDR services. Program Services Contribution covers up to 12 devices if using approved vendor. Alternate vendors require periodic certifications.
Unauthorized Electronic Identifier 100.0 FIXED $100 per day an unauthorized email address, domain name, mobile application name, website, or other electronic identifier is in use. Penalty fee.
Credit Card Processing 0.047 FIXED $0.047 per settlement transaction. Includes authorization, settlement, and tokenization for each credit card transaction.
Server Management 28.13 VARIABLE $28.13 to $119.03 per server per month. Covers support for servers on Marriott network.
Mobile Device and Application Management and Mobile Application Access 2.75 VARIABLE $2.75 to $3.00 per device per month. Allows authorized users to access Marriott email and applications on mobile devices.
Lock System Software 8.0 VARIABLE $8 to $11 per guestroom per year for software and support. Allows guests to unlock doors using mobile app. Franchisor remits entire fee to vendor.
Interactive Voice Response 150.0 VARIABLE $150 to $1,000 per year. Optional program allowing housekeeping associates to report guestroom defects through guestroom telephones.
Audit Program N/A FIXED Annual cost covered by Program Services Contribution. Evaluates hotel compliance with brand standards. Must provide complimentary lodging, meals, incidentals for inspectors during on-site audits.
Red Zone 25.0 VARIABLE $25 to $100 per guestroom if hotel falls into Red Zone 2 or higher (max $50,000 per six-month period), plus $2,500 for each required meeting. May require supplemental training and programs at franchisee expense. Penalty fee for quality assurance failures.
Audit Program/GSS Improvement Program 20000.0 VARIABLE $20,000 for up to 10 participants, plus $10,000 for up to an additional 10 participants. May be required if hotel placed in Red Zone. Semi-annual program.
Food Safety Re-Assessment 1350.0 VARIABLE $1,350 to $1,500 per re-assessment. Charged for re-assessments triggered by failed food safety audit or failure to self-report resolution of non-compliant items. Unannounced re-assessment within 30-90 days until passing score.
Fire Protection and Life Safety Re-Assessment 315.0 VARIABLE $315 to $700 per re-assessment. Charged for re-assessments triggered by failure to self-report resolution of non-compliant fire/life safety items. Unannounced re-assessment within 30-90 days until self-reported correction.
Property Improvement Plan (PIP) 16000.0 FIXED $16,000 per PIP. Charged for conversions, transfers, or management-to-franchise conversions. At time of request.
PIP Revision or Modification 5000.0 FIXED $5,000 per revision or modification if franchisee requests changes to PIP prior to expiration.
Expired PIP Refresh 8000.0 VARIABLE $8,000 to refresh PIP that is 12 months past issuance date; $16,000 to re-issue PIP that is 24 months past initial issuance. PIPs effective for 12 months.
Design & Construction Review Services 20000.0 FIXED $20,000 for review of work to complete PIP for acquisitions, renewals, relicensing, or management-to-franchise conversions.

What You Get

Category

Lodging

Franchise Score

63

out of 100

Marriott Hotel and JW Marriott Hotel operate as luxury and premium hospitality brands offering accommodations, dining, and event services across global locations. The franchise provides guests with upscale lodging experiences combined with personalized service and extensive amenities.

Financial Performance (Item 19)

Unit Growth & Failure Rate

Avg. Annual Closure Rate

1.5%

Low risk — below industry average

Net Unit Growth

+2 units

From 2022 to 2024

Unit Activity History

Year Start Opened Closed Transfers End
2022 243 +6 -4 245
2023 245 +3 -3 245
2024 245 +6 -4 245

Is a Marriott Hotel / JW Marriott Hotel Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Marriott Hotel / JW Marriott Hotel franchise opportunity:

Overall Score

63/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

Low

1.5% annual closure rate

Marriott Hotel / JW Marriott Hotel shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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