--- title: "Residence Inn Franchise: Cost, FDD Analysis & Review" description: "Explore the Residence Inn franchise. Investment: $10.2M-$27.3M. 841 locations. Financial performance disclosed. Hotels, Motels & Lodging Brands." url: "https://www.franchisegrade.com/best-franchises/brand/residence-inn" canonical: "https://www.franchisegrade.com/best-franchises/brand/residence-inn" markdown_url: "https://www.franchisegrade.com/best-franchises/brand/residence-inn.md" type: "FranchiseBrand" brand: "Residence Inn" sector: "Real Estate & Lodging" category: "Hotels, Motels & Lodging Brands" investment_low: "10197985" investment_high: "27298510" total_units: "750" operating_model: "Semi-Absentee | Multi-Unit | Passive" --- # Residence Inn Franchise: Cost, FDD Analysis & Review Explore the Residence Inn franchise. Investment: $10.2M-$27.3M. 841 locations. Financial performance disclosed. Hotels, Motels & Lodging Brands. ## At a glance - **Brand:** Residence Inn - **Sector:** Real Estate & Lodging - **Category:** Hotels, Motels & Lodging Brands - **Total initial investment:** $10,197,985 – $27,298,510 - **Total units (FDD Item 20):** 750 - **Operating model:** Semi-Absentee | Multi-Unit | Passive - **States with locations:** AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY ## Residence Inn — franchise facts ### What is the total initial investment required to open a Residence Inn franchise? Total franchise investment ranges from approximately $10.2 million to $27.3 million, including property acquisition, construction, furnishings, and working capital. This substantial capital requirement reflects the full-service hotel development model with significant real estate and buildout costs. ### What is the initial franchise fee for Residence Inn, and what does it cover? Franchise fees range from $75,000 to $150,000, reflecting the brand's premium positioning within Marriott's extended-stay portfolio. The fee structure varies based on property size and market tier, with established development criteria determining final amounts. ### What ongoing fees, royalties, or required contributions do Residence Inn franchisees pay? Franchisees pay a 6 percent royalty on gross room revenue plus 2.5 percent for advertising and marketing fund contributions. Combined ongoing fees total 8.5 percent of gross revenue, supporting brand marketing, system improvements, and operational resources. ### What financial requirements must candidates meet to qualify for a Residence Inn franchise? Substantial liquid capital and net worth are essential, typically requiring millions in available funds for development, working capital, and contingencies. Most franchisees partner with lenders or equity groups given the capital intensity; strong personal financial statements strengthen lending approval. ### Are financing options or third-party funding programs available for Residence Inn franchisees? Franchisees typically access conventional commercial real estate loans, SBA financing, or private equity partnerships to fund development. Marriott relationships with major lenders may provide favorable financing terms; franchisor does not directly finance but supports lender presentations. ### What initial training does Residence Inn provide to new franchise owners? Comprehensive training covers operations management, housekeeping standards, revenue optimization, and guest service delivery through online and on-site programs. Training occurs pre-opening and continues through opening support with dedicated field teams ensuring successful launch and early operations. ### What ongoing support and resources does Residence Inn offer after opening? Ongoing support includes revenue management consultation, marketing resources, technology platform access, and regular operational audits. Franchisees benefit from Marriott's continuous innovation in booking systems, loyalty programs, and brand positioning within the extended-stay segment. ### Does Residence Inn assist with real estate and site selection for new locations? The franchisor provides real estate guidance and approval process for development sites, though franchisees typically identify and negotiate property acquisitions. Location criteria emphasize proximity to business parks, airports, relocation corridors, and extended-stay target demographics. ### What does the day-to-day role of a franchise owner look like with Residence Inn? Owner-operators oversee guest services, housekeeping operations, revenue management, and staff supervision with support from established operational systems. The extended-stay model typically requires engaged ownership given higher stakes; many franchisees employ general managers for day-to-day operations. ### Can Residence Inn be operated as an owner-operator or semi-absentee franchise? While semi-absentee management through professional general managers is feasible, the capital intensity and operational complexity typically require regular owner involvement. Many multi-unit franchisees employ area managers overseeing several properties while delegating daily operations to on-site teams. ### What type of lifestyle and time commitment should owners expect with Residence Inn? This opportunity suits investors prioritizing business operations and financial returns over lifestyle flexibility, given substantial capital commitment and ongoing management demands. The hospitality sector requires responsive ownership, making this less suitable for truly passive investors seeking limited involvement. ### What territories or markets are currently available for Residence Inn franchise ownership? Territory rights are available with defined geographic areas offering development exclusivity and protection for franchisee investments. Specific territory availability varies by market; established franchisees in growth regions may secure area development agreements. ### Does Residence Inn offer multi-unit ownership or expansion opportunities? Multi-unit ownership is actively encouraged with many franchisees operating four or more properties across complementary markets. Proven operators with capital and execution capability receive priority placement and favorable terms for additional development agreements. ### Are area development or master franchise opportunities available with Residence Inn? Area development agreements allow qualified franchisees to develop multiple properties across defined regions over specified timeframes. These agreements typically require substantial pre-commitment and development schedules while providing territorial protection and operational leverage. ### How does Residence Inn approach unit-level profitability and financial performance? Extended-stay properties generate strong cash flows through higher occupancy rates and longer average stays compared to traditional hotels. Most franchisees achieve positive cash flow within two to three years post-opening, though property performance varies significantly by location, management, and market conditions. ### What sets Residence Inn apart from competitors in its market segment? Residence Inn differentiates through residential-style suites with kitchens, Marriott's loyalty ecosystem, and corporate extended-stay specialization versus typical hotel brands. The extended-stay segment commands premium positioning with higher guest retention and lower customer acquisition costs than transient hotel competitors. ## Research this brand - Full profile: https://www.franchisegrade.com/best-franchises/brand/residence-inn - Compare it side by side: https://www.franchisegrade.com/compare - Check affordability against your capital: https://www.franchisegrade.com/affordability-calculator - Franchise terms used above: https://www.franchisegrade.com/tools/franchise-glossary --- *Source: [FranchiseGrade](https://www.franchisegrade.com) — independent, FDD-derived franchise research.* *Cite this page as: https://www.franchisegrade.com/best-franchises/brand/residence-inn* *Training, indexing and quotation are permitted — please attribute and link to the source URL above. Full-text reproduction of the whole page is not. Licensing: privacy@franchisegrade.com*