About Element Hotels Franchise
Extended-stay hotels featuring eco-friendly design, studios and one-bedroom suites, complimentary Rise breakfast, Relax evening reception, saline pool, and Motion fitness center.
Typically 90-175 guestrooms.
Element Hotels Franchise Cost & Fees
Minimum Investment
$14.4M
Average Investment
$24.4M
Maximum Investment
$34.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | N/A | One-time payment upon signing |
| Royalty Fee | 5.5% of gross sales | Ongoing; paid monthly |
| Total Investment Range | $14,447,310 – $34,262,210 | Includes build-out, inventory, working capital |
The investment range of $14.4M–$34.3M reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 5.5% of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Application Fee | $75,000 | $75,000 |
| Pre-Opening Training, Revenue Management, Marketing & Digital Support, and Related Services | $50,000 | $81,000 |
| Property Management, Reservation, Yield Management, Opportunity Management, and Other Systems | $83,000 | $135,200 |
| Market Feasibility Study | $6,000 | $18,000 |
| Real Estate | $0 | $0 |
| Building Permit, Tap, and Impact Fees | $0 | $0 |
| Building Construction (per guestroom) | $11,184,000 | $27,544,000 |
| Kitchen and Laundry Equipment (per guestroom) | $360,000 | $957,000 |
| Furniture and Fixtures (per guestroom) | $1,240,000 | $2,398,000 |
| Technology Hardware & Software and Network Infrastructure | $110,700 | $212,100 |
| Operating Supplies | $318,200 | $450,900 |
| Professional Design Services (including stylist) | $505,200 | $1,328,300 |
| Insurance | $0 | $0 |
| Start-up Costs (per guestroom) | $184,000 | $385,000 |
| Hard Cost Contingency (5% of hard costs) | $0 | $0 |
| Food Safety and Sanitation Compliance | $210 | $210 |
| Food and Beverage Consulting Services (for bars) | $6,000 | $7,500 |
| Opening Advertising | $85,000 | $120,000 |
| Additional Funds (first 3 months, per guestroom) | $240,000 | $550,000 |
Element Hotels Franchise Earnings — Item 19
Element Hotels does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Element Hotels does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Element Hotels Litigation & Risk Flags
Clean Litigation RecordElement Hotels has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Element Hotels System Growth
Total Units
0
Franchised
0
Company-Owned
0
Element Hotels currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Element Hotels Franchise — FAQ
The total investment to open a Element Hotels franchise ranges from $14,447,310 to $34,262,210, per their Franchise Disclosure Document. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Element Hotels charges a royalty fee of 5.5% of gross sales. These fees are paid on an ongoing basis.
You can download the Element Hotels Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Element Hotels to ensure you have the most up-to-date version.
Element Hotels does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Element Hotels has been offering franchise opportunities. The FDD shows an investment range of $14,447,310-$34,262,210, a 5.5% royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is N/A and the total investment ranges from $14,447,310 to $34,262,210 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Element Hotels and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Element Hotels or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com