About Staybridge Suites - exempt Franchise
Staybridge Suites is an upscale extended stay hotel brand under the InterContinental Hotels Group (IHG) umbrella, offering all suite accommodations designed for business travelers, families in transition, and vacationers seeking a home away from home.
Each property features complimentary breakfast, evening social gatherings, on site laundry, a 24 hour business center, and free high speed internet, creating a comfortable and convenient experience for guests staying a few nights or several weeks.
The brand has been part of the franchising landscape since 1997, with an initial franchise fee of $500 per guest suite and a minimum of $75,000.
Staybridge Suites - exempt Franchise Cost & Fees
Minimum Investment
$16.0M
Average Investment
$20.3M
Maximum Investment
$24.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $500 per guest suite, but not less than $75,000 | One-time payment upon signing |
| Royalty Fee | 5.5% of Gross Suites Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2.5% of GSR (Services Contribution); Special Marketing Contribution for the Loyalty Program: 2.4% of Qualifying Full Folio Revenue and 1.425% of Qualifying Room and Meeting Revenue from Loyalty Program members; IHG Ignite Digital Marketing Fees: 2.75% commission on all consumed direct digital revenue | National brand fund |
| Total Investment Range | $16,026,975 – $24,598,695 | Includes build-out, inventory, working capital |
The investment range of $16.0M–$24.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5.5% of Gross Suites Revenues) and marketing fee (2.5% of GSR (Services Contribution); Special Marketing Contribution for the Loyalty Program: 2.4% of Qualifying Full Folio Revenue and 1.425% of Qualifying Room and Meeting Revenue from Loyalty Program members; IHG Ignite Digital Marketing Fees: 2.75% commission on all consumed direct digital revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Application Fee | $75,000 | $75,000 |
| Property Improvement Plan (“PIP”) fee | $0 | $7,500 |
| Land (2.5 to 5 acres) | $0 | $0 |
| Building Construction | $13,276,900 | $20,729,400 |
| Furniture, Fixtures & Equipment | $1,790,400 | $2,327,500 |
| Operating Supplies & Equipment | $259,300 | $337,100 |
| Primary Identification Sign | $30,000 | $50,000 |
| PMS Equipment; Software; Installation & Training; IHG Concerto™ Equipment; NGP/Payments Equipment; Software; Installation & Training. | $83,000 | $205,000 |
| Guest Internet Access – Hardware (IHG Connect) | $22,750 | $49,000 |
| Key Card System | $10,000 | $15,000 |
| In Room Entertainment (IHG Studio) | $10,000 | $12,000 |
| Employee Safety Devices | $16,000 | $19,000 |
| Technology Systems | $99,125 | $113,995 |
| Market Feasibility Study | $15,000 | $30,000 |
| Openings and Renovations Preopening Support Fee | $6,000 | $6,000 |
| IHG Learning Program: Core Subscription | $3,000 | $3,000 |
| Opening Date Extension Fee | $0 | $5,000 |
| License and Permits | $0 | $0 |
| Professional Fees | $182,000 | $317,000 |
| Security Deposits | $10,000 | $25,000 |
| Insurance | $35,000 | $125,000 |
| Hotel Photography | $3,500 | $6,200 |
| Additional Funds and Prepaid Expenses during the initial phase (first 3 months after opening) | $100,000 | $250,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Technology Fee | $16.40 per suite, per month (Technology Services Fee); PMS Software Maintenance: $11.88 per room, per year (Opera Xpress – Premise Based) or $2.25 per room, per month (Opera Xpress – Hosted); FastConnect Plus And Access Control Manager: $167.32 per month; NextGen Payments ("NGP") Maintenance & Support: $140.00 per month; Guest Internet Access – Bandwidth Service Subscription (IHG Connect): $1,000 to $2,800 per month; Guest Internet Access ("GIA") – Hardware Maintenance & Guest Support (IHG Connect): $1.50 per guest suite, plus $25.00 per meeting/conference room, plus $20.00 per 2000 sq. ft. of total meeting space, maximum of $500.00; Guest In-Room Entertainment–Hardware, Maintenance, Guest Support, & Content (IHG Studio): $4.75 per room, per month for software, maintenance, and guest support, $7.20 per room, per month for content, $1.25 per room, per month for HBO (where required); Employee Safety Devices: Initial fee of $125-$150 per room in the first year plus $20.00 to $25.00 per room, per year for software and maintenance support; Security Software for Public Access Computers (Business Centers): $495.00 to $525.00 per workstation, per year for software, maintenance, and guest support, $315.00 to $399.00 per printer, per year for optional mobile printing feature |
| Audit Fee | $3,000 (plus amount of deficiency and interest) |
| Initial Marketing Contribution to Loyalty Program | $10.00 per approved guest suite (one-time charge) |
| IHG Learning Program: Core Subscription/Value-Add and Specialist Training | $3,000 annually (Core Subscription fee), plus travel and optional/supplemental training expenses |
| IHG® Americas Investors and Leadership Conference | $2,000 per attendee |
| Subsequent Training Materials | $0 - $5,000 per hotel for all trainees combined |
| Travel Agent Commissions (IHG Commission Services) | 10% (minimum) commission on total suite rate |
| Third Party Distribution Connection Fees | See Note 4 (GDS fee $6.40 per reservation, Direct Connect fees $1.75 per reservation, TMC Direct Connect fees $5.00 per reservation) |
| TMC (formerly known as BTA) Revenue Program | 2.25% override fee on non-negotiated corporate contracted rates (max $20,000 per year) |
| IHG Business Edge Program Booking Fees | 4% of consumed transient revenue |
| Groups & Meetings Fee | 4.0% of consumed or agreed room revenue (max $15,000 cap on year-over-year increase, $30,000 fee limit per booking) |
| Groups & Meetings TMC Fee | 2% globally for BCD M&E, CWT M&E and AMEX GBT |
| Tax on Sales/Gross Receipts or Similar Taxes | Holiday’s actual cost |
| IHG Concerto™, Yield & Price Optimization | $30 and $120 (competitive rate insight shopping, may be waived) |
| Re-licensing/Changes of Ownership Fees | $500 per guest suite but not less than $75,000 |
| Guest Love Performance Compliance Program for Hotels that fall below the At Risk guest satisfaction threshold | Escalating assessment of up to $13,500 |
| Quality Evaluation Assessments for Standards Evaluation failures | Escalating assessment of up to $7,500 per consecutive failure |
| Realignment/name change processing fee | $5,000 |
| PIP/Soft Goods or Case Goods Renovation inspection/preparation fee | Up to $7,500 for a PIP or $5,000 for a re-inspection |
| Plan and/or FF&E Extensions and Defaults | Up to $5,000 |
| PIP Extensions and Defaults Travel | Up to $5,000 |
| Custom Design Review | Up to $25,000 |
| Non-Compliance with Soft Goods and Case Goods Renovation Requirements | Up to $5,000 |
| Liquidated Damages Payment on premature termination by Holiday before it authorizes you to use the System at the Hotel | Lump sum equal to monthly average of amounts payable under paragraphs 3.B(1), (3) and (4) multiplied by greater of 6 or number of full/partial months from Term Commencement Date to termination date |
| Liquidated Damages Payment on premature termination after Holiday authorizes you to use the System at the Hotel | Amount equal to total amounts required under License Paragraphs 3.B (1), (3) and (4) during 36 calendar months preceding termination or unexpired License Term (if less than 36 months); or 36 times monthly average if not in operation for 36 months |
| IHG Voice Reservation Service | $6.63 per net booking (may be changed annually) |
| Guest Relations Fees | $150 per incident, plus compensation of no greater than one night’s room fee and tax |
| Revenue Management for Hire Program | $1,029– $3,350 per month (depending on room count, location type, occupancy), plus out of pocket travel expenses for SCH personnel |
| Completion of the appropriate level of IHG® Revenue Management for Hire certification | $350 - $1,000 |
| Capital Reserve | Up to 5% of Gross Revenue (monthly, if required) |
| IHG® Rewards Measured Standards | Up to $3,000 per quarter (Hotels with 300 rooms or less) or up to $5,000 per quarter (Hotels with more than 300 rooms) |
| Employee Engagement Survey | $7 to $12 per employee each year |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Varies by program, from 1-3 days to 12-28 days or within 180 days of opening/hire date. |
| Classroom Training | Varies by program: Owner Education Program (Class lengths vary), Technical Support Training (Class lengths vary), RAMP UP (Up to 9 hours), Property Management System Training (Opera 12-28 days), General Manager Program (5 days), IHG Concerto™ (1 day or 3 virtual sessions each 1.5 hours), General Manager Sales Training (3 days or 2 days virtual), Director of Sales Training (3 days or 2 days virtual), Front Office Manager Program (4 days), Executive Housekeeper (Class lengths vary), Director of Engineering (1 day), All employee Brand Service Training (Class lengths vary). |
| On-the-Job Training | Varies by program: On-site property consultations (1-3 days of Classroom Training and Varying hours of On Job Training). |
| Training Location | Virtual, Atlanta, other designated metropolitan/regional locations, or your Hotel. |
| Additional Training | Franchisees must pay for trainees’ travel expenses or training expenses incurred for any optional or supplemental courses. Subsequent training materials may be required, costing no more than $5,000 per hotel for all trainees combined. Hotels should allocate annual pre-determined amounts per full-time employee for optional value-add and specialist courses: Managers/Department Heads - $650; Assistant Managers/Supervisors - $450; Frontline colleagues - $250. This budget is for consumption of IHG Value-Add and Specialist learning offers and personal development. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Holiday does not typically grant franchises for exclusive areas or territories. The License is for a specific site only and does not grant an exclusive territory. Franchisees may face competition from other franchisees, company-owned hotels, or hotels operating under other brands controlled by Holiday or its affiliates. Holiday and its affiliates are not restricted from establishing other franchises or company-owned outlets, or using other channels of distribution. The License creates no rights of first refusal or options to acquire additional franchises. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years (new development), 10 years (conversion), 10 years (change of ownership or re-licensing) |
| Renewal Term | None |
| Renewal Conditions | The License does not provide for renewal or term extensions. If Holiday agrees to Re-license, a new agreement with materially different terms and conditions may be required. |
| Transfer Fee | $25,000 processing fee (for public offering, private placement or other sale of securities) |
| Transfer Conditions | Transfers of non-publicly traded equity interests require IHG's prior written consent, not unreasonably withheld, provided less than 50% or 80% of equity interests have changed hands since becoming a party to the License. Transfers of publicly-traded equity interests may occur without IHG's consent if the transferor/transferee owns less than 25% and is exempt from federal securities registration. All transfers of the Hotel or a material part of the Hotel/site, or equity interests to a new owner, require a new license application and IHG's approval, which includes evaluation of credit, operational abilities, market feasibility, and prior business dealings. The new owner must sign a new license agreement and guaranty, and may be required to upgrade the Hotel. |
| Termination for Cause | Holiday may terminate with advance notice (30 days, or 10 days for repeat violations) for breaches of obligations (e.g., non-payment, failure to comply with standards). Immediate termination can occur for non-curable defaults such as bankruptcy, judgments exceeding $50,000, trademark misuse, loss of possession, dissolution of franchisee entity, failure to identify/operate under licensed brand, violation of proprietary rights, unapproved transfers, felony conviction, false records, failure to comply with safety/security/privacy standards, condemnation, or refusal to allow inspection/audit. Liquidated damages are payable upon premature termination. |
| Non-Compete Period | During the term of the franchise |
| Non-Compete Details | The franchisee must not use any part of the Hotel or the System to facilitate or promote a competing business. After termination, the franchise agreement may prohibit operating a similar business, even if there are landlord or creditor obligations. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Holiday requires franchisees to retain and exercise direct management control over the Hotel's business at all times, but does not require personal participation. Holiday may require hiring a duly qualified and experienced management company or General Manager/Director of Sales with at least two years of prior experience in a similar hotel brand segment. If a management company is hired, it must be approved by Holiday and must agree to abide by Holiday's rules and the License terms. Franchisees and guarantors remain liable for all obligations. Management and staff must attend Holiday's training programs. |
| Required Suppliers | Franchisees must purchase equipment, furnishings, supplies, and other products for the Hotel from designated or approved suppliers or service providers, or under Holiday’s specifications. This includes prototype design plans, Standard Room Décor Program items, PMS equipment and software (Oracle America, Inc. Opera Xpress solution), NGP solution, Guest Internet Access hardware (IHG Connect), Keycard System, Employee Safety Devices, and Public Access Computers. For certain items, alternative suppliers may be used with prior written approval from Holiday, provided their products meet quality specifications. |
| Supply Restrictions | Holiday estimates that its Standards and specifications will apply to 90% to 95% of franchisee purchases and leases. Franchisees must obtain prior written approval for non-approved products and may be required to remove non-approved items. For SRD items, Holiday receives a commission of ½ - 2% from vendors. For the IHG Procurement Program, franchisees purchase goods and services directly from suppliers at negotiated prices, with a cost recovery fee of up to 6% included in the supplier invoiced price. Allowances and rebates from suppliers are transparently distributed to hotels or through the IHG Procurement Program. For the Coffee Program, all coffee must be purchased from Royal Cup Coffee. For Signage, primary and additional signage must be purchased from a Holiday approved sign vendor. |
| Franchisor Revenue from Suppliers | In the twelve months ending December 31, 2021, SCH and its subsidiaries’ net revenue from franchise purchases of PMS and Reservation System equipment, software, training and support services was $1,600,000. Holiday estimates that more than 95% of the gross revenues from franchisee information technology program purchases are paid over directly to the information technology program vendors and are not retained by SCH or Holiday. Standard Room Décor commissions for the year ending December 31, 2021, were $322,997. Allowances and rebates received by the IHG Procurement Program or properties directly from suppliers generally range from approximately 1% to 5% of the invoice price. TCCC provides certain funding based on the volume of Coca-Cola products sold in System Hotels, with some funding received by SCH for the benefit of the System. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Holiday does not offer any formal program for direct or indirect financing. However, Holiday, SCH, or its affiliate, General Innkeeping Acceptance Corporation (“GIAC”), may furnish loans or guaranties to franchisees. Any decision to make a loan or provide a guaranty is made on a case-by-case basis, negotiated with the prospective franchisee, and conditioned upon approval of the Executive Committee and Board of Directors. Franchisees are solely responsible for obtaining adequate financing for all development, opening, and operation expenses. |
Staybridge Suites - exempt Franchise Earnings — Item 19
Staybridge Suites - exempt 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.
Staybridge Suites - exempt 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.
Staybridge Suites - exempt Litigation & Risk Flags
10 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Staybridge Suites - exempt System Growth
Total Units
273
Franchised
273
Company-Owned
0
Staybridge Suites - exempt currently operates 273 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 24 | 3 | 261 |
| 2020 | 19 | 19 | 261 |
| 2021 | 17 | 5 | 273 |
Transfers: 13 | Closures: 5
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$20.5M
Net Income
$23.3M
Total Assets
$779.3M
Audited by PricewaterhouseCoopers LLP for year ending December 31.
Staybridge Suites - exempt Franchise — FAQ
The total investment to open a Staybridge Suites - exempt franchise ranges from $16,026,975 to $24,598,695, per their Franchise Disclosure Document. This includes the initial franchise fee of $500 per guest suite, but not less than $75,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Staybridge Suites - exempt charges a royalty fee of 5.5% of Gross Suites Revenues of gross sales, plus a 2.5% of GSR (Services Contribution); Special Marketing Contribution for the Loyalty Program: 2.4% of Qualifying Full Folio Revenue and 1.425% of Qualifying Room and Meeting Revenue from Loyalty Program members; IHG Ignite Digital Marketing Fees: 2.75% commission on all consumed direct digital revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Staybridge Suites - exempt 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 Staybridge Suites - exempt to ensure you have the most up-to-date version.
Staybridge Suites - exempt 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.
Staybridge Suites - exempt has been franchising since 1997. The FDD shows an investment range of $16,026,975-$24,598,695, a 5.5% of Gross Suites Revenues royalty, and includes an Item 19 earnings disclosure. There are 10 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $500 per guest suite, but not less than $75,000 and the total investment ranges from $16,026,975 to $24,598,695 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Hospitality & Travel Franchises
Interested in Staybridge Suites - exempt?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 Staybridge Suites - exempt and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Staybridge Suites - exempt or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com