Apartments by Marriott Bonvoy Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$34,763,700 - $115,227,100
Franchise Fee
$100,000
Business Summary
Apartments by Marriott Bonvoy operates premium serviced-apartment hotels that cater to business and leisure travelers seeking extended-stay lodging. These hotels combine modern design with digital interactions and a streamlined service model. Each guestroom typically features a full kitchen and a washer/dryer, offering a mix of studios, one, two, and three-bedroom units. Amenities usually include a welcome lounge, gym, and a host desk, with food and beverage or event spaces being optional. Apartments by Marriott Bonvoy hotels can be newly constructed, conversions of existing properties, or repurposed historic buildings.
Corporate History
MIF, L.L.C., a Delaware limited liability company, was established in 2012 as a subsidiary of Marriott International, Inc. It began offering franchises for its Apartments by Marriott Bonvoy brand in December 2023. As of December 31, 2024, Apartments by Marriott Bonvoy had no open company-owned or franchised serviced-apartment hotels in the United States and Canada, but 5 franchised outlets were projected to open. While MIF, L.L.C. is relatively new, its parent company, Marriott International, Inc., has a long history in the lodging industry, operating and franchising numerous Company Brand Hotels under a wide portfolio of brands since as early as 1957.
Financial Overview
Investment Range
$34,763,700 - $115,227,100
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$150,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$21,226,400
Equipment Costs (High)
$70,970,000
Working Capital
$431,250
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Apartments by Marriott Bonvoy's financial statements show that it is a subsidiary of Marriott International, Inc., and its financial operations are highly integrated with its parent company. While the entity consistently reports net income, with over $63 million in both 2024 and 2023, it's important to note that the company itself does not maintain a cash balance. All financial transactions, including the collection of initial application fees, ongoing royalty fees, and cost reimbursements for various system-wide programs like marketing and reservations, are managed through related party accounts with its parent company and other Marriott subsidiaries. The company holds a significant amount in non-current receivables from these related parties, totaling over $443 million in 2024. This operational structure means that Apartments by Marriott Bonvoy relies on its parent company for daily liquidity, even though its overall financial standing, as reflected by its assets and member's equity, appears strong. No impairment charges were recorded for intangible assets, and there are no accruals related to legal contingencies, suggesting a stable financial position within this integrated framework.
Financing Details
Apartments by Marriott Bonvoy generally does not offer direct financing for its franchised serviced-apartment hotels or guarantee franchisee loans. However, in very specific and limited situations, the franchisor may, at its sole discretion, provide certain types of financial assistance. This could include offering credit support as a contingent guarantee for a portion of a loan obtained from a third-party lender, or by making a mezzanine loan directly. When considering such offers, Apartments by Marriott Bonvoy evaluates several factors, such as opportunities for market growth, the size and location of the hotel, the current economic and financial environment, the franchisee's costs to develop or convert the hotel, and the franchisee's commitment to expanding the system. The specific terms and conditions of any such financing or guarantees, including loan amounts, interest rates, repayment schedules, and security requirements, would vary greatly depending on the individual circumstances and would be determined at the time of the transaction. The franchisor does not use standard form documents for these types of financing arrangements.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Avg Square Footage
103,000
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
16
Litigation Summary
MIF, L.L.C., the franchisor of Apartments by Marriott Bonvoy, has a notable legal history with 16 distinct litigation matters disclosed. A significant portion of these cases stems from data security incidents in 2018 and 2020, which led to multiple ongoing class-action lawsuits in the U.S. and Canada, as well as several administrative investigations by regulatory bodies in the U.S., UK, Turkey, Canada, and Australia. While some of these investigations have been resolved with payments and agreements for data security enhancements (including a $52 million settlement in 2024 with U.S. Attorneys General), certain appeals and compliance assessments are still underway. Another area of litigation involves destination, resort, and amenity fees, with an ongoing lawsuit from 2019 filed by the District of Columbia, expected to go to trial in 2025. Apartments by Marriott Bonvoy has settled similar class actions from 2019 in Puerto Rico and a 2019 case in California, the latter concluded in 2024. The franchisor has also initiated litigation against franchisees for breaches of contract and unpaid fees, with three such cases in 2023-2024 all resulting in settlements or awards in favor of Apartments by Marriott Bonvoy. Additionally, there are three other pending class actions from 2024 and 2022 alleging antitrust violations and negligence, one of which resulted in a $16 million jury verdict against the franchisor and franchisee in 2024 and is currently under appeal. Several older cases, dating back to 2016-2021, have been concluded.
Bankruptcy History
Apartments by Marriott Bonvoy, the franchisor, has no bankruptcy history to disclose in this document. This means neither MIF, L.L.C. nor any of its key personnel have been involved in any bankruptcy proceedings that are required to be reported.
Agreement Terms
Initial Term
10 years
Training & Support Program
Franchisor Assistance
Apartments by Marriott Bonvoy provides comprehensive assistance to its franchisees. Before opening, this includes making product quality standards available for planning, construction, renovation, and furnishing, along with specifications for furniture, fixtures, equipment, and inventory. The franchisor reviews construction drawings and conducts periodic site assessments to ensure compliance. They provide guidance on procuring operating supplies and FF&E and conduct a final visit to confirm readiness for operation. Initial training is provided to hotel staff, including general managers and management teams. Comprehensive manuals and operating procedures are made available. For hotels with residential or condominium units, the franchisor reviews relevant documentation and sales/marketing materials. Marriott also reviews and approves the proposed site, with construction expected to start within 15 months of application approval and opening within 12-15 months of construction start. An opening team is provided to assist with the launch and train employees. After opening, Apartments by Marriott Bonvoy offers ongoing consultation with representatives on design and operation. Franchisees gain access to essential electronic systems, including a reservation system, property management system, and yield management system. The franchisor protects its proprietary marks and offers indemnification against infringement claims. Updated standards and procedures are continuously made available. Training programs for management personnel are offered. Franchisees can participate in an association for system hotels. The franchisor manages a Marketing Fund for extensive advertising, sales, and marketing activities, including brand strategy, public relations, market research, and loyalty programs. Plans for hotel upgrades and remodels are reviewed. Mandatory sales organizations like the Global Sales Organization are provided, with other sales and marketing programs being optional, but participation in some, like email marketing and paid media, is encouraged or required.
Initial Training Hours
112
Training Location
Various locations, including web-based and designated in-person locations
Ongoing Support
Apartments by Marriott Bonvoy provides ongoing support to its franchisees after opening. This includes access to representatives for consultation on design and operation, and continuous access to electronic systems such as the reservation system, property management system, and yield management system. The franchisor maintains and updates operating standards and protects its proprietary marks. Franchisees can participate in an association for System Hotels to provide recommendations. Ongoing training is provided through a Learning & Development Bundle (annual fee per guestroom) that covers required programs. General managers are required to attend regional conferences (with registration and travel fees) and brand immersions (with a fee and travel expenses). Optional advanced leadership and discipline-specific training programs are also available for a fee. For sales and marketing, the franchisor directs activities of the Marketing Fund for broader brand promotion. Franchisees must participate in the Global Sales Organization (GSO) and other designated mandatory sales and marketing programs like email marketing, paid media, loyalty programs, guest satisfaction programs, and complaint resolution. Optional participation is available for Area Sales and Multi-Hotel Sales teams, with fees for accepted leads. Additionally, franchisees who participate in certain initial training programs (FITM/FOND) may be required for two years to engage in Revenue Management Advisory Services, Customer Engagement Center Property Support Services, Digital Marketing, and specific sales programs, all at an additional cost. The franchisor also conducts audits through its Quality Assurance Program, and if a hotel falls into the "Red Zone" (underperforming), participation in an Audit Program/GSS Improvement program is required, incurring additional fees and training.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Staffing Notes
Apartments by Marriott Bonvoy franchisees are required to either operate the serviced-apartment hotel themselves or retain an approved management company. A general manager who has successfully completed the franchisor's training program must directly supervise the business on the premises. The franchisor requires the general manager and other managers to devote full time to the management and operation of the serviced-apartment hotel. The franchisor may determine that a franchisee is not qualified to operate the serviced-apartment hotel, in which case the franchisee will be required to hire an approved management company. All employment decisions at the hotel are made solely by the franchisee or the management company. All required training programs must be completed to the franchisor's satisfaction within designated time periods. If a replacement is hired for any personnel who must attend a training program, the replacement must successfully complete the appropriate training. The general manager of an Apartments by Marriott Bonvoy serviced-apartment hotel is required to attend a regional General Managers Conference when held, and new general managers must participate in brand immersions within their first six months of hire.