Autograph Collection Hotels Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$70,000,330 - $114,018,430
Franchise Fee
$100,000
Min Cash Required
$700,000
Total US Locations
143
Business Summary
Autograph Collection hotels are full-service lodging establishments designed for both business and leisure travelers. These hotels can be newly constructed, conversions of existing hotels, or re-purposed historic buildings. A key characteristic of Autograph Collection hotels is their individuality in offerings, with varying sizes and amenities tailored to their specific locations and tiers. They may provide diverse experiences, from boutique lodging to facilities for catering, meetings, business centers, and various food and beverage options. Hotels joining the Autograph Collection brand retain or create their own unique name, logo, and brand concept while also being designated as members of the Autograph Collection.
Corporate History
MIF, L.L.C., the franchisor for Autograph Collection, was established in 2012 as a limited liability company under Delaware law, operating as a subsidiary of the publicly-traded Marriott International, Inc. (MII). The Autograph Collection brand itself has a history predating the franchisor, with Marriott and its predecessors owning and managing Autograph Collection hotels since 2010 and offering franchises for the brand since 2009. Marriott International has significantly expanded its portfolio through various strategic moves, including acquiring the Delta Hotels and Resorts brand in 2015, Protea Hospitality Holdings in 2014, and Elegant Hotels plc in conjunction with an all-inclusive market entry in 2019. The company has also developed and introduced new brands and concepts, such as AC Hotels by Marriott in 2011, and expanded into outdoor-focused lodging with Postcard Cabins and Trailborn in 2024. Additionally, Marriott International launched Homes & Villas by Marriott Bonvoy in 2019 for short-term home rentals and formed strategic licensing agreements with MGM Resorts International in 2023 and Sonder Holdings, Inc. in 2024 to integrate their properties into the Marriott Bonvoy ecosystem.
Financial Overview
Investment Range
$70,000,330 - $114,018,430
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$150,000
Minimum Cash Required
$700,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$63,880,000
Equipment Costs (High)
$103,700,000
Working Capital
$1,150,000
Audited Financials
Yes
Offers Financing
Yes
Financing Details
Autograph Collection does not offer direct financing. Franchisees will need to secure their own financing. However, the franchisor may provide a comfort letter to a lender to support the franchisee's third-party financing efforts. If a comfort letter is provided, the franchisee will be required to pay the then-current lender comfort letter processing fee. Franchisees are permitted to grant a lien or other security interest in the hotel or its revenues, or to pledge ownership interests in the franchisee or a control affiliate as collateral for hotel financing.
Performance Metrics
Total US Locations
143
Franchised Units
143
Corporate Units
0
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
17
Litigation Summary
Marriott and its affiliates have been involved in several significant litigation and administrative matters. **Data Security Incident:** Following a data security incident in November 2018 involving unauthorized access to a reservations database, Marriott faced numerous class-action lawsuits consolidated in a Multidistrict Litigation (MDL) in Maryland. These cases allege negligence and violations of consumer protection laws, with a class certification decision currently under appeal in the Fourth Circuit. The City of Chicago also filed a separate lawsuit against Marriott related to this incident, which is ongoing. Additionally, various regulatory authorities in the U.S., Canada, Australia, the UK (Information Commissioner's Office, which issued an £18.4 million penalty), and Turkey (KVKK, which imposed a fine currently under appeal) conducted investigations into this and a subsequent data security incident in 2020. Canadian class actions stemming from the 2018 incident have been consolidated, with a key legal ruling affirmed by the Supreme Court of Canada in July 2023. **Destination and Resort Fees:** Marriott is part of an industry-wide investigation by U.S. Attorneys General concerning the disclosure of resort and mandatory fees. Marriott has reached resolutions with several states, including Pennsylvania (with a $225,000 payment), Texas, Nebraska, and Colorado, generally agreeing to website redesigns. The District of Columbia has a pending lawsuit against Marriott on this issue, with a trial set for November 2025. **Franchisor Initiated Litigation:** Marriott has initiated several arbitrations and lawsuits against franchisees for issues such as unpaid fees, liquidated damages, and breach of agreement, with some cases resulting in confidential settlements or awards in Marriott's favor. **Other Pending Actions:** Marriott is a defendant in two putative class-action antitrust lawsuits (Portillo v. CoSTAR Group, Inc. and Segal v. Amadeus IT Group, S.A.), filed in early 2024, alleging unlawful sharing of information and price-fixing related to luxury hotels. Motions to dismiss are currently pending in these cases. Additionally, Marriott is appealing a $16 million jury verdict in North Carolina related to negligence claims in `Hall v. Marriott`. **Concluded Actions:** Several data security and resort fee related class-action lawsuits, including `Rahman et al. v. Marriott International, Inc.` and `Jamil Rivera v. Marriott International, Inc.`, have been settled or dismissed. An arbitration with HPT CY TRS, Inc. and HPT TRS MRP, Inc. regarding management agreements and conversion failures was also concluded in 2022. A significant 2016 lawsuit, `Cityfront Hotel Associates Limited Partnership, et al. v. Starwood Hotels & Resorts Worldwide, Inc., et al.`, challenging the Marriott-Starwood merger was settled in 2017.
Bankruptcy History
The Autograph Collection Hotel franchisor, its affiliates, predecessors, and current officers or general partners have no history of filing as a debtor, having bankruptcy petitions filed against them, or obtaining a discharge of debts under the U.S. Bankruptcy Code within the ten-year period immediately preceding the disclosure document. Furthermore, no principal officer or general partner has been involved in such bankruptcy proceedings during or within one year after holding their position with the company or partnership.
Agreement Terms
Initial Term
20 years
Training & Support Program
Franchisor Assistance
Marriott provides extensive support to its Autograph Collection franchisees both before and after the hotel opens. Pre-opening assistance includes making product quality standards available for planning, construction, renovation, and furnishing, along with specifications for FF&E and supplies. Marriott reviews construction drawings and plans for compliance with these standards, assesses compliance during construction or conversion, provides input for procuring operating supplies, and conducts site visits to ensure readiness for opening. Marriott also provides initial on-site training or training tools for hotel staff, including the general manager and management team, and makes operational manuals and standards available through electronic systems. For hotels with residential units, Marriott reviews condominium declarations and all sales, advertising, and promotional materials for compliance. After opening, Autograph Collection franchisees receive ongoing consultation from Marriott representatives. They gain access to essential electronic systems, including a reservation system, Consolidated Inventory and Total Yield (CI/TY), Guest Experience Platform (GxP), Point-of-Sale (POS) system, Marriott Communications Network (MCN), Digital Guest Services, Hotel Lock System (including Mobile Key), Mobile Device and Application Management, Guestroom Entertainment (GRE) Platform, Associate Alert Devices, Meeting Services Application (MSA), Global Recipe Database, Intranet (MGS)/MDash, Information Security Managed Detection and Response (MDR) Services, and Marriott Environmental Sustainability Hub (MESH). Marriott also maintains and supports these systems. Marriott offers various training programs for hotel personnel, including a Learning & Development Bundle, and hosts general manager conferences and brand immersions. Franchisees can participate in the Marriott International National Association (MINA). Marketing and advertising support is provided through a Marketing Fund for advertising, sales, and promotional programs. Franchisees also participate in various mandatory and optional Additional Marketing Programs, such as email marketing, internet search engine marketing, transaction-based paid media, sales lead referrals, co-op advertising, travel agency programs, incentive awards, gift cards, guest satisfaction programs, complaint resolution, and loyalty programs. Mandatory participation in the Global Sales Organization (GSO) is required, with other Marriott Sales Organizations being optional. Marriott also conducts an Audit Program to evaluate compliance with brand standards and may require participation in improvement programs like Red Zone.
Training Location
Various locations (on-site, virtual, web-based)
Ongoing Support
After opening, Autograph Collection franchisees receive continuous support from Marriott. This includes making representatives available for consultation on hotel design and operations. Marriott provides access to and support for a comprehensive suite of electronic systems, such as the reservation system, Consolidated Inventory and Total Yield (CI/TY), Guest Experience Platform (GxP), Point-of-Sale (POS) system, Marriott Communications Network (MCN), Digital Guest Services, Hotel Lock System (including Mobile Key), Mobile Device and Application Management, Guestroom Entertainment (GRE) Platform, Associate Alert Devices, Meeting Services Application (MSA), Global Recipe Database, Intranet (MGS)/MDash, Information Security Managed Detection and Response (MDR) Services, and Marriott Environmental Sustainability Hub (MESH). Marriott covers the ongoing costs for many of these systems through the Program Services Contribution, including patching and security updates. Ongoing training is delivered through a 'Learning & Development Bundle,' covering various programs in brand & service, ethics & integrity, functional operations, administration, electronic systems, leadership development, and loyalty. These are primarily offered in a virtual or web-based format. Marriott also facilitates required third-party training for alcohol awareness, food allergens, and food safety, with preferred vendors. General managers may be required to attend regional conferences and brand immersions within their first six months. Underperforming hotels may be mandated to participate in specific programs like FITM, FOND, API, or an Audit Program/GSS Improvement program, which include additional training and non-accountable audits. Marketing and sales support involves Marriott administering a Marketing Fund for advertising, promotions, and sales activities, and franchisees participate in various mandatory and optional additional marketing programs (e.g., email, search engine, paid media, travel agency programs, loyalty programs). Mandatory participation in the Global Sales Organization (GSO) and optional engagement with other Marriott Sales Organizations is also offered. Marriott also reviews plans for hotel upgrades and remodels to ensure compliance with standards and any property improvement plans.
Franchise Requirements
Ideal Candidate Profile
While Item 1, which typically details the ideal candidate profile, is not provided, other sections of the document, particularly Item 15, offer insights into what Marriott seeks in an operator for Autograph Collection hotels. Marriott requires that franchisees either operate the hotel themselves or retain an approved management company. If the franchisee chooses to operate the hotel directly, Marriott evaluates their managerial and operational experience, skills, capacity, capabilities, and philosophy to ensure they can operate the hotel in accordance with Marriott's standards and the franchise agreement. If a franchisee is deemed unqualified to operate the hotel without additional training, they may be required to participate in specific programs like the Franchisee Introduction to Marriott (FITM) or Above-Property Immersion (API) programs. If they fail to meet certain quality assurance requirements or successfully complete training programs, they may be required to hire an approved third-party management company. For any proposed management company, Marriott assesses their financial capability, managerial skills, operational capacity, and reputation. Additionally, candidates, or their interest holders, must not have been convicted of serious crimes or engaged in certain adverse conduct, and must demonstrate good financial standing.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Marriott generally does not grant its Autograph Collection hotel franchisees an exclusive territory. Franchisees will not receive an exclusive territory and may face competition from other Marriott-owned, leased, managed, licensed, or franchised outlets, including other Autograph Collection hotels, at any location, even those adjacent or proximate to the franchisee's hotel. If a non-exclusive territory is granted, it typically applies only to Autograph Collection hotels for a duration of five years or less and would not cover any hotels existing or under development, acquired hotel chains, or residential/condominium products. Such a non-exclusive territory, if provided, may be defined as a radius around the hotel or delineated by streets, highways, or other geographical boundaries. The continuation of any territorial rights would depend on factors such as the timely commencement of construction and opening, rather than sales volume or market penetration. Marriott and its affiliates explicitly retain the right to develop, promote, market, own, operate, lease, license, franchise, and/or manage other hotels, lodging products, or concepts at any location, which may directly compete with the franchisee's hotel.
Staffing Notes
Marriott requires Autograph Collection hotels to be adequately staffed with suitably qualified individuals. A general manager, who must have successfully completed Marriott's training program, is required to directly supervise the business on the premises. This general manager, along with other managers, must devote their full time to the management and operation of the hotel. All employment decisions for the hotel are made solely by the franchisee or its designated management company, and Marriott does not direct or control these employment policies or decisions. All hotel associates are required to undergo various training programs, including brand and service training, ethics and integrity training, functional operations training (e.g., for engineering, food & beverage, front office, housekeeping, retail), administrative training, electronic systems training, and loyalty training. Management-level associates and general managers also receive leadership development training. Mandatory third-party training includes alcohol awareness for all managers and associates serving alcohol, and food safety certifications for all associates handling food and/or machinery, as well as management-level staff in food & beverage, culinary, kitchen & stewarding, and event management. Additionally, all staff members who are regularly in contact with guests in enclosed spaces must be provided with associate alert devices.