Delta Hotels by Marriott Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$72,379,630 - $118,648,030
Franchise Fee
$120,000
Total US Locations
54
Business Summary
Delta Hotels by Marriott operates full-service hotels that offer high-quality accommodations and related services to business and leisure travelers. These hotels frequently involve converting existing properties and feature a variety of guestroom counts, meeting spaces, food and beverage options (including restaurants, bars, and grab-and-go concepts), room service, catering, and banquet services. Delta Hotels by Marriott also provides business centers, dedicated premium fitness centers, express check-in/check-out, and guestrooms with specialized work and convenience amenities.
Corporate History
MIF, L.L.C. was formed in Delaware in 2012 as a subsidiary of Marriott International, Inc. In April 2015, MIF, L.L.C. acquired the Delta Hotels and Resorts brand, management, and franchise business from Delta Hotels Limited Partnership, subsequently rebranding it as "Delta Hotels by Marriott." The company began offering franchises for Delta Hotels in 2015. As of December 31, 2024, MIF and its affiliates operated 25 Delta Hotels in the United States and Canada. Its parent company, Marriott International, Inc., has a much longer history, having operated Marriott Hotels since 1957 and franchised them since 1968, and has since expanded to include numerous other hotel brands and lodging businesses.
Financial Overview
Investment Range
$72,379,630 - $118,648,030
Franchise Fee (Low)
$120,000
Franchise Fee (High)
$150,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$7,350,000
Equipment Costs (High)
$10,110,000
Working Capital
$1,725,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for MIF, L.L.C. indicate that it is a subsidiary of Marriott International, Inc. and does not hold its own cash balance, with most transactions handled through related party accounts. The company has demonstrated consistent financial performance, reporting net incomes of $63.8 million in 2024, $64.1 million in 2023, and $53.5 million in 2022. Total assets increased to $477 million in 2024, with a substantial portion ($443.5 million in 2024) represented by amounts due from related parties. The allowance for credit losses on receivables also saw an increase in 2024. The independent auditors issued an unqualified opinion on the financial statements and noted no concerns regarding the company's ability to continue as a going concern.
Financing Details
Delta Hotels by Marriott generally does not offer direct or indirect financing for its franchised hotels or guarantee franchisee loans. However, in very limited circumstances and at its sole discretion, the franchisor may provide credit support in the form of a contingent guaranty for a portion of a third-party lender's loan or may offer a mezzanine loan. Decisions to offer such support are based on factors like market opportunities, hotel size and location, economic conditions, conversion costs, potential aid to successful development, franchisee commitment to system growth, and meeting the franchisor's criteria. The specific terms of any such loan guarantees or mezzanine loans would vary significantly. The franchisor does offer a new development incentive program that reduces the franchise fees to 4% for the term of the agreement if specific conditions are met (new-to-system hotel, application approved after March 31, 2025, franchise agreement signed by March 30, 2026, and timely construction and opening).
Performance Metrics
Total US Locations
54
Franchised Units
54
Corporate Units
0
Avg Square Footage
171,500
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
22
Litigation Summary
Delta Hotels by Marriott, through its parent company Marriott International, Inc., is involved in several litigation matters. There is an ongoing trademark dispute with Delta Air Lines, Inc. regarding the "Delta Hotels by Marriott" brand, with a U.S. federal lawsuit proposed for trial in October 2025, and related proceedings in the UK, Italy, and before the U.S. Patent and Trademark Office. Additionally, the franchisor's parent company faces numerous class action lawsuits (consolidated in the U.S. District Court for the District of Maryland) and a separate lawsuit from the City of Chicago concerning a 2018 data security incident, with the Chicago case set for trial in November 2025. These data breach cases allege negligence, privacy violations, and deceptive trade practices. The franchisor has also undergone administrative investigations related to data security in the U.S. (resolved with a $52 million payment in October 2024), the UK (resulted in an £18.4 million penalty paid in 2020), Turkey (appeal ongoing since 2023 for a fine), Canada (inquiry closed July 2023), and Australia (injunctive provisions ongoing until 2027). Canadian class action lawsuits related to the breach were consolidated, with an appeal on the tort of intrusion upon seclusion denied in July 2023. Marriott International, Inc. is also a defendant in a lawsuit from the District of Columbia regarding destination and resort fees, scheduled for trial in November 2025. The franchisor recently initiated and resolved three arbitrations/lawsuits in 2023-2024 against franchisees for unpaid fees and liquidated damages. Furthermore, the franchisor's parent company is a defendant in two class action antitrust lawsuits filed in 2024 (Portillo v. CoSTAR Group, Inc. and Segal v. Amadeus IT Group, S.A.) alleging information sharing and price-fixing, with motions to dismiss pending. A civil suit from January 2022 (Hall v. Marriott) alleging negligence against a franchisee and Marriott resulted in a $16 million jury verdict in October 2024, which is currently under appeal. Several other class action lawsuits related to a 2020 property system incident and resort fees were settled or dismissed between 2022 and 2024, including the Rahman, Jamil Rivera, Robert Puleo, and Todd Hall cases. A 2020 arbitration with HPT TRS was decided in January 2022 with a mixed outcome.
Bankruptcy History
MIF, L.L.C. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Conditions
The Delta Hotels by Marriott franchise agreement is not renewable, and franchisees should not expect to be granted any rights to operate the hotel under the brand after the initial term expires.
Training & Support Program
Franchisor Assistance
Delta Hotels by Marriott provides extensive assistance to its franchisees. Pre-opening support includes making design and construction criteria available, reviewing plans for compliance with brand standards, assessing compliance during construction, and offering input for procuring furniture, fixtures, equipment, and supplies. The franchisor conducts final site visits to ensure readiness for opening and provides initial training for the general manager and hotel management team. Operational manuals and procedures are also made available. For any residential or condominium components, the franchisor reviews declaration documents and marketing materials. Post-opening, Delta Hotels by Marriott offers design and operation consultations through its representatives. Franchisees are required to use mandated electronic systems for reservations, property management, sales, and guest experience, all of which receive franchisor maintenance and support. The franchisor manages a Marketing Fund, funded by franchisee contributions, for advertising, sales, and promotional activities. Ongoing mandatory training, covering various operational, ethical, and technical aspects, is provided and supported by a "learning and development bundle" fee. This includes web-based training, regional general manager conferences, and programs like Executive Orientation for new executives. The franchisor also offers support for managing key customer accounts and optional sales teams.
Initial Training Hours
112
Training Location
On-site at the hotel, web-based, or at a franchisor-designated location for executive orientation and specialized programs.
Ongoing Support
After opening, Delta Hotels by Marriott provides ongoing consultation for hotel design and operation through its representatives. Franchisees utilize mandated electronic systems for reservations, property management, sales, and guest experience, benefiting from franchisor maintenance and support. The franchisor manages a Marketing Fund, to which franchisees contribute, for comprehensive advertising, sales, and promotional programs. Ongoing mandatory training is facilitated by a "learning and development bundle" fee, ensuring continuous education for staff and managers on brand standards, ethics, operational functions, electronic systems, leadership, and loyalty programs. Regional General Managers Conferences are mandatory, and various optional advanced training programs are available. The franchisor also offers support for managing accounts with key customers and provides optional sales teams.
Franchise Requirements
Ideal Candidate Profile
Delta Hotels by Marriott seeks individuals or entities with the managerial and operational experience, skills, capacity, capabilities, and philosophy necessary to operate a full-service hotel according to Marriott's standards. Franchisees are required to either operate the hotel themselves or retain an approved management company. The general manager and other managers must dedicate their full time to the hotel's management and operation. Additionally, ideal candidates are expected to demonstrate strong financial capability, including sufficient net worth and liquidity, to support the hotel's development and ongoing operations. A commitment to actively contributing to the growth of the Delta Hotels by Marriott system is also a valued characteristic.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
absentee-allowed
Territory Type
non-exclusive
Territory Size Requirements
Delta Hotels by Marriott franchisees typically do not receive an exclusive territory. While a non-exclusive territory may be granted in some instances, its specific size, geographic area, and duration are not uniformly defined and will vary depending on the market where the hotel is located. Such a territory, if granted, would apply only to other Delta Hotels and would not extend to other Company Brand Hotels or residential products developed by Marriott or its affiliates. The territory may be defined as a radius around the hotel or delineated by specific geographical boundaries like streets or highways. However, the FDD does not provide a standard or minimum measurable territory size applicable to all franchisees; it indicates that such terms are determined on a case-by-case basis depending on market conditions.
Staffing Notes
Delta Hotels by Marriott requires hotels to be managed by personnel who have successfully completed all mandatory training. The general manager and other managers must dedicate their full time to the hotel's management and operation. All employment decisions for the hotel are made solely by the franchisee or their approved management company. The franchisor communicates directly with hotel managers regarding daily operations but does not control employment policies. Additionally, the franchisor mandates that the hotel's security policy include associate alert devices with geolocation capabilities for staff members who regularly interact with guests in enclosed areas.