ECHO Suites Extended Stay Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$11,506,418 - $17,258,078
Franchise Fee
$25,000
Total US Locations
5
Business Summary
WHR Extended Stay, LLC offers franchises to operate new construction extended-stay hotels under the ECHO Suites Extended Stay by Wyndham brand. These hotels provide modern, efficiently designed guest rooms and one-room suites at affordable rates. Each ECHO Suites Extended Stay by Wyndham hotel features full kitchens in every guest room, including a cooktop, full-size refrigerator, microwave, sink, and an optional dishwasher, along with flexible floor plans and a distinctive architectural design.
Corporate History
WHR Extended Stay, LLC, the franchisor for ECHO Suites Extended Stay by Wyndham, was formed as a corporation in Delaware on March 22, 2007. It later converted to a limited liability company on November 2, 2021, and changed its name to WHR Extended Stay, LLC on July 14, 2022. It is a direct subsidiary of Wyndham Hotel Group, LLC, which is wholly owned by Wyndham Hotels & Resorts, Inc. The parent company, Wyndham Hotels & Resorts, Inc., was created in 2018 from a spin-off of Wyndham Worldwide Corporation. WHR Extended Stay, LLC began offering franchises for the ECHO Suites Extended Stay by Wyndham hotel brand in November 2022.
Financial Overview
Investment Range
$11,506,418 - $17,258,078
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Royalty %
5.5%
Marketing %
3.5%
Equipment Costs (Low)
$10,868,147
Equipment Costs (High)
$16,234,678
Working Capital
$89,191
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Wyndham Hotels & Resorts, Inc., the parent company guaranteeing WHR Extended Stay, LLC's performance, demonstrates strong financial health. In 2024, Wyndham Hotels & Resorts, Inc. reported $289 million in net income and $290 million in net cash from operating activities, with total assets of over $4.2 billion. The company maintains sufficient liquidity, and while it faces some litigation, management does not expect these legal proceedings to materially impact its financial position or liquidity. The company also notes that recent Pillar II and Inflation Reduction Act tax directives did not materially impact its financial results or liquidity for 2024.
Financing Details
WHR Extended Stay, LLC offers limited direct financing options for ECHO Suites Extended Stay by Wyndham franchisees, primarily through initial fee deferrals and development incentive loans. The Initial Fee can be deferred for up to 90 days or until the hotel opens, with no interest unless payments are late (then 18% per annum). Development Incentives are loans that are forgiven annually over the 20-year franchise term and only become repayable if the franchise terminates early or is transferred. These incentives are disbursed after the hotel opens and other conditions are met, and may require using approved procurement providers. Additionally, WHR Extended Stay, LLC offers specialized Development Incentives and support programs for women-owned franchisees (Women Own the Room, offering $2,500 per guest room, up to 50% of equity) and Black entrepreneurs (Black Owners & Lodging Developers, including personalized guidance and potential Development Incentives). While franchisees can seek third-party financing and request a Lender Notification Agreement from WHR Extended Stay, LLC, the franchisor has no obligation to enter into agreements with lenders.
Performance Metrics
Total US Locations
5
Franchised Units
5
Corporate Units
0
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
10
Litigation Summary
WHR Extended Stay, LLC itself has no pending or resolved litigation. However, its parent company, Wyndham Hotels & Resorts, Inc., and its affiliates have been involved in several lawsuits. Currently, there are four pending cases: three class-action lawsuits filed in 2024 (LuxUrban Hotels, Extended Stay Hotel Antitrust, and Hanson Dai) alleging breach of contract, price-fixing, and unfair competition related to revenue management software. Another pending class action, filed in 2014 (Norma Knuth), alleges the charging of undisclosed "Destination Marketing Fees" in Canada. Six other cases involving the parent or affiliates have been resolved, including class-action lawsuits from 2012-2016 concerning misleading resort fees, online advertising, unauthorized telephone recordings, franchise agreement terminations, and cyberattacks. All resolved cases resulted in settlements or dismissals without a finding of liability against Wyndham entities.
Bankruptcy History
WHR Extended Stay, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
ECHO Suites Extended Stay by Wyndham does not grant franchisees renewal or extension rights. However, if WHR Extended Stay, LLC and a franchisee mutually agree to renew, the franchisee would need to sign the then-current Franchise Agreement, which may have materially different terms and provisions, and pay the current Relicense Fee, which is calculated similarly to the Initial Fee.
Training & Support Program
Franchisor Assistance
WHR Extended Stay, LLC provides comprehensive support to ECHO Suites Extended Stay by Wyndham franchisees. Before opening, this includes approving the hotel's location and designating a protected territory. For new construction, the franchisor provides prototype architectural drawings, consults with the franchisee's architect, reviews plans, and conducts inspections during and after construction. For transfers, they inspect the facility and create a Property Improvement Plan. All franchisees receive the System Standards Manual, specifications for required products, and information on approved suppliers. Mandatory pre-opening services include general manager certification, opening training, digital photography, and continuing education. After opening, ongoing support features continuous access to the System Standards Manual and updates, periodic Chain conferences (every 18-24 months) and regional summits, and announced and unannounced quality inspections. Operational support and information are available via email, phone, and online platforms, with field team visits. WHR Extended Stay, LLC provides a computerized Central Reservation System, mandatory call handling services, and optional revenue management programs at various levels. They also offer access to a customer experience platform, remote local sales support, and a guest engagement platform called Wyndham Connect.
Initial Training Hours
62
Training Location
Initial training for general managers may be held in a hybrid format with in-person components at WHR Extended Stay, LLC's corporate offices in Parsippany, NJ, or other central locations in North America, or entirely virtually. Specific staff training such as Human Trafficking Prevention and Count on Us training are offered virtually through Wyndham University, while Opening Training is conducted on-site at the franchisee's facility.
Ongoing Support
WHR Extended Stay, LLC provides ongoing support to ECHO Suites Extended Stay by Wyndham franchisees through several channels. Franchisees have continuous access to the confidential System Standards Manual and its updates. The franchisor holds Chain conferences approximately every 18 to 24 months, which may be part of a multi-brand conference, and may also host periodic regional summits. Operational support and information are available via email, telephone, or through the Chain's centralized online platform. Field support team members also periodically visit facilities to provide on-site assistance. The franchisor maintains an online platform for brand-specific information and business tools, and continues to provide information on approved suppliers. Mandatory call handling services are provided where professional agents manage calls and book reservations. Optional revenue management programs (Standard, Premium, and Premium Plus RMS) offer inventory management, strategic positioning, and tailored promotions. Franchisees also get access to a customer experience software platform for managing guest reviews and surveys, and remote local sales support. A guest engagement platform, Wyndham Connect, enables mobile communication with guests.
Franchise Requirements
Ideal Candidate Profile
WHR Extended Stay, LLC seeks franchisees who are capable of developing and operating a new construction extended-stay hotel. While there is no detailed personal profile, franchisees must hire and employ a management company with significant training and experience in extended-stay facilities. The general manager for the facility must successfully complete the franchisor's training program. The franchisor also actively supports diverse ownership, offering special Development Incentives and support for women-owned franchisees and Black entrepreneurs, requiring a majority ownership interest by individuals from these groups to qualify for the respective programs.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
absentee-allowed
Territory Type
protected
Territory Size Requirements
WHR Extended Stay, LLC defines ECHO Suites Extended Stay by Wyndham territories through negotiation with franchisees. These territories are not based on a minimum size and can be defined as a radius from the hotel, an irregular area bounded by streets or natural features, or by latitude and longitude. Factors considered during negotiation include market type (urban/suburban/rural), population density, demographics, proximity to transportation hubs, attractions, commercial developments, and local economic conditions.
Staffing Notes
WHR Extended Stay, LLC requires ECHO Suites Extended Stay by Wyndham franchisees to hire a management company with significant experience in extended stay facilities to operate the hotel. The hotel's general manager must successfully complete the franchisor's Hospitality Management Program. All staff members are required to complete various training courses, including Human Trafficking Prevention and Count on Us training. In-room attendants must also complete specific cleaning, laundry, and safety training. If food service is provided, relevant team members need to complete food service training. Franchisees are solely responsible for all employment decisions, including hiring, scheduling, and training of their personnel.