Extended Stay America Suites Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$205,152 - $14,123,855
Franchise Fee
$40,000
Total US Locations
446
Business Summary
EXTENDED STAY AMERICA SUITES® hotels provide extended stay and transient guest lodging services for self-sufficient, value-conscious guests. These hotels offer fully furnished rooms with in-room kitchens, complimentary breakfast, free WiFi, flat-screen TVs, and on-site guest laundry. EXTENDED STAY AMERICA SUITES caters to business travelers, leisure travelers, professionals on temporary assignments, individuals relocating or temporarily displaced, and anyone in need of temporary housing.
Corporate History
ESH Strategies Franchise LLC was formed as a Delaware limited liability company on September 16, 2010. The company began operating in the hotel business in early 2016. Extended Stay America Suites offered franchises for EXTENDED STAY AMERICA hotels from August 2017 through March 2021. In March 2021, the mark was modified, and Extended Stay America Suites began offering franchises under the EXTENDED STAY AMERICA SUITES brand. Concurrently in March 2021, it also started offering franchises for the EXTENDED STAY AMERICA PREMIER SUITES brand, featuring upgraded amenities. In September 2022, Extended Stay America Suites expanded its offerings to include franchises for the EXTENDED STAY AMERICA SELECT SUITES brand, which provides more limited amenities. ESH Strategies Franchise LLC itself has never owned or operated these types of hotels; instead, its affiliates own and operate them. As of March 2025, an affiliate, ESH Hospitality, Inc., owned and operated 572 hotels, with a significant number under the EXTENDED STAY AMERICA SUITES, PREMIER SUITES, and SELECT SUITES brands. Another affiliate, ESA Management LLC, manages these owned properties.
Financial Overview
Investment Range
$205,152 - $14,123,855
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$50,000
Minimum Net Worth
$6,165,500
Royalty %
5.5%
Marketing %
4.5%
Equipment Costs (Low)
$108,752
Equipment Costs (High)
$1,225,355
Working Capital
$212,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Extended Stay America Suites' financial statements, audited for 2022, 2023, and 2024, received an unqualified opinion from the independent auditor. However, the auditor included an emphasis of matter regarding the company's significant related party transactions with affiliated entities, stating that the financial statements might not reflect conditions if the company operated independently of these transactions. Extended Stay America Suites reported a net loss of $2.172 million in 2023 but returned to a net income of $1.537 million in 2024. The company's cash and cash equivalents have shown consistent growth, from $3.713 million in 2022 to $9.170 million in 2024. Its total liabilities remain substantial, standing at $10.983 million in 2024, balanced against total assets of $19.178 million for the same year.
Financing Details
Extended Stay America Suites does not offer any direct or indirect financing to franchisees. The company also does not guarantee any franchisee's notes, leases, or other obligations. Franchisees are responsible for securing their own financing.
Performance Metrics
Total US Locations
446
Franchised Units
107
Corporate Units
339
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Extended Stay America Suites is currently involved in a consolidated antitrust class action lawsuit, "In re Extended Stay Hotel Antitrust Litigation," filed in September 2024. This case absorbed two earlier putative class actions from July and September 2024. The plaintiffs allege that Extended Stay America, Inc., along with other hotel companies and a revenue management software provider, conspired to artificially raise guest room rates and suppress occupancy levels using a common algorithm, violating the Sherman Act. The case was transferred to the Northern District of California in December 2024 and is currently awaiting a decision on a motion to dismiss in a related case. Extended Stay America Suites denies the allegations and intends to vigorously defend itself. Additionally, in December 2022, Extended Stay America Suites' affiliates, a franchisee, and its management company were named defendants in a class action, "Latreass 'Lisa' Brittian v. ESA Management LLC, et al." The plaintiff alleged unfair practices related to denying accommodations and failing to provide refunds. In July 2024, the parties reached a confidential settlement, with defendants agreeing to pay $100,000 for dismissal of the individual claims with prejudice and class claims without prejudice.
Bankruptcy History
Extended Stay America Suites reports that there is no bankruptcy history required to be disclosed in Item 4.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Extended Stay America Suites does not offer franchisees any right to renew or extend the term of their franchise agreement.
Training & Support Program
Franchisor Assistance
Extended Stay America Suites provides comprehensive support to its franchisees. Before a hotel opens, the company reviews insurance, site possession, permits, and architectural plans. It conducts up to three construction site visits and up to two IT infrastructure certification visits. A final pre-opening inspection is performed, and a pre-opening visit to assist with the hotel's opening may be required. Franchisees receive a Standards Manual detailing brand standards. The franchisor reviews and approves all proposed sites, considering factors like geography, demographics, and visibility. For hotel openings, Extended Stay America Suites provides written authorization after all pre-opening requirements are met. Ongoing support includes optional consultation and advice services for hotel operations, and regular physical or electronic inspections of the hotel and its records to ensure compliance. Extended Stay America Suites maintains and promotes the ESA Website and mobile app for advertising Brand Hotels, with franchisees providing necessary information. While franchisees set room rates, the franchisor may recommend pricing and prohibit misleading billing practices. Extended Stay America Suites may modify the System and Standards and require specific administrative and accounting procedures. Training includes mandatory New Owner Orientation, General Manager Certification, Pre-Opening Onsite Training, and Service Culture Training. Remedial training may be required after a failed quality assurance inspection, and annual human trafficking awareness training is also mandated for hotel staff.
Initial Training Hours
39
Training Location
Initial training is conducted in Charlotte, NC, online, or at the franchisee's hotel.
Ongoing Support
Extended Stay America Suites provides ongoing support through various means. This includes making consultation and advice services available regarding hotel operations. The franchisor conducts physical and/or electronic inspections of the hotel, its operations, books, records, and systems at any time without notice to ensure compliance with brand standards and the franchise agreement. Extended Stay America Suites maintains and promotes the ESA Website and mobile application to advertise and market Brand Hotels. Franchisees are required to participate in all marketing, advertising, sales, and guest satisfaction initiatives, which are funded through the System Services Fee. The franchisor may also require franchisees to use specific administrative, bookkeeping, accounting, and inventory control procedures. If a hotel fails a Quality Assurance inspection, Extended Stay America Suites may require remedial training. Franchisees must also ensure their hotel associates complete human trafficking awareness training annually.
Franchise Requirements
Ideal Candidate Profile
ESH Strategies Franchise LLC seeks franchisees for EXTENDED STAY AMERICA SUITES hotels who possess the managerial skills and operational capacity to operate a hotel in accordance with the brand's standards. Candidates should be capable of ensuring their personnel attend and satisfactorily complete required brand standard training programs. For multi-unit development, a franchisee (or a Multi-Unit Manager employed by the franchisee) is expected to devote full time and best efforts to the management and operation of the development business. The franchisor may require a Management Company if the franchisee lacks sufficient hotel management experience or fails to meet professional standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
The territory for an Extended Stay America Suites hotel is determined by the franchisee's financial and operational capability to meet the extended stay demand within the specific market. For multi-unit development, the size of the development territory and the number of hotels to be opened are based on the franchisee's capability and the extended stay demand in the market area, as deemed by ESH Strategies Franchise LLC.
Staffing Notes
For an EXTENDED STAY AMERICA SUITES hotel, a full-time, qualified, and competent General Manager must be employed by either the franchisee or an approved Management Company. This General Manager must successfully complete the franchisor's General Manager Certification program before opening a new-build hotel, or within 60 days for a transferred or converted hotel, or within 60 days of hire for a new General Manager. The franchisor may require a new General Manager if the hotel fails quality assurance requirements. Additionally, all hotel associates must complete a mandatory one-hour online Service Culture Training course within 90 days of their hire date. Franchisees are solely responsible for hiring, terminating, supervising, and training all hotel staff, as well as for all employment decisions. While the franchisor provides training on brand standards and systems, they do not directly hire employees for the franchisee.