Moxy Hotels Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$15,177,510 - $48,899,410
Franchise Fee
$90,000
Total US Locations
42
Business Summary
Moxy Hotels operates select-service hotels that offer high-quality accommodations and related services. These hotels are designed to be vibrant and appealing to next-generation travelers, featuring distinct arrival areas, unique elevator designs, 'plug and meet' meeting spaces, and a self-service 'Stash Closet'. Moxy Hotels incorporate modern public spaces for communal use and guestrooms with signature design elements, hardwood flooring, and portable furniture. They also provide signature guest experiences such as check-in at a bar, specialty cocktails, a food program, lobby games, and a Moxy Guest Book.
Corporate History
MIF, L.L.C., the franchisor for Moxy Hotels, was established in Delaware in 2012 as a subsidiary of Marriott International, Inc. The Moxy Hotel concept was developed in 2013, with MIF, L.L.C. securing intellectual property and development rights from Vastint Holding B.V. and Nordic Hospitality AS. Moxy Hotels began offering franchises in 2014. As of December 31, 2024, the franchisor and its affiliates operated one Moxy Hotel, alongside 43 franchised locations in the United States and Canada. The parent company, Marriott International, Inc., has a long-standing history in the lodging industry, with its various Company Brands operating and franchising hotels since 1957.
Financial Overview
Investment Range
$15,177,510 - $48,899,410
Franchise Fee (Low)
$90,000
Franchise Fee (High)
$200,000
Royalty %
5.5%
Marketing %
2.5%
Equipment Costs (Low)
$1,750,000
Equipment Costs (High)
$4,660,000
Working Capital
$525,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Moxy Hotels, operating as MIF, L.L.C., is a profitable franchisor. In 2024, the company reported a net income of $63.8 million, following similar strong performances in 2023 ($64.1 million) and 2022 ($53.5 million). The company's balance sheet for 2024 indicates robust financial health with total assets of $477 million and total member's equity of $466.3 million, with liabilities significantly lower at $10.7 million. There are no concerns noted regarding the company's ability to continue as a going concern, as per the independent auditor's report. It is important to note that MIF, L.L.C. operates as a subsidiary within the larger Marriott International, Inc. corporate structure. As such, its financial operations include substantial intercompany balances; for example, due from related parties, net, was $443.5 million in 2024. The company does not hold its own cash balance, with transactions primarily handled through related party receivable and payable accounts. As an LLC, its income and losses flow through to its parent, Marriott International, Inc., meaning no federal or state income taxes are provided for in MIF, L.L.C.'s financial statements. Overall, Moxy Hotels demonstrates a strong and stable financial position within its corporate framework.
Financing Details
Moxy Hotels generally does not offer direct or indirect financing to franchisees, nor does it guarantee franchisee loans or other obligations. However, under specific and limited circumstances, and at the franchisor's discretion, it may provide credit support in the form of a contingent guaranty for a portion of a third-party loan or offer a mezzanine loan. The availability and terms of such support depend on various factors, including market opportunities, hotel size and location, economic conditions, development costs, the franchisee's commitment to growing the system, and their ability to meet the franchisor's criteria. Any specific terms, interest rates, or repayment obligations for these potential financing arrangements would vary and are not standardized. In addition, Moxy Hotels offers two development incentive programs: 1. New Development Projects: For new Moxy Hotels (not conversions) with a franchise agreement signed before March 31, 2026, the franchisor will pay the €500 per guestroom fee normally due to Vastint Holding B.V. on behalf of the franchisee. 2. Modular Construction Projects: For new-to-system hotels utilizing approved modular construction methods (e.g., for guestrooms and bathrooms) and purchasing FF&E/OS&E through Marriott's procurement division, an incentive payment (Key Money) ranging from $150,000 to $250,000 may be provided. To qualify, the project's application must be approved between March 31, 2025, and March 30, 2026, with construction and opening milestones met. This Key Money is paid 60 days after the hotel opens, but the unamortized portion must be repaid if the franchise agreement terminates early. These incentives are personal to the franchisee, cannot be combined, and will terminate upon any transfer or relicensing of the hotel.
Performance Metrics
Total US Locations
42
Franchised Units
41
Corporate Units
1
Avg Square Footage
66,500
Franchising Since
2014
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
20
Litigation Summary
Moxy Hotels has an extensive and complex litigation history, encompassing both ongoing and recently resolved cases. A significant portion stems from a November 2018 data security incident involving the Starwood reservations database. This led to multiple class actions consolidated into an ongoing multidistrict litigation (MDL) with appellate activity as recent as November 2024. The City of Chicago also filed a lawsuit in connection with this incident, which has a trial date set for November 2025. The data breach prompted various administrative investigations globally; for example, the UK's ICO imposed a penalty in October 2020, which Moxy Hotels paid, and the Turkish KVKK imposed a fine in May 2019, which Moxy Hotels is appealing. Canada also saw consolidated class actions, with appeals concluding in July 2023, and Australia's OAIC issued an enforceable undertaking in December 2022. Moxy Hotels is also involved in an industry-wide investigation by Attorneys General concerning the display of mandatory 'Resort Fees.' The District of Columbia filed a lawsuit in July 2019, with motions denied in April and September 2024, and a trial scheduled for November 2025. Other class actions related to resort fees in Puerto Rico and Southern California, filed in 2019, were individually settled or dismissed in July 2024. Franchisor-initiated litigation includes arbitrations in August 2023 and September 2024 concerning unpaid fees, which resulted in settlements or awards in April 2024 and December 2024, respectively. Additionally, Moxy Hotels filed a breach of contract claim in August 2024 against a franchisee for misusing hotel properties, which was quickly settled. Other pending actions against Moxy Hotels include putative class actions from February 2024 and March 2024 alleging unlawful information sharing and price-fixing, both currently awaiting rulings on motions to dismiss. A civil suit from January 2022 alleging negligence resulted in a $16 million jury verdict against a franchisee and Moxy Hotels in October 2024, which is currently under appeal. Overall, Moxy Hotels faces ongoing legal challenges related to data privacy, business practices, and contractual disputes.
Bankruptcy History
Moxy Hotels has no bankruptcy history to disclose in this FDD document.
Agreement Terms
Initial Term
20 years
Renewal Conditions
The Moxy Hotels franchise agreement is not renewable. Franchisees should not expect to be granted any right to operate the hotel under the brand after the expiration of the term. While the franchisor may, in its sole discretion, agree to enter into a new franchise agreement, it would be on then-current forms and could have materially different terms and conditions.
Training & Support Program
Franchisor Assistance
Moxy Hotels provides comprehensive assistance to franchisees, divided into pre-opening and post-opening support. Pre-opening assistance includes providing design and construction criteria, reviewing construction plans for brand compliance (not legal compliance), assessing compliance during the construction or conversion phase, offering input for procuring operating supplies and furniture/fixtures/equipment (FF&E), conducting a final site visit to ensure the hotel is ready to open, and providing initial training for the general manager and hotel management team. Operational standards and procedures are made accessible through electronic systems. Post-opening (ongoing) assistance covers various areas. Moxy Hotels makes representatives available for consultation on hotel design and operation at their offices or the franchisee's hotel. They continue to provide electronic systems like the reservation system, and work to protect the brand's trademarks, offering indemnification against infringement claims under specific conditions. Operational standards are continuously updated, and franchisees must comply with these changes. Training programs for personnel are ongoing and cover areas such as brand and service, consumer operations, ethics, functional operations, electronic systems, and leadership development. Many core training modules are web-based with no additional charge for virtual delivery, but franchisees must cover travel and lodging expenses for any in-person training. A mandatory annual fee is charged for a learning and development bundle. General managers are required to attend conferences and brand immersions, incurring additional fees. For new franchisees or those needing extra training, programs like 'Franchisee Introduction to Marriott' (FITM) are mandatory, with associated fees and requirements for ongoing participation in certain programs for two years. Hotels with residential components also have specific training requirements. Marketing and advertising support is funded through a Marketing Fund, to which franchisees contribute 2.5% of gross room sales. This fund supports national and global advertising, sales, loyalty programs, and digital marketing technologies. Moxy Hotels also mandates participation in various sales and marketing programs, including email marketing, internet search engine marketing, and travel agency programs, with optional programs also available. Extensive computer system requirements include designated Property Management Systems (PMS), Opportunity Management Systems, Guest Experience Platforms (EMPOWER: GxP), Point-of-Sale (POS) systems, Reservation and Yield Management Systems, Marriott Communications Network (MCN) connectivity, and on-property Wi-Fi, all with associated fees and periodic upgrades.
Initial Training Hours
112
Training Location
On-site, web-based, or other designated locations
Ongoing Support
After the hotel opens, Moxy Hotels provides ongoing support through various channels. Representatives are available for consultation on hotel design and operation at the franchisor's offices or the franchisee's hotel. The franchisor continues to provide access to its electronic systems, including the reservation system, and works to protect its proprietary marks, indemnifying against infringement claims under specific conditions. Moxy Hotels continuously updates its operational standards, which franchisees must adhere to. Ongoing training programs are provided for personnel, covering areas such as brand and service, ethics, functional operations, electronic systems, and leadership development. Many of these programs are web-based and do not incur additional tuition, though travel and lodging costs for in-person sessions are the franchisee's responsibility. There is a mandatory annual fee for a learning and development bundle. General managers are required to attend conferences and brand immersions, incurring additional fees. If a hotel falls into a 'Red Zone' for quality assurance, supplemental training and on-site visits may be required at the franchisee's expense. Brand advocates may be sent to hotels that do not meet guest satisfaction thresholds. Regular re-assessments for food safety and fire protection are also part of ongoing quality assurance efforts. Financial contributions to a Marketing Fund (2.5% of gross room sales) support ongoing national and global advertising, sales, and marketing campaigns, loyalty programs, and digital marketing technologies. Moxy Hotels also requires participation in mandatory sales and marketing programs, such as email marketing, internet search engine marketing, and participation in travel agency and incentive programs, with optional programs also offered. For computer systems, ongoing support includes maintenance, updates, and upgrades for designated Electronic Systems like the Property Management System, Opportunity Management Systems, and the Marriott Communications Network, with associated fees often covered by the Program Services Contribution. Continent Field Support is provided for devices connected to the MCN.
Franchise Requirements
Ideal Candidate Profile
Moxy Hotels seeks franchisees or approved management companies who possess strong managerial and operational experience, skills, capacity, capabilities, and a philosophy that aligns with operating a Moxy hotel according to the brand's standards. Candidates determined by the franchisor to be unqualified or unfamiliar with the system may be required to participate in specific training programs, such as the Franchisee Introduction to Marriott (FITM) or Above Property Immersion (API) programs. Franchisees who are willing to commit to playing an active role in growing the system may also be considered for certain development incentives.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Moxy Hotels franchisees are granted a non-exclusive license to operate a single hotel at a specific approved site. They do not receive an exclusive territory and may face competition from other franchised, company-owned, managed, or licensed Moxy Hotels or other Marriott brands in any location, including those adjacent or proximate to their hotel. If a non-exclusive territory is granted, its specific terms, size, geographic area, and duration will depend on the market location and will not extend beyond the entire term of the franchise agreement. Such a territory might be defined as a radius around the hotel or delineated by streets, highways, or other geographical boundaries. The continuation of any territorial rights is contingent on factors like the timely commencement of construction and opening of the hotel.
Staffing Notes
Moxy Hotels requires franchisees to employ a sufficient number of suitably qualified individuals to staff the hotel. A general manager, along with other managers, must dedicate their full-time efforts to managing and operating the hotel and supervising employees. All employment decisions are made solely by the franchisee or their approved management company, as Moxy Hotels does not direct or control these policies. The franchisor may communicate directly with hotel managers regarding daily operations. If Moxy Hotels determines a franchisee is not qualified to operate the hotel themselves, the franchisee will be required to hire an approved third-party management company. Required training programs, covering various roles from hourly associates to management, are mandated for all staff in areas such as brand standards, ethics, operational functions, and electronic systems. Some positions also require specific third-party certifications like alcohol awareness and food safety.