TownePlace Suites by Marriott Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$12,819,600 - $37,858,300
Franchise Fee
$75,000
Total US Locations
504
Business Summary
TownePlace Suites by Marriott offers extended-stay hotels that provide high-quality accommodations and related services to travelers. These hotels typically feature suites, each equipped with a full kitchen, living area, work and dining spaces, and a bedroom with a bathroom. Common amenities include a flexible lobby, a breakfast room where a complimentary buffet breakfast is served, guest laundry facilities, a swimming pool, and a signature TowneMap. TownePlace Suites by Marriott franchisees establish, develop, and operate these hotels using the brand's established system and trademarks.
Corporate History
MIF, L.L.C., the franchisor for TownePlace Suites by Marriott, was established in 2012 as a Delaware limited liability company and is a subsidiary of Marriott International, Inc. The company and its predecessors have been involved in owning and managing TownePlace Suites hotels since 1997 and began offering franchises for TownePlace Suites hotels in 1996.
Financial Overview
Investment Range
$12,819,600 - $37,858,300
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$85,000
Royalty %
5.5%
Marketing %
2%
Equipment Costs (Low)
$1,691,800
Equipment Costs (High)
$4,125,700
Working Capital
$395,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
MIF, L.L.C., the franchisor for TownePlace Suites by Marriott, appears to be in strong financial health. In 2024, TownePlace Suites by Marriott reported total assets of $477,080,000 and total liabilities of $10,756,000, resulting in substantial member's equity of $466,324,000. The company consistently generates positive net income, with $63,830,000 in 2024, $64,157,000 in 2023, and $53,570,000 in 2022. A significant portion of its assets, $443,571,000 in 2024, is due from related parties, primarily its parent company, Marriott International, Inc. Despite reporting no cash balance, the company's transactions are managed through related party accounts. The independent auditors have issued an unqualified opinion, indicating the financial statements present fairly, and there are no stated concerns about the company's ability to continue as a going concern. There were also no accruals for legal contingencies in 2023 or 2024.
Financing Details
TownePlace Suites by Marriott generally does not offer direct or indirect financing to franchisees or guarantee their loans. However, in very limited and discretionary situations, the franchisor may offer credit support, such as a contingent guarantee for a portion of a third-party loan or provide a mezzanine loan. The terms of any such financing would vary depending on factors like market opportunities, hotel size and location, economic conditions, and the franchisee's commitment to growing the system. The franchisor also offers a modular construction development incentive program, providing "key money" to eligible new-build projects that use approved modular construction methods. The incentive amount varies based on the type of modular construction and hotel size, and is paid 60 days after the hotel opens.
Performance Metrics
Total US Locations
504
Franchised Units
498
Corporate Units
6
Avg Square Footage
62,000
Franchising Since
1996
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
16
Litigation Summary
TownePlace Suites by Marriott has been involved in several significant legal matters. A major ongoing issue stems from a data security incident in 2018 involving unauthorized access to the Starwood reservations database. This has led to numerous class actions consolidated into a Multi-District Litigation (MDL) case in Maryland, which is still active and involves appeals regarding class certification. The City of Chicago also filed a lawsuit seeking fines and injunctive relief related to this incident, with a trial date set for late 2025. Additionally, administrative investigations by regulatory authorities in the U.S., Canada, and Australia have occurred, with some resulting in settlements (e.g., $52 million with U.S. Attorneys General in 2024) and others remaining active (e.g., Turkish KVKK action, Canadian OPC and Australian OAIC investigations). Another area of litigation involves destination, resort, and amenity fees. While some state Attorneys General investigations have been resolved, a lawsuit from the District of Columbia is ongoing, with motions for summary judgment denied in 2024 and a trial scheduled for late 2025. TownePlace Suites by Marriott has also initiated litigation, recently settling arbitrations for unpaid fees with Arkansas Knoxville Hotel (2023-2024) and Lucky Cleveland Holdings (2024), and settling a breach of contract claim with Pride Hotel (2024) related to housing migrants. Other pending actions include two putative class action lawsuits filed in 2024 (Portillo v. CoSTAR Group, Inc. and Segal v. Amadeus IT Group, S.A.) alleging unlawful sharing of information and price-fixing using hospitality data services, with motions to dismiss pending. A civil suit filed in 2022 against TownePlace Suites by Marriott and a franchisee in North Carolina (Hall v. Marriott) resulted in a $16 million jury verdict against all defendants in October 2024, which is currently under appeal. Several concluded actions include a class action regarding a property system incident in 2020 that was settled, and an arbitration with HPT CY TRS, Inc. which issued a decision in January 2022 regarding various contractual disputes and a breach of agreement. There was also a class action related to resort fees that settled in July 2024.
Bankruptcy History
TownePlace Suites by Marriott has no bankruptcy history to report.
Agreement Terms
Initial Term
20 years
Renewal Conditions
TownePlace Suites by Marriott does not offer renewal rights for its franchise agreements. Franchisees should not expect to be granted the right to continue operating their hotel under the brand after the initial term expires. However, at the franchisor's sole discretion, it may agree to enter into a new franchise agreement after expiration, but this new agreement would be on the then-current terms and conditions, which could be materially different from the original agreement, including franchise fees and term duration.
Training & Support Program
Franchisor Assistance
TownePlace Suites by Marriott provides assistance with design and construction criteria, reviewing construction drawings, assessing compliance during construction, providing input for procuring operating supplies and FF&E, conducting site visits, and giving final approval to open. It also offers training for the general manager and hotel management team, and makes operational standards available. During operation, TownePlace Suites by Marriott makes representatives available for consultation on hotel design and operation. It provides electronic systems, such as a reservation system, and works to protect its proprietary marks. The franchisor also makes its operating standards available and offers various training programs for personnel. It directs Marketing Fund activities and reviews plans for hotel upgrades and remodels. TownePlace Suites by Marriott administers a Marketing Fund for advertising, sales, and promotional programs for hotels in the U.S. and Canada. Franchisees contribute 2% of gross room sales to this fund. The franchisor directs these activities to promote the brand and system. It also provides sales and marketing programs not funded by the Marketing Fund, such as email marketing, paid media programs, and sales lead referrals. The Marriott Sales Organizations provide sales and support services. Franchisees must purchase, lease, or license mandatory computer systems, software, and applications, including a Property Management System (PMS), Opportunity Management Systems (SFAWeb/GPO or OneSource), a Guest Experience Platform, a Point-of-Sale (POS) system, Reservation and Yield Management systems, Marriott Communications Network (MCN), Wi-Fi network, Digital Guest Services, Hotel Lock System with mobile key, and an Associate Alert Devices program. The franchisor also offers Continent Field Support, Digital Food & Beverage Services, and requires participation in information security managed detection and response services. The franchisor mandates various training programs for franchisees and key hotel personnel, covering brand and service, consumer operations, ethics, functional operations, administrative tasks, leadership development, and loyalty programs. There's an an annual learning and development bundle fee. Specific pre-opening and opening training are described, including Executive Orientation for new executives and programs like Franchisee Introduction to Marriott (FITM) for those requiring additional training.
Initial Training Hours
112
Training Location
Franchisor designated locations and on-site at the franchisee's hotel
Ongoing Support
TownePlace Suites by Marriott provides various ongoing support services to its franchisees. This includes consulting with representatives from designated offices or on-site at the hotel for design and operational guidance. The franchisor makes electronic systems available, such as a reservation system, and works to protect the brand's trademarks and operational standards. Ongoing training programs are offered for hotel management and personnel, covered by an annual learning and development bundle. The franchisor also directs Marketing Fund activities and reviews plans for hotel upgrades and remodels. Franchisees can opt-in to additional programs like Revenue Management Advisory Services, Customer Engagement Center Property Support Services, and Marriott Digital Services for marketing and e-commerce. Mandatory programs include continent field support for electronic systems, information security managed detection and response services, and an annual audit program for brand standards and food safety. The franchisor also hosts conferences for general managers.
Franchise Requirements
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
TownePlace Suites by Marriott typically does not grant an exclusive territory to its franchisees. While a territory may be granted, it will be non-exclusive and its size and duration will depend on the specific market where the hotel is located. Such a territory might be defined by a radius around the hotel or by delineated streets, highways, or other geographical boundaries. The franchise agreement does not provide any rights for franchisees to develop additional hotels within this non-exclusive territory or to enlarge their existing hotel at the approved site. Franchisees may face competition from other TownePlace Suites by Marriott franchisees, from outlets owned, leased, managed, licensed, or franchised by Marriott or its affiliates, or from other distribution channels or competitive brands controlled by Marriott or its affiliates.
Staffing Notes
TownePlace Suites by Marriott franchisees are responsible for hiring and staffing their hotels with adequately qualified individuals. The general manager and other managers are expected to devote their full time to the hotel's management and operations. The franchisor emphasizes that all employment decisions are made solely by the franchisee or their management company, and hotel employees are not employees of the franchisor. TownePlace Suites by Marriott provides a comprehensive training program for all associates, including hourly, management, and general managers, covering various operational and brand-specific areas. This training ensures staff are proficient in brand standards, consumer operations, ethics, functional roles like front office and housekeeping, and electronic systems. There is also an ongoing "Learning & Development Bundle" to cover continuing training costs.