Tribute Portfolio Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$58,698,740 - $96,269,140
Franchise Fee
$100,000
Total US Locations
87
Business Summary
Tribute Portfolio Hotels are full-service hotels that cater to both business and leisure travelers. These hotels offer guests a unique and locally authentic experience, distinguished by inspired design and genuine hospitality. Tribute Portfolio Hotels can be newly built, conversions of existing hotels, or re-purposed historic buildings. Individuality is a key characteristic, with hotels varying in size and offering diverse food and beverage options, including restaurants, lounges, catering, meeting rooms, and recreational facilities. When a hotel joins the Tribute Portfolio, it retains or creates its own name, logo, and brand concept, alongside its designation as a member of the Tribute Portfolio.
Corporate History
MIF, L.L.C., the franchisor for Tribute Portfolio Hotels, was established in Delaware in 2012 as a subsidiary of Marriott International, Inc. (MII). While MIF, L.L.C. itself began offering franchises for Tribute Portfolio Hotels in March 2017, MII's affiliates had previously offered franchises for this brand between 2015 and March 2017. The company's parent, MII, has a long history in the hospitality industry, having operated and franchised various hotel brands since 1957. Throughout its history, MII has developed and acquired numerous brands, including those related to full-service, lifestyle, extended-stay, and mid-scale hotels, as well as residences and outdoor-focused lodging products. Significant developments include MII's acquisition of Delta Hotels and Resorts in 2015, the launch of Homes & Villas by Marriott Bonvoy in 2019, and expansion into all-inclusive resorts. In 2024, MII also expanded into outdoor-focused lodging by acquiring the Getaway Outposts brand, re-launching it as Postcard Cabins, and entering into licensing agreements with Trailborn Brand LLC and Sonder Holdings, Inc. to create the Sonder by Marriott Bonvoy collection, and with MGM Resorts International to create the MGM Collection with Marriott Bonvoy.
Financial Overview
Investment Range
$58,698,740 - $96,269,140
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$250,000
Royalty %
5%
Marketing %
1.5%
Equipment Costs (Low)
$7,640,000
Equipment Costs (High)
$11,160,000
Working Capital
$1,150,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
MIF, L.L.C. operates with no direct cash balance, as all transactions, primarily with its parent company Marriott International, Inc. (MII), are managed through related party receivable and payable accounts. For example, as of December 31, 2024, MIF, L.L.C. had over $443 million due from related parties. The company's financial statements show positive net income across the last three fiscal years, with $63.8 million in 2024, $64.1 million in 2023, and $53.5 million in 2022. The independent auditors, Ernst & Young LLP, issued an unqualified opinion on these financial statements, indicating they present fairly the financial position and results of operations. While the auditors are required to assess for any substantial doubt about the company's ability to continue as a going concern, their report does not include a going concern qualification, suggesting no such doubt was concluded in their opinion.
Financing Details
Tribute Portfolio generally does not offer direct or indirect financing for its franchised hotels or guarantee any loans. However, in limited and discretionary circumstances, the franchisor may provide credit support, such as a contingent guarantee for a portion of a third-party loan, or offer a mezzanine loan. The decision to offer such support depends on various factors, including market penetration opportunities, hotel size and location, economic conditions, development costs for the franchisee, and the franchisee's commitment to growing the system. The specific terms of any loan guaranty, such as the amount, repayment obligations, fees, interest, and security requirements, can vary. Similarly, the terms of any mezzanine loan, including the amount, interest rate, term, and security, are determined on a case-by-case basis. Franchisees may be required to sign related documents like Credit Enhancement Commitment Letters, Reimbursement Agreements, Equity Pledges, and Guaranties. Sample financing agreements are available in Exhibit Q for informational purposes.
Performance Metrics
Total US Locations
87
Franchised Units
87
Corporate Units
0
Avg Square Footage
131,000
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
21
Litigation Summary
Tribute Portfolio, through its franchisor MIF, L.L.C. and its affiliates, has been involved in several legal matters recently. Multiple class action lawsuits were filed and consolidated regarding a data security incident from 2018, with appeals still pending in the U.S. Court of Appeals for the Fourth Circuit as of November 2024. The City of Chicago also filed an action concerning the same data security incident, with a trial set for November 2025. Various administrative investigations by U.S., Canadian, Australian, and Turkish authorities related to data security have been ongoing, with some reaching resolutions in late 2023 and 2024, while others, like the Turkish action, are still in retrial. Separately, the District of Columbia has an ongoing lawsuit against Marriott International concerning the display of resort fees, with a trial set for November 2025. Tribute Portfolio has initiated three recent arbitrations and lawsuits in 2023-2024 against franchisees for unpaid fees and breaches of contract, all of which resulted in settlements or awards in the franchisor's favor. Additionally, the franchisor is a defendant in three putative class action lawsuits filed in 2024 alleging violations of U.S. antitrust laws related to information sharing and price-fixing in luxury hotels, with motions to dismiss currently pending. A civil suit filed in January 2022 against a franchisee and Marriott International alleging negligence resulted in a $16 million verdict against all defendants in October 2024, which is now under appeal. Several other lawsuits, including those related to a property system incident in 2020 and earlier resort fee disputes, were concluded between 2021 and 2024, with some settlements reached.
Bankruptcy History
MIF, L.L.C. reports that no bankruptcy is required to be disclosed in its Franchise Disclosure Document. This means that neither MIF, L.L.C., its affiliates, nor any key personnel have a history of bankruptcy that needs to be reported.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Tribute Portfolio franchise agreements are not renewable. Franchisees should not expect to be granted any right to operate the hotel under the brand after the initial term expires.
Training & Support Program
Franchisor Assistance
Tribute Portfolio provides extensive support and assistance to its franchisees, covering various stages from pre-opening to ongoing operations. Before a hotel opens, the franchisor provides product quality standards, reviews construction plans, assesses compliance during construction, offers input for procuring supplies and equipment, and conducts a final visit to ensure readiness. It also provides on-site training for hotel staff, including general managers and management teams, and makes operational manuals and standards available. For properties with residential components, it reviews condominium and operational documents. Post-opening assistance includes regular consultation on hotel design and operation, access to mandated electronic systems like the reservation system, and support in protecting trademarks. The franchisor manages a Marketing Fund for advertising, sales, and promotional programs, and offers various sales and marketing initiatives such as email marketing, search engine marketing, sales lead referrals, and loyalty programs. Franchisees must use and maintain designated computer systems, including property management, reservation, yield management, and point-of-sale systems, with ongoing support and updates. Required training programs cover brand and service, ethics, functional operations, electronic systems, leadership development, and loyalty programs, along with third-party certifications for alcohol and food safety. Additional executive-level programs like Executive Orientation and FITM/FOND are required for new franchisees, and underperforming hotels may be mandated to participate in improvement programs.
Initial Training Hours
112
Training Location
Tribute Portfolio provides a mix of training locations. On-site training is conducted at the franchisee's hotel, lasting approximately 5 to 14 days. Other programs, such as Executive Orientation and FITM/FOND, are either web-based/virtual or held at a location designated by Marriott.
Ongoing Support
After opening, Tribute Portfolio provides franchisees with a range of ongoing support services. This includes access to representatives for consultation on hotel design and operations, as well as electronic systems like the reservation system. The franchisor is responsible for preserving and protecting its trademarks and makes its operational standards available to franchisees, with the understanding that these standards may change. Ongoing training programs are offered for hotel personnel, with a learning and development bundle covering certain required courses. The general manager is typically required to attend regional conferences. For underperforming hotels, participation in an Audit Program/GSS Improvement program with additional training and audits may be mandated. The franchisor also directs activities of a Marketing Fund for advertising, sales, and promotions, and offers additional sales and marketing programs such as email marketing, internet search engine marketing, sales lead referrals, and various loyalty programs. Furthermore, franchisees must maintain and use designated computer and electronic systems, including property management, reservation, and point-of-sale systems, with ongoing maintenance, updates, and security services like server management and managed detection and response services.
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
If a territory is granted to a Tribute Portfolio franchisee, its specific size and duration will depend on the market in which the hotel is located. It may be defined as a radius around the hotel or delineated by streets, highways, or other geographical boundaries. The duration of any such territory will be five years or less. These territories apply only to other Tribute Portfolio hotels and do not restrict Marriott International or its affiliates from developing, operating, or franchising other brands or lodging products, which may compete with the franchisee's hotel.
Staffing Notes
Tribute Portfolio franchisees, or their approved management companies, are solely responsible for all employment decisions and ensuring adequate staffing for the hotel. While the franchisor does not directly control these decisions, it requires the retention of a general manager and sales directors or managers at least nine to twelve months before the hotel's opening. These managers must devote full time to the hotel's management and operations. The franchisor provides various mandatory training programs for all associates, including hourly staff, management-level associates, and general managers, covering areas like brand and service, ethics, functional operations, electronic systems, leadership development, and loyalty programs. There are also required third-party certifications for areas such as alcohol awareness and food safety for relevant personnel. If the franchisor determines that a franchisee is not qualified to operate the hotel, it may require the franchisee to hire an approved third-party management company. Additionally, if a hotel's performance falls into the 'Red Zone' under the quality assurance program, the franchisor may mandate participation in a remedial Audit Program/GSS Improvement program, which could include hiring a third-party management company if training is not successfully completed.