Westin Resort Hotel Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$90,658,740 - $147,839,140
Franchise Fee
$100,000
Total US Locations
121
Business Summary
Westin operates full-service hotels and resorts designed for discriminating business and leisure travelers. These hotels typically feature between 100 and 1,350 guestrooms, offering various food and beverage options like restaurants, lounges, and room service, along with catering and banquet facilities. Westin hotels also include meeting rooms, business centers, recreational and fitness centers, often featuring swimming pools, whirlpools, and exercise areas. Franchisees also have the option to operate a Heavenly Spa at their Westin hotel.
Corporate History
MIF, L.L.C., the franchisor, was established in Delaware in 2012 and operates as a subsidiary of Marriott International, Inc. It began offering franchises for Westin Hotels in March 2017. Prior to this, Marriott International's affiliates had owned and managed Westin Hotels since 1990 and offered Westin franchises between 1990 and March 2017.
Financial Overview
Investment Range
$90,658,740 - $147,839,140
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$675,000
Royalty %
7%
Marketing %
1.325%
Equipment Costs (Low)
$13,048,000
Equipment Costs (High)
$18,111,400
Working Capital
$1,437,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
MIF, L.L.C. consistently generates net income, reporting $63,830,000 in 2024, $64,157,000 in 2023, and $53,570,000 in 2022. The company also maintains a substantial member's equity, which stood at $466,324,000 in 2024 and $402,921,000 in 2023. The independent auditors issued an unqualified opinion on the financial statements, indicating fair presentation and no identified going concern issues. However, MIF, L.L.C. operates without its own cash balance, with nearly all transactions recorded through related party accounts with its parent company, Marriott International, Inc. The company has significant net receivables from related parties, amounting to $443,571,000 in 2024.
Financing Details
Westin generally does not offer direct or indirect financing for its franchised hotels or guarantee franchisee loans. However, in very limited circumstances and at its sole discretion, Westin may offer credit support, such as a contingent guarantee for a portion of a third-party loan, or provide a mezzanine loan. The specific terms of any such guaranty or loan, including amounts, interest rates, and repayment obligations, would vary based on the situation and are not determined in advance. Westin also offers a new development incentive program that can reduce the ongoing franchise fees for eligible new-to-system Westin Hotels.
Performance Metrics
Total US Locations
121
Franchised Units
85
Corporate Units
36
Avg Square Footage
190,000
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
17
Litigation Summary
Marriott International has an extensive litigation history with multiple ongoing and recently concluded cases. Following data security incidents in 2018 and 2020, Westin is involved in numerous class action lawsuits alleging negligence, privacy violations, and consumer protection breaches, with some appeals still pending as of late 2024. The City of Chicago is also suing Westin for alleged code violations related to these incidents, with a trial set for late 2025. Investigations by various regulatory authorities across the U.S., UK, Turkey, Canada, and Australia have resulted in significant fines (e.g., $52 million to U.S. Attorneys General, £18.4 million to UK ICO) and agreements to enhance data security, with some aspects still ongoing (like a Turkish appeal and Australian assessments). Marriott International is also facing an industry-wide investigation by U.S. Attorneys General regarding the display of resort and mandatory fees, with a lawsuit from the District of Columbia pending trial in late 2025. In 2023-2024, Marriott International initiated three successful arbitrations/lawsuits against franchisees for unpaid fees or breaches of agreement. Additionally, Westin is a defendant in two putative class action lawsuits filed in 2024 alleging antitrust violations through information sharing and price-fixing using industry data platforms, with motions to dismiss pending. Marriott International is also appealing a $16 million jury verdict from October 2024 in North Carolina, where it was found jointly liable in a negligence claim related to a franchised Residence Inn. Other concluded cases include a 2020 class action related to a property system incident, an arbitration over profit distributions and working capital (decision in January 2022), two Puerto Rico resort fee class actions (settled individually), a 2016 lawsuit over territorial restrictions (settled 2017), and a 2019 California resort fee class action (settled 2024).
Bankruptcy History
MIF, L.L.C. has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Conditions
Westin franchise agreements are not renewable, so there are no conditions for renewal. Franchisees should not expect to operate under the brand after the initial term expires.
Training & Support Program
Franchisor Assistance
Westin provides extensive support to its franchisees both before and after opening. Before opening, Marriott International offers design and construction criteria, reviews plans, assists with procuring supplies, inspects the hotel, and provides initial training for general managers and staff. It also reviews proposed sites and provides a timeline for construction and opening. Post-opening, Westin provides ongoing consultation from its representatives, access to its reservation and electronic systems, protection of its trademarks, and updated operating standards. Marriott International manages a Marketing Fund for advertising and promotional activities, offers mandatory and optional sales and marketing programs, and operates various sales organizations, including a mandatory Global Sales Organization. Franchisees are required to implement a wide array of electronic systems for property management, reservations, guest services, point-of-sale, and network infrastructure, with ongoing support provided for some. Comprehensive training is mandatory for all levels of staff, covering brand standards, ethics, functional operations, and electronic systems. Specialized programs are also available for new-to-Marriott executives and those requiring additional training.
Initial Training Hours
112
Training Location
Varies
Ongoing Support
Westin franchisees receive comprehensive ongoing support after their hotel opens. This includes access to consultants for hotel design and operations, a reservation system, and continuously updated operating standards. Marriott International manages a Marketing Fund that supports national and regional advertising, marketing, and promotional programs for Westin hotels. Franchisees also have access to various sales and marketing programs, including optional digital marketing services and mandatory participation in the Global Sales Organization. Support is provided for a wide range of electronic systems crucial for hotel operations, such as property management, guest experience, and network infrastructure. Additionally, Marriott International provides ongoing training for hotel personnel covering brand standards, ethics, and functional operations, often through virtual modules. General managers are also required to attend regional conferences for continuous development.
Franchise Requirements
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
Non-Exclusive
Staffing Notes
Westin hotels require a general manager who has completed the franchisor's training program to directly supervise the business on-premises, along with other managers who must also dedicate full time to the hotel's management and operation. All staff members, including hourly and management associates, are required to complete various mandatory training programs covering brand and service standards, ethics, functional operations, administrative tasks, electronic systems, leadership development, and loyalty programs. Additionally, third-party certifications are required for alcohol awareness (for those serving alcohol) and food safety (for all who handle food). These training programs often include annual or bi-annual recertification to ensure ongoing compliance with standards.