Marriott is one of the most recognizable names in the hotel industry worldwide. If you want to launch a hospitality business, buying a Marriott International franchise may be the right choice.
Marriott is the undisputed leader in hospitality, possessing decades of excellence in service delivery worldwide. Its decision to adopt the franchising model makes it possible for independent entrepreneurs to join one of the most recognizable companies in the hospitality industry.
Marriott International Business Highlights
- Marriott started as a restaurant business in 1927 and added hotels in the late 1950s.
- Marriott has since built the largest hotel chain globally, featuring industry-leading brand names such as Ritz-Carlton, Sheraton, St Regis, and Westin.
- It adopted the franchise model in 1992. It is now a full-service lodging group owning and operating properties, as well as franchising hotels and residential and short-let properties.
- Marriott has 7,540 locations globally in 131 countries with over 1.4 million rooms.
Marriott International Franchise Cost
The hospitality business is capital-intensive, and the expenses for obtaining a Marriott International franchise are over $75 million. Costs are highly variable as many factors can influence expenses across locations. Here is a breakdown of the items that go into a Marriott International franchise investment:
| Name of Fees | Low | High |
| Initial Franchise Application Fee | $120,000 | $120,000 |
| Real Estate Costs | Varies widely | Varies widely |
| Pre-Opening Training, Revenue Management, Marketing Support, and Related Services | $115,000 | $180,000 |
| Marriott proprietary Property Management, Reservation, Sales and Catering Systems | $217,000 | $287,000 |
| Building construction (per room) | $190,000 | $300,000 |
| Operating Supplies (per room) | $6,000 | $8,000 |
| Furniture, Software and Hardware tech (per room) | $25,000 | $45,000 |
| Insurance | $100,000 | $300,000 |
| Start-up expenses (per room) | $4,000 | $7,500 |
| Other overhead expenses (Advertising, Professional Services) | $100,000 | $200,000 |
| TOTAL | $70,000,000 | $125,000,000 |
There are additional variable fees, including the cost of land permits, market feasibility, and professional design.
The ongoing fees such as royalty fees, marketing costs, services contribution, loyalty programs, advisory services, and sales lead costs are charged on a percentage basis.
What do Existing Franchisees Saying About Marriott International Franchise?
Business owners who have landed franchise agreements with Marriott International gave it a lot of accolades for its support for partners, commitment to its people, and relentless pursuit of excellence.
It was one of the pioneers of the use of mobile technology in reservations and other processes in the hotel business.
In addition, it is one of the first hotel chains to pivot into time-share properties in response to the growth of the short-let market. Today, there are still only a few hotel chains that have decided to diversify into this niche.
Available Franchise Locations
Although the Marriott International franchise has an extensive global reach, more than 70% of its locations are in North America, with Europe and Asia contributing about 15% each. This shows the significant concentration in the U.S. and Canada, even though there is still room for growth. However, there are many franchise opportunities in Asia and emerging markets also available.
How to Buy a Marriott International Franchise
Franchisees can buy hotels with between 100 and 2,000 guestrooms. Marriot’s brands include Sheraton, W Hotels, JW Marriott, The Luxury Collection, and Marriott Hotels. To buy a Marriott International franchise, you must go through many steps. While Marriott International strives to make its franchising simple the process remains complex. Fransmart’s 10-step process offers franchisees excellent insight on how to navigate the process successfully.
Advantages and Disadvantages of a Marriott International Franchise
Marriott International has pros and cons that potential franchisees should consider before buying:
Pros:
- Marriott’s brand name can deliver lots of traffic to franchised hotels.
- Marriott provides active support to franchisees from the project initiation stage to completion and operations.
- Franchisees enjoy Marriott’s rewarding relationships with partners such as input suppliers, payment processors, and other service providers.
Cons:
- Marriott is one of the most capital-intensive franchises to invest in.
- The hotel industry is extremely competitive with OTAs turning hotel rooms into a commodity.
- The hospitality industry is still recovering from the global pandemic.
Alternate Opportunities to Marriott Franchise
Marriott International has proven successful in the franchise market, but potential franchisees have huge concerns about raising the initial investment cost. Fransmart understands the difficulty in owning a franchise that requires a huge investment. If you are looking to start a franchise with more affordable costs, here is a curated list of low-cost franchise investments with high yields from Fransmart’s portfolio brands:
- RISE SOUTHERN BISCUITS & RIGHTEOUS CHICKEN
- BROOKLYN DUMPLING SHOP
- CURRY UP NOW
- IKE’S LOVE & SANDWICHES
- JARS BY FABIO VIVIANI
- PAYMORE
- SLAPFISH
- THE HALAL GUYS
- TAFFER’S TAVERN
- SAVANNAH SEAFOOD SHACK
- DUFFS CAKE MIX
If you’re ready to explore all your franchise options, contact Fransmart today for help choosing the ideal franchise for your goals.