To become a franchisee and receive patronage from the management company Extended Stay America, you need to have extensive experience in running the hotel business, as well as a certain amount of capital.
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How much is an Extended Stay America franchise?
The minimum investment amount required to open a Extended Stay America Suites franchise is $188,900 and can go all the way up to $11,114,500. Keep in mind, you should also allocate additional funds to live off of while the Extended Stay America Suites business ramps up.
Who owns Extended Stay America?
In a further vote of confidence in the future of hospitality—and in the extended-stay sector, specifically—Blackstone and Starwood Capital Group have agreed to acquire Extended Stay America and its paired-share real estate investment trust, ESH Hospitality, for $6 billion.
How much does it cost to franchise Holiday Inn?
Facts & FiguresLiquid capital required$1,000Investment$8,848,215 - $19,900,840Franchise fee$15,000 - $50,000Royalty5.0% - 6.0%Units in operation4,2402 more rows
Can Lodging be franchised?
Lodging franchises are good investment opportunities for sophisticated and finacially stable investors. There are great franchises in this sector for people with past experience in hospitality or lodging.
Is Extended Stay America a private company?
The company became a public company via an initial public offering on December 14, 1995. Extended Stay America acquired the extended-stay hotel chain StudioPLUS on April 11, 1997.
When did Blackstone buy Extended Stay America?
2004In 2004, affiliates of The Blackstone Group acquired Extended Stay America for $3.1 billion.
Do hotel owners make a lot of money?
A well run hotel should typically run ~25-40% EBITDA Margins meaning that if you purchase a hotel doing $1M in annual revenue you could expect to make $250k - $400k per year which is about 3-5x the average salary of a hotel manager.
How much does a Holiday Inn owner make?
According to Shmoop.com, the owner of a chain hotel can expect an average hotel owner's salary of $50,000, with a range of $40,000 to $60,000 a year. Don't forget, the owner is paying a 4% to 6% franchise fee.
How much does it cost to franchise a Marriott?
Facts & FiguresLiquid capital required$1,000Investment$74,082,490 - $117,152,490Franchise fee$419,000Units in operation6,520Founded1957
What are the disadvantages of owning a franchise hotel?
Hotel Franchise DisadvantagesStartup Costs and Franchise Fees. ... Less Control Over Your Business. ... Locked Into a Contract. ... Not Free of Risk. ... Exploring Franchise Hotel Advantages.
How much does a hotel franchise cost?
Initial Franchise Fee For example, imagine you are opening a new hotel with 450 rooms. A franchise might charge you a flat fee of $65,000 plus $500 per room for every room over 200. Thus, your initial franchise fee outlay would be $65,000 + $500/room * 250 rooms = $190,000.
How do you become a Hilton franchise?
To open a Hilton hotel franchise, a franchisee should expect to invest a minimum of $29 million and as much as $112 million, including an initial franchise fee of $75,000. The ongoing royalty percentage for Hilton Hotels and Resorts is 5% and there is also a 4% advertising royalty fee.
Who is the CEO of Extended Stay America?
Jonathan S. Halkyard (Jan 1, 2018–)Extended Stay America / CEO
What hotels does Blackstone own?
Brands include: Conrad, Doubletree, Embassy Suites, Hampton Inn, Hilton, Hilton Garden Inn, Hilton Grand Vacations (timeshares), Homewood Suites.
Who owns WoodSpring?
Choice HotelsWoodSpring Suites is a hotel brand owned by Choice Hotels.
Where Is Extended Stay America headquarters?
Charlotte, NCExtended Stay America / Headquarters
How much has Extended Stay America invested in renovations?
Over the last five-plus years, Extended Stay America has invested over $1 Billion for portfolio-wide renovations and other capital improvements. These investments helped set the foundation for future growth and profitability, the plan now called ESA 2.0. With a footprint of 625 hotels and more than 68,000 rooms in 44 markets across the country, including all 25 of the nation's top markets, Extended Stay America is the largest mid-price extended stay hotel in the industry, and sees itself as uniquely qualified to take the next step in serving the unique extended stay audience.
How many hotels does Extended Stay America have?
Extended Stay America's subsidiary, ESH Hospitality, Inc. ("ESH"), is the largest lodging REIT in North America by unit and room count, with 559 hotels and more than 62,000 rooms in the U.S. Extended Stay America also manages or franchises an additional 75 Extended Stay America® hotels. Visit www.esa.com for more information.
What is ESA in hotels?
ESA is combining its attractive and best-in-class operating model with a franchisee-friendly agreement and guest-inspired redesigns to catapult the brand, accommodating an ever-growing and underserved mid-scale extended stay audience.
When did Extended Stay America become a public company?
The company became a public company via an initial public offering on December 14, 1995. Extended Stay America acquired the extended-stay hotel chain StudioPLUS on April 11, 1997. The company also developed the Crossland Economy Studios brand as a budget extended-stay hotel brand. In 2013, the company moved its headquarters from Spartanburg, ...
When was Extended Stay America founded?
History. Extended Stay America was founded on January 9, 1995 in Fort Lauderdale, Florida by George D. Johnson, Jr. and Wayne Huizenga, both former executives from Viacom and its subsidiary Blockbuster LLC. The first two Extended Stay America hotels opened in August 1995 in Spartanburg, South Carolina and Marietta, Georgia.
How many hotels does Extended Stay America have?
As of December 31, 2019, the company owned and operated 557 hotel properties consisting of approximately 61,900 rooms and franchised or managed 73 hotel properties ...
When did Extended Stay America file for bankruptcy?
On June 15, 2009, Extended Stay America filed for bankruptcy protection under Chapter 11. Through debtor-in-possession financing, it was able to continue operating rather than to face liquidation.
When did Blackstone buy Extended Stay America?
The Blackstone Group, a private equity firm, acquired Extended Stay America in May 2004 for US$ 3.1 billion in cash and debt. At the time of the merger, Extended Stay America operated 475 hotels; Blackstone increased that number with the addition of 132 from Homestead Studio Suites. Homestead, which was founded by Security Capital in 1992, had been acquired by Blackstone in November 2001 for US$740 million. All of Blackstone's extended-stay hotels consisting of the Crossland, Extended Stay America, Homestead, StudioPlus, and, eventually, Extended Stay Deluxe brands were managed together by Extended Stay Hotels.