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Delta Hotels by Marriott Franchise Opportunity in the USA

USA

Established

1962

Franchise Units

62

dollar

Minimum Investment

$69,939,630

dollar

Franchise Fee

Inquire

dollar

Total Investment Range

$114,783,030

Home Based

No

Description

Elevate Your Portfolio with a Premium Full-Service Hotel Franchise

Delta Hotels by Marriott represents a premier franchising opportunity within the robust US hospitality market. As a part of the world-renowned Marriott International portfolio, Delta Hotels is positioned as a four-star, full-service brand focused on delivering the "Simple Made Perfect™" experience. This concept resonates with today's traveler—especially the business and sophisticated leisure guest—by eliminating the unnecessary and focusing on the essential: seamless check-in, modern guest rooms with flexible workspaces, high-speed complimentary Wi-Fi, and convenient, quality all-day dining options like the Delta Bar and Delta Pantry.

This focus on streamlined, yet premium, service distinguishes Delta in the competitive upper-midscale and premium segments. The brand's aesthetic is purposeful and contemporary, designed to encourage productivity and relaxation. Franchising a Delta Hotel means aligning your investment with one of the most powerful names in global travel, tapping directly into the massive Marriott Bonvoy™ loyalty program—a key driver of high-margin direct bookings and consistent occupancy. If you are seeking a substantial, full-service hotel investment with the backing of an industry giant and a clear, modern brand concept, Delta Hotels by Marriott offers a compelling proposition.


Why Invest in the Delta Hotels by Marriott Franchise?

  1. Marriott's Global Powerhouse: You gain immediate access to the global distribution system, powerful corporate sales teams, and unparalleled brand recognition of Marriott International. This scale reduces operational friction, enhances lender confidence for financing, and drives significant revenue performance.

  2. High-Value Guest Loyalty: Leverage the over 200 million members of the Marriott Bonvoy™ loyalty program. These are highly valuable, repeat guests who consistently seek out Marriott properties, significantly boosting direct bookings and reducing reliance on high-commission Online Travel Agencies (OTAs).

  3. A Focused, High-Performing Brand Concept: The "Simple Made Perfect™" philosophy translates to operational efficiency. By streamlining non-essential services, the model focuses investment on the guest essentials—technology, comfort, and convenience—which can help optimize staffing and operational costs without compromising the premium guest experience.

  4. Full-Service Revenue Streams: As a full-service hotel, a Delta property offers multiple potential revenue streams beyond room sales, including substantial Food & Beverage revenue (Delta Bar, Delta Pantry), meeting and event space rental, and banquet services, all managed under world-class Marriott standards.

  5. A Growing US and Global Presence: Since its acquisition by Marriott in 2015, the brand has been actively expanding its footprint across the USA and internationally, demonstrating Marriott's commitment to growing and supporting the Delta flag.


Background



DetailInformation
Original Founding Year
1962 (in Richmond, British Columbia, Canada)

Acquired by Marriott
2015

FranchisorMarriott International, Inc.
Headquarters
Bethesda, Maryland, USA

Industry CategoryPremium/Full-Service Hotel Franchise
Current USA Market Presence
US properties have grown to now outnumber Canadian properties since the 2015 acquisition, with a strong presence in gateway cities.

Brand Concept
"Simple Made Perfect™"
: A focus on essential, high-quality services for the modern, professional traveler, including complimentary Wi-Fi, bottled water, and streamlined F&B options.

Franchise Units (System-wide estimate)Approximately 62 units globally as of 2022 (with continuous expansion).


Brand Journey & Ownership: The Delta Hotels brand began in Canada in 1962. Its major turning point came in 2015 when it was acquired by Marriott International, Inc., the world's largest hotel company. This acquisition immediately repositioned Delta from a predominantly Canadian brand to a globally-backed, four-star premium brand within the formidable Marriott portfolio. The franchisor, Marriott International, Inc. (incorporated in Delaware), provides the stability, capital, and infrastructure that drives franchisee success in the highly competitive US hotel market.


Support Training

Franchisees receive a comprehensive support system from Marriott International, designed to guide the investment from initial concept through daily operations and sustained profitability.

  • Pre-Launch & Development Support:

    • Market Development Guidance: Access to Marriott's expert development team for site selection, deal review, and strategic market positioning.

    • Design & Construction Assistance: Detailed brand standards, prototype design specifications, and technical assistance to ensure the hotel is built or converted efficiently and meets the Delta Hotels aesthetic and operational requirements.

  • Operational & Academic Training:

    • Required Personnel Training: Mandatory training programs are required for the hotel's General Manager and other key operational personnel to ensure a consistent, high-quality guest experience.

    • Marriott's Learning Platforms: Access to robust, award-winning, online training resources, courses, and educational tools (such as "Hotel Excellence!") for all staff covering hotel industry knowledge, sales, brand standards, and loyalty program management.

  • Ongoing & Marketing Support:

    • Global Reservation System (GDS): Direct connection to Marriott's industry-leading central reservation system and mobile app, driving a high volume of direct, high-margin bookings.

    • Revenue Management Advisory Services: Access to professional revenue management and pricing strategies to optimize room rates and occupancy.

    • Marriott Bonvoy™ Integration: Full integration into the powerful loyalty program and participation in global and national marketing campaigns that promote the brand.

    • Technology & Systems: Implementation and support for Marriott's cutting-edge technology infrastructure, including property management systems (PMS), point-of-sale (POS) systems, and security/IT support.

    • Field Support: Continuous support from dedicated Continent Field Support teams for ongoing operations, quality assurance, and performance reviews.


Ideal Candidate

The Delta Hotels by Marriott franchise requires a sophisticated, well-capitalized investor or investment group with a proven track record in commercial real estate development and management.

  • Business Background: Ideal candidates are established hotel ownership groups, private equity firms, or high-net-worth individuals with significant experience in developing, owning, and managing full-service commercial properties. Direct hotel operations experience is a major asset, though not strictly required if partnering with an approved management company.

  • Financial Capability: Due to the substantial initial investment, the franchisee must demonstrate a strong financial position. Marriott typically seeks partners with an appropriate Net Worth of approximately $10 million and Liquid Assets of at least $1 to $2 million (requirements can vary based on the specific project size and terms).

  • Passion & Commitment: A commitment to upholding the world-class quality and guest-first service standards of the Marriott brand is non-negotiable. The ideal franchisee must be dedicated to maintaining a high level of associate engagement and operational excellence.

  • Location Preference: Delta Hotels are best suited for primary and secondary US gateway cities, major metropolitan areas, high-traffic commercial districts, and airport locations. The brand thrives in environments with a strong mix of business travel, convention traffic, and sophisticated leisure guests. The focus should be on sites that allow for a large-scale, newly constructed, or a high-quality conversion of an existing full-service property.


Financial Detail

Disclaimer: These figures are estimates based on the 2024 Franchise Disclosure Document (FDD) for a newly-constructed 300-guestroom Delta Hotels by Marriott and do not include the cost of real estate, insurance, or contingencies. Actual costs will vary significantly based on location, market conditions, and property size. Prospective franchisees must consult the current FDD for definitive and up-to-date figures.


Expenditure TypeEstimated Cost Range (New 300-Room Hotel)Notes
Total Initial Investment$69,939,630 to $114,783,030
Excludes land, related real estate costs, insurance, and contingencies.

Initial Payment to Franchisor$289,700 to $393,000Includes initial application, training, pre-opening fees, and other upfront costs.
Initial Franchise FeeVaries by project size and typeNegotiated as part of the initial application process.
Infrastructure/ConstructionMajority of the total investment.
Includes all hard and soft construction costs for the hotel building and facilities.

Working CapitalIncluded within the total range.
Funds needed for initial salaries, supplies, and operating expenses before revenue fully stabilizes.

Ongoing Fees and Potential Revenue:

Ongoing FeeEstimated Rate (Approximate)Basis
Royalty Fees6% of Gross Room Sales
Paid monthly on room revenue.

Food & Beverage Royalty3% of Gross F&B Sales
Paid monthly on food and beverage revenue.

Program Services Contribution1.62% of Gross Room Sales
Contribution to Marriott's brand services, including technology and reservation systems.

Marketing Fund Contribution1% of Gross Room Sales + fixed feesContribution to the global marketing and advertising fund.
Marriott Bonvoy™ Loyalty Fee4.2% of total guest folio
Charged on revenue generated by loyalty program members.

Expected ROI & Break-Even Time: Due to the high-capital nature of hotel development, which includes land and construction costs (often financed over 20+ years), providing a typical ROI or break-even time is impossible without a specific project pro-forma. However, investment returns are realized through high operational cash flow (EBITDA), strong appreciation of the real estate asset, and high occupancy rates driven by the Marriott reservation system. Investors should model a long-term strategy (20-year term) to achieve significant financial returns.

Potential Revenue Streams:

  1. Room Sales: Primary revenue from business and leisure travelers.

  2. Food & Beverage Sales: Revenue from the Delta Bar, all-day dining, Delta Pantry grab-and-go, and room service.

  3. Meeting & Event Space: Income from corporate meetings, conferences, and social events utilizing the hotel's facilities.

  4. Ancillary Services: Revenue from parking, business center usage, and other guest-paid services.



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