1995
600
$8,000,000
$50,000
$15,000,000
No
Extended Stay America Suites is one of the most trusted and recognized extended-stay hotel brands in the United States, designed specifically for business travelers, relocating families, and guests seeking long-term accommodation with all the comforts of home. With over 25 years of proven success in the hospitality sector, the brand has redefined the concept of affordable extended lodging — offering spacious suites equipped with full kitchens, on-site laundry facilities, complimentary Wi-Fi, and a consistent, guest-centric service experience across hundreds of locations nationwide.
As a franchise opportunity, Extended Stay America Suites combines the strength of a household name with a robust operational model tailored to modern travelers’ needs. The brand is strategically positioned in the fast-growing extended-stay hotel segment, which has shown exceptional resilience and profitability even during economic downturns. Whether it’s serving corporate travelers, healthcare professionals on assignment, or families in transition, Extended Stay America has become synonymous with value, convenience, and reliability.
Investing in an Extended Stay America Suites franchise means joining a category leader in one of the most stable and high-margin sectors of the hospitality industry. The extended-stay market has consistently outperformed traditional hotel categories in occupancy rates and revenue per available room (RevPAR), due to its longer average guest stay and lower operating costs.
Franchisees benefit from:
A Recognized National Brand: Extended Stay America is one of the most well-known names in its category, with high consumer trust and brand recall.
Proven Profitability: Extended-stay properties generate steady cash flow with lower guest turnover and reduced housekeeping costs.
Scalable Investment: The model is adaptable to a variety of markets—urban centers, suburban corridors, and near major employment hubs.
Robust Support Infrastructure: From site selection to ongoing management, franchisees are backed by an experienced corporate team that ensures operational efficiency and guest satisfaction.
Established Year: 1995
Founders: George D. Johnson, Jr. and Wayne Huizenga
Headquarters: Charlotte, North Carolina, USA
Industry Category: Hospitality / Lodging / Extended Stay Hotels
Franchise Units: 600+ locations across the United States
Extended Stay America was founded with a simple mission — to provide affordable, comfortable, and home-like accommodations for travelers staying multiple nights. Over the years, the brand has grown into a market leader in the extended-stay category, operating under multiple banners including Extended Stay America Premier Suites and Extended Stay America Select Suites.
In 2021, the brand was acquired by Blackstone Group and Starwood Capital Group, two of the world’s largest real estate investment firms, signaling long-term confidence in the brand’s growth and profitability. Today, Extended Stay America continues to expand through a strategic franchise model, empowering entrepreneurs to capitalize on a business proven to perform well across both stable and challenging economic conditions.
Extended Stay America provides an extensive, multi-phase training and support system to ensure each franchisee is fully equipped for success.
Pre-Launch Support:
Site selection assistance and market feasibility studies.
Guidance on architectural design and construction standards.
Assistance with financing options and vendor relationships.
Operational Training:
Comprehensive training at Extended Stay America’s corporate headquarters covering management systems, operations, housekeeping, maintenance, and customer service.
Access to proprietary technology and reservation platforms to streamline property operations and enhance guest experience.
Marketing Support:
National advertising campaigns and brand partnerships that drive consistent customer traffic.
Access to Extended Stay America’s loyalty program and digital marketing infrastructure.
Localized marketing guidance to help franchisees tailor promotions to their regional audience.
Ongoing Support:
Continuous performance monitoring and business consultation.
Regular updates on brand standards, new technology integration, and operational innovations.
Dedicated franchise business consultants offering personalized operational support.
The ideal Extended Stay America Suites franchisee is a motivated investor or hospitality professional who values operational excellence, guest satisfaction, and long-term business growth.
Preferred Background & Skills:
Experience in hotel management, real estate, or business operations (not mandatory but beneficial).
Strong leadership and people management skills.
Financial capability to meet investment requirements and sustain early-stage operations.
Personal Attributes:
Commitment to maintaining brand standards and delivering exceptional guest experiences.
Entrepreneurial mindset with a focus on growth and profitability.
Dedication to community involvement and building lasting relationships with local partners.
Location Preferences:
Extended Stay America franchises thrive in markets with consistent corporate, healthcare, education, and construction travel demand — near airports, major highways, or business districts.
| Financial Component | Estimated Amount (USD) | Description |
|---|---|---|
| Total Investment | $8,000,000 – $15,000,000 | Includes land acquisition, construction, FF&E (Furniture, Fixtures & Equipment), and opening costs. |
| Minimum Liquid Capital Required | $1,500,000+ | Minimum liquid assets needed to qualify for franchise ownership. |
| Franchise Fee | $50,000 – $75,000 | One-time fee granting rights to operate under the Extended Stay America Suites brand. |
| Royalty Fee | 5% of Gross Room Revenue | Paid monthly to the franchisor for continued brand use and corporate support. |
| Marketing & Advertising Fee | 3% of Gross Room Revenue | Contributes to national advertising, loyalty programs, and brand marketing campaigns. |
| Working Capital | $300,000 – $500,000 | Funds to cover payroll, supplies, and operating expenses during the ramp-up phase. |
| Average Room Count | 100 – 120 Rooms | Standard hotel property size for optimized operational efficiency and profitability. |
| Training & Support Fee | Included in Franchise Fee | Covers pre-opening and ongoing operational training programs. |
| Expected ROI (Return on Investment) | 10% – 15% Annually (Post-Stabilization) | Estimated based on average franchise performance and occupancy rates. |
| Break-even Timeline | 3 – 5 Years | Typical period to recover initial investment and achieve consistent profitability. |
| Revenue Streams | Room Rentals, Corporate Contracts, Online Bookings, Extended-Stay Packages | Multiple income sources diversify cash flow and reduce seasonality risks. |
💡 Financial Insights:
Extended Stay America Suites operates in one of the most resilient hospitality segments, with long-term guests generating steady income and lower turnover costs compared to traditional hotels. Franchisees benefit from consistent occupancy rates, efficient operational systems, and strong brand equity backed by Blackstone and Starwood Capital Group.
