Established
1975
Franchise Units
860
Minimum Investment
$10,000,000
Franchise Fee
$75,000
Total Investment Range
$25,000,000
Home Based
No
Description
Residence Inn by Marriott is one of the most established and respected names in the extended-stay hotel segment in the United States. Purpose-built for guests who need more than a short overnight stay, the brand combines apartment-style comfort with consistent service standards, premium amenities, and the operational strength of a globally recognized hospitality company.
Each Residence Inn property is designed to support longer stays, featuring spacious suites with full kitchens, separate living and sleeping areas, complimentary breakfast, fitness centers, and business-friendly amenities. This model appeals strongly to corporate travelers, healthcare professionals, relocating families, project-based workers, and long-stay leisure guests who value space, convenience, and reliability.
From a market positioning standpoint, Residence Inn operates in a high-demand, resilient category of hospitality. Extended-stay hotels typically benefit from longer average lengths of stay, lower guest turnover, and more predictable occupancy patterns compared to traditional hotels. Combined with strong brand recognition, centralized reservations, and a powerful loyalty ecosystem, Residence Inn continues to perform well across urban, suburban, and secondary U.S. markets.
Why Invest in This Franchise?
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Strong Extended-Stay Demand
Ongoing demand from corporate travel, healthcare staffing, relocation services, and infrastructure projects supports consistent occupancy. -
Brand Power and Trust
Residence Inn benefits from decades of brand equity and consumer confidence in the extended-stay category. -
Longer Guest Stays and Lower Volatility
Extended-stay guests reduce check-in and turnover costs, supporting operational efficiency and steadier cash flow. -
Upscale Market Positioning
Premium pricing compared to economy extended-stay brands improves revenue potential per room. -
Scalable Investment Model
Ideal for experienced hotel developers and multi-unit operators seeking portfolio expansion. -
Loyalty-Driven Bookings
High repeat visitation from loyal guests supports direct bookings and occupancy stability.
Background
- Established Year: 1975
- Founders: Jack DeBoer
- Ownership: Operated under a global hospitality parent company
- Industry Category: Upscale Extended-Stay Hospitality
- Franchise Active Units (USA): Residence Inn by Marriott operates approximately 860+ active hotels in the United States.
Brand Journey and Company History
Residence Inn was created to serve a gap in the lodging industry by focusing exclusively on longer-term stays. At a time when most hotels catered to short-term travelers, the brand introduced residential-style suites and functional living spaces that changed how extended stays were experienced.
Following its acquisition by a global hospitality leader in the late 1980s, Residence Inn expanded rapidly across the United States. Standardized design, consistent service delivery, and strong operational systems helped the brand scale while maintaining quality and guest satisfaction.
Support Training
Residence Inn franchisees receive comprehensive support across every phase of development and operation.
Pre-Launch and Development Support
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Market analysis and site selection guidance
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Design standards and construction specifications
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Project planning and brand compliance support
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Pre-opening checklists and staffing preparation
Training Programs
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Management and leadership training
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Operations training for all hotel departments
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Revenue management and pricing strategy education
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Guest experience and brand standards training
Ongoing Operational Support
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Centralized reservation and booking systems
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Performance reporting and analytics
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Quality assurance reviews and brand audits
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Dedicated field support and operational consulting
Marketing and Sales Support
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National and regional brand marketing campaigns
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Loyalty program participation and exposure
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Digital booking platforms and mobile applications
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Corporate and group sales channels
Ideal Candidate
The Residence Inn by Marriott franchise is best suited for experienced investors with strong financial capacity.
Ideal Candidates
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Hotel developers and hospitality investment groups
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Multi-unit hotel owners
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Real estate development firms
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Institutional and private equity-backed investors
Preferred Attributes
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Proven experience in hospitality or large-scale real estate projects
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Ability to manage long development timelines
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Strong financial resources and access to capital
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Commitment to brand standards and operational discipline
Location Preferences
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Corporate office corridors
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Healthcare and medical districts
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Suburban employment hubs
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Airport and relocation-driven markets
Financial Detail
| Financial Component | Estimated Details |
|---|---|
| Total Investment Required | USD 10 million – USD 25+ million |
| Minimum Net Worth Requirement | Approx. USD 15 million+ |
| Minimum Liquidity Requirement | Approx. USD 5 million+ |
| Franchise Fee | Typically USD 75,000 – USD 90,000 |
| Royalty Fees | Around 5% of gross room revenue |
| Marketing & System Fees | Approx. 3% – 4% of gross revenue |
| Land Cost | Market-dependent (urban vs suburban locations) |
| Construction & Development Cost | Largest cost component; varies by design and location |
| Furniture, Fixtures & Equipment (FF&E) | Included in total investment |
| Pre-Opening Expenses | Staffing, training, systems setup |
| Initial Marketing Budget | Included in pre-opening costs |
| Working Capital | Typically 3–6 months of operating reserves |
| Primary Revenue Streams | Extended-stay room revenue, corporate contracts, relocation stays |
| Expected ROI | Market-dependent; aligned with upscale extended-stay hotels |
| Break-Even Timeline | Approximately 4 – 7 years |