Extended Stay America Premier Suites franchise
2023 filing · March 28, 2023GrowingShares sales figures
Extended Stay America Premier Suites at a glance
An upscale extended-stay hotel with studio suites and kitchens for guests staying a week or longer. At the end of 2022 there were 28 Extended Stay America Premier Suites locations in the US, 3 franchised and 25 company-owned, so most are run by the company itself.
The business
- Industry
- Hotel
- Franchisor
- ESH Strategies Franchise LLC
- The company that sells the franchises
- Franchising since
- 2021
- 2 years of selling franchises
- Franchisor based in
- Charlotte, North Carolina
What you pay
- Cost to open
- $9.21M–$13.8M
- A newly built 124-room hotel, excluding land
- Franchise fee
- $50,000
- Paid once, when you sign
- Royalty
- 5% + 5%
- 5% of gross room revenue a month, plus a system services fee of 5% of gross room revenue
- Agreement length
- 20 years
- Franchisor financing
- None offered
Where it is
- US locations, 2022
- 28
- Franchised and company-owned
- Franchised
- 3
- Company-owned
- 25
- Change in 3 years
- +3
- Franchised locations, 2020–2022
- States
- 11
- Most in Florida, California and Georgia
Support and records
From ESH Strategies Franchise LLC’s 2023 filing; revenue and net loss from its audited financial statements, page 188; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
Extended Stay America Premier Suites among all franchises with the same figure.
| Figure | Extended Stay America Premier Suites | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $11,504,948 | Costs more than 98% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 28 | More than 55% of franchises |
How much a Extended Stay America Premier Suites franchise costs
Opening a newly built 124-room hotel, excluding land costs an estimated $9,209,755 to $13,800,140. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are improvements ($7,899,280 to $11,516,140) and furniture, fixtures and equipment (“FF&E”) ($500,000 to $930,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $50,000 | ||
| Market and Feasibility Study | $5,000 | $10,000 | |
| Environmental Study | $1,900 | $3,000 | |
| Improvements | $7,899,280 | $11,516,140 | |
| Professional Fees | $125,000 | $200,000 | |
| Insurance | $17,500 | $55,000 | |
| Licenses | $25 | $10,000 | |
| Furniture, Fixtures and Equipment (“FF&E”) | $500,000 | $930,000 | |
| Operating Supplies and Equipment (“OS&E”) | $150,000 | $230,000 | |
| Technology and Entertainment Costs | $221,150 | $393,000 | |
| Pre-opening Training | $1,900 | $8,000 | |
| Other pre-opening Expenses | $55,000 | $120,000 | |
| Construction/Renovation Extension Fees | $0 | $5,000 | |
| Additional Funds – 3 months | $175,000 | $250,000 | |
| Information Technology Certification Fee | $0 | $6,000 | |
| Mandatory Construction Site Visit Fees | $6,000 | $10,000 | |
| Mandatory Site Visits for Information Technology Certification | $2,000 | $4,000 | |
| Total | $9,209,755 | $13,800,140 | |
Source: ESH Strategies Franchise LLC, 2023 filing, page 22
Extended Stay America Premier Suites franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: ESH Strategies Franchise LLC, 2023 filing, page 14
Royalty and ongoing fees
| Royalty | 5% of gross room revenue a month, plus a system services fee of 5% of gross room revenue. |
|---|---|
| Training Fee | $4,000-$7,500. |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: ESH Strategies Franchise LLC, 2023 filing, page 16
Other fees as filed, from page 17. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Extended Stay America Premier Suites publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: ESH Strategies Franchise LLC, 2023 filing, page 53
How Extended Stay America Premier Suites compares
Of the 116 hotel franchises on this site, Extended Stay America Premier Suites is the 57th cheapest to open and the 60th largest by number of locations.
| Figure | Extended Stay America Premier Suites | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $9.21M | $9.44M | $222K |
| Cost to open, high end | $13.8M | $21.3M | $477K |
| Franchise fee | $50K | $54K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 28 | 37 | 21 |
| Shares earnings figures | Yes | 71 of 116 | 2,147 of 3,352 |
Typical is the median across the 116 brands in hotel franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 0 (0) | 0 | – | – |
| 2020 | 0 (0) | 0 | 0 | 0 |
| 2021 | 0 (0) | 25 | 0 | 0 |
| 2022 | 3 (+3) | 25 | +3 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Over 4 years, from the start of 2019 to the end of 2022, franchised locations went from 0 to 3 (+3). The earlier years come from the brand's 2022 filing.
Source: ESH Strategies Franchise LLC, 2023 filing, page 56
2019: ESH Strategies Franchise LLC, 2022 filing, page 51
Where Extended Stay America Premier Suites locations are
At the end of 2022, Extended Stay America Premier Suites had locations in 11 states. The most are in Florida, California and Georgia.
- Florida12
- California3
- Georgia3
- South Carolina2
- Arizona1
- North Carolina1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| Florida | 0 | 12 | 12 |
| California | 0 | 3 | 3 |
| Georgia | 1 | 2 | 3 |
| South Carolina | 0 | 2 | 2 |
| Arizona | 0 | 1 | 1 |
| North Carolina | 0 | 1 | 1 |
| Ohio | 1 | 0 | 1 |
| Rhode Island | 0 | 1 | 1 |
| Tennessee | 0 | 1 | 1 |
| Texas | 0 | 1 | 1 |
All 11 states
| Washington | 1 |
|---|
Source: ESH Strategies Franchise LLC, 2023 filing, page 56
Who owns Extended Stay America Premier Suites?
Extended Stay America Premier Suites franchises are sold by ESH Strategies Franchise LLC. It is a subsidiary of ESH Hospitality Strategies LLC.
From ESH Strategies Franchise LLC’s 2023 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 14. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: ESH Strategies Franchise LLC, 2023 filing, litigation on page 14, bankruptcy on page 14
Extended Stay America Premier Suites filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from ESH Strategies Franchise LLC’s 2023 filing, issued March 28, 2023; the earlier ones below are on record with the NASAA Electronic Filing Depository and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2023 filing | March 28, 2023 | NASAA depository | Costs, fees and locations, 2020–2022 |
| 2022 filing | March 28, 2022 | NASAA depository | Locations, 2019 |
Each link opens the filing as a PDF. See the newest filings across all brands.
