Extended Stay America Suites franchise
2022 filing · March 28, 2022Shares sales figures
Extended Stay America Suites at a glance
An extended-stay hotel with studio suites and kitchens for value-conscious guests staying a week or longer. At the end of 2021 there were 625 Extended Stay America Suites locations in the US, 93 franchised and 532 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
- Franchisor based in
- Charlotte, North Carolina
What you pay
- Cost to open
- $7.89M–$11.1M
- 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, 2021
- 625
- Franchised and company-owned
- Franchised
- 93
- Company-owned
- 532
- States
- 45
- Most in California, Texas and Florida
Support and records
From ESH Strategies Franchise LLC’s 2022 filing; revenue and net income from its audited financial statements, page 177; 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 Suites among all franchises with the same figure.
| Figure | Extended Stay America Suites | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $9,500,988 | 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 | 625 | More than 95% of franchises |
How much a Extended Stay America Suites franchise costs
Opening a newly built 124-room hotel, excluding land costs an estimated $7,887,475 to $11,114,500. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are improvements ($6,376,000 to $8,753,000) and furniture, fixtures and equipment(“FF&E”) ($744,000 to $1,070,000). 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(SeeNote) | $5,000 | $10,000 | |
| Environmental Study | $1,900 | $3,000 | |
| Improvements | $6,376,000 | $8,753,000 | |
| Professional Fees | $125,000 | $200,000 | |
| Insurance | $6,500 | $37,500 | |
| Licenses | $25 | $10,000 | |
| Furniture, Fixtures and Equipment(“FF&E”) | $744,000 | $1,070,000 | |
| Operating Supplies and Equipment (“OS&E”) | $118,000 | $195,000 | |
| Technology and Entertainment Package | $221,150 | $393,000 | |
| Pre-opening Training | $1,900 | $8,000 | |
| Other pre-opening Expenses(SeeNote) | $55,000 | $110,000 | |
| 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 | $7,887,475 | $11,114,500 | |
Source: ESH Strategies Franchise LLC, 2022 filing, page 21
Extended Stay America Suites franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: ESH Strategies Franchise LLC, 2022 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, 2022 filing, page 15
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 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, 2022 filing, page 51
SBA loans to Extended Stay America Suites franchisees
Lenders approved 29 SBA-backed loans for Extended Stay America Suites franchisees from 2021 to 2026, $105.2M in all: 21 7(a) loans and 8 504 loans. None has been paid off or charged off yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How Extended Stay America Suites compares
Of the 116 hotel franchises on this site, Extended Stay America Suites is the 53rd cheapest to open and the 7th largest by number of locations.
| Figure | Extended Stay America Suites | Typical hotel brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $7.89M | $9.44M | $222K |
| Cost to open, high end | $11.1M | $21.3M | $477K |
| Franchise fee | $50K | $54K | $40K |
| Royalty | 5% | 5% | 6% |
| US locations | 625 | 37 | 21 |
| Change in franchised locations, 0 yrs | +27.4% | +9.2% | – |
| 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 |
|---|---|---|
| 2019 | 73 (0) | 557 |
| 2020 | 83 (+10) | 563 |
| 2021 | 93 (+10) | 532 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating. 21 hotels moved from this brand to Extended Stay America Premier Suites during 2021.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: hotel franchise costs and franchise failure rates.
Source: ESH Strategies Franchise LLC, 2022 filing, page 54
Where Extended Stay America Suites locations are
At the end of 2021, Extended Stay America Suites had locations in 45 states. The most are in California, Texas and Florida.
- California80
- Texas63
- Florida49
- Illinois35
- Virginia35
- North Carolina29
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 1 | 79 | 80 |
| Texas | 30 | 33 | 63 |
| Florida | 0 | 49 | 49 |
| Illinois | 5 | 30 | 35 |
| Virginia | 5 | 30 | 35 |
| North Carolina | 0 | 29 | 29 |
| Ohio | 14 | 14 | 28 |
| Georgia | 5 | 21 | 26 |
| Maryland | 0 | 19 | 19 |
| Michigan | 0 | 18 | 18 |
All 45 states
Source: ESH Strategies Franchise LLC, 2022 filing, page 55
Who owns Extended Stay America Suites?
Extended Stay America Suites franchises are sold by ESH Strategies Franchise LLC. It is a subsidiary of ESH Hospitality Strategies LLC.
From ESH Strategies Franchise LLC’s 2022 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 13. |
|---|---|
| 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, 2022 filing, litigation on page 13, bankruptcy on page 14
Extended Stay America Suites filings
The figures on this page come from ESH Strategies Franchise LLC’s 2022 filing, issued March 28, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | March 28, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
