Investing in a Hawthorn Suites by Wyndham franchise means entering one of the most resilient segments of the hospitality industry: extended-stay lodging. With corporate travelers, relocating professionals, and long-term guests fueling demand year-round, Hawthorn Suites properties consistently outperform traditional hotels during economic downturns. However, the path from interest to ownership requires significant capital, and understanding your financing options is the key to making it happen.
Crestmont Capital has been helping hospitality entrepreneurs secure business financing since 2015. Whether you're opening your first extended-stay property or expanding an existing portfolio, this guide covers everything you need to know about Hawthorn Suites franchise costs and how to fund your investment.
Crestmont Capital offers SBA loans, equipment financing, and working capital for hotel franchise owners.
Apply Now →Hawthorn Suites by Wyndham is a nationally recognized extended-stay hotel brand under the Wyndham Hotels & Resorts family, one of the world's largest hotel franchise organizations. Founded in the 1980s and operating under Wyndham since 1998, Hawthorn Suites focuses on guests who need accommodations for a week, a month, or longer.
The brand distinguishes itself through spacious suite-style rooms with fully equipped kitchens, separate living and sleeping areas, and amenities tailored to long-term guests. These features attract a loyal customer base of business travelers, military personnel, traveling medical professionals, and families in transition, all of whom tend to generate higher average daily rates and longer booking windows than short-term leisure travelers.
According to data from the American Hotel & Lodging Association, the extended-stay sector has consistently posted higher occupancy rates than traditional full-service and select-service hotels during economic downturns, making it one of the most recession-resilient segments in hospitality. For franchise investors, that stability is a critical advantage.
Extended-stay properties typically generate 60-70% of revenue from guests staying 7+ nights, providing predictable cash flow and lower housekeeping costs per room compared to traditional hotels. This business model can translate to stronger operating margins for franchise owners.
Before approaching any lender, you need a clear picture of the total investment required to open and operate a Hawthorn Suites property. Costs vary based on location, property size, and whether you're converting an existing building or constructing from the ground up.
The initial franchise fee for a Hawthorn Suites by Wyndham property typically ranges from $40,000 to $60,000, depending on the size of the property (number of rooms). This fee grants you the right to use the Hawthorn brand, reservations system, loyalty program, and marketing infrastructure for the length of your franchise agreement.
For a complete Hawthorn Suites development or acquisition, total investment typically falls between $3 million and $15 million or more. The wide range reflects differences in:
Beyond the initial investment, Hawthorn Suites franchise owners pay ongoing royalty fees and marketing contributions. These typically include:
Most Hawthorn Suites investments require a combination of equity and debt financing. Very few investors fund an entire hotel property out of pocket, and lenders expect to see a significant personal investment as skin in the game. Here's a breakdown of the primary financing vehicles available to franchise buyers.
According to the SBA, hospitality businesses represent one of the largest categories of SBA-backed lending, which underscores how well-established the financing pathways are for hotel franchises. Forbes notes that hotel investors often layer multiple financing products to optimize their capital structure.
The Small Business Administration's lending programs are among the most popular options for hotel franchise investors, especially first-time buyers who may not have sufficient collateral for a conventional commercial real estate loan. Two SBA programs are most relevant to Hawthorn Suites franchisees:
The SBA 7(a) loan is the agency's flagship program, offering loans up to $5 million for qualified borrowers. Key features include:
For a mid-size Hawthorn Suites conversion or acquisition, the SBA 7(a) program can cover a significant portion of the project cost. Borrowers must demonstrate sufficient debt service coverage ratio (DSCR), typically 1.25x or better.
The SBA 504 program is specifically designed for major fixed assets like real estate and heavy equipment. It works through a partnership between a bank (providing 50% of the project), a Certified Development Company (providing 40% via SBA-backed debenture), and the borrower (providing 10% to 20% equity).
Need help navigating SBA requirements? Our team at Crestmont Capital has guided hundreds of hospitality borrowers through the SBA application process. Learn more about franchise business loans to understand your options.
A Hawthorn Suites property requires substantial equipment investment, from kitchen appliances in every suite to laundry systems, HVAC, property management technology, and fitness center equipment. Equipment financing allows you to preserve capital for other uses while spreading equipment costs over the useful life of the assets.
Equipment loans typically cover 80% to 100% of equipment cost, with terms matching the useful life of the equipment (often 5 to 7 years for hotel equipment). Interest rates are generally lower than unsecured business loans because the equipment itself serves as collateral.
At Crestmont Capital, we structure equipment financing packages that align with your hotel's cash flow cycle, helping you avoid equipment shortfalls during the critical ramp-up period after opening. Visit our hotel equipment financing guide to learn more.
Even with strong bookings, hotel businesses face cash flow timing challenges. Payroll, supplies, marketing, and Wyndham royalty fees are due on fixed schedules, while revenue comes in daily and can fluctuate seasonally. Working capital financing bridges these gaps and gives franchise owners the flexibility to operate confidently.
Most experienced hotel investors recommend maintaining 3 to 6 months of operating expenses as a liquid reserve. A working capital line of credit from Crestmont Capital can serve as a flexible backstop while you build your reserves.
A business line of credit is often the most flexible tool for hotel operators. Unlike a term loan, you draw from the credit line as needed and only pay interest on what you use. Explore working capital loan options to find the right structure for your situation.
Crestmont Capital was founded in 2015 with a mission to help entrepreneurs and business owners access the capital they need to grow. As a direct lender and financing marketplace, we give Hawthorn Suites franchisees access to a wide range of loan products with competitive terms and fast decisions.
According to Bloomberg, hotel lending has rebounded strongly since 2023, with lenders increasingly competitive for well-qualified franchise deals. Crestmont Capital's relationships with over 75 lending partners means we can shop your deal to find the best terms available in the current market.
No obligation. No hard credit pull. Just clarity on your financing options.
Apply Now →Maria is a regional hotel manager who has saved $700,000 over 15 years in the hospitality industry. She's identified a 90-room Hawthorn Suites property in a growing suburban market listed for $5.2 million. The property has a solid occupancy history but needs approximately $400,000 in renovations to meet current brand standards.
Her financing solution: Crestmont Capital structures a deal using an SBA 7(a) loan for $4.5 million (covering acquisition plus renovation costs) with Maria contributing $700,000 in equity (approximately 13.5% down). The loan term is 25 years for the real estate portion, keeping monthly payments manageable relative to projected NOI. A separate $100,000 working capital line covers pre-opening expenses.
Outcome: Maria closes in 75 days, renovates over 45 days, and opens with full brand support from Wyndham. By month 8, her property achieves 72% occupancy, generating NOI well above her debt service requirements.
David owns a successful 75-room Hawthorn Suites property and wants to acquire a second location in a nearby city. He has significant equity in his first property and a strong track record.
His financing solution: Crestmont Capital leverages a cash-out refinance on David's existing property to generate $1.2 million in equity for the second acquisition. An SBA 504 loan covers the new property purchase, with the bank providing 50%, the SBA providing 40%, and David's equity covering the remaining 10%.
Outcome: David acquires a second property without depleting his cash reserves, maintains healthy liquidity, and benefits from economies of scale in purchasing and management.
The Chen family owns an aging independent extended-stay property that's been losing ground to branded competitors. They want to convert to Hawthorn Suites by Wyndham to access the Wyndham Rewards ecosystem and improve bookings.
Their financing solution: A $2.1 million equipment and renovation loan from Crestmont Capital funds the conversion costs, including new furnishings, kitchen equipment upgrades, technology systems, and exterior refresh. The existing commercial mortgage stays in place, and the conversion loan is structured over 7 years.
Outcome: Post-conversion, the property's ADR increases 22% and online visibility improves dramatically through Wyndham's distribution channels. The improved revenue stream easily covers the additional debt service.
Join hundreds of hotel franchise owners who have trusted Crestmont Capital for their financing needs.
Apply Now →Total investment for a Hawthorn Suites franchise typically ranges from $3 million to $15 million or more, depending on property size, location, and whether you're doing a new construction or acquiring an existing property. The initial franchise fee is generally $40,000 to $60,000, with ongoing royalties around 4.5% to 5% of gross room revenue plus marketing and reservation fees.
SBA 7(a) and SBA 504 loans are the most popular programs for hotel franchise financing because they offer lower down payments (10-20%), longer terms (up to 25 years), and competitive interest rates. For larger projects or multiple property acquisitions, conventional commercial real estate loans may offer more flexibility. Crestmont Capital can help you determine the best fit based on your specific situation.
Most lenders require that you have liquid assets equal to at least 10% to 20% of the total project cost as a down payment, plus operating reserves. For an SBA 7(a) loan on a $5 million hotel acquisition, you might need $500,000 to $1 million in liquid capital, plus reserves. Wyndham itself typically requires franchise candidates to demonstrate sufficient net worth and liquidity as part of their approval process.
Yes. Conversion financing is available through equipment loans, renovation loans, and SBA programs. Crestmont Capital specializes in hotel conversion financing and can structure a loan that covers the cost of meeting Hawthorn Suites brand standards, including furniture, fixtures, equipment upgrades, technology systems, and exterior improvements. Many conversions qualify for SBA 7(a) financing when the borrower owns the property.
Most SBA hotel loans require a personal credit score of at least 680, with 700+ giving you access to better rates and terms. Some alternative lenders may work with scores as low as 620, but expect higher interest rates. Your business credit profile, hospitality experience, and the quality of the underlying property are also important factors. Crestmont Capital can help you understand where you stand before you apply.
SBA loan approvals for hotel properties typically take 60 to 90 days from completed application to closing. Conventional commercial real estate loans may close faster (30-60 days) but have stricter underwriting standards. Pre-qualification from Crestmont Capital can often be obtained within 48 hours, giving you a clear picture of your options before you commit to a property.
Relevant hospitality or real estate experience significantly strengthens your loan application, but it's not always required. Wyndham evaluates franchise candidates holistically, considering management experience, financial strength, and willingness to hire qualified hotel management professionals. From a lending perspective, Crestmont Capital has helped first-time hotel investors secure financing when they demonstrate strong financial profiles and a solid business plan.
DSCR stands for Debt Service Coverage Ratio. It measures how many times a property's net operating income (NOI) covers its annual debt payments. A DSCR of 1.25x means the property generates $1.25 for every $1.00 of debt service, which is the typical minimum required by SBA lenders. For hotel loans, lenders will model your projected occupancy, ADR, operating expenses, and royalty fees to determine whether the property can support the requested debt load.
Yes. SBA 7(a) loans can cover a combination of costs including property acquisition, renovation, equipment, franchise fees, working capital, and closing costs. This makes the SBA 7(a) particularly versatile for franchise investors who want to consolidate their financing needs into a single loan with favorable terms. Crestmont Capital can help you structure an SBA 7(a) package that covers your full capital need.
Wyndham has a dedicated development team that assists potential franchisees in understanding the investment requirements and connecting them with resources, including preferred lending partners. However, Wyndham does not directly lend money to franchisees. Most franchisees work with independent lenders like Crestmont Capital, which have experience with Wyndham-branded properties and understand how to present these deals to lending institutions.
Extended-stay hotels like Hawthorn Suites offer several financial advantages: longer stays mean more predictable revenue, lower housekeeping costs per room-night, lower guest turnover, and higher average occupancy rates during economic downturns when business travelers reduce transient travel but still need extended accommodations for project work, training, or relocation. The extended-stay segment has consistently outperformed other hotel categories in RevPAR growth over the past decade.
Both paths have advantages. Buying an existing property provides immediate cash flow, an established guest base, and historical performance data that strengthens your loan application. Building new allows you to design the property to current brand standards and select your preferred location, but requires longer timelines and carries construction risk. New construction typically requires a larger equity contribution. Crestmont Capital has experience financing both and can advise based on your specific opportunity.
Yes, refinancing an existing hotel loan is common, especially when interest rates drop, your property value has increased, or your financial profile has improved since the original loan. Cash-out refinancing can also free up equity for a second acquisition or property improvements. Crestmont Capital regularly helps hotel owners evaluate whether refinancing makes financial sense and can model the break-even analysis for you.
Typical documentation includes: 3 years of personal and business tax returns, personal financial statement, business plan with financial projections, property appraisal or purchase agreement, franchise disclosure document (FDD), proof of experience or resume, bank statements (3-6 months), any existing property leases or mortgage documents, and entity formation documents (LLC, corporation). Crestmont Capital provides a complete document checklist when you apply.
Most hotel loan agreements include provisions for interest-only periods during the ramp-up phase, typically 12 to 24 months after opening. Having a working capital reserve and a line of credit is critical during this period. If performance falls significantly below projections, it's important to communicate proactively with your lender. SBA loans have workout options and deferral programs in cases of documented hardship. Crestmont Capital's loan advisors will help you plan for contingencies before you close.
Hawthorn Suites by Wyndham represents a compelling opportunity in the extended-stay hospitality sector, combining the power of Wyndham's global distribution and loyalty network with the strong fundamentals of long-term guest accommodations. The investment is substantial, but so is the potential for stable, recurring revenue that outperforms traditional hotel categories over the long term.
Financing a Hawthorn Suites franchise requires careful planning, the right capital structure, and a lending partner who understands the hospitality industry. Crestmont Capital has helped hotel entrepreneurs across the country secure the financing they need to turn their investment goals into operating realities.
Whether you're buying your first extended-stay property or expanding an existing portfolio, our team is ready to help you find the right financing solution. Apply today and take the next step toward Hawthorn Suites franchise ownership.
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Apply Now →Disclaimer: The information provided in this article is for general educational purposes only and does not constitute financial, legal, or investment advice. Franchise costs, fees, and loan terms vary based on individual circumstances, market conditions, and lender requirements. Consult with qualified financial and legal professionals before making any investment decisions. Crestmont Capital is not affiliated with Wyndham Hotels & Resorts or Hawthorn Suites by Wyndham.