The total initial investment for a Westin Hotel franchise typically ranges from $15 million to over $80 million. This wide range depends on factors such as land costs, location, hotel size, and whether it is a new construction or a conversion project. The Franchise Disclosure Document (FDD) from Marriott provides a detailed breakdown.

The initial franchise fee is generally the greater of $100,000 or $800 per guest room. This fee grants you the license to operate under the Westin brand name and access their systems. This is just one component of the overall Westin hotel franchise cost.

Westin franchisees typically pay a royalty fee of around 6% of gross monthly room revenue. Additionally, there is a marketing and reservation systems contribution that usually amounts to 2-4% of gross room revenue to support Marriott's global promotional efforts.

While specific requirements vary by project scale, lenders and Marriott generally expect an investment group to have a collective net worth significantly higher than the loan amount (often $10M+) and possess several million dollars in liquid assets to cover the down payment, pre-opening costs, and operational reserves.

Common financing options include conventional commercial real estate loans, SBA 504 loans (for fixed assets), construction loans for new builds, bridge loans for conversions or renovations, and capital from private equity partners. Often, a combination of these sources is used to create the optimal capital stack.

Yes. The SBA 504 loan program is particularly well-suited for hotels because it is designed for large fixed-asset purchases. While the SBA-guaranteed portion has a maximum (around $5 million), it can be combined with a larger conventional loan to finance a significant portion of the total project cost.

Lenders typically require a down payment, or equity injection, of 20% to 40% of the total project cost. The exact amount depends on the loan type, the strength of the borrower, and the perceived risk of the project.

For a project of this magnitude, the financing process from initial application to closing can take anywhere from 60 to 120 days, or even longer. This timeline depends on the complexity of the deal, the completeness of your application package, and the time required for third-party reports like appraisals and environmental assessments.

Yes, significant hospitality experience is a critical requirement for both Marriott and lenders. If you or your investment group do not have direct, high-level hotel management experience, you will need to partner with a reputable, Marriott-approved third-party hotel management company.

A PIP is a list of mandatory renovations and upgrades required by the franchisor (Marriott) when an existing hotel is converted to one of their brands, like Westin. The goal is to ensure the property meets all current brand standards for design, amenities, and guest experience. The cost of the PIP must be included in your financing plan.

Marriott International does not typically offer direct financing to its franchisees. However, they may maintain a list of preferred lenders who are experienced with their brands and franchise requirements. Working with a financing partner like Crestmont Capital can connect you to these and other experienced hotel lenders.

The Franchise Disclosure Document (FDD) is provided by Marriott's franchise development team after you have gone through their initial application and qualification process. It is a legally required document that contains extensive detail about the franchise opportunity, including all costs and fees.

While all documents are important, the third-party market feasibility study and the resulting financial pro forma are arguably the most critical. These documents provide an independent, data-driven analysis of your project's potential for success, which is what lenders rely on heavily to assess risk.

Both strategies have pros and cons. New construction allows you to build a state-of-the-art property perfectly to brand standards but involves higher costs and longer timelines. A conversion can be faster and less expensive but may involve compromises and a costly PIP. The best choice depends on the specific market, site availability, and your investment goals.

Crestmont Capital acts as your expert financing partner. We assess your project, help you prepare a lender-ready application package, and leverage our extensive network of banks and financial institutions to find the best possible loan terms. We manage the process from start to finish, saving you time and increasing your chances of securing funding.