How much does a Microtel by Wyndham franchise cost in 2026?
Last updated: By Nate Solomon, Matthews Hotel Markets
Wyndham's Microtel disclosure document, issued March 31, 2026, estimates $7,511,622 to $9,558,175 to build an 81-room Microtel Inn and Suites, or $92,736 to $118,002 per room, before land. The initial fee is the greater of $40,000 or $400 per room. The royalty is 6 percent and the marketing and reservation contribution 2 percent of gross room revenue.[1]
Key takeaways
- Initial fee: the greater of $40,000 or $400 per guest room, with a $2,500 application fee credited toward it. The relicense fee on a sale uses the same formula.[1]
- Royalty: 6 percent of gross room revenue. Marketing and reservation contribution: 2 percent.[1]
- Item 7 prices new construction only: $7,511,622 to $9,558,175 for 81 rooms, excluding land.[1]
- Term: 20 years, with no renewal right. Liquidated damages: the greater of $3,000 per room or 36 months of average recurring fees.[1]
- Fees change every year. Wyndham's current FDD and the signed franchise agreement govern, not this page.
How is the Microtel FDD different from Wyndham's other economy brands?
Microtel is the new construction brand in this group. Its 2026 Item 7 prices only an 81-room new building, its royalty is 6 percent with a 2 percent marketing contribution, and its liquidated damages run 36 months.[1]
Wyndham files its brands on a shared template, so the booking fees, the Wyndham Rewards charge and the technology schedule read the same as on the Super 8 guide and the Days Inn guide. The numbers that move are these. Super 8's 2026 FDD lists a 5.5 percent royalty and a 3 percent system assessment fee, an initial fee of the greater of $25,000 or $250 per room, and liquidated damages of the greater of $2,000 per room or 24 months of average fees.[3] Microtel lists 6 percent and 2 percent, the greater of $40,000 or $400 per room, and the greater of $3,000 per room or 36 months (Item 5, p. 26; Item 6, pp. 29, 42).[1]
The Super 8 Item 7 includes a conversion table. The Microtel Item 7 does not, and its Item 19 breaks out hotels newly built since 2019.[1][3] The shared mechanics are explained once on the hotel franchise cost hub, so they are kept short here.
What does Wyndham charge up front for a Microtel franchise?
The 2026 Microtel FDD lists an initial fee for a new construction hotel equal to the greater of $40,000 or $400 per guest room, with a non-refundable $2,500 application fee credited toward it.[1]
The franchisor states that initial fees in 2025 ranged from $16,000 to $25,000, and that it may negotiate the amount and payment terms when business circumstances warrant (Item 5, pp. 26-27).[1]
The SynXis property management system carries a one-time $6,000 set-up and implementation fee. The OPERA alternative runs $11,000 to $22,100 plus interfaces. The Wyndham Gateway internet portal equipment is $1,500. A new construction franchisee must attend a Development Open House within six months of signing, at $1,499. A custom interior design review is up to $6,000, and an extension of the opening deadline is $5,000 (Item 5, pp. 27-28).[1]
What are the ongoing Microtel franchise fees?
The 2026 Microtel Item 6 lists a 6 percent royalty and a 2 percent marketing and reservation contribution, both on gross room revenue and due monthly.[1]
The franchisor may raise any fixed-dollar fee by up to 10 percent a year, cumulatively (Item 6, pp. 29, 42).[1] The Wyndham Rewards loyalty program charge is 4.25 to 5.5 percent of the amounts on which members earn points, varying with the hotel's enrollment results (Item 6, p. 36).[1]
Global distribution, third-party channel and internet booking fees are each $2.08 per reservation. The mandatory digital pay-for-performance commission is currently 7 percent, and can be up to 10 percent, of gross room revenue on reservations that arrive through paid search and similar links. The Wyndham Connect Plus service is 3.5 percent of gross room revenue on each reservation it books. Agency commissions can reach 20 percent (Item 6, pp. 32-33, 35).[1]
Property management system support is $734 to $1,050 per month for SynXis and the lower OPERA tiers. Standard revenue management service is optional at 0.75 percent of gross room revenue, with a $645 monthly minimum and a $1,395 maximum (Item 6, pp. 35, 38).[1] These charges apply to different bases, so they cannot be added into one rate.
How much does it cost to build a Microtel?
The 2026 Microtel Item 7 estimates $7,511,622 to $9,558,175 for an 81-room new construction hotel, which the FDD states as $92,736 to $118,002 per room, excluding land.[1]
Facility construction is the largest line at $5,895,800 to $7,209,975, with a contingency set at 5 percent of that. The FDD says the construction line includes minimal sitework and landscaping. Furniture, fixtures and equipment run $455,709 to $498,451, opening inventory $275,875 to $299,373, signage $40,000 to $100,000, and architecture, engineering, permits and related fees $182,250 to $485,500. Three months of additional funds are $118,052 to $183,647, which the FDD says excludes debt service and rent (Item 7, pp. 44-47).[1]
The table does not include real estate. The franchisor says a site of about one to two acres is needed, and that impact fees, site evaluation, geotechnical and civil engineering fees are not in the estimate (Item 7, p. 46).[1] The FDD gives no estimate for improving an existing Microtel on a sale. That work is covered at PIP and renovation loans, a re-flag at brand conversion financing, and a build at hotel construction loans.
How long is a Microtel franchise agreement, and what does leaving cost?
The Microtel term is 20 years, starting the first day of the month after the opening date, and Item 17 states there are no renewal or extension rights.[1]
If both sides choose to renew, the franchisee signs the then current franchise agreement, which may have materially different terms, and pays the then current relicense fee. The franchisee's termination rights in Item 17 are limited to casualty and condemnation (Item 17, pp. 75-76).[1]
Liquidated damages are the greater of $3,000 per guest room or the average monthly recurring fees for the 12 months before termination, multiplied by 36. Recurring fees are the royalty and the marketing and reservation contribution. If fewer than 36 months remain, the average is multiplied by the months remaining. Termination before opening is charged at one half of the formula amount. The room count is the number the franchisor authorized, regardless of later reductions. Payment is due within 10 days. An owner who does not de-identify afterward owes $2,000 per day, and reconnecting to the reservation system after a suspension is currently $4,000 (Item 6, pp. 41-43).[1]
What happens to the Microtel franchise when I sell the hotel?
The buyer submits a franchise application and pays the application fee and a relicense fee equal to the greater of $40,000 or $400 per room.[1]
The buyer signs the then current franchise agreement and must improve the hotel to the standards for hotels entering the chain. The seller and its owners sign general releases unless the law restricts them, and the seller may have to repay a development incentive unless the franchisor consents to the buyer assuming it. The FDD reports that 2025 relicense fees for transfers and renewals ranged from $25,000 to $40,000. An assignment to an affiliate of the original franchisee is a flat $5,000, and an assignment to a lender or receiver is $7,500 (Item 5, pp. 26-27; Item 6, p. 29; Item 17, pp. 77-78).[1]
A property improvement plan prepared after opening is currently $1,500 per request, a three-party agreement or lender comfort letter is $1,000, and taking over an existing property management system without an upgrade is $995 (Item 5, p. 27; Item 6, pp. 30, 41).[1] Wyndham-flagged hotels on the market are listed at Wyndham hotels for sale, and the flag decision is weighed at Should I buy a branded or independent hotel?.
What does Item 19 say about Microtel performance?
The 2026 Microtel Item 19 reports that 141 qualified Microtel hotels averaged a $103.41 average daily rate, 57.6 percent occupancy and $59.60 RevPAR in 2025.[1]
There were 307 Microtel hotels in the United States and Canada at December 31, 2025. The 141 qualified hotels are those with at least ten guest reviews in 2025 averaging 4.0 or better out of 5.0, excluding hotels that had not yet had a quality assurance inspection. Eight hotels that left the system during 2025 are excluded. The median RevPAR was $57.98, and 64 of the 141, or 45.4 percent, met or exceeded the average. The 24 qualified hotels newly built and opened since January 1, 2019 averaged a $125.26 rate and $73.29 RevPAR (Item 19, pp. 81-82).[1]
The FDD reports an average competitive set RevPAR index of 108.5 percent for the qualified hotels, from Smith Travel Research data the franchisor says it has not audited or verified, and notes that 40 percent of the hotels in those competitive sets were economy hotels. For all 307 hotels it reports an average central reservation system contribution of 85.5 percent of gross room revenue, of which Wyndham Rewards members account for 60.7 percent. The central reservation figure includes third-party websites (Item 19, pp. 82-83).[1]
More than half of the system did not meet the review-score screen, so the qualified averages describe the better-reviewed hotels, not the whole brand. Item 19 gives rate, occupancy and revenue measures only. It gives no expenses and no profit, and this page draws no profit conclusion from it. The measures are defined at RevPAR and ADR.
Microtel Inn and Suites by Wyndham franchise fees, 2026 FDD issued March 31, 2026
| Fee | Amount | Where in the FDD |
|---|---|---|
| Application fee | $2,500, non-refundable, credited toward the initial fee[1] | Item 5, p. 26 |
| Initial fee, new construction | Greater of $40,000 or $400 per guest room[1] | Item 5, p. 26 |
| Relicense fee, transfer or renewal | Greater of $40,000 or $400 per guest room[1] | Item 5, p. 26; Item 6, p. 29 |
| Royalty | 6% of gross room revenue[1] | Item 6, p. 29 |
| Marketing and reservation contribution | 2% of gross room revenue[1] | Item 6, p. 29 |
| Wyndham Rewards loyalty program charge | 4.25% to 5.5% of amounts on which members earn points[1] | Item 6, p. 36 |
| GDS, third-party channel and internet booking fees | $2.08 per reservation, each[1] | Item 6, p. 32 |
| Digital pay-for-performance commission | Currently 7%, up to 10%, of gross room revenue on qualifying reservations[1] | Item 6, p. 33 |
| Wyndham Connect Plus | 3.5% of gross room revenue on each reservation booked through the service[1] | Item 6, p. 35 |
| Property management system support | $734 to $1,050 per month[1] | Item 6, p. 38 |
| Development Open House (new construction) | $1,499[1] | Item 5, p. 28 |
| PIP preparation fee, after opening | $1,500 per request[1] | Item 6, p. 30 |
| Liquidated damages | Greater of $3,000 per room or 36 times average monthly recurring fees[1] | Item 6, p. 42 |
| Estimated initial investment, new 81-room hotel | $7,511,622 to $9,558,175; $92,736 to $118,002 per room, excluding land[1] | Item 7, p. 45 |
Worked example
Hypothetical: a year of Microtel brand fees on assumed room revenue
Hypothetical. Assume an 81-room Microtel earns $1,750,000 of gross room revenue in a year. The revenue figure and the member share below are assumptions for arithmetic. They are not forecasts and they are not figures from the FDD.
Initial or relicense fee: 81 rooms x $400 = $32,400, which is under $40,000, so $40,000. At 120 rooms it would be $48,000.[1]
Royalty at 6 percent: $1,750,000 x 0.06 = $105,000.[1]
Marketing and reservation contribution at 2 percent: $1,750,000 x 0.02 = $35,000.[1]
Together: $140,000, or 8 percent of room revenue.
If Wyndham Rewards members earn points on $700,000 of that revenue, the loyalty program charge at 4.25 to 5.5 percent is $29,750 to $38,500.[1]
On the same assumptions, 36 months of average recurring fees is $140,000 / 12 x 36 = $420,000. That is more than $3,000 x 81 rooms = $243,000, so $420,000 would be the liquidated damages figure under the Item 6 formula.[1] Per-reservation fees, commissions, technology support and training come on top and depend on the hotel's booking channels, so they are not estimated here.
Frequently asked
- How much does a Microtel franchise cost?
- The 2026 FDD lists an initial fee of the greater of $40,000 or $400 per room, a 6 percent royalty and a 2 percent marketing and reservation contribution. Item 7 estimates $7,511,622 to $9,558,175 to build an 81-room hotel, excluding land.[1]
- What percent of revenue does Wyndham take from a Microtel?
- A 6 percent royalty plus a 2 percent marketing and reservation contribution on gross room revenue. Loyalty charges, booking fees, commissions and technology support are billed on other bases on top.[1]
- I'm buying a small Microtel. What is the relicense fee?
- The greater of $40,000 or $400 per room, so $40,000 for any hotel of 100 rooms or fewer, plus the $2,500 application fee. The FDD says 2025 relicense fees ranged from $25,000 to $40,000.[1]
- Can I convert an existing hotel to a Microtel?
- The 2026 Item 7 prices only an 81-room new construction hotel and gives no conversion estimate. Item 5 does mention conversion facilities, so ask the franchisor what it would require for a specific building.[1]
- How long is a Microtel franchise agreement?
- Twenty years. Item 17 states there are no renewal or extension rights. A renewal, if both sides agree, means signing the then current agreement and paying the relicense fee.[1]
- What does it cost to leave Microtel early?
- The greater of $3,000 per guest room or 36 times the average monthly royalty and marketing contribution for the prior 12 months, due within 10 days. Before opening it is one half of that.[1]
- Will these Microtel fees be the same next year?
- Not necessarily. The FDD is reissued every year, and the franchisor may raise any fixed-dollar fee by up to 10 percent a year. The current FDD and the signed agreement govern.[1]
Who wrote this
Hospitality Associate, Matthews Hotel Markets
(512) 839-6999nate.solomon@matthews.comLinkedIn
Reviewed by Luke Thompson, VP & Director, Capital Markets.
Sources
- Microtel Inn and Suites by Wyndham Franchise Disclosure Document (issued March 31, 2026): Item 5, pp. 26-28; Item 6, pp. 29-43; Item 7, pp. 44-47; Item 17, pp. 75-80; Item 19, pp. 80-83. Wisconsin DFI franchise registration file 640626 · Microtel Inns and Suites Franchising, Inc., filed with the Wisconsin Department of Financial Institutions · accessed September 18, 2026
- Matthews Hotel Markets September 2026 rate sheet · Matthews Hotel Markets · accessed September 18, 2026
- Super 8 Franchise Disclosure Document (issued March 31, 2026): Item 5, p. 24; Item 6, pp. 27, 37; Item 7, pp. 39-46. Wisconsin DFI franchise registration file 640628 · Super 8 Worldwide, Inc., filed with the Wisconsin Department of Financial Institutions · accessed September 18, 2026
Related
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Matthews Hotel Markets sells and finances franchised hotels, so we read these disclosure documents alongside owners and buyers.