How much does a WoodSpring Suites franchise cost in 2026?
Last updated: By Nate Solomon, Matthews Hotel Markets
Choice Hotels' WoodSpring Suites disclosure document, issued April 1, 2026 and amended May 20, 2026, estimates $8,835,420 to $14,566,908 to build a 122-room WoodSpring Suites, before real estate. The affiliation fee is $50,000 for a prototype of 122 rooms or fewer. The royalty is 6.0 percent and the marketing and reservation fee 2.5 percent of gross room revenues.[1]
Key takeaways
- Affiliation fee: $50,000 for a new hotel of 122 rooms or fewer and $60,000 for a transfer or renewal, plus $300 per room over 122.[1]
- Royalty: 6.0 percent of gross room revenues. Marketing and reservation fee: 2.5 percent.[1]
- Item 7: $8,835,420 to $14,566,908 for 122 rooms, or $72,421 to $119,401 per room, excluding real estate.[1]
- Item 19 is unusual: it reports revenue, operating costs and gross operating profit for 176 franchised hotels, not only rate and occupancy.[1]
- Fees change every year. Choice's current FDD and the signed franchise agreement govern, not this page.
What is different about the WoodSpring Suites FDD?
WoodSpring Suites is Choice's purpose-built economy extended-stay brand, and its 2026 FDD differs from Choice's transient brands in three places: a flat affiliation fee, a 2.5 percent marketing fee, and an Item 19 that reaches down to gross operating profit.[1]
Choice's Quality FDD of the same date charges its affiliation fee per room, sets the marketing and reservation fee at 3.5 percent, and gives both sides a right to terminate on the 5th, 10th or 15th anniversary.[3] The WoodSpring FDD charges a flat $50,000 up to 122 rooms, sets the marketing and reservation fee at 2.5 percent, and lists no anniversary termination windows. Its liquidated damages formula can run to 60 months where Quality's stops at 36 (Item 5, p. 24; Item 6, pp. 27, 36; Item 17, pp. 69-70).[1][3]
The WoodSpring Item 6 table lists no Choice Privileges rewards program fee. It does list a Google Hotel Price Ads fee of 12 percent of the gross room revenue those ads generate (Item 6, p. 28).[1] Loans for this segment are covered at extended-stay hotel financing. The shared mechanics are explained once on the hotel franchise cost hub.
What does Choice charge up front for a WoodSpring Suites franchise?
The 2026 WoodSpring FDD lists a $50,000 affiliation fee for a new hotel on the current 122-room prototype and $60,000 for a transfer or renewal, each plus $300 per room above 122.[1]
A non-refundable $5,000 application fee is credited toward the affiliation fee, and once paid the affiliation fee is non-refundable. A developer who signs a master development agreement pays a rights deposit of $50,000 times the number of hotels on the schedule. Choice states that affiliation fees on new WoodSpring agreements in the 12 months ending December 31, 2025 ranged from $0 to $50,000 (Item 5, p. 24).[1]
A first-time WoodSpring developer must buy construction advisory services: $20,000 for five site visits, and about $4,000 for each extra visit. The mandatory Brand in a Box program costs about $11,550 to $30,000. Owner immersion training is up to $1,950 per attendee and the general manager certification up to $1,500. An owner who has never run an extended-stay hotel and does not use a management company may have to take a further program at about $2,500 to $7,500. An extension of the construction deadline is $5,000 per three months (Item 5, pp. 25-27).[1]
What are the ongoing WoodSpring Suites franchise fees?
Choice's 2026 Item 6 lists a 6.0 percent royalty and a 2.5 percent marketing and reservation fee, both on the preceding month's gross room revenues.[1]
The royalty and liquidated damages are the only fees Choice says are not subject to change (Item 6, pp. 27, 37).[1] Distribution charges sit on other bases. The Google Hotel Price Ads fee is 12 percent of gross room revenue from reservations that program generates, based on the original booked length of stay. Third-party distribution is $3.00 per consumed reservation from directly connected online travel agents, and global distribution system reservations are currently $7.70 each (Item 6, pp. 28-29).[1]
The property technology and service fee is $6.10 per room per month, with a $400 minimum and a $560 maximum. Revenue management is optional: ChoiceROCS service is $890 to $1,400 per month and ChoiceMAX software $235 to $360 per month, with a set-up fee of up to $4,500 for hotels that take a system. The optional ResConnect program is $3.00 per call transferred (Item 6, pp. 29-31, 33).[1] These charges apply to different bases, so they cannot be added into one rate.
How much does it cost to build a WoodSpring Suites?
Choice's 2026 Item 7 estimates $8,835,420 to $14,566,908 for a 122-room WoodSpring Suites, which Choice states as $72,421 to $119,401 per room, excluding real estate.[1]
Construction, excluding soft costs, is the largest line at $7,720,000 to $12,570,000. Choice says that line leaves out sitework, project management fees, general contractor profit and permits. Furniture, fixtures and equipment, including opening inventory and systems, run $714,920 to $822,158, and the FDD says there is only one approved vendor for those items. Professional design services are $200,000 to $450,000. Additional funds are estimated for six months, at $30,000 to $200,000 (Item 7, pp. 38-40).[1]
Choice does not estimate land. It says the 122-room prototype generally needs at least 2 acres (Item 7, p. 40).[1] Financing for a build is covered at hotel construction loans, and work on an existing hotel at brand conversion financing and PIP and renovation loans.
How long is a WoodSpring Suites franchise agreement, and what does leaving cost?
The WoodSpring term is 20 years after the opening date, the FDD lists no renewal provision, and Item 17 lists no without-cause termination right for either side.[1]
Item 17 says the franchisee may terminate on any grounds permitted by law, and marks termination by Choice without cause as not applicable. For a replacement agreement on an existing WoodSpring hotel, Choice may offer a term shorter than 20 years (Item 17, pp. 69-70).[1]
If Choice terminates for the franchisee's default after opening, liquidated damages are the greater of $70 per room per month, or the average monthly gross room revenues for the last 12 months times the royalty rate, in each case multiplied by the months until the next date the franchisee could terminate without penalty, capped at 60 months. Before opening, the amount is the room count times 36 months times $70. Reinstatement to the reservation system after a suspension is $5,000 (Item 6, p. 36).[1]
What happens to the WoodSpring Suites franchise when I sell the hotel?
A buyer of a controlling interest must meet Choice's qualifications, sign the then current franchise agreement and pay a relicensing fee equal to the then current affiliation fee.[1]
Item 6 sets the transfer fee for 50 percent or more of the equity at the then current affiliation fee or $60,000, whichever is greater. The buyer also pays a $3,000 property improvement plan fee and $995 for relicensing training. A transfer of less than 50 percent carries a $7,500 assumption fee, which Choice says it may waive case by case. The WoodSpring Item 17 lists no right of first refusal (Item 5, pp. 25, 27; Item 6, pp. 32-33; Item 17, p. 71).[1]
A lender comfort letter is $2,500, plus $500 if needed within one to three days (Item 6, p. 34).[1] Choice-flagged hotels on the market are listed at Choice Hotels for sale, and the flag decision is weighed at Should I buy a branded or independent hotel?.
What does Item 19 say about WoodSpring Suites revenue and costs?
Choice's 2026 Item 19 reports that 176 franchised WoodSpring hotels averaged 76.8 percent occupancy, a $61.30 average daily rate, $47.01 RevPAR and total revenue of $2,144,155 in 2025, with average gross operating profit of $1,163,271, or 53.3 percent.[1]
There were 284 open WoodSpring hotels at December 31, 2025. The table covers the 176 that were open for all of 2025 and gave Choice a complete full-year operating statement. It leaves out hotels that did not, and any hotel that was company-owned at any time in 2025. The median gross operating profit was $1,153,118, the range was $168,344 to $2,354,597, and 85 hotels, or 48 percent, exceeded the average. Guests staying seven nights or more made up 85.4 percent of occupied room nights, and the average stay was 12.2 nights (Item 19, pp. 75-76).[1]
The same table lists average rooms department costs of $303,160 and average undistributed operating costs of $672,961, including $171,619 of sales and marketing, the line that the FDD says holds royalty and advertising fees. A second table covers the 102 hotels built since late 2015 on the current prototype, which averaged $51.89 RevPAR and $1,314,833 of gross operating profit. A third covers 74 older former Value Place hotels (Item 19, pp. 76-79).[1]
Gross operating profit is not net income. As the FDD defines it, it is total revenue less departmental and undistributed operating costs. Management fees, property taxes, insurance, reserves and debt service are not among the cost lines the table lists, and all of them come before an owner's cash flow. The figures are franchisee-reported, and Choice states that there is no assurance a buyer will earn as much (Item 19, pp. 78-80).[1] This page draws no conclusion about what any one hotel will earn. The measures are defined at RevPAR, ADR and NOI.
WoodSpring Suites franchise fees, 2026 FDD issued April 1, 2026, as amended May 20, 2026
| Fee | Amount | Where in the FDD |
|---|---|---|
| Affiliation fee, new hotel | $50,000 for 122 rooms or fewer, plus $300 per room over 122; $5,000 application fee credited toward it[1] | Item 5, p. 24 |
| Affiliation fee, transfer or renewal | $60,000 for 122 rooms or fewer, plus $300 per room over 122[1] | Item 5, p. 24 |
| Royalty fee | 6.0% of gross room revenues[1] | Item 6, p. 27 |
| Marketing and reservation fee | 2.5% of gross room revenues[1] | Item 6, p. 27 |
| Google Hotel Price Ads program fee | 12% of gross room revenue from reservations the program generates[1] | Item 6, p. 28 |
| Third-party distribution and GDS | $3.00 per consumed reservation; GDS currently $7.70 per reservation[1] | Item 6, pp. 28-29 |
| Property technology and service fee | $6.10 per room per month, $400 minimum, $560 maximum[1] | Item 6, p. 29 |
| Revenue management (optional) | ChoiceROCS $890 to $1,400 per month; ChoiceMAX $235 to $360 per month[1] | Item 6, p. 30 |
| Construction advisory services (first WoodSpring build) | $20,000 for five site visits; about $4,000 per extra visit[1] | Item 5, p. 25 |
| Transfer fee, 50% or more of equity | Then current affiliation fee or $60,000, whichever is greater[1] | Item 6, p. 32 |
| Property improvement plan fee on transfer | $3,000[1] | Item 6, p. 33 |
| Liquidated damages, after opening | Greater of $70 per room per month or average monthly gross room revenues times the royalty, times months to the next penalty-free termination date, up to 60[1] | Item 6, p. 36 |
| Estimated initial investment, new 122-room hotel | $8,835,420 to $14,566,908; $72,421 to $119,401 per room, excluding real estate[1] | Item 7, p. 40 |
| Item 19 average gross operating profit, 176 hotels, 2025 | $1,163,271, or 53.3% of total revenue; before management fees, property taxes, insurance and debt service[1] | Item 19, p. 76 |
Worked example
Hypothetical: a year of WoodSpring Suites brand fees on assumed room revenue
Hypothetical. Assume a 122-room WoodSpring Suites earns $2,000,000 of gross room revenues in a year. The revenue figure is an assumption for arithmetic. It is not a forecast and it is not a figure from the FDD.
Royalty fee at 6.0 percent: $2,000,000 x 0.06 = $120,000.[1]
Marketing and reservation fee at 2.5 percent: $2,000,000 x 0.025 = $50,000.[1]
Together: $170,000, or 8.5 percent of room revenue.
Property technology and service fee: 122 rooms x $6.10 = $744.20 per month, which is over the $560 maximum, so $560 per month, or $6,720 for the year.[1]
On the same assumptions, at the 60-month cap, the revenue side of the liquidated damages formula is $2,000,000 / 12 x 0.06 x 60 = $600,000. That is more than $70 x 122 rooms x 60 months = $512,400, so $600,000 would apply.[1] Google Hotel Price Ads fees, per-reservation charges, commissions 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 WoodSpring Suites franchise cost?
- Choice's 2026 FDD lists a $50,000 affiliation fee for 122 rooms or fewer, a 6.0 percent royalty and a 2.5 percent marketing and reservation fee. Item 7 estimates $8,835,420 to $14,566,908 to build 122 rooms, before real estate.[1]
- How much does it cost per room to build a WoodSpring Suites?
- Choice's 2026 Item 7 states $72,421 to $119,401 per room for the 122-room prototype. That excludes land, and the construction line excludes sitework, contractor profit and permits.[1]
- What percent of revenue does Choice take from a WoodSpring Suites?
- A 6.0 percent royalty plus a 2.5 percent marketing and reservation fee on gross room revenues. Technology, Google Hotel Price Ads fees and per-reservation charges are billed on other bases on top.[1]
- Does the WoodSpring Suites FDD show profit?
- It shows gross operating profit, which averaged $1,163,271, or 53.3 percent of revenue, for 176 franchised hotels in 2025. That is before management fees, property taxes, insurance, reserves and debt service, so it is not net income.[1]
- How much land does a WoodSpring Suites need?
- The 2026 FDD says the 122-room prototype generally requires a minimum of 2 acres. Choice does not estimate the cost of the land.[1]
- I'm buying a WoodSpring Suites. What does the relicensing cost?
- For 50 percent or more of the equity, the then current affiliation fee or $60,000, whichever is greater, plus a $3,000 property improvement plan fee and $995 for relicensing training.[1]
- Will these WoodSpring Suites fees be the same next year?
- Not necessarily. Choice says all fees except the royalty and liquidated damages are subject to change, and it reissues the FDD every 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
- WoodSpring Suites Franchise Disclosure Document (issued April 1, 2026, as amended May 20, 2026): Item 5, pp. 24-27; Item 6, pp. 27-38; Item 7, pp. 38-42; Item 17, pp. 69-75; Item 19, pp. 75-80. Minnesota CARDS document 35788-202604-11, file number 8459, Clean FDD · Choice Hotels International, Inc., filed with the Minnesota Department of Commerce · accessed September 18, 2026
- Matthews Hotel Markets September 2026 rate sheet · Matthews Hotel Markets · accessed September 18, 2026
- Quality Franchise Disclosure Document (issued April 1, 2026, as amended May 20, 2026): Item 5, p. 25; Item 6, pp. 28, 40; Item 17, p. 72. Minnesota CARDS document 36789-202606-03, file number 48, Clean FDD · Choice Hotels International, Inc., filed with the Minnesota Department of Commerce · accessed September 18, 2026
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Terms defined in the glossary
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